Document:

Exhibit 10.157

AMENDED AND RESTATED CONTRIBUTION AGREEMENT
by and between
ELP MC Venture, LLC
a Delaware limited liability company
and
Lodging Fund REIT III OP, LP
a Delaware limited partnership
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Dated as of February 8, 2022
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TABLE OF CONTENTS
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	1.
	Defined Terms
	1

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	2.
	Contribution; Total Consideration; Inspection and Title
	5

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	2.1
	Contribution of Property
	5

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	2.2
	Contribution of Assets
	6

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	2.3
	Inventory
	6

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	2.4
	Excluded Assets
	6

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	2.5
	Assumed Liabilities
	6

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	2.6
	Excluded Liabilities
	6

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	2.7
	Existing Loans and Creditors
	7

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	2.8
	Consideration and Exchange of Common Limited Units
	7

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	2.9
	Treatment as Contribution
	7

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	2.10
	Allocation of Total Consideration
	8

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	2.11
	Terms of Common Limited Units
	8

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	2.12
	Term of Agreement
	8

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	2.13
	Management Company
	8

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	2.14
	Risk of Loss
	8

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	2.15
	Escrow
	8

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	2.16
	Title
	9

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	2.17
	Due Diligence Period
	9

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	3.
	Closing
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	3.1
	Conditions Precedent
	10

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	3.2
	Time and Place
	11

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	3.3
	Closing Deliveries
	11

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	3.4
	Closing Costs
	13

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	4.
	Representations and Warranties and Indemnities
	13

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	4.1
	Representations and Warranties of the Operating Partnership
	13

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	4.2
	Representations and Warranties of the Contributor
	13

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	5.
	Indemnification
	20

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	5.1
	Survival of Representations and Warranties; Remedy for Breach
	20

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	5.2
	General Indemnification
	20

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	5.3
	Notice and Defense of Claims
	21

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	5.4
	Limitations on Indemnification Under Section 5.2.1
	21

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	5.5
	Indemnification
	21

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	5.6
	Matters Excluded from Indemnification
	21

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	5.7
	Offset
	22

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	6.
	Covenants
	22

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	6.1
	Covenants of the Contributor
	22

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	6.2
	Prorations
	23

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	6.3
	Tax Covenants
	25

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	6.4
	Capital Contribution
	25

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	7.
	Termination
	25

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	7.1
	Termination
	25

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	7.2
	Default by the Operating Partnership
	25

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	7.3
	Default by the Contributor
	26

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	8.
	Miscellaneous
	26

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	8.1
	Further Assurances
	26

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	8.2
	Counterparts
	26

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	8.3
	Governing Law
	26

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TABLE OF CONTENTS
(continued)
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	8.4
	Amendment; Waiver
	26

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	8.5
	Entire Agreement
	26

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	8.6
	Assignability
	26

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	8.7
	Titles
	26

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	8.8
	Third Party Beneficiary
	26

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	8.9
	Severability
	26

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	8.10
	Reliance
	27

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	8.11
	Survival
	27

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	8.12
	Days
	27

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	8.13
	Calculating Time Periods
	27

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	8.14
	Incorporation of Exhibits
	27

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	8.15
	Notice
	27

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	8.16
	Force Majeure
	28

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	8.17
	Impracticability
	28

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	8.18
	Equitable Remedies
	28

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	EXHIBITS
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	A
	Legal Description of the Properties
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	B
	Contribution and Assumption Agreement 
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	C
	Assignment of Warranties
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	D
	Total Consideration
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	E
	Non-Competition Agreement and Non-Solicitation Agreement 
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	F
	Confidentiality and Non-Disclosure Agreement
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	G
	Tax Information 
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	SCHEDULES
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	2.2
	List of Contributed Assets, Assumed Agreements and Leases
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	2.4
	List of Excluded Assets
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	2.5
	List of Assumed Liabilities; Permitted Liens
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	2.6
	List of Excluded Liabilities
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	2.10
	Allocation of Total Consideration
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	3.1.8
	3-05 Audit 
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	APPENDICES
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	A
	Disclosure Schedule
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AMENDED AND RESTATED CONTRIBUTION AGREEMENT
This Amended and Restated Contribution Agreement (this “Agreement”) is made and entered into as of February 8, 2022 (the “Effective Date”) by and between Lodging Fund REIT III OP, LP, a Delaware limited partnership (the “Operating Partnership”), and ELP MC Venture, LLC a Delaware limited liability company (the “Contributor”).
RECITALS
A.The Contributor and Operating Partnership entered into a contribution agreement (the “Original Agreement”) on October 20, 2021 on terms similar to the terms found herein, which said Original Agreement is hereby terminated and replaced by this Agreement. This Agreement hereby supersedes any and all other agreements.
B.The Contributor currently owns a certain 90-room hotel business known as the Courtyard El Paso Airport located at 6610 International Rd El Paso, Texas 79925 (the “Property”), as the Property is more fully described in Exhibit A.
C.The Operating Partnership desires to acquire the Property, along with the Contributed Assets whereby the Operating Partnership will acquire a direct fee simple interest and ownership in the Property.
NOW, THEREFORE, in consideration of the foregoing premises, and the mutual undertakings set forth below, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
	1.
	Defined Terms.

The following terms have the meanings set forth below:
“Act” shall have the meaning as set forth in Section 4.2.9.
“Actions” mean all actions, litigations, complaints, charges, accusations, investigations, petitions, suits, arbitrations, mediations or other proceedings, whether civil or criminal, at law or in equity, or before any arbitrator or Governmental Entity.
“Adverse Change” shall have the meaning as set forth in Section 2.16.1.
“Adverse Change Review Period” shall have the meaning as set forth in Section 2.16.1.
“Agreement” shall have the meaning as set forth in the Preamble.
“Amendment” shall have the meaning as set forth in Section 2.8. 
“Assumed Agreements” shall have the meaning as set forth in Section 2.2. 
“Assumed Liabilities” shall have the meaning as set forth in Section 2.5. 
“Basket” shall have the meaning as set forth in Section 5.4.
“Closing” shall have the meaning as set forth in Section 3.2. 
“Closing Agent” shall have the meaning as set forth in Section 2.14. 
“Closing Date” shall have the meaning as set forth in Section 3.2.
“Closing Documents” shall have the meaning as set forth in Section 3.3. 
“Code” shall mean the Internal Revenue Code of 1986, as amended.
“Common Limited Units” shall have the meaning set forth in the OP Agreement.
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“Company” shall mean Lodging Fund REIT III, Inc., a Maryland corporation. 
“Contributed Assets” shall have the meaning as set forth in Section 2.2. 
“Contributor” shall have the meaning as set forth in the Preamble.
“Contributor Point of Contact” shall have the meaning as set forth in Section 2.16.3(d). 
“Contributor’s Breakage Fee” shall have the meaning as set forth in Section 7.3. 
“Contributor’s Cure Period” shall have the meaning as set forth in Section 2.15. 
“Deed” shall have the meaning as set forth in Section 3.3.2.
“Disclosure Schedule” means that disclosure schedule attached as Appendix A. 
“Due Diligence Documents” shall have the meaning as set forth in Section 2.16.1. 
“Due Diligence Period” shall have the meaning as set forth in Section 2.16.1. 
“Due Diligence Review” shall have the meaning as set forth in Section 2.16.3. 
“Earnest Money” shall have the meaning as set forth in Section 2.14.
“Environmental Law” means all applicable statutes, regulations, rules, ordinances, codes, licenses, permits, orders, demands, approvals, authorizations and similar items of any Governmental Entity and all applicable judicial, administrative and regulatory decrees, judgments and orders relating to the protection of human health or the environment as in effect on the Closing Date, including but not limited to those pertaining to reporting, licensing, permitting, investigation, removal and remediation of Hazardous Materials, including without limitation (i) the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the Clean Air Act (42 U.S.C. Section 7401 et seq.), the Federal Water Pollution Control Act (33 U.S.C. Section 1251), the Safe Drinking Water Act (42 U.S.C. 300f et seq.), the Toxic Substances Control Act (15 U.S.C. 2601 et seq.), the Endangered Species Act (16 U.S.C. 1531 et seq.), the Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C. 11001 et seq.), and (ii) applicable state and local statutory and regulatory laws, statutes and regulations pertaining to Hazardous Materials.
“Environmental Permits” means any and all licenses, certificates, permits, directives, requirements, registrations, government approvals, agreements, authorizations, and consents that are required under or are issued pursuant to any Environmental Laws.
“Effective Date” shall have the meaning as set forth in the Preamble. 
“Excluded Assets” shall have the meaning as set forth in Section 2.4. 
“Excluded Liabilities” shall have the meaning as set forth in Section 2.6. 
“Existing Loan” shall have the meaning as set forth in Section 2.7.1.
“Existing Loan Documents” shall have the meaning as set forth in Section 2.7.1.
“Fixtures and Personal Property” shall mean all fixtures, furniture, furnishings, apparatus and fittings, equipment, machinery, appliances, building supplies, business supplies, software, tools, linens (in no event less than 3 par) inventories of standard supplies, services and amenities including without limitation paper goods, brochures, office supplies, unopened food and beverage inventory, chinaware, glassware, flatware, soap, gasoline, fuel oil, inventory held for sale, engineering, pool, maintenance and housekeeping supplies, TV, phone, and internet services, software and hardware, and other operation and guest supplies (each of which shall be maintained and transferred in accordance with brand standards), merchandise, goods, electronics, customer lists and records (including but not limited to customer, supplier, advertising, promotional material, sales, services, delivery and/or operations lists and
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records), goodwill, intellectual and/or proprietary information and property and applications therefor or licenses thereof and other items of personal property used in connection with the ownership, operation or maintenance of the Property, including all assets located off site from the Property but owned and used by the Contributor in connection with operation of the Property; excluding, however, all fixtures, furniture, furnishings, apparatus and fittings, equipment, machinery, appliances, building supplies, business supplies, software, tools, linens, merchandise, goods, electronics and other items of personal property owned by tenants, subtenants, guests, invitees, employees, easement holders, service contractors and other Persons who own any such property located on the Property.
“Franchise Agreement” shall have the meaning as set forth in Section 3.1.12.
“Governmental Entity” means any governmental agency or quasi-governmental agency, bureau, board, commission, court, department, official, political subdivision, tribunal or other instrumentality of any government, whether federal, state or local, domestic or foreign.
“Hazardous Material” means any substance:
(a)the presence of which requires investigation or remediation under any Environmental Law action or policy, administrative request or civil complaint under the foregoing or under common law; or
(b)which is controlled, regulated or prohibited under any Environmental Law as in effect as of the Closing Date, including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601 et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.); or
(c)which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous and as of the Closing Date is regulated by any Governmental Entity; or
(d)the presence of which on, under or about, the Property poses a hazard to the health or safety of persons on or about the Property; or
(e)which contains gasoline, diesel fuel or other petroleum hydrocarbons, polychlorinated biphenyls (PCBs) or asbestos or asbestos-containing materials or urea formaldehyde foam insulation; or
(f)radon gas.
“Indemnified Contributor Party” shall have the meaning as set forth in Section 5.5. 
“Indemnified OP Party” shall have the meaning as set forth in Section 5.5. 
“Indemnified Party” shall have the meaning as set forth in Section 5.2.1. 
“Independent Consideration” shall have the meaning as set forth in Section 2.14.
“Intangible Personal Property” shall mean all, right, title and interest relating to the Property in and to all intangible personal property now or hereafter used in connection with the operation, ownership, maintenance, management, or occupancy of the Property, including without limitation: all trade names and trademarks associated with the ownership of the Property; the plans and specifications for the Improvements; warranties; guaranties; indemnities; claims against third parties; claims against tenants for tenant improvement reimbursements; all contract rights related to the construction, operation, ownership or management of the Property; certificates of occupancy; applications, permits, approvals and licenses; insurance proceeds and condemnation awards or claims thereto to be assigned to the Operating Partnership hereunder; all books and records relating to the Property; any existing computer software or programs; any franchise agreements which shall not be terminated at the Closing and are to be assigned to the Operating Partnership, if any; any records, files, lists, and other tangible assets that pertain to the Property, including lists and records pertaining to any one or more of the following: the Contributor’s customers, suppliers, advertising, promotional material, sales, services, delivery, and/or operations, except those items, if any, required to be retained by law, including accounting records and returns.
“Inventory Period” shall have the meaning as set forth in Section 2.3.1.
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“Key Personnel” shall have the meaning as set forth in Section 2.16.3(d).
“Knowledge” means with respect to any representation or warranty so indicated, the knowledge, of Sean Hawkins in the case of the Contributor, or David Durell in the case of the Operating Partnership.
“Leases” shall have the meaning as set forth in Section 4.2.21. “Lender” shall have the meaning as set forth in Section 2.7.1.
“Liens” means with respect to any real and personal property, all mortgages, pledges, liens, options, charges, security interests, mortgage deed, restrictions, prior assignments, encumbrances, covenants, encroachments, assessments, purchase rights, rights of others, licenses, easements, voting agreements, liabilities or claims of any kind or nature whatsoever, direct or indirect, including, without limitation, interests in or claims to revenues generated by such property.
“Losses” shall have the meaning as set forth in Section 5.2.1.
“Material Adverse Effect” shall have the meaning as set forth in Section 4.2.3.
“Maximum Per Property Total Consideration Adjustment” shall have the meaning as set forth in Section 2.13.
“Merchandise” shall have the meaning as set forth in Section 2.3.1. 
“Name” shall have the meaning as set forth in Section 4.2.19(c). 
“NDA” shall have the meaning as set forth in Section 6.1.8.
“Non-Competition Agreement and Non-Solicitation Agreement” shall have the meaning as set forth in Section 6.1.7.
“Objections” shall have the meaning as set forth in Section 2.15. 
“OFAC” shall have the meaning as set forth in Section 4.2.32.
“Offering Documents” shall have the meaning as set forth in Section 2.16.2. 
“Offering Review Period” shall have the meaning as set forth in Section 2.16.2.
“OP Agreement” shall mean the Amended and Restated Limited Partnership Agreement of Lodging Fund REIT III OP, LP, a Delaware limited partnership, as may be amended.
“Operating Partnership” shall have the meaning as set forth in the Preamble. 
“Other Taxes” means Taxes other than income Taxes.
“Permitted Liens” means:
(a)Liens securing taxes, the payment of which is not now due and payable or the payment of which is actively being contested in good faith by appropriate proceedings diligently pursued;
(b)Zoning laws and ordinances applicable to the Property which are not violated by the existing structures or present uses thereof or the transfer of the Property;
(c)non-exclusive easements for public utilities and other operational purposes that do not materially interfere with the current use of the Property; and
(d)all Liens listed in Schedule 2.5 of the Disclosure Schedule and any similar liens incurred in any refinancing of the related obligations.
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“Person” means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or governmental entity.
“PIP” shall have the meaning as set forth in Section 4.2.31.
“Preliminary Title Report” means the preliminary commitment for title insurance committing to insure marketable fee simple title as of the date of the Closing, subject only to the Permitted Liens.
“Property” shall have the meaning as set forth in the Recitals.
“Property Deposits” shall have the meaning as set forth in Section 6.2.1(b)(i).
“Property Reports” means the property condition assessment reports, appraisals, zoning reports and other similar reports prepared for the Property.
“Proprietary Rights” shall have the meaning as set forth in Section 4.2.19(a). 
“REIT Shares” shall have the meaning set forth in the OP Agreement.
“Release” shall have the same meaning as the definition of “release” in the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) at 42 U.S.C. Section 9601(22), but not including the exclusions identified in that definition, at subparts (A) through (D).
“Satisfaction Notice” shall have the meaning as set forth in Section 2.16.1. 
“Service Contracts” shall have the meaning as set forth in Section 4.2.23.
“Subscription Agreement” shall mean the Subscription Agreement to be entered into by Contributor with respect to the acquisition of the Common Limited Units.
“Tax” or “Taxes” means any federal, state, provincial, local or foreign income, gross receipts, license, payroll, employment-related, excise, goods and services, harmonized sales, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.
“Tax Return” means any return, declaration, report, claim for refund, or information return or statement related to Taxes, including any schedule or attachment thereto, and including any amendment thereof.
“Tenants” shall have the meaning as set forth in Section 4.2.21. 
“Title Company” shall have the meaning as set forth in Section 2.15. 
“Title Policy” shall have the meaning as set forth in Section 3.1.6.
“Total Consideration” shall have the meaning as set forth in Section 2.8. 
“Transfer” shall have the meaning as set forth in Section 4.2.9(a).
2.Contribution; Total Consideration; Inspection and Title.
2.1Contribution of Property. At the Closing and subject to the terms and conditions contained in this Agreement, the Contributor shall contribute, transfer, assign, convey and deliver to the Operating Partnership, absolutely and unconditionally, and free and clear of all Liens (other than Permitted Liens), all of its right, title and interest to the Property. The contribution of the Property shall be evidenced by a Deed. The parties shall take such additional actions and execute such additional documentation as may be required by the Contributor’s entity

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documents and the OP Agreement, or as reasonably requested by the Operating Partnership in order to effect the transactions contemplated hereby.
2.2Contribution of Assets. At the Closing and subject to the terms and conditions contained in this Agreement, the Contributor shall contribute, transfer, assign convey and deliver to the Operating Partnership, and the Operating Partnership shall acquire and accept, all of the Contributor’s right, title and interest in and to (i) (a) those assets listed on Schedule 2.2, (b) all Fixtures and Personal Property related to the Property, and (c) all Intangible Personal Property now or hereafter used in connection with the operation, ownership, maintenance, management or occupancy of the Property (collectively, the “Contributed Assets”), and (ii) (a) those certain agreements listed on Schedule 2.2, which reflect all agreements and arrangements related to the Property to which Contributor (or its affiliates or predecessors) is a party and (b) Service Contracts (collectively, the “Assumed Agreements”), and in each case, free and clear of any and all Liens, subject only to the Permitted Liens listed on Schedule 2.4. The contribution of the Contributed Assets and the Assumed Agreements and the assumption of all obligations thereunder shall be evidenced by a Contribution and Assumption Agreement in substantially the form of Exhibit B.
2.3Inventory. In addition to the purchase and sale of the Contributed Assets, Contributor shall sell and the Operating Partnership will buy the inventory of saleable merchandise of Contributor, subject to the following:
2.3.1Purchase and Sale of Merchandise Inventory. An inventory of all merchandise will be conducted not earlier than 15 days prior to Closing but not later than 1 day prior to Closing (the “Inventory Period”), and Contributor shall sell, transfer, and deliver to the Operating Partnership all of the merchandise and other inventory used in connection with the Property. As used in this Agreement, the “Merchandise” will include only unopened merchandise and merchandise that (i) is not obsolete and (ii) has an expiration of 30 days or more after Closing Date.
2.3.2Method of Taking Inventory. The Contributor and the Operating Partnership mutually agree to a method of inventory during the Inventory Period, and only if the Parties do not agree, then the Operating Partnership, at the Contributor’s expense, will use an inventory auditing service to conduct the counting of inventory.
2.3.3Inventory Purchase Price. The Merchandise shall be purchased at the Contributor’s then- current wholesale cost. The Contributor shall provide written evidence of the Contributor’s then-current wholesale cost, which will include the cost of the delivery of the Merchandise, if any. If no wholesale price is provided by Contributor, then the inventory purchase price will be considered a part of the Total Consideration.
2.4Excluded Assets. Notwithstanding the foregoing, the parties expressly acknowledge and agree that all assets and properties of the Contributor set forth on Schedule 2.4, shall be deemed “Excluded Assets” and not contributed, transferred, assigned, conveyed or delivered to the Operating Partnership pursuant to this Agreement, and the Operating Partnership shall not have any rights or obligations with respect thereto. Unless otherwise agreed in writing, the Contributor, at the Contributor’s expense, shall remove the Excluded Assets from the Property as soon as possible after the Closing Date but in no event later than 7 days after the Closing Date. If the Contributor fails to comply with the foregoing provisions, the Operating Partnership may dispose of such items at the Contributor’s expense or make such other arrangements as the Operating Partnership may determine appropriate.
2.5Assumed Liabilities. On the terms and subject to the conditions set forth in this Agreement, at the Closing, the Operating Partnership shall assume from the Contributor and thereafter pay, perform or discharge in accordance with their terms all of the liabilities of the Contributor listed on Schedule 2.5 (the “Assumed Liabilities”).
2.6Excluded Liabilities. Notwithstanding the foregoing, the parties expressly acknowledge and agree that the Operating Partnership shall not assume or agree to pay, perform or otherwise discharge any liabilities, obligations or other expenses of either the Contributor (or acquire the Property subject thereto) other than those assumed pursuant to the Contribution and Assumption Agreement and the Assumed Liabilities (the “Excluded Liabilities”), and such Excluded Liabilities shall not be contributed, transferred, assigned, conveyed or delivered to the Operating Partnership pursuant to this Agreement or any other means, and the Operating Partnership shall not have any obligations with respect thereto.
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2.7Existing Loans and Creditors.
2.7.1The Contributor has obtained certain financing encumbering the Property through Bancorp Commercial Mortgage at a fixed interest rate of 6.5%, with a term of 3 years, with two 12 month extensions, at an original loan balance of $9,900,000, (the “Original Loan Balance) and collectively, the “Original Loan Balance”) (the “Existing Loan” and collectively, the “Existing Loans”). Such notes, deed of trusts and all other documents or instruments evidencing or securing such Existing Loans, including any financing statements, and any amendments, modifications and assignments of the foregoing, shall be referred to, collectively, as the “Existing Loan Documents.” Each Existing Loan shall be considered a Permitted Lien for purposes of this Agreement. The Operating Partnership at its election shall either (i) assume the applicable Existing Loans at the Closing (subject to obtaining any necessary consents from the holder of the mortgage or deed of trust related to the Existing Loans (the “Lender”) prior to the Closing), (ii) take title to the Property subject to the lien of the Existing Loan Documents or (iii) cause the Existing Loans to be refinanced or repaid in connection with the Closing. Notwithstanding options (i)-(iii) herein, if the Existing Loans are assumed or replaced the Operating Partnership will endeavor to seek a waiver of penalties, late charges, or forbearances related to the Existing Loans and shall indemnify and hold harmless Contributor and any Guarantors therefrom, subject to the then Operating Partnerships new loan documents. The Operating Partnership shall have the right to discuss with Bancorp Commercial Mortgage any of the options described in this Section 2.7.1 immediately upon the Contributor discussing the transaction contemplated by this Agreement with such entities.
2.7.2Nothing contained in this Agreement shall preclude the Operating Partnership from reducing or increasing the indebtedness secured by the Property above the amount outstanding on the Existing Loans in connection with any refinancing which may occur concurrently with or after the Closing. The Contributor shall use commercially reasonable efforts along with the Operating Partnership in seeking to process approval of the assumption of the Existing Loan or in beginning the process for any refinancing or a payoff.
2.7.3Before the Closing, the Contributor shall furnish to the Operating Partnership a true and complete list of all existing creditors. This list shall set forth the names and addresses of all of the Contributor’s creditors and shall contain information regarding the nature and extent of the claim or claims of each creditor. The Contributor shall afford to the Operating Partnership access to the Contributor’s books and records related to each claim and shall furnish the Operating Partnership with such financial and operating data and other information regarding each such claim as the Operating Partnership may from time to time reasonably request.
2.7.4On or before Closing, the Contributor will pay all amounts owed to any creditors or persons and entities that otherwise possess any type of right or interest in the Contributed Assets arising from the ownership or operation of the Property by the Contributor prior to the Closing. If the creditor holds or obtains a lien on the Contributed Assets, then the following shall apply:
(a)The Contributor, on written notice given by the Operating Partnership to the Contributor, shall pay such monies arising from the ownership or operation of the Property by the Contributor prior to the Closing required to obtain the release of any lien on the property.
(b)In the event of default by the Contributor as to the foregoing, the Operating Partnership, on written notice given by the Operating Partnership to the Contributor, shall have the right to pay for the same and/or obtain the release of lien, if any, and receive a credit toward the Total Consideration at Closing.
2.8Consideration and Exchange of Common Limited Units. Subject to this Section, the Operating Partnership shall, in exchange for the Property, the Contributed Assets, the Assumed Liabilities and the Assumed Agreements, transfer to the Contributor consideration equal to the Contributor’s “Total Consideration” as indicated on Exhibit D. The transfer of the Common Limited Units to the Contributor shall be evidenced by an amendment (the “Amendment”) to the OP Agreement as determined by the Operating Partnership. The parties shall take such additional actions and execute such additional documentation as may be required by such party’s operating agreement and the OP Agreement in order to effect the transactions contemplated hereby.
2.9Treatment as Contribution. The transfer, assignment and exchange effectuated pursuant to this Agreement shall constitute a “capital contribution” to the Operating Partnership and is intended to be governed by Section 721(a) of the Code, and the Contributor hereby consents to such treatment.
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2.10Allocation of Total Consideration. The Total Consideration shall be allocated as set forth in Schedule 2.10. The Operating Partnership and the Contributor agree to (i) be bound by the allocation, (ii) act in accordance with the allocation in the preparation of financial statements and filing of all tax returns and in the course of any tax audit, tax review or tax litigation relating thereto and (iii) take no position and cause their affiliates that they control to take no position inconsistent with the allocation for income tax purposes.
2.11Terms of Common Limited Units. The Common Limited Units, not held in trust, shall be entitled to cash distributions according to the terms of the OP Agreement. The Common Limited Units held in trust (the “Trust Units”) shall be subject to the limitations in Exhibit H and may be relinquished from trust upon a triggering event described in the OP Agreement.
2.12Term of Agreement. If the Closing does not occur by the Closing Date, this Agreement shall be deemed terminated and shall be of no further force and effect and neither the Operating Partnership nor the Contributor shall have any further obligations hereunder except as specifically set forth herein.
2.13Management Company. The Operating Partnership shall select a management company to manage the Property, provided that any binding management agreement has an effective date contemporaneous with the Closing date. Neither the Operating Partnership nor the selected management company shall be liable to the Contributor for, and the Contributor hereby waives, any claims, damages or losses incurred under any theory of liability as a result of, arising out of, in connection with, or related to the management company’s management and operation of the Property or the Property’s performance after the Closing Date.
2.14Risk of Loss. The risk of loss relating to the Contributor’s Property prior to Closing shall be borne by the Contributor. If, prior to the Closing, the Property is partially or totally destroyed or damaged by fire or other casualty, or is taken by eminent domain or through condemnation proceedings, then the Operating Partnership may, at its option (so long as the cost of repairing such destruction or damage is in the reasonable judgment of the Operating Partnership in excess of $15,000 (the “Maximum Per Property Total Consideration Adjustment”), determine not to acquire the Property if it has been partially or totally destroyed, damaged or taken (with an adjustment to the Contributor’s Total Consideration as indicated on Exhibit D). After the occurrence of any such casualty or condemnation affecting the Property, the Operating Partnership may also, at its option within 30 days after the Operating Partnership is notified of any such casualty or condemnation, elect to (a) acquire the Property and (b) direct the Contributor to pay or cause to be paid to the Operating Partnership upon or following the Closing any sums collected by the Contributor, if any, under any policies of insurance, if any, or award proceeds relating to such casualty or condemnation (to the extent that the Contributor has not applied such sums or proceeds to the restoration of the Property or otherwise to address the impacts of such casualty or condemnation) and otherwise assign to the Operating Partnership upon or following the Closing all rights of the Contributor to collect such sums as may then be uncollected, and/or to the extent available to the Contributor, adjust or settle any insurance claim or condemnation proceeding, which the Contributor has not adjusted or settled prior to the Closing. Under such circumstances, the Contributor’s Total Consideration shall be reduced by the amount of (i) any deductibles under the applicable insurance policies or award with respect to the Property contributed at Closing and (ii) any uninsured casualty or loss with respect to the Property contributed at Closing. Insurance on the transferred Property shall be cancelled as of 12:01 a.m. EST after the Closing Date, and thereafter the Operating Partnership shall be solely responsible for all risk of loss relating to the Property. In the event that this Agreement is terminated by the Operating Partnership as provided above, the Earnest Money shall be returned in full to the Operating Partnership and neither party shall have any further duties or obligations to the other, except for any obligations expressly surviving the termination of this Agreement.
2.15Escrow. Escrow shall remain with First American Title Company (the “Closing Agent”) and upon execution of this Agreement by both parties, the escrow account shall inure to the benefit of this Agreement. The Escrow Agent shall ratify the terms of this Section 2.15 contemporaneous with execution of this Agreement.. The current escrow account consists of $50,000 as an earnest money deposit (the “Earnest Money”) which shall be applied to the cash payable by the Operating Partnership at the Closing. A copy of this fully-executed Agreement will be delivered to the Closing Agent by the Operating Partnership and will serve as escrow instructions together with any additional instructions required by the Contributor and/or the Operating Partnership or their respective counsels. The Contributor and the Operating Partnership agree to cooperate with the Closing Agent and sign any additional instructions reasonably required by the Closing Agent to close escrow. If there is any conflict between any other instructions and this Agreement, this Agreement shall control. Notwithstanding anything else herein, in all events, the sum of $100.00 (the “Independent Consideration”), which sum has been bargained for and agreed to as
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consideration for Contributor’s execution and delivery of this Agreement, will be payable to the Contributor out of the Earnest Money, even if this Agreement is terminated under its express provisions. The Independent Consideration is independent of all other consideration provided in this Agreement, and is nonrefundable in all events. The Operating Partnership and Contributor stipulate that the Independent Consideration is sufficient consideration to support this Agreement notwithstanding the Operating Partnership’s rights to terminate this Agreement as set forth herein.
2.16Title. The Operating Partnership ordered the Preliminary Title Report from First American Title Insurance Company (the “Title Company”), and on December 30, 2021 objected to such items the report as required by this provision. The Contributor shall convey the Property in accordance with that objection letter and this Agreement. Copies of all documents referred to in Schedule B of the Preliminary Title Report must be attached to the Preliminary Title Report or otherwise delivered to the Operating Partnership. . The Contributor shall within 5 business days after receipt of the Operating Partnership’s Objections (the “Contributor’s Cure Period”) respond to the Operating Partnership in writing whether the Contributor shall cure such Objections or decline to cure any Objection. If the Contributor shall decide to make no efforts or shall be unwilling to cure, remove, or obtain insurable title over the Operating Partnership’s Objections, the Operating Partnership may, by the later of the end of the Due Diligence Period or within 5 days after the expiration of the Contributor’s Cure Period, by notice to the Contributor, either (a) waive its Objections and proceed to Closing, (b) terminate this Agreement by notice to the Contributor and receive a full return of the Earnest Money or (c) cure the defect at Contributor’s expense and the cost would be credited at Closing.
2.17Due Diligence Period.
2.17.1The Operating Partnership. Contributor delivered to the Operating Partnership due diligence documents as requested by the Operating Partnership in writing prior to the Effective Date (the “Due Diligence Documents”) The Operating Partnership had a period set forth in the Original Agreement (the “Due Diligence Period”) to review the Due Diligence Documents. The Operating Partnership tendered its Satisfaction Notice (defined below) on January 14, 2022. As used herein, the “Satisfaction Notice” means a signed only by Norman H. Leslie or David R. Durell, on or before the expiration of the Due Diligence Period that the Operating Partnership is satisfied with the Due Diligence Period (the “Satisfaction Notice”), the Operating Partnership will be deemed to have exercised its right of termination and this Agreement will terminate and the Earnest Money shall be immediately returned in full to the Operating Partnership and neither party shall have any further duties or obligations hereunder (except for any obligation expressly surviving the termination of this Agreement). Notwithstanding anything herein to the contrary, if, after the end of the Due Diligence Period, any new matters arise which were not disclosed in the Due Diligence Documents and such matters materially or adversely affect the Property or render incomplete or inaccurate any of the Due Diligence Documents or if any new matters appear on updates to the Preliminary Title Report (an “Adverse Change”), the Operating Partnership shall have 5 business days from notice of the Adverse Change (the “Adverse Change Review Period”) to review and to accept or reject the Adverse Change. The Operating Partnership may cancel this Agreement during the Adverse Change Review Period if any Adverse Change is not acceptable to the Operating Partnership. If this Agreement is so terminated, the Earnest Money shall be returned immediately returned in full to the Operating Partnership and neither party shall have any further duties or obligations to the other hereunder (except for any obligation expressly surviving the termination of this Agreement).
2.17.2The Contributor. As of the Effective Date, the Contributor has reviewed and approved of the Confidential Private Placement Memorandum and all related documents (collectively, the “Offering Documents”) of the Operating Partnership
2.17.3Access by the Operating Partnership. The Contributor will permit the Operating Partnership and its representatives to make a full business, financial, accounting, and legal review of the Property and the Contributor’s tax returns to the extent the Operating Partnership deems necessary (the “Due Diligence Review”).
(a)Such right will include the right to monitor the sales and operations of the Property from and after the Effective Date.
(b)The Contributor will take all reasonable steps necessary to cooperate with the Operating Partnership in undertaking the Due Diligence Review.
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(c)Except as set forth in this Agreement or as agreed by the Contributor and Operating Partnership, the Due Diligence Review by the Operating Partnership or its representatives will not affect the representations and warranties of the Contributor or the Operating Partnership’s reliance on them.
(d)Until closing, the primary Contributor point of contact will be Sean Hawkins (the “Contributor Point of Contact”).Furthermore, during the Due Diligence Period, the Operating Partnership will be given direct access, and ability to communicate to the General Manager, Assistant General Manager, Head Housekeeper, Chief Engineer, and Director of Sales (collectively, “Key Personnel”).
(e)The Contributor’s obligation to provide information to the Operating Partnership will continue through the Closing even if the Due Diligence Period has ended.
3.Closing.
3.1Conditions Precedent. The obligations of the Operating Partnership to effect the transactions contemplated hereby shall be subject to the following conditions precedent:
3.1.1The representations and warranties of the Contributor contained in this Agreement shall have been true and correct in all respects on the date such representations and warranties were made and on the Closing Date as if made at and as of such date;
3.1.2The obligations of the Contributor contained in this Agreement to be performed by Contributor shall have been duly performed on or before the Closing Date, including without limitation, the Contributor’s obligations to deliver the Closing deliveries set forth in Section 3.3, and the Contributor shall not have breached any of its covenants contained herein in any material respect;
3.1.3Concurrently with the Closing, the Contributor shall have executed and delivered to the Operating Partnership the documents required to be delivered pursuant to Section 3.3;
3.1.4The Contributor shall have obtained and delivered to the Operating Partnership any consents or approvals of any Governmental Entity or third parties (including, without limitation, any lenders and lessors) required to consummate the transactions contemplated hereby;
3.1.5No order, statute, rule, regulation, executive order, injunction, stay, decree or restraining order shall have been enacted, entered, promulgated or enforced by any court of competent jurisdiction or Governmental Entity that prohibits the consummation of the transactions contemplated hereby, and no litigation or governmental proceeding seeking such an order shall be pending, threatened or reasonably foreseeable;
3.1.6The Title Company shall be irrevocably committed to issue an ALTA extended coverage owner’s policy of title insurance (in current form), with such endorsements thereto as the Operating Partnership may reasonably request (including, without limitation, non-imputation endorsements and deletion of creditors’ rights), with coverage for the Property acceptable to the Operating Partnership in its sole and absolute discretion, and levels of reinsurance for the Property as reasonably acceptable to the Operating Partnership, insuring fee simple to all real property and improvements comprising the Property in the name of the Operating Partnership (or a subsidiary thereof, as the Operating Partnership may designate), subject only to the Permitted Liens (the “Title Policy”).
3.1.7There shall not have occurred between the Effective Date and the Closing Date any material adverse change in any of the assets, business, financial condition, results or prospects of operation of the Property, taken as a whole.
3.1.8If necessary, the Contributor shall make all reasonable and good faith efforts to cooperate with and provide assistance to the Operating Partnership and its third party auditor in complying with the Company’s reporting requirements to the Securities and Exchange Commission, including without limitation, any Rule 3-05 or Rule 3-14 of Regulation S-X Audit as described on Schedule 3.1.8.
3.1.9The Operating Partnership shall have received environmental reports or assessments on the Property and operations requested by the Operating Partnership which show the Property in an environmental
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condition reasonably satisfactory to the Operating Partnership, in its sole discretion. If the Operating Partnership does not request the foregoing, this condition will be waived without further action by the Parties.
3.1.10If any of the Property or Contributed Assets are materially damaged at any time before the Closing, and the damages cannot reasonably be repaired on payment of the sums available by insurance settlement or from any sums to be paid by the Operating Partnership to the Contributor at the Closing, the Operating Partnership, at its option and notwithstanding anything herein to the contrary, shall have the right to terminate this Agreement and, on giving notice of such election to the Contributor, the Operating Partnership will immediately receive a refund of the Earnest Money in full termination of this Agreement. This paragraph will not apply if the damages are caused by the Operating Partnership’s negligence.
3.1.11This Agreement is conditioned on the Operating Partnership assuming or replacing the Contributor’s current mortgage loan. If the Operating Partnership is unable to assume or replace such loan under terms acceptable to the Operating Partnership, in the Operating Partnership’s sole discretion, at any point prior to the Closing Date, the Operating Partnership will give notice of such inability to the Contributor and notwithstanding anything herein to the contrary, the Operating Partnership shall have the right to terminate this Agreement and, on giving notice of such election to the Contributor, the Operating Partnership will immediately receive a refund of the Earnest Money in full termination of the Agreement.
3.1.12The Operating Partnership shall have assumed the existing franchise agreement from the Contributor or have entered into a new franchise agreement under term of years acceptable to the Operating Partnership, in the Operating Partnership’s sole and absolute discretion (the “Franchise Agreement”).
3.1.13Notification. Between the Effective Date and the Closing, Contributors shall promptly notify the Operating Partnership in writing if the Contributor has Knowledge of any fact or condition that causes or constitutes a breach of any of the representations and warranties made by it in this Agreement on the date hereof, or if Contributor has Knowledge of the occurrence after the Effective Date of any fact or condition that would (except as expressly contemplated by this Agreement) cause or constitute a breach of any such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such fact or condition. Should any such fact or condition require any change in any part of the Disclosure Schedules, the Contributor shall promptly deliver to the Operating Partnership a supplement to its disclosures specifying said change. During the same period, Contributor shall promptly notify the Operating Partnership of the occurrence of any breach of any covenant of the Contributor in this Agreement or of the occurrence of any event that may make the satisfaction of the conditions in herein impossible or unlikely.
Any or all of the foregoing conditions may be waived by the Operating Partnership in its sole and absolute discretion.
3.2Time and Place. The closing date on the Operating Partnership’s acquisition of the Property shall be February 9, 2022 or the expiration of the Contributor’s Cure Period, unless extended in accordance with the Adverse Change Review Period pursuant to Section 2.16.1. However, the Closing Date may be earlier upon the mutual agreement of the parties. The Closing Date may be extended at the election of the Operating Partnership for two 30- day periods at no cost. In addition to the foregoing extension rights, the Operating Partnership may elect to extend closing to accommodate any delays caused by a third party, which includes delays by Contributor’s lender, but any extension (at the discretion of the Operation Partnership) shall be limited to the shortest amount of time necessary or helpful to accommodate such delays.
3.3Closing Deliveries. At the Closing, the parties shall make, execute, acknowledge and deliver, or cause to be made, executed, acknowledged and delivered, the legal documents and other items (collectively the “Closing Documents”) necessary to carry out the intention of this Agreement and the other transactions contemplated to take place in connection therewith, which Closing Documents and other items shall include, without limitation, the following:
3.3.1The Contribution and Assumption Agreement in the form attached hereto as Exhibit B;
3.3.2A duly executed and notarized special warranty deed (the “Deed”), in the form provided for under the law of the State of Texas and otherwise in conformity with the custom in the jurisdiction where the
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Property is located and in form and substance satisfactory to the Operating Partnership, conveying good, indefeasible and marketable fee simple title to the Property, subject only to the Permitted Liens;
3.3.3The OP Agreement;
3.3.4The Amendment evidencing the transfer of Common Limited Units to the Contributor;
3.3.5The Contributor shall deliver all books and records, title insurance policies, leases, lease files, contracts, stock certificates, original promissory notes, and other indicia of ownership or interest with respect to the Property which are in the Contributor’s possession or which can be obtained through the Contributor’s reasonable efforts along with appropriate evidence of the Contributor’s assignment thereof;
3.3.6An affidavit from the Contributor, stating under penalty of perjury, the Contributor’s United States Taxpayer Identification Number and that the Contributor is not a foreign person pursuant to Section 1445(b)(2) of the Code and a comparable affidavit satisfying any applicable federal and state law and Section 4.2.7 and any other withholding requirements;
3.3.7The Contributor shall deliver a beneficiary’s statement or other evidence satisfactory to the Operating Partnership in its sole discretion confirming the outstanding principal balance and term of the Existing Loan to be assumed by the Operating Partnership;
3.3.8The Contributor shall deliver any other documents reasonably requested by the Operating Partnership or reasonably necessary or desirable to assign, transfer, convey, contribute and deliver the Contributor’s Property (subject to the Permitted Liens) and effectuate the transactions contemplated hereby, including, without limitation, and only to the extent applicable, quitclaim deeds and/or grant deeds, assignments of ground leases, air space leases and space leases, bills of sale, assignments, and all state and local transfer tax returns and any filings with any applicable governmental jurisdiction in which the Operating Partnership is required to file its partnership documentation or the recording of the Contribution and Assumption Agreement or Deed or other Property transfer documents as required;
3.3.9If requested by the Operating Partnership, a certified copy of all appropriate corporate resolutions or partnership actions authorizing the execution, delivery and performance by the Contributor of this Agreement, any related documents and the documents listed in this Section 3.3;
3.3.10The Contributor shall deliver to the Operating Partnership possession of the Property;
3.3.11The Operating Partnership, on the one hand, and the Contributor, on the other hand, shall provide to the other a certification regarding the accuracy of each of their respective representations and warranties herein and in this Agreement as of such date. The Contributor shall provide a certification that it has performed the respective covenants required to be performed by them prior to Closing;
3.3.12The Contributor shall deliver an affidavit as may be required by the Title Company to delete from the Title Policy the standard exceptions and to issue any title endorsements as may be required by the Operating Partnership;
3.3.13Closing Statements detailing all prorations and adjustments;
3.3.14A duly executed Non-Competition and Non-Solicitation Agreement;
3.3.15The Contributor shall deliver UCC searches in form and content satisfactory to the Operating Partnership;
3.3.16The Contributor shall deliver evidence that any existing Leases shall be terminated as of the Closing Date; and
3.3.17The Contributor shall deliver an Assignment of Warranties, in the form as attached hereto and incorporated herein as Exhibit C.
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3.4Closing Costs.  Subject to Section 2.14, the Operating Partnership shall be responsible for (i) reassessments, (ii) escrow charges, (iii) the cost of any endorsements to the Owner’s Title Policy which the Operating Partnership shall require, (iv) all costs associated with any new Property Reports obtained by the Operating Partnership and (v) all costs relating to the issuance of the Franchise Agreement. The Contributor shall be responsible for (i) the cost of the Owner’s Title Policy (with extended coverage) obtained by the Operating Partnership, (ii) any documentary or other transfer taxes, (iii) any recording taxes or fees, (iv) all costs associated with an updated title commitment/search, (v) any fees related to the Operating Partnership’s assumption of the Existing Loan, if any, (vi) the cost of scheduling, ordering and providing the Operating Partnership an approved change of ownership PIP and (vii) any withholding taxes required to be paid and/or withheld in respect of the Contributor at Closing as a result of the Contributor’s tax status. Each party will pay its own attorneys’ fees for this transaction.
4.Representations and Warranties and Indemnities.
4.1Representations and Warranties of the Operating Partnership. The Operating Partnership hereby represents and warrants to the Contributor that:
4.1.1Organization; Authority. The Operating Partnership has been duly formed and is validly existing under the laws of the jurisdiction of its formation and is and at the Closing shall be treated as a “partnership” for federal income tax purposes, and has all requisite power and authority to enter this Agreement, each agreement contemplated hereby and to carry out the transactions contemplated hereby and thereby, and own, lease or operate its property and to carry on its business as described in the Memorandum and, to the extent required under applicable law, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of its property make such qualification necessary.
4.1.2Due Authorization. The execution, delivery and performance of this Agreement by the Operating Partnership has been duly and validly authorized by all necessary action of the Operating Partnership. This Agreement and each agreement, document and instrument executed and delivered by or on behalf of the Operating Partnership pursuant to this Agreement constitutes, or when executed and delivered will constitute, the legal, valid and binding obligation of the Operating Partnership, each enforceable against the Operating Partnership in accordance with its terms, as such enforceability may be limited by bankruptcy or the application of equitable principles.
4.1.3Consents and Approvals. Assuming the accuracy of the representations and warranties of the Contributor and the accuracy of the representations and warranties contained in the Subscription Agreement and this Agreement, no consent, waiver, approval or authorization of any third party or governmental authority or agency is required to be obtained by the Operating Partnership in connection with the execution, delivery and performance of this Agreement and the transactions contemplated hereby, except any of the foregoing that shall have been satisfied prior to the Closing Date and except for those consents, waivers and approvals or authorizations, the failure of which to obtain would not have a material adverse effect on the Operating Partnership.
4.1.4Partnership Matters. The Common Limited Units which will be part of the Total Consideration, when issued and delivered in accordance with the terms of this Agreement for the consideration described herein, will be duly and validly issued, and free of any Liens other than any Liens arising through the Contributor.
4.1.5Non-Contravention. Assuming the accuracy of the representations and warranties of the Contributor made hereunder, none of the execution, delivery or performance of this Agreement, any agreement contemplated hereby and the consummation of the contribution transactions contemplated hereby and thereby will (a) result in a default (or an event that, with notice or lapse of time or both would become a default) or give to any third party any right of termination, cancellation, amendment or acceleration under, or result in any loss of any material benefit, pursuant to any material agreement, document or instrument to which the Operating Partnership or any of its properties or assets may be bound, or (b) violate or conflict with any judgment, order, decree or law applicable to the Operating Partnership or any of its properties or assets; provided in the case of (a) and (b), unless any such default, violation or conflict would not have a material adverse effect on the Operating Partnership.
4.2Representations and Warranties of the Contributor. The Contributor represents and warrants to the Operating Partnership, which representations and warranties are true and correct as of the Effective Date and will be true and correct as of the date of Closing:
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4.2.1Organization; Authority; Qualification. The Contributor is duly formed, validly existing and in good standing under the laws of the jurisdiction of its formation. The Contributor has all requisite power and authority to enter into this Agreement, each agreement contemplated hereby and to carry out the transactions contemplated hereby and thereby, and to own, lease or operate its property and to carry on its business as presently conducted and, to the extent required under applicable law, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of its property make such qualification necessary.
4.2.2Due Authorization. The execution, delivery and performance of the Agreement by the Contributor has been duly and validly authorized by all necessary action of the Contributor. The Agreement and each agreement, document and instrument executed and delivered by or on behalf of the Contributor pursuant to the Agreement constitutes, or when executed and delivered will constitute, the legal, valid and binding obligation of the Contributor, each enforceable against the Contributor in accordance with its terms, as such enforceability may be limited by bankruptcy or the application of equitable principles.
4.2.3Consents and Approvals. Except as shall have been satisfied prior to the Closing Date, no consent, waiver, approval or authorization of any third party or governmental authority or agency is required to be obtained by the Contributor in connection with the execution, delivery and performance of the Agreement and the transactions contemplated hereby, except for those consents, waivers, approvals or authorizations, the failure of which to obtain would not have a material adverse effect on the assets, business, financial condition and results of operation of the Property, taken as a whole (a “Material Adverse Effect”).
4.2.4Full Disclosure. This Agreement and any other information furnished to the Operating Partnership in connection with the transactions contemplated by this Agreement neither contains any untrue statement of material fact nor omits to state any material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.
4.2.5Ownership of the Property; Contributed Assets.
(a)The Contributor is the sole owner of the Property, beneficially and of record, free and clear of any Liens of any nature (other than the Permitted Liens) and has full power and authority to convey the Property, free and clear of any Liens (other than the Permitted Liens), and, upon delivery of consideration for the Property as herein provided, the Operating Partnership will acquire good and marketable title thereto, free and clear of any Liens (other than the Permitted Liens and any liens arising through the Operating Partnership).
(b)The Contributor is the sole owner of the Contributed Assets, beneficially and of record, free and clear of any Liens of any nature (other than Permitted Liens) and has full power and authority to convey the Contributed Assets, free and clear of any Liens (other than the Permitted Liens), and, upon delivery of consideration for such Contributed Assets as provided herein, the Operating Partnership will acquire good and marketable title thereto, free and clear of any Liens (other than Permitted Liens and any liens arising through the Operating Partnership). The Property, Contributed Assets and Assumed Agreements constitute all assets, rights, interests, and property interests owned or held by the Contributor related to the Property.
(c)The Contributor has not been served with any notice of intent to claim a mechanic’s Lien on the Property and states that all parties who have furnished labor or materials on or at the Property within the last 90 days whether for repair, improvement, or otherwise have been fully compensated. Further, the Contributor has not contracted for nor is liable for obligations related to repairs, services, and other items that will not be paid in full at Closing, however, the Contributor will provide the Title Company with such documents requested by Title Company for the issuance of without the standard exception for liens.
4.2.6No Violation. None of the execution, delivery or performance of the Agreement, any agreement contemplated thereby and the transactions contemplated hereby and thereby does or will, with or without the giving of notice, lapse of time, or both, violate, conflict with, result in a breach of, or constitute a default under or give to others any right of termination, acceleration, cancellation or other right adverse to the Contributor or the Operating Partnership of (a) the organizational documents, including the operating agreement, if any, of the Contributor, (b) any agreement, document or instrument to which the Contributor is a party or by which the Contributor, Property, or the Contributed Assets are bound or (c) any term or provision of any judgment, order, writ, injunction, or decree, or require any approval, consent or waiver of, or make any filing with, any person or
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governmental or regulatory authority or foreign, federal, state, local or other law binding on the Contributor or by which the Contributor, or any of its assets or properties (including the Contributed Assets) are bound or subject; provided in the case of (b) and (c) above, unless any such violation, conflict, breach or default would not have a Material Adverse Effect.
4.2.7Non-Foreign Status. The Contributor is a United States person (as defined in Section 7701(a)(30) of the Code) and is not a “foreign person” (within the meaning of Section 1445 of the Code), and is, therefore, not subject to the provisions of the Code relating to the withholding of sales proceeds to foreign persons, and is not subject to any state withholding requirements. The Contributor will provide affidavits at the Closing to this effect as provided for in this Section 4.2.7.
4.2.8Withholding. The Contributor shall execute at Closing such certificates or affidavits reasonably necessary to document the inapplicability of any United States federal or state withholding provisions, including without limitation those referred to in Section 4.2.7. If the Contributor fails to provide such certificates or affidavits, the Operating Partnership may withhold a portion of any payments otherwise to be made to the Contributor as required by the Code or applicable state law.
4.2.9Investment Purposes. The Contributor acknowledges its understanding that the offering and issuance of the Common Limited Units to be acquired pursuant to the Agreement are intended to be exempt from registration under the Securities Act of 1933, as amended and the rules and regulations in effect thereunder (the “Act”) and that the Operating Partnership’s reliance on such exemption is predicated in part on the accuracy and completeness of the representations and warranties of the Contributor contained herein. In furtherance thereof, the Contributor represents and warrants to the Operating Partnership as follows:
(a)Investment. The Contributor is acquiring the Common Limited Units solely for its own account for the purpose of investment and not as a nominee or agent for any other person and not with a view to, or for offer or sale in connection with, any distribution of any thereof. The Contributor agrees and acknowledges that it will not, directly or indirectly, offer, transfer, sell, assign, pledge, hypothecate or otherwise dispose of (hereinafter, “Transfer”) any of the Common Limited Units, except as set forth in the OP Agreement, unless (i) the Transfer is pursuant to an effective registration statement under the Act and qualification or other compliance under applicable blue sky or state securities laws, or (ii) counsel for the Contributor (which counsel shall be reasonably acceptable to the Operating Partnership) shall have furnished the Operating Partnership with an opinion, reasonably satisfactory in form and substance to the Operating Partnership, to the effect that no such registration is required because of the availability of an exemption from registration under the Act and qualification or other compliance under applicable blue sky or state securities laws, and (iii) the Transfer is permitted pursuant to the OP Agreement. The term “Transfer” shall not include any redemption of the Common Limited Units or exchange of the Common Limited Units for REIT Shares pursuant to Section 9.4 of the OP Agreement. Notwithstanding the foregoing, no Transfer shall be made unless it is permitted under the OP Agreement.
(b)Knowledge. The Contributor is knowledgeable, sophisticated and experienced in business and financial matters and fully understands the limitations on transfer imposed by the Federal securities laws and as described in the Agreement. The Contributor is able to bear the economic risk of holding the Common Limited Units for an indefinite period and is able to afford the complete loss of its investment in the Common Limited Units; the Contributor has received and reviewed all information and documents about or pertaining to the Company, the Operating Partnership, the business and prospects of the Operating Partnership and the issuance of the Common Limited Units as the Contributor deems necessary or desirable, has had cash flow and operations data for the Property made available by the Operating Partnership upon request and has been given the opportunity to obtain any additional information or documents and to ask questions and receive answers about such information and documents, the Operating Partnership, the Property, the business and prospects of the Operating Partnership and the Common Limited Units which the Contributor deems necessary or desirable to evaluate the merits and risks related to its investment in the Common Limited Units and to conduct its own independent valuation of the Property.
(c)Accredited Investor. The Contributor is an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D under the Act). The Contributor has previously provided the Operating Partnership with a duly executed Accredited Investor Questionnaire. No event or circumstance has occurred since delivery of such questionnaire to make the statements contained therein false or misleading.
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4.2.10No Brokers. Neither the Contributor nor any of the Contributor’s respective officers, directors or employees, to the extent applicable, has employed or made any agreement with any broker, finder or similar agent or any person or firm which will result in the obligation of the Operating Partnership or any of its affiliates to pay any finder’s fee, brokerage fees or commissions or similar payment in connection with the transactions contemplated by the Agreement. The Contributor shall indemnify, defend and hold the Operating Partnership harmless from and against any other broker’s commission or finder’s fee and other claims asserted by any person claiming a broker’s commission or finder’s fee concerning this Agreement or the purchase and sale of the Property. The terms and conditions of this Section 4.2.10 shall survive Closing.
4.2.11Solvency. The Contributor will be solvent immediately following the transfer of the Property and the Contributed Assets to the Operating Partnership.
4.2.12Taxes. No tax lien or other charge exists or will exist upon consummation of the transactions contemplated hereby with respect to the Property, except such tax liens for which the tax is not delinquent and has been properly reserved for payment by the Contributor. The copies of the real property tax bills for the Property for the current tax year which have been furnished or made available to the Operating Partnership are true and correct copies of all of the tax bills for such tax year actually received by the Contributor or the Contributor’s agents for the Property. For federal income tax purposes, the Contributor is, and at all times during its existence has been either (i) a partnership or limited liability company taxable as a partnership (rather than an association or a publicly traded partnership taxable as a corporation) or (ii) a disregarded entity. The Contributor has timely and properly filed all Tax Returns relating to Other Taxes required to be filed by it and has timely paid all Other Taxes required to be paid by it. The Contributor has not requested any extension of time or agreed to any extension of the applicable statute of limitations within which to file any pending Tax Return relating to Other Taxes. None of the Tax Returns relating to Other Taxes filed by the Contributor is the subject of a pending or ongoing audit, and no federal, state, local or foreign taxing authority has asserted any tax deficiency or other assessment against the Property.
4.2.13Litigation or Insolvency Proceedings. There is no Action, litigation, claim or other proceeding, either judicial or administrative (including, without limitation, any governmental action or proceeding), pending or, to the Contributor’s Knowledge, threatened or reasonably anticipated in the last 12 months, against the Property, the Contributor, or the Contributed Assets or that would reasonably be expected to adversely affect the Contributor’s ability to consummate the transactions contemplated hereby. The Contributor is not bound by any outstanding order, writ, injunction or decree of any court, Governmental Entity or arbitration against or affecting all or any portion of its Property or the Contributed Assets, which in any such case would impair the Contributor ability to enter into and perform all of its obligations under the Agreement or would have a Material Adverse Effect. The Contributor is not involved in any proceeding by or against the Contributor in any court under the Bankruptcy Code or any other insolvency or debtor’s relief act, whether state or federal, or for the appointment of a trustee, receiver, liquidator, assignee, or other similar official of the Contributor or the Contributor’s property.
4.2.14Compliance With Laws. To the Contributor’s Knowledge, the Property has been maintained or operated and on the Effective Date are, and as of the Closing Date will be, in compliance in all material respects with all applicable laws, ordinances, rules, regulations, codes, orders and statutes (including, without limitation, those currently relating to fire safety, conservation, parking, the Occupational Safety and Health Act, the Americans with Disabilities Act, zoning and building laws) whether federal, state or local, foreign. The Contributor presently possesses and will continue to possess at the Closing Date all governmental licenses, permits, certificates of inspection, other authorizations, filings, and registrations which are necessary for a hotel to be operated at the Property. The Contributor has not received written notice of any violation of any laws, ordinances or regulations from any governmental or regulatory authority with respect to the Property that has not been corrected.
4.2.15Eminent Domain. There is no existing or, to the Contributor’s Knowledge, proposed or threatened condemnation, eminent domain or similar proceeding, or private purchase in lieu of such a proceeding, in respect of all or any material portion of the Property.
4.2.16Licenses and Permits. To the Contributor’s Knowledge, all notices, licenses, permits, certificates (including certificates of occupancy), rights, privileges, franchises and authority required in connection with the construction, use, occupancy, management, leasing and operation of the Property has been obtained and are in full force and effect, are in good standing, except for those licenses, permits and certificates, the failure of which to obtain or maintain in good standing, would not have a Material Adverse Effect on the Property.
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4.2.17Real Property.
(a)Neither the Contributor nor any other party to any material agreement affecting the Property, has given to the Contributor or, to the Contributor’s Knowledge, received any notice of any uncured default with respect to any material agreement affecting the Property which would have a material adverse effect on the Property, and, no event has occurred or, to the Contributor’s Knowledge, is threatened, which through the passage of time or the giving of notice, or both, would constitute a default thereunder which would have a material adverse effect on the Property or would cause the acceleration of any material obligation of any party thereto or the creation of a Lien upon any Property, except for Permitted Liens. To the Contributor’s Knowledge, such agreements are valid and binding and in full force and effect, have not been amended, modified or supplemented since such time as such agreements were made available to the Operating Partnership, except for such amendments, modifications and supplements delivered or made available to the Operating Partnership.
(b)To the Contributor’s Knowledge, the Contributor owns fee title to the Property as described in the Preliminary Title Report and has insurable fee simple title to the Property.
4.2.18Environmental Compliance. To the Contributor’s Knowledge, the Property is currently in compliance with all Environmental Laws and Environmental Permits. The Contributor has not received any notice from the United States Environmental Protection Agency or any other federal, state, county or municipal entity or agency that regulates Hazardous Materials or public health risks or other environmental matters or any other private party or Person claiming any violation of, or requiring compliance with, any Environmental Laws or Environmental Permits or demanding payment or contribution for any Release or other environmental damage in, on, under, or upon the Property. No investigation or litigation with respect to Hazardous Materials located in, on, under or upon the Property is pending or, to the Contributor’s Knowledge, has been threatened in the last 12 months by any Governmental Entity or any third party. To the Contributor’s Knowledge, no environmental conditions exist at, on, under, upon or affecting the Property or any portion thereof that would reasonably be likely to result in any material claim, liability or obligation under any Environmental Laws or Environmental Permit or any material claim by any third party.
4.2.19Trademarks and Tradenames; Proprietary Rights.
(a)There are no actions or other judicial or administrative proceedings against the Contributor, or the Property pending or, to the Contributor’s Knowledge, threatened or reasonably anticipated in the last 12 months, that concern any copyrights, copyright application, trademarks, trademark registrations, trade names, service marks, service mark registrations, trade names and trade name registrations or any trade secrets being transferred to the Operating Partnership hereunder (the “Proprietary Rights”) and that, if adversely determined, would have a Material Adverse Effect. There are no patents or patent applications relating to the operations of the Property as conducted prior to the Closing.
(b)To the Contributor’s Knowledge, the current use of the Proprietary Rights does not conflict with, infringe upon or violate any copyright, trade secret, trademark or registration of any other person.
(c)The Contributor agrees that from and after the Closing Date, the Operating Partnership shall have all of the Contributor’s right to use in or in connection with the conduct of any business (i) Courtyard El Paso Airport (the “Name”) or (ii) any part or portion of the Name, either alone or in combination with one or more other words. After the Closing Date, the Contributor agrees that it will not use the Name directly or indirectly, either alone or in combination with one or more other words, in or in connection with any business, activities, or operations that the Contributor directly or indirectly may carry on or conduct.
4.2.20Condition of Property.
(a)To the Contributor’s Knowledge, there is no material defect in the structural condition of the Property, the roof thereon, the improvements thereon, the structural elements thereof and the mechanical systems thereon (including, without limitation, all HVAC, plumbing, electrical, elevator, security, utility, sprinkler and safety systems), nor any material damage from casualty or other cause, nor any soil condition of the Property that will not support all of the improvements thereon without the need for unusual or new subsurface excavations, fill, footings, caissons or other installations, except for any such defect, damage or condition that has
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been corrected or will be corrected in the ordinary course of the business of the Property as disclosed as part of its scheduled annual maintenance and improvement program. There are no outstanding citations issued by any health, building, or other governmental agency, under the Occupational Safety and Health Act and/or under the Americans with Disabilities Act having jurisdiction over the operation of the Fixtures and Personal Property. To the Contributor’s Knowledge, there have been no alterations to the exteriors of any of the buildings or other improvements on the Property that would render any surveys or plans provided to the Operating Partnership materially inaccurate or otherwise reflect a material deficiency in title to such improvements.
(b)To the Contributor’s Knowledge, the Fixtures and Personal Property is presently operating and has been regularly maintained and will be in the same working condition in all material respects as of the Closing Date and there are no known defects that have not been disclosed to the Operating Partnership.
4.2.21Leases. As used herein, the term “Leases” shall include all leases, licenses, tenancies, possession agreements and occupancy agreements related to the Property, and all references to “tenants” and “Tenants” hereunder shall include all tenants, licensees or parties in possession under any such documents. Schedule 2.2 contains a complete and accurate list of all Leases. The Contributor owns fee title to the Property and holds the lessor’s interest under such Leases; a true and complete copy of all such Leases have been made available to the Operating Partnership; the Contributor, as lessor under such Leases, has not received any notice that it is in default of any of its obligations under such Leases beyond any applicable grace period which has not been cured. To the Contributor’s Knowledge, all material obligations of the lessor under the Leases that have accrued to the Effective Date have been performed or satisfied. To the Contributor’s Knowledge, no tenants under any of the Leases is presently the subject of any voluntary or involuntary bankruptcy or insolvency proceedings. The Contributor shall terminate all Leases prior to the Closing.
4.2.22Tangible Personal Property. The Contributor owns or leases all of the tangible personal property constituting Fixtures and Personal Property which is used in and necessary to the operation of the Property. To the Contributor’s Knowledge, such Fixtures and Personal Property are free and clear of all Liens, other than Liens pursuant to the agreements pursuant to which such Fixtures and Personal Property are leased and Permitted Liens.
4.2.23Service Contracts. There are no service or maintenance contracts affecting the Property which are not cancelable upon 30 days’ notice or less; true and correct copies of the service, equipment, franchise, operating, management, parking, supply, utility and maintenance agreements relating to the Property (the “Service Contracts”) have been made available to the Operating Partnership and the same are in full force and effect and have not been modified or amended except in the ordinary course of the applicable Contributor’s business. To the Contributor’s Knowledge, no material event of default exists (which remains uncured) under any of the Service Contracts. All prepaid Service Contracts being assigned have been fully paid by Contributor.
4.2.24Employees. The Contributor has no employee benefit plans now in effect which are subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. No individuals are employed by any of the Property and transactions contemplated by the Agreement will not result in any liability with respect to labor and employment matters but agrees to cause the following:
(a)Notification and Termination of Employees. At a mutually agreed upon time after this Agreement is executed that is not more than 3 days prior to the Closing Date, the Contributor and the Operating Partnership shall jointly announce the Agreement to the Contributor’s employees, and shall cooperate so that the Contributor’s notices of termination and any offers of employment by the Operating Partnership are delivered simultaneously so that appropriate management representatives may explain the termination and any offers of employment to the employees. As of the Closing Date, the Contributor will terminate all employees and will pay to all employees all wages, salaries, commissions, bonuses, benefit plan contributions, and other compensation. The Operating Partnership may, in its discretion, re-employ some or all of such employees on the day after the Closing Date.
(b)Exclusion of Employee Benefits. The Contributor acknowledges that (i) the Operating Partnership does not assume any employee benefits of the Contributor whatsoever, unless such employee benefits are specifically assumed as Assumed Liabilities and (ii) the Operating Partnership will have no obligation to provide employee benefits other than such benefits as the Operating Partnership will agree to provide to its employees in the exercise of the Operating Partnership’s sole discretion.
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(c)Collective Bargaining Agreements. There are no collective bargaining agreements currently in effect between the Contributor and labor unions or organizations representing any of the Contributor’s employees; and there does not now exist and there has been no formal or informal request to the Contributor for collective bargaining or for an employee election from any union or from the National Labor Relations Board.
(d)Employee Verification. The Contributor represents that the Property’s employees are legally able to work within the United States, and employment status has been verified through E-Verify.
(e)Employment Regulations Compliance. To the Contributor’s Knowledge, (i) there are no unfair labor practice complaints against the Contributor pending before the National Labor Relations Board, and no such complaints have been threatened, (ii) there is no labor strike, dispute slowdown, or stoppage actually in progress or threatened against the Contributor, (iii) no grievance or arbitration proceedings are pending and no such claim has been asserted and (iv) the Operating Partnership shall not incur any liability or obligation of any kind arising out of the Contributor’s employment of or termination of the Contributor’s employees nor for any other claim by any of the Contributor’s employees arising out of any employment relationship with the Contributor. In the event that the WARN Act or portions thereof apply to the Agreement, the Contributor is responsible for compliance with the duties and obligations of the employer under the act.
4.2.25Existing Loans. Schedule 2.5 to the Disclosure Schedule and/or the Preliminary Title Report lists all secured loans presently encumbering the Property, and any unsecured loans to be assumed by the Operating Partnership or any subsidiary of the Operating Partnership at Closing and the respective balance of such loans as of the date the Agreement. To the Contributor’s Knowledge, the Existing Loan Documents are in full force and effect as of the Effective Date. To the Contributor’s Knowledge, no event of default or event that with the passage of time or giving of notice or both would constitute a material event of default has occurred as of the Effective Date under any of the Existing Loan Documents. True and correct copies of the existing Loan Documents have been made available to the Operating Partnership.
4.2.26Real Property Taxes; Zoning. Neither the Contributor (nor its affiliates) has received any notification of any material new or increased general or special tax assessments for the Property except as may be disclosed in the Preliminary Title Report, as of the Effective Date, or as may be disclosed in the Title Policy as of the Closing. The Property is assessed for real property tax through one tax bill and the Property is comprised of one or more independent tax lots. The Contributor has not received any written notice (which remains uncured) from any governmental authority stating that the Property is currently violating any zoning, land use or other similar rules or ordinances in any material respect.
4.2.27Insurance. The Contributor currently has in place public liability, casualty and other insurance coverage with reputable insurance companies with respect to the Property, as the case may be, in customary amounts for projects similar to the Property in the markets in which the Property is located but in an amount of no less than full replacement cost of the improvements and general liability insurance in a per occurrence amount of no less than $1,000,000 and aggregate claims amount of no less than $3,000,000 for each policy and shall maintain such coverage in full force and effect until the Closing, and in all cases substantially in compliance with the existing financing arrangements. To the Contributor’s Knowledge, each of such policies is in full force and effect, and all premiums due and payable thereunder have been fully paid when due. No written notice of cancellation, default or non-renewal has been received or to the Contributor’s Knowledge threatened with respect thereto. There are no outstanding claims on the Contributor’s insurance policies relating to the Property or any portion thereof.
4.2.28Utilities. All public utilities, including telephone, gas, electric power, sanitary and storm sewer and water, are available for connection at the boundaries of the Property; such utilities are adequate for the current use of the Property; and the means of ingress and egress, parking, access to public streets and drainage facilities are adequate for the current use of the Property.
4.2.29Competition. Neither the Contributor nor any individual owner, officer, director, shareholder, or member has any direct or indirect interest in any person or entity engaged or involved in any business which is competitive with the Property. The directors, managers, officers, and other owners, will not compete directly or indirectly with Property following the Closing Date; and, the names of directors, managers, officers, and the resident agent of the Contributor, together with each individual owner, are set forth on attached Exhibit E.
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4.2.30Full Disclosure. This Agreement neither contains any untrue statement of material fact nor omits to state any material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.
4.2.31Brand Standards. The Contributor represents that to its Knowledge that the hotel operated at the Property is within brand standards, and that any future Property Improvement Plan (“PIP”) items that have been negotiated for delayed implementation have been disclosed to the Operating Partnership.
4.2.32OFAC. The Contributor is not, nor will the Contributor become, a person or entity with whom United States persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including, without limitation, the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action, and is not and will not engage in any dealings or transactions or be otherwise with such person or entities.
4.2.33No Representations. The Contributor acknowledges that no representation or warranty has been made by the Company or the Operating Partnership with respect to the legal and tax consequences of the transfer of the Property, the Contributed Assets, the Assumed Liabilities and the Assumed Agreements to the Operating Partnership and the receipt of Common Limited Units and the Total Consideration, as consideration therefor. The Contributor further represents and warrants that it has not relied on the Operating Partnership or its affiliates, representatives, counsel or other advisors and its respective representatives for legal or tax advice and the Contributor acknowledges that it has not relied upon any other such representation or warranty with respect to legal and tax matters.
4.2.34Offset. To the extent the Contributor fails to comply with the terms of this Section 4.2, the Operating Partnership may be entitled to offset such obligations against the Common Limited Units by reducing the contribution value of the Common Limited Units.
5.Indemnification.
5.1Survival of Representations and Warranties; Remedy for Breach. All representations and warranties contained in Section 4.1 and 4.2 (as qualified by the Disclosure Schedule) or in any Schedule or certificate delivered pursuant hereto shall survive the Closing, except, however, for the representations and warranties made in Sections 4.2.4, 4.2.17, 4.2.18 and 4.2.20, which shall survive for a period of 12 months from Closing.
5.2General Indemnification.
5.2.1The Contributor shall, jointly and severally, indemnify and hold harmless the Operating Partnership and its respective directors, officers, employees, agents, representatives and affiliates (other than the Contributor) (each of which is an “Indemnified Party”) from and against any and all claims, losses, damages, liabilities and expenses, including, without limitation, amounts paid in settlement, reasonable attorneys’ fees, costs of investigation, costs of investigative, judicial or administrative proceedings or appeals therefrom, and costs of attachment or similar bonds (collectively, “Losses”), asserted against, imposed upon or incurred by the Indemnified Party in connection with or as a result of any breach of a representation, warranty or covenant of the Contributor contained in this Agreement from and after the Closing Date.
5.2.2The Contributor shall also indemnify and hold harmless the Indemnified Parties from and against any and all Losses asserted against, imposed upon or incurred by the Indemnified Parties in connection with or as a result of all fees and expenses of the Contributor in connection with the transactions contemplated by this Agreement, except as provided in Section 3.4.
5.2.3With respect to any claim of an Indemnified Party pursuant to this Section 5.2, to the extent available, the Operating Partnership agrees to use diligent good faith efforts to pursue and collect any and all available proceeds under any insurance policy which covers the matter which is the subject of the indemnification prior to seeking indemnification from the Contributor until all proceeds, if any, to which the Operating Partnership or the Indemnified Party is entitled pursuant to such insurance policy have been exhausted; provided, however, that the Operating Partnership may make a claim under this Section 5.2 even if an insurance coverage dispute is pending, in
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which case, if the Indemnified Party later receives insurance proceeds with respect to any Losses paid by the Contributor for the benefit of any Indemnified Party, then the Indemnified Party shall reimburse the Contributor in an amount equivalent to such proceeds in excess of any deductible amount pursuant to Section 5.4 up to the amount actually paid by the Contributor to the Indemnified Party in connection with such indemnification (it being understood that all costs and expenses incurred by the Contributor with respect to insurance coverage disputes shall constitute Losses paid by the Contributor for purposes of this Section 5.2.3).
5.3Notice and Defense of Claims. As soon as reasonably practicable after receipt by the Indemnified Party of notice of any liability or claim incurred by or asserted against the Indemnified Party that is subject to indemnification under this Section 5, the Indemnified Party shall give notice thereof to the Contributor, including liabilities or claims to be applied against the indemnification deductible established pursuant to Section 5.4; provided that failure to give notice to the Contributor will not relieve it from any liability which it may have to any Indemnified Party, unless it did not learn of such claim and such failure results in the forfeiture by the Contributor of substantial rights and defenses. The Indemnified Party may at its option demand indemnity under this Section 5 as soon as a claim has been threatened by a third party, regardless of whether an actual Loss has been suffered, so long as the Indemnified Party in conjunction with the Contributor shall in good faith determine that such claim is not frivolous and that the Indemnified Party may be liable for, or otherwise incur, a Loss as a result thereof and shall give notice of such determination to the Contributor. The Indemnified Party shall permit the Contributor, at the Contributor’s option and expense, to assume the defense of any such claim by counsel selected by the Contributor and reasonably satisfactory to the Indemnified Party, and to settle or otherwise dispose of the same; provided, however, that the Indemnified Party may at all times participate in such defense at its expense; and provided further, however, that the Contributor shall not, in defense of any such claim, except with the prior written consent of the Indemnified Party in its sole and absolute discretion, consent to the entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff in question to all Indemnified Parties a release of all liabilities in respect of such claims, or that does not result only in the payment of money damages which are paid in full by the Contributor. If the Contributor shall fail to undertake such defense within 30 days after such notice, or within such shorter time as may be reasonable under the circumstances or as required by applicable law, then the Indemnified Party shall have the right to undertake the defense, compromise or settlement of such liability or claim on behalf of and for the account of the Contributor at the Contributor’s sole cost and expense.
5.4Limitations on Indemnification Under Section 5.2.1. The Contributor shall not be liable under Section 5.2.1 unless and until the total amount recoverable by the Indemnified Parties from the Contributor under Section 5.2.1 exceeds $50,000, in the aggregate (the “Basket”); provided, however, that claims for Losses exceeding the Basket shall be recoverable from the first dollar of Losses. Notwithstanding anything herein to the contrary, any Losses arising out of a breach of representations or warranties contained in Sections 4.2.1, 4.2.2, 4.2.7, 4.2.8 and 4.2.10 shall not be subject to the Basket and shall be recoverable from the first dollar of Losses.
5.5Indemnification. From and after the Closing Date, the Operating Partnership shall indemnify and hold harmless the Contributor and the Contributor’s directors, officers, managers, members, employees, agents and representatives, as well as its affiliates (each of which is an “Indemnified Contributor Party”) from and against any Losses asserted against, imposed upon or incurred by the Indemnified Contributor Party in connection with or as a result of (i) all fees, costs and expenses of the Operating Partnership in connection with the transactions contemplated by this Agreement, (ii) the failure of the Operating Partnership after the Closing Date to perform any obligation required to be performed pursuant to any contract or obligation assigned to and assumed by the Operating Partnership (including the Assumed Agreements), (iii) any breach of a representation, warranty or covenant of the Operating Partnership contained in this Agreement, and (iv) the Assumed Liabilities. The Contributor shall indemnify and hold harmless the Operating Partnership and the Operating Partnership’s directors, officers, managers, members, employees, agents and representatives, as well as its affiliates (each of which is an “Indemnified OP Party”) from and against Losses asserted against, imposed upon or incurred by the Indemnified OP Party in connection with or as a result of: (i) any breach of a representation, warranty or covenant of the Contributor contained in this Agreement and (ii) all fees, costs and expenses of the Contributor in connection with the transactions contemplated by this Agreement.
5.6Matters Excluded from Indemnification. Notwithstanding anything in this Agreement to the contrary, the Operating Partnership shall have no obligation under this Agreement to indemnify or hold harmless the Contributor from any Losses arising as a direct result of the Contributor’s breach of this Agreement or the Contributor’s negligence.
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5.7Offset. To the extent the Contributor fails to comply with the terms of this Section 5, the Operating Partnership may be entitled to offset such obligations against the Common Limited Units by reducing the contribution value of the Common Limited Units.
6.Covenants.
6.1Covenants of the Contributor.
6.1.1From the Effective Date through the Closing, the Contributor shall not, without the prior written consent of the Operating Partnership:
(a)Sell, transfer (or agree to sell or transfer), assign or otherwise dispose of, or cause the sale, transfer, assignment or disposition of (or agree to do any of the foregoing) all or any portion of its interest in the Contributed Assets or Assumed Agreements or all or any portion of its interest in the Property; or
(b)Except as otherwise disclosed in the Disclosure Schedule, mortgage, pledge or encumber all or any portion of its Property or Contributed Assets.
6.1.2From the Effective Date through the Closing, the Contributor shall conduct its business with respect to the Property in the ordinary course of business consistent with past practices, and shall to the extent within its control, not, without the prior written consent of the Operating Partnership, which consent shall not be unreasonably withheld or delayed:
(a)Enter into any material transaction not in the ordinary course of business with respect to any Property;
(b)Except as otherwise disclosed in the Disclosure Schedule, mortgage, pledge or encumber (other than by Permitted Liens) the Property or any assets related to the Property or the Contributed Assets, except (i) liens for taxes not delinquent or being disputed by the Contributor in good faith and by appropriate proceeding in the ordinary course of the Contributor’s business, and (ii) mechanics’ liens being disputed by the Contributor in good faith and by appropriate proceeding in the ordinary course of the Contributor’s business;
(c)Cause or permit a change to the existing use of the Property other than as a result of entering into new Leases in compliance with this Agreement;
(d)Cause or take any action that would render any of the representations or warranties regarding the Property as set forth in this Agreement untrue in any material respect (other than as a result of entering into new Leases in compliance with this Agreement); or
(e)Enter into any new Leases related to the Property. The Operating Partnership shall approve or disapprove in writing any such action by the Contributor within 5 business days after receiving a written request (providing all information reasonably relevant to the Operating Partnership’s consideration) for such approval from the Contributor, which approval shall be in the Operating Partnership’s sole and absolute discretion.
6.1.3From the Effective Date, the Contributor agrees to provide the Operating Partnership with such tax information relating to the Property as reasonably requested by the Operating Partnership and to cooperate with the Operating Partnership with respect to its filing of tax returns;
6.1.4From the Effective Date, the Contributor shall promptly provide notice to the Operating Partnership upon any discovery that may lead to the Contributor’s representations and warranties contained in this Agreement being incomplete, inaccurate or in any manner not completely true and correct as of the Closing Date, including without limitation, any matter which if uncured prior to the Closing Date would have such effect, even if the Contributor intends to cure, correct or remedy such matter prior to the Closing and is implementing such cure, correction or remedy. If the disclosed item(s) represents a breach by the Contributor and the Operating Partnership determines in good faith that the disclosed item(s) contained in any such notice represents an impairment in the value of the Property in excess of the Maximum Per Property Total Consideration Adjustment, then the Operating Partnership may elect, in its sole discretion, to terminate this Agreement and, if such election is made, shall receive a full return of the Earnest Money. In the alternative, in the event that such impairment in value is below the Maximum

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Per Property Total Consideration Adjustment or the Operating Partnership otherwise elects to proceed with the acquisition of the Property, then the Operating Partnership may deduct from the Contributor’s Total Consideration an amount representing the reduction in value to the Property that the Operating Partnership reasonably determines has resulted or is likely to result from such disclosed item(s).
6.1.5If the liquor license has not been transferred to the Operating Partnership effective as of the Closing Date, and to the extent allowable under the State of Texas, parties will execute a mutually agreeable temporary liquor management agreement to oversee and control the food and beverage operations of the Property. The Contributor and the Operating Partnership will cooperate with information as reasonably required to facilitate the transfer of the existing liquor permit. The Contributor shall reasonably cooperate with the Operating Partnership in connection with the transfer of the liquor license to the Operating Partnership or its designee on or after the Closing Date. The Operating Partnership shall pay all application fees in connection with the transfer of the liquor license.
6.1.6From the Effective Date, the Contributor agrees to provide the Operating Partnership with all information relating to the franchise at the Property as reasonably requested by the Operating Partnership and to cooperate with the Operating Partnership with respect to entering into or assuming the Franchise Agreement.
6.1.7Neither the Contributor nor any owner, subsidiary or affiliate of the Contributor shall establish, engage in, or become interested in, directly or indirectly, as an owner, partner, agent, shareholder, employee, independent contractor, consultant, or otherwise, within a radius of 25 miles from the Property in the operation of a hotel for a period 36 months. At the Closing, the Contributor shall execute the Non-Competition and Non-Solicitation Agreement set forth as Exhibit E (the “Non-Competition Agreement and Non-Solicitation Agreement”).
6.1.8The Contributor shall enter into the Confidentiality and Non-Disclosure Agreement (the “NDA”), set forth as Exhibit F, with the Operating Partnership.
6.2Prorations.
6.2.1Prorations. All income and expenses of the Property shall be apportioned as of 12:01 a.m. EST on the Closing Date, with the Operating Partnership being deemed to be the owner of the Property during the entire day on which the Closing Date occurs and being entitled to receive all revenue of the Property, and being obligated to pay all expenses of the Property, with respect to such day.
(a)Such prorated items shall include the following:
(i)any other income with respect to the Property received by the Closing Date, if any, and for the current month not yet delinquent. Such proration shall be based on an operating statement updated not less than 1 day prior to the Closing Date;
(ii)taxes and assessments (including personal property taxes on the Fixtures and Personal Property) levied against the Property;
(iii)utility charges for which the Contributor is liable, if any, such charges to be apportioned at the Closing on the basis of the most recent meter reading occurring prior to the Closing (dated not more than 15 days prior to the Closing) or, if unmetered, on the basis of a current bill for each such utility;
(iv)all amounts payable with respect to Assumed Liabilities in effect as of the Closing;
(v)credit shall be given to the Contributor for interest accounts, impound accounts, escrow accounts and other reserves included within the Existing Loans, which shall be transferred to the Operating Partnership at the Closing;
(vi)room charges for the night before the Closing Date and ending on the morning of the Closing Date shall be split between the Contributor and the Operating Partnership on a fifty/fifty (50/50) basis and
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(vii)any other operating expenses or other items pertaining to the Property which are customarily prorated between a transferor and transferee of real estate in the county in which the Property is located.
(b)Notwithstanding anything contained in this Section 6.2.1, the following shall apply:
(i)The Operating Partnership shall be entitled to a credit against the Contributor’s Total Consideration to be delivered for the total sum of all deposits with respect to the Assumed Liabilities (not including interest accounts, impound accounts, escrow accounts and other reserves included within the Existing Loans, which shall be addressed in accordance with Section 6.2.1(a)(v) above) (the “Property Deposits”) to the extent not paid over to the Operating Partnership, and the Operating Partnership shall assume at the Closing the obligation under the Assumed Liabilities with respect to all Property Deposits credited or paid over to the Operating Partnership;
(ii)Except as provided in the following sentence, all delinquent real estate taxes and assessments shall be paid by the Contributor at or before the Closing, together with any interest, penalties or other fees related to any delinquent taxes. In determining prorations relating to non-delinquent taxes, the Operating Partnership shall be credited with an amount equal to the real estate taxes and assessments applicable to the period prior to the Closing Date, to the extent such amount has not been actually paid by the Contributor. In the event that the Contributor has paid prior to the Closing any real estate taxes or assessments related to the Property applicable to the period after the Closing Date, the Contributor shall be entitled to a credit for such amount. In connection with the re-proration of real estate taxes and assessments for which a credit was given or a proration was made at the Closing, the Parties shall adjust the differences between them promptly upon demand being made therefor by either the Contributor or the Operating Partnership. If, after the Closing, any additional real estate taxes or assessments applicable to the period prior to the Closing Date are levied for any reason, including back assessments or escape assessments, then the Contributor shall pay all such additional amounts, including any additional fees and interest, if any. If, after the Closing, the Contributor or the Operating Partnership receive any property tax refunds regarding any Property relating to a period prior to the Closing, then that portion of the refunds related to a period prior to the Closing that is required to be refunded to any tenant of the Property shall be delivered to or retained by, as the case may be, the Operating Partnership for the purpose of making such refund payments with the remaining portion of such refunds retained by or delivered to, as the case may be, the Contributor. The Operating Partnership shall pay all supplemental taxes resulting from the change in ownership and reassessment occurring as the result of the Closing pursuant to this Agreement;
(iii)The Operating Partnership shall take all steps necessary to effectuate the transfer of all utilities to the name of the Operating Partnership as of Closing, where necessary, post deposits with the utility companies, and provide the Contributor with written evidence of the transfer at or prior to Closing. The Contributor shall be entitled to recover any and all deposits held by any utility company as of the Closing Date;
(iv)The net proration credit to or charge against the Contributor on account of the prorations adjustments to be made upon the Closing shall be reflected through an adjustment to the cash portion of the Contributor’s Total Consideration to be delivered pursuant to this Agreement. Any other proration adjustments made following the Closing shall be made in cash; and
(v)If any prorations hereunder cannot be calculated accurately on the Closing Date, then they shall be calculated as soon after the Closing Date as feasible. Either party owing the other party a sum of money based on such subsequent proration(s) shall promptly pay said sum to the other party, with interest per annum at the prime rate of interest as set forth in The Wall Street Journal, plus 2% from the Closing Date to the date of payment if payment is not made within 10 business days after delivery of a bill therefor. Once all revenue and expense amounts have been finally and completely ascertained, the Operating Partnership shall prepare a final proration statement which shall be subject to the Contributor’s reasonable approval. Upon the Contributor’s acceptance and approval of any final proration statement submitted by the Operating Partnership, such statement shall be conclusively deemed to be accurate and final. To the extent any reconciliation is required, the Operating Partnership shall be permitted to offset any amounts by adjusting the Common Limited Units transferred to the Contributor.
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6.3Tax Covenants. The Contributor shall provide to the Operating Partnership with such cooperation and information relating to any of the Property as the parties reasonably may request in (i) filing any tax return, amended tax return or claim for tax refund, (ii) determining any liability for taxes or a right to a tax refund, (iii) conducting or defending any proceeding in respect of taxes, or (iv) performing tax diligence, including with respect to the impact of this transaction on the Company’s tax status as a REIT. The Contributor shall promptly notify the Operating Partnership in writing upon receipt by the Contributor or any of their respective affiliates of notice of any pending or threatened federal, state, local or foreign tax audits or assessments relating to the income, properties or operations of the Contributor. The Operating Partnership may participate at its own expense in the prosecution of any claim or audit with respect to taxes attributable to any taxable period ending on or before the Closing Date. The Contributor shall retain all tax returns, schedules and work papers, and all material records and other documents relating thereto, until the expiration of the statute of limitations (and, to the extent notified by any party, any extensions thereof) of the taxable years to which such tax returns and other documents relate and until the final determination of any tax in respect of such years.
6.4Capital Contribution. The Contributor and the Operating Partnership (i) agree that the contribution transaction pursuant to this Agreement shall constitute a “capital contribution” to the Operating Partnership and is intended to be governed by Section 721(a) of the Code (subject to the limitations and qualifications of Subchapter K of the Code), (ii) intend that no gain or loss shall be recognized by the Contributor for income tax purposes as a result of such transaction, provided the Contributor provides information to the Operating Partnership reasonably demonstrating that the “disguised sale” rules in Section 707 of the Code are not applicable, (iii) shall report such transaction in a manner consistent with such intent, except to the extent that a final determination within the meaning of Section 1313(a) of the Code requires otherwise and (iv) agree that it will not take any action that could jeopardize such tax treatment.
7.Termination.
7.1Termination. Provided that the Operating Partnership is not in default, this Agreement may be terminated prior to the Closing Date at the Operating Partnership’s option (and the Earnest Money immediately returned to the Operating Partnership in full) in the event of any of the following occurrences:
7.1.1The Contributor fails to comply with any of the Contributor’s obligations hereunder;
7.1.2A default exists in any material financial obligation of the Contributor;
7.1.3Any representation made or contained in any submission from the Contributor proves to be untrue, substantially false or misleading at any time prior to the Closing Date;
7.1.4There shall be a material action, suit or proceeding pending or threatened against the Contributor;
7.1.5The Title Company shall refuse to provide written confirmation it will issue an owner’s title insurance policy reflecting only Permitted Liens, endorsements or affirmative insurance requested by the Operating Partnership during the Due Diligence Period; and
7.1.6Notice of termination given by the Operating Partnership pursuant to any express right to do so under this Agreement.
7.2Default by the Operating Partnership. If the Operating Partnership fails to perform any of the Operating Partnership’s obligations hereunder, then the Contributor, at the Contributor’s option, if such failure continues for 15 business days after written notice of such default from the Contributor and as the Contributor’s sole and exclusive remedy, the Contributor shall have the right to terminate this Agreement by giving written notice to the Operating Partnership, in which event the Contributor shall be entitled to the full Earnest Money Deposit as liquidated damages, and neither the Operating Partnership nor the Contributor shall have any further rights or obligations under this Agreement except matters that survive termination. Notwithstanding the foregoing, this provision is not intended to limit the Operating Partnership’s obligations to indemnify the Contributor for certain matters as expressly provided in this Agreement nor is it intended to limit the Operating Partnership’s ability to terminate this Agreement as provided herein.
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7.3Default by the Contributor. If the Contributor fails to perform any of the Contributor’s closing obligations, then the Contributor will have 15 business days to cure after receipt of written notice from the Operating Partnership; if any of the Contributor’s representations or warranties set forth herein are determined to be materially inaccurate or untrue when made and such failure continues for 15 business days after written notice thereof from the Operating Partnership (or such longer period as reasonably required by the Contributor to effect such cure, but in no event more than 30 days) or the Closing Date of earlier, then the Operating Partnership, at the Operating Partnership’s option and as the Operating Partnership’s sole and exclusive remedies, shall have the right to (i) terminate this Agreement by giving written notice to the Contributor, whereupon the Earnest Money shall be immediately delivered to the Operating Partnership by the Title Company upon receipt of written notice from the Operating Partnership of such termination and the Contributor shall reimburse the Operating Partnership for all of the Operating Partnership’s third party actual documented reasonable out-of-pocket expenses (the “Contributor’s Breakage Fee”) and thereafter, neither the Operating Partnership nor the Contributor shall have any further rights or obligations hereunder except matters which survive termination, (ii) pursue a damage claim not to exceed the Contributor Breakage Fee (plus a refund of the Earnest Money) or (iii) enforce specific performance of the obligations of the Contributor under this Agreement. Any suit for specific performance must be filed within 180 days after the Closing Date or shall thereafter be barred. Notwithstanding the foregoing, this provision is not intended to limit the Contributor’s obligations to indemnify the Operating Partnership for certain matters as expressly provided in this Agreement.
8.Miscellaneous.
8.1Further Assurances. The Contributor and the Operating Partnership shall take such other actions and execute such additional documents following the Closing as the other may reasonably request in order to effect the transactions contemplated hereby.
8.2Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
8.3Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the state in which the Property is located, without regard to the choice of laws provisions thereof.
8.4Amendment; Waiver. Any amendment hereto shall be in writing and signed by all parties hereto. No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party against whom enforcement is sought.
8.5Entire Agreement. This Agreement, the exhibits and schedules hereto constitute the entire agreement and supersede conflicting provisions set forth in all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof and thereof, as the case may be.
8.6Assignability. This Agreement shall be binding upon, and shall be enforceable by and inure to the benefit of, the parties hereto and their respective heirs, legal representatives, successors and assigns; provided, however, that this Agreement may not be assigned (except by operation of law) by any party without the prior written consent of the other parties, and any attempted assignment without such consent shall be void and of no effect except that the Operating Partnership may assign this Agreement to an affiliate.
8.7Titles. The titles and captions of the Articles, Sections and paragraphs of this Agreement are included for convenience of reference only and shall have no effect on the construction or meaning of this Agreement.
8.8Third Party Beneficiary. Except as may be expressly provided or incorporated by reference herein, including, without limitation, the indemnification provisions hereof, no provision of this Agreement is intended, nor shall it be interpreted, to provide or create any third party beneficiary rights or any other rights of any kind in any customer, affiliate, stockholder, partner, member, director, officer or employee of any party hereto or any other person or entity.
8.9Severability. If any provision of this Agreement, or the application thereof, is for any reason held to any extent to be invalid or unenforceable, the remainder of this Agreement and application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision
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that will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision and to execute any amendment, consent or agreement deemed necessary or desirable by the Operating Partnership to effect such replacement.
8.10Reliance. Each party to this Agreement acknowledges and agrees that it is not relying on tax advice or other advice from the other party to this Agreement, and that it has or will consult with its own advisors.
8.11Survival. It is the express intention and agreement of the parties hereto that the representations, warranties and covenants of the Contributor and the Operating Partnership set forth in this Agreement shall survive the consummation of the transactions contemplated hereby. The provisions of this Agreement that contemplate performance after the Closing and the obligations of the parties not fully performed at the Closing shall survive the Closing and shall not be deemed to be merged into or waived by the instruments of Closing.
8.12Days. All references to days in this Agreement will be construed as calendar days unless otherwise specified and a day will begin at 12:00 a.m. Eastern Standard Time and end at 11:59 p.m. Eastern Standard Time.
8.13Calculating Time Periods. In calculating any time period prescribed or allowed by this Agreement, the day of the act or event from which the time period begins to run is not included and the last day of the time period is included.
8.14Incorporation of Exhibits. All exhibits attached and referred to in this Agreement are hereby incorporated and will be deemed to be a part of this Agreement.
8.15Notice. Any notice to be given hereunder by any party to the other shall be given in writing by either (i) personal delivery, (ii) registered or certified mail, postage prepaid, return receipt requested, or (iii) facsimile transmission (provided such facsimile is followed by an original of such notice by mail or personal delivery as provided herein), and any such notice shall be deemed communicated as of the date of delivery (including delivery by overnight courier, certified mail or facsimile). Mailed notices shall be addressed as set forth below, but any party may change the address set forth below by written notice to other parties in accordance with this paragraph.
To the Contributor:
ELP MC Venture, LLC 
c/o Sean Hawkins
9475 Briar Village Point
Colorado Springs, Colorado 80920
With copy to:
Lewis Brisbois Bisgaard & Smith LLP 
Attn: John G. Lubitz
1700 Lincoln Street, Suite 4000
Denver, CO 80203
To the Operating Partnership:
Lodging Fund REIT III OP, LP 
Attn: Dave Durell
644 Lovett S.E., Suite B 
Grand Rapids, MI 49506
With copy to:
Legendary Capital 
Attn: Linzey Erickson
1635 43rd Street S, Suite 205
Fargo, ND 58103
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8.16Force Majeure. A party is not liable for failure to perform the party’s obligations if such failure is as a result of acts of God (including fire, flood, earthquake, storm, hurricane or other natural disaster), pandemic, war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, decrees of a court, tribunal or governmental authority, government sanction, blockage, embargo, labor dispute, strike, or lockout. If a party asserts any force majeure as an excuse for failure to perform, such non-performing party must prove that it took reasonable steps to minimize delay or damages caused by foreseeable events and that the other Party was timely notified of the likelihood or actual occurrence of a force majeure event. In the event of non-performance and/or termination pursuant to this Section 8.16, notwithstanding any other provision of this Agreement, the Earnest Money shall be returned to the Operating Partnership in full.
8.17Impracticability. The Operating Partnership shall not be required to perform its obligations under this Agreement to the extent the performance (i) becomes impracticable, in any material respect, as a result of a cause or causes outside the reasonable control of the Operating Partnership, (ii) would require the Operating Partnership to violate any applicable laws, rules, or regulations, or (iii) would result in the breach of any agreement or other applicable contract existing on the Execution Date. In the event of non-performance and/or termination pursuant to this Section 8.17, notwithstanding any other provision of this Agreement, the Earnest Money shall be returned to the Operating Partnership in full.
8.18Equitable Remedies. The Contributor agrees that irreparable damage would occur to the Operating Partnership in the event that any of the provisions of this Agreement were not performed in accordance with the specific terms hereof or were otherwise breached. It is accordingly agreed that the Operating Partnership shall be entitled to an injunction or injunctions to prevent breaches of this Agreement by the Contributor and to enforce specifically the terms and provisions hereof in any federal or state court located in the state in which the Property is located (as to which the parties agree to submit to jurisdiction for the purpose of such action), this being in addition to any other remedy to which the Operating Partnership is entitled under this Agreement.
[signature page follows]
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IN WITNESS WHEREOF, the parties have executed this Amended and Restated Contribution Agreement as of the date first written above.
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	OPERATING PARTNERSHIP:

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	Lodging Fund REIT III OP, LP
a Delaware limited partnership

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	By:
	Lodging Fund REIT III, Inc. 

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	Its:
	General Partner

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	/s/ Sam Montgomery

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	By:
	Samuel C. Montgomery

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	Its:
	Chief Operating Officer

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	CONTRIBUTOR:

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	ELP MC Venture, LLC

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	a Delaware limited liability company

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	By:
	/s/ Sean Hawkins

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	Name:
	Sean Hawkins 

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	Title:
	Authorized Member

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EXHIBIT A
TO
AMENDED AND RESTATED CONTRIBUTION AGREEMENT
LEGAL DESCRIPTION OF THE PROPERTIES
PARCEL 1:
LOT 1, BLOCK 1, INTERNATIONAL INDUSTRIAL CENTER UNIT 1, REPLAT B, AN ADDITION TO THE CITY OF EL PASO, EL PASO COUNTY, TEXAS, ACCORDING TO THE MAP OR PLAT THEREOF ON FILE UNDER CLERK'S FILE NO. 20150084213, OFFICIAL PUBLIC RECORDS, EL PASO COUNTY, TEXAS.
PARCEL 2:
NON-EXCLUSIVE ACESS EASEMENT OVER A PORTION OF LOT 5, BLOCK 1, INTERNATIONAL INDUSTRIAL CENTER (REPLAT), AN ADDITION TO THE CITY OF EL PASO, EL PASO COUNTY, TEXAS, ACCORDING TO THE PLAT THEREOF ON FILE IN VOLUME 18, PAGE 54, PLAT RECORDS, EL PASO COUNTY, TEXAS, AND A PORTION OF LOT 1, BLOCK 1, INTERNATIONAL INDUSTRIAL CENTER UNIT 1, REPLAT B, AN ADDITION TO THE CITY OF EL PASO, EL PASO COUNTY, TEXAS, ACCORDING TO THE PLAT THEREOF ON FILE UNDER CLERK'S FILE NO. 20150084213, REAL PROPERTY RECORDS, EL PASO COUNTY, TEXAS, AS CREATED AND DESCRIBED IN THAT CERTAIN RECIPROCAL ACCESS AND EASEMENT AGREEMENT BY AND BETWEEN CRAWFORD PROPERTIES, LTD AND CP MESA, LTD, DATED MAY 15, 2001, RECORDED IN VOLUME 3997, PAGE 1414, REAL PROPERTY RECORDS, EL PASO COUNTY, TEXAS.
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Exhibit A
1

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EXHIBIT B 
TO
AMENDED AND RESTATED CONTRIBUTION AGREEMENT
CONTRIBUTION AND ASSUMPTION AGREEMENT
FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby assigns, transfers and conveys to Lodging Fund REIT III OP, LP, a Delaware limited partnership (the “Operating Partnership”), its entire legal and beneficial right, title and interest (other than any Excluded Assets) in, to all of the Contributed Assets and the Assumed Agreements, as listed on Schedule 2.2 of the Agreement, together with all amendments, waivers, supplements and other modifications of and to such agreements, contracts, licenses and other instruments through the date hereof, in each case to the fullest extent assignment thereof is permitted by applicable law,
TO HAVE AND TO HOLD the same unto the Operating Partnership, its successors and assigns, forever.
Upon the execution and delivery hereof, the Operating Partnership absolutely and unconditionally accepts the foregoing assignment of each Contributed Asset and Assumed Agreement and assumes all Assumed Liabilities in respect of the Assumed Agreements, and agrees to be bound by the terms, conditions and covenants thereof, and to perform all duties and obligations of the Contributor thereunder from and after the date hereof.
The Contributor for itself, its successors and assigns hereby covenants and agrees that, at any time and from time to time after the date hereof upon the written request of the Operating Partnership, the Contributor will, without further consideration, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, each and all of such further acts, deeds, assignments, transfers, conveyances and assurances as may reasonably be required by the Operating Partnership in order to assign, transfer, set over, convey, assure and confirm unto and vest in the Operating Partnership, its successors and assigns, title to the Assumed Agreements (other than the Excluded Assets) granted, transferred, conveyed and delivered by this Agreement.
Capitalized terms used herein, but not defined have the meanings ascribed to them in the Amended and Restated Contribution Agreement, dated as of February 8, 2022, between the Operating Partnership and the Contributor.
IN WITNESS WHEREOF, the parties hereto have duly executed and delivered the Agreement as of the date first above written.
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	CONTRIBUTOR:

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	ELP MC Venture, LLC

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	a Delaware limited liability company

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	By:
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	Name:
	Sean Hawkins

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	Title:
	Authorized Member

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Exhibit B
1

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ACKNOWLEDGEMENT
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	STATE OF                         )
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	                                            ) ss.:
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	COUNTY OF                     )
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On                                              , before me, the undersigned, a Notary Public in and for said State, personally appeared, Sean Hawkins, Authorized Member of ELP MC Venture, LLC a Delaware limited liability company, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and executed before me the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.
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	Notary Public
	(SEAL)

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Exhibit B
2

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EXHIBIT C
TO
AMENDED AND RESTATED CONTRIBUTION AGREEMENT
ASSIGNMENT OF WARRANTIES
Nieto’s Roofing – Contract for 2021 Roof Replacement and all warranties contained therein
Memorandum of Agreement between Elevation Hotel Management, LLC and Legna International Trade, LLC dated February 5, 2018
Construction Contract Agreement between ELP MC Venture, LLC and Western Contracting a/k/a Western General Contracting dated September 13, 2018, as amended
Construction Contract Agreement between ELP MC Venture, LLC and Western Contracting a/k/a Western General Contracting dated March 30, 2018, as amended
Cummings Resources, LLC 
AG & Sons Construction
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Exhibit C
1

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EXHIBIT D
TO
AMENDED AND RESTATED CONTRIBUTION AGREEMENT
TOTAL CONSIDERATION
Total Consideration pursuant to Section 2.8 of the Agreement shall be $15,120,000 consisting of:
$9,900,000 via assumption of Contributor’s current financing as of the Effective Date
$4,600,000 in Common Limited Units, equivalent to 460,000 Common Limited Units; of which $3,600,000 shall be issued to Contributor at closing, and the remaining $1,000,000 shall be issued but placed in trust with the OP, distributions for these Trust Units are subject to the attached Exhibit H.
$620,000 of cash at closing
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Exhibit D
1

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EXHIBIT E
TO
AMENDED AND RESTATED CONTRIBUTION AGREEMENT
NON-COMPETITION AGREEMENT AND NON-SOLICITATION AGREEMENT
This NON-COMPETITION AND NON-SOLICITATION AGREEMENT (this “Agreement”) is dated as of February     , 2022 (the “Effective Date”), between Lodging Fund REIT III OP, LP a Delaware limited partnership with an address of 1635 43rd Street South, Suite 205, Fargo, North Dakota 58103 (“Operating Partnership”), ELP MC Venture, LLC, a Delaware limited liability company with an address of 9475 Briar Village Point Colorado Springs, Colorado 80920 (“Contributor”), and Sean Hawkins, its manager and Ryan Dunham, its                                       , operating officers of the Contributor (the “Interested Parties”). The Contributor and Interested Parties are collectively referred to herein as the “Restricted Parties.” R E C I T A L S:
A.The Operating Partnership and Contributor have entered into a Contribution Agreement, dated as of February      , 2022, (the “Contribution Agreement”), pursuant to which the Contributor has agreed to contribute property to the Operating Partnership, such property located at 9475 Briar Village Point Colorado Springs, Colorado 80920 (the “Hotel”).(the “Hotel”).
B.The agreement of the Restricted Parties to deliver this Agreement was a material inducement to Operating Partnership in entering into the Purchase Agreement.
C.The Operating Partnership, as the owner of the Hotel from and after the date of closing of the Contribution Agreement, desires to preclude the Restricted Parties from competing against it during the term of this Agreement.
A G R E E M E N T
For valuable consideration, the parties agree to the following covenants and agreements set forth in this Agreement and in the Contribution Agreement:
1.1Non-Competition. The Restricted Parties covenant and agree that, for a period of 3 years beginning on the closing date of the Contribution Agreement (the “Closing Date”), neither the Restricted Parties, nor any entity controlled by the Restricted Parties (an “Affiliate”) will, without the prior written consent of the Operating Partnership, which consent shall not be unreasonably withheld or delayed, directly or indirectly, own, manage, operate, join, control, or engage or participate in the ownership, management, operation, or control of, or be connected as a shareholder, director, officer, agent, partner, joint venturer, lender, employee, consultant or advisor with, any business or organization any part of which engages in the business of hotel or motel ownership or management or is in competition with any of the business activities of the Operating Partnership, or any affiliate of the Operating Partnership within the Non-Competition Area.
1.2Geographic Restriction. The term “Non-Competition Area” in this Agreement means the area within a 25-mile radius of the Hotel. This provision will not apply to any business which was in operation prior to the Effective Date of the Contribution Agreement, and will not restrict the Interested Parties, individually or as owners or employees of an entity from managing or consulting regarding one or more hotel(s) or motel(s) under management agreement for owner(s) or lender(s) which either or both Interested Parties: (a) do business with prior to the Effective Date, (b) are part of a multi-property management relationship with owner(s); or a lender(s); or (c) is a property in receivership or foreclosure controlled by a lender.
1.3Confidential Information.
(a)On and after the Closing Date, the Restricted Parties will not use or disclose to anybody, and will cause all of their respective Affiliates to refrain from disclosing, any Confidential Information except: (a) where necessary to comply with any legal obligation, such as a court order or subpoena, provided the Restricted Parties will first promptly notify the Operating Partnership prior to any such disclosure and permit Operating Partnership to intervene to block such disclosure; (b) where necessary, to the Restricted Parties’ attorneys and accountants, provided that they will have first been apprised of the limitations of this Agreement and will have agreed to be comply with and
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Exhibit E
1

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be bound by such limitations; or (c) where the Restricted Parties have obtained the express, prior written consent from the Operating Partnership.
(b)The term “Confidential Information” includes but is not limited to information specific to the Hotel, including but not limited to: customer lists, contact information, needs, preferences and history of service; business operations and methods; training materials; marketing plans; customer relations information; service and operations forms; practices, procedures, policies and guidelines; sales information; supplier/vendor agreements and information; and all other information, lists, records and data relating to or dealing with the business operations or activities of the Hotel, the disclosure of which may provide valuable benefits to any other person or entity or which would embarrass or damage the Hotel, Operating Partnership or their affiliates, monetarily or otherwise. Furthermore, the term “Confidential Information” is intended to be construed broadly, including information in all forms, written or oral, on paper or stored electronically or in any other medium, and includes all originals, summaries, portions and copies of any such information. As further defined in the Confidentiality and Non-Disclosure Agreement by and between the Parties, of even date herewith, Confidential Information does not include information that: (i) was widely known in the industry at the time of disclosure to the Restricted Party, or (ii) becomes widely known or readily available other than by a breach of this Agreement.
1.4Non-Solicitation; Non-Interference. Except with the prior written approval of the Operating Partnership, for a period of 3 years after the Closing Date, neither the Restricted Parties nor their respective Affiliates will (a) employ or offer to employ any person who was principally employed at the Hotel on the Closing Date, (b) solicit, recruit, or encourage any employee or independent contractor of the Hotel or Operating Partnership to leave his or her employment, (c) hire, employ or cause to be hired, or establish a business with, any person who was employed at the Hotel, within the 12-month period preceding the Closing Date, (d) solicit any business clients of the Hotel or encourage them to terminate any contracts, and (e) interfere with or encourage any adjustments to long term negotiated rate clientele. In addition, any attempt by any Restricted Party to induce others to terminate any contracts, employment, or independent contractor relationship with Operating Partnership or the Hotel, or any effort by any Restricted Party to interfere with any of the relationships between each of the Operating Partnership and the Hotel and any of their business clients, employees, or independent contractors, would be harmful and damaging to the Operating Partnership. For purposes of this Section 1.3, an “employee” will include any person who is a common law employee or who is an independent contractor providing personal services.
1.5Non-Disparagement. The Restricted Parties will not: (a) make any disparaging or defamatory statements about Operating Partnership, the Hotel or their affiliates, or (b) authorize, encourage or participate with anyone to make such statements.
1.6Reasonableness; Independent Covenants. The Restricted Parties acknowledge that the restrictions set forth in this Agreement are reasonable and necessary to prevent the use and disclosure of the Hotel’s and the Operating Partnership’s Confidential Information, to protect the goodwill and business relationships of the Hotel, and to otherwise protect the legitimate business interests of Operating Partnership and the Hotel from and after the Closing Date. The Restricted Parties further acknowledge that all restrictions in this Agreement are reasonable in all respects, including duration, territory and scope of activity restricted.
1.7Remedies.
(a)The Restricted Parties agree that if they or any of their Affiliates engage or threaten to engage in any activity that constitutes a violation of any of the provisions of this Agreement, Operating Partnership will have the right and remedy to have the provisions of this Agreement specifically enforced by law or by any court having jurisdiction.
(b)The Restricted Parties agree a breach of this Agreement would cause immediate irreparable injury to Operating Partnership and/or the Hotel and that money damages would not provide an adequate remedy at law for any breach. Further, without limiting any other legal or equitable remedies available to it, Operating Partnership will be entitled to obtain equitable relief by temporary restraining order, preliminary and permanent injunction or otherwise from any court of competent jurisdiction (without the requirement of posting a bond or other security), including, without limitation, injunctive relief to prevent the Restricted Parties’ failure to comply with the terms and conditions of Section 1 of this Agreement. Such right and remedy will be in addition to, and not in lieu of,
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Exhibit E
2

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any other rights and remedies available to Operating Partnership at law or in equity, including the right to seek monetary damages.
(c)The applicable 3-year period of the covenants contained in Section 1.4 above will be extended on a day for day basis for each day during which a Restricted Party is in violation of the covenant, so that each Restricted Party is restricted from engaging in the activities prohibited by the covenant for the full 3-year time period.
(d)The Restricted Parties agree that Operating Partnership will have the right to set-off any damages hereunder against any amount owed by Operating Partnership to Contributor at or after the closing of the Purchase Agreement.
(e)The Restricted Parties agree that the existence of any claim or cause of action by a Restricted Party against Operating Partnership, whether predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by Operating Partnership of the covenants and restrictions in this Agreement.
1.8Construction. The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this Agreement or any exhibits or amendments hereto.
1.9Severability. If any provision of this Agreement will, for any reason, be adjudged by any court of competent jurisdiction to be invalid or unenforceable, such judgment will not affect, impair or invalidate the remainder of this Agreement but will be confined in its operation to the provision or provisions hereof directly involved in the controversy in which such judgment will have been rendered, and this Agreement will be construed as if such provision had never existed, unless such construction would operate as an undue hardship on Contributor or Operating Partnership or would constitute a substantial deviation from the general intent of the parties as reflected in this Agreement.
1.10Notices. All notices, requests, demands, and other communications under this Agreement will be in writing and will be sent by hand messenger, electronic facsimile transmission, electronic mail (e-mail), reputable overnight courier, or certified mail, postage prepaid, return receipt requested. Notices and other communications will be deemed to have been duly given, as applicable (i) if by hand delivery, on the date of delivery, if such date is a business day (or if such date is not a business day, then on the first business day following such date), (ii) if by electronic facsimile transmission, the date of transmission as evidenced by automated date and time confirmation from sender’s machine, (iii) if given by e-mail, the communication is instantaneous and the day of receipt can be designated to be the same day as sending and a written copy must also be sent via certified mail, (iv) if given by overnight courier, 1 business day after deposit with the overnight courier, or (v) if given by certified mail, 1 business day after deposit with the United States Post Office. Notices will be addressed as set forth below, or to any other address that the parties will designate in writing:
If to the Restricted Parties:
ELP MC Venture, LLC
c/o Sean Hawkins
9475 Briar Village Point
Colorado Springs, Colorado 80920
With copy to:
Lewis Brisbois Bisgaard & Smith LLP
Attn: John G. Lubitz
1700 Lincoln Street, Suite 4000
Denver, CO 80203
​

Exhibit E
3

​

If to Operating Partnership:
Lodging Fund REIT III OP, LP
Attn: David Durell
644 Lovett SE, Suite B
Grand Rapids, MI 49506
With copy to:
Legendary Capital
Attn: Linzey Erickson
1635 43rd Street S, Suite 205
Fargo, ND 58103
1.11Other Legal Obligations. Nothing in this Agreement shall be construed to limit or otherwise waive any other legal obligations of the Restricted Parties in favor of the Operating Partnership.
1.12Benefit and Binding Effect. The Restricted Parties may not assign this Agreement without the prior written consent of Operating Partnership. The Operating Partnership may assign to an entity of which the Operating Partnership or one of its affiliates is a constituent. This Agreement will be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.
1.13Further Assurances. The parties will execute upon request any other documents that may be necessary and helpful for the effectiveness and enforceability desirable to the implementation and consummation of this Agreement.
1.14Governing Law. This Agreement will be governed by the laws of the State of Texas, without giving effect to the conflict of laws provisions thereof.
1.15Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties hereto concerning the subject matter hereof.
1.16Headings. The headings herein are included for ease of reference only and will not control or affect the meaning or construction of the provisions of this Agreement.
1.17Amendments/Waivers. This Agreement cannot be amended except by an agreement in writing that makes specific reference to this Agreement and which is signed by the party against which enforcement of any such amendment is sought. Any waiver of any provision of this Agreement must be in writing and signed by the party granting the waiver.
1.18Counterparts. This Agreement may be signed in counterparts with the same effect as if the signature on each counterpart were upon the same instrument.
[signature page follows]
​

Exhibit E
4

​

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

	​

	​

	​

	​
	    
	OPERATING PARTNERSHIP:

	​
	​
	​

	​
	​
	Lodging Fund REIT III OP, LP
a Delaware limited partnership

	​
	​
	​
	​

	​
	​
	By:
	Lodging Fund REIT III, Inc.

	​
	​
	Its:
	General Partner

	​
	​
	​
	​

	​
	​
	​
	​

	​
	​
	By:
	​

	​
	​
	Name:
	Samuel C. Montgomery

	​
	​
	Title:
	Chief Operating Officer

	​
	​
	​

	​
	​
	CONTRIBUTOR:

	​
	​
	​

	​
	​
	ELP MC Venture, LLC

	​
	​
	a Delaware limited liability company

	​
	​
	​

	​
	​
	By:
	​

	​
	​
	Name:
	Sean Hawkins

	​
	​
	Title:
	Authorized Member

	​
	​
	​

	​
	​
	RESTRICTED PARTIES:

	​
	​
	​

	​
	​
	​

	​
	​
	Sean Hawkins

	​
	​
	​

	​
	​
	​

	​
	​
	Ryan Dunham

​
​

Exhibit E
5

​

EXHIBIT F
TO
AMENDED AND RESTATED CONTRIBUTION AGREEMENT
CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT
THIS AGREEMENT is made and entered into as of February     , 2022 by and between Lodging Fund REIT III OP, LP (individually and collectively with its subsidiaries, owners and affiliates, the “Partnership”) and ELP MC Venture, LLC (“Contributor”) (the Partnership and Contributor individually, a “Party” and collectively, the “Parties”).
The Parties intend to exchange Confidential Information to one another in connection with the possibility of engaging in the transaction described in the Amended and Restated Contribution Agreement (the “Transaction”).
In consideration of the promises exchanged herein, the Parties hereto agree that the following terms and conditions shall apply when one Party discloses "Confidential Information" to the other Party:
	1.
	DEFINITION OF “CONFIDENTIAL INFORMATION”. As used in this Agreement, the term “Confidential Information” means all information relating to or used in the Partnership’s business, regardless of whether it is marked “confidential” or otherwise. Confidential Information includes, but is not limited to, all business processes and procedures, systems, methods of doing business, data, reports, specifications, formulae, proposals, strategies, business plans and analyses, financial information and projections, investment strategy, marketing, advertising, promotions, market research, plans, information about past, present or potential investors, information about past, present or potential vendors, information about existing or future technology, and proprietary software or models. Without limiting the foregoing, the term “Confidential Information” expressly includes: the Partnership’s investment strategies, including without limitation the possibility of entering into an umbrella real estate investment trust (“UPREIT”) transaction; and potential details related to the Transaction, including without limitation potential Transaction terms, provisions, and pricing. The foregoing notwithstanding, the term “Confidential Information” does not include information that:

		a)
	Is or becomes known to the public through no fault of the receiving Party;

		b)
	The receiving Party already rightfully possessed before the disclosing Party disclosed it to the receiving Party;

		c)
	Is subsequently disclosed to the receiving Party by a third-party who is not under obligation of confidentiality to the disclosing Party; or

		d)
	The receiving Party develops independently without using Confidential Information.

	2.
	NON-DISCLOSURE OBLIGATIONS. Neither Party shall not disclose Confidential Information of the other Party to any of its officers, directors, employees, contractors or agents or to any third-party without the disclosing Party’s written consent, except that (a) the receiving Party may disclose such information to its officers, directors, employees, contractors, and agents whose duties justify their need to know such Confidential Information, and who have been clearly informed of their obligation to maintain the confidential status of such Confidential Information, and in the case of contractors or agents, who have signed a written document acknowledging the obligation to maintain the confidential status of Confidential Information, and shall cause them to comply fully with these obligations; and (b) the receiving Party may disclose Confidential Information to the extent required by applicable federal, state or local law, regulation, court order, or other legal process, provided such Party has given the disclosing Party prior written notice of such required disclosure and, to the extent reasonably possible, has given the disclosing Party an opportunity to contest such required disclosure at the disclosing Party’s expense.

	3.
	PROTECTION OF CONFIDENTIAL INFORMATION. The receiving Party shall use the same care to prevent the unauthorized use or disclosure of the Confidential Information as such Party uses with respect to its own confidential information of a similar nature, which shall not in any case be less than the care a reasonable business person would use under similar circumstances. Without limiting the foregoing, the

​

Exhibit F
1

​

receiving Party shall take reasonable action by instruction, agreement or otherwise with respect to such Party’s employees or other persons permitted access to Confidential Information to cause them to comply fully with the receiving Party’s obligations hereunder.
	4.
	PERMITTED USE OF CONFIDENTIAL INFORMATION. The receiving Party may not use the Confidential Information directly or indirectly for any purpose other than the purpose for which it was originally disclosed, or for any purposes which could be deemed to be adverse to or competitive with the disclosing Party’s business. Notwithstanding the foregoing and anything to the contrary in this Agreement, nothing contained herein shall impair Buyer’s right (or the right of any permitted assignee or Lodging Fund REIT III, Inc. (“Parent”)) to disclose information relating to this Agreement, the Amended and Restated Contribution Agreement, or the Property (a) to any due diligence representatives and/or consultants that are engaged by, work for or are acting on behalf of, any securities dealers, investment advisors and/or broker- dealers evaluating Buyer, its permitted assignees or Parent, (b) in connection with any filings with governmental agencies (including the Securities and Exchange Commission) by Parent, (c) to any broker- dealers or investment advisors in Parent’s selling group and any of Parent’s investors, including pursuant to the confidential offering memorandum used in connection with Parent’s ongoing private offering, and (d) to the public as long as such information does not specifically disclose the identity of the Contributor or the Property if such disclosure occurs before the end of the Due Diligence Period.

	5.
	DESTRUCTION OF CONFIDENTIAL INFORMATION. Upon the written request of the disclosing Party, the receiving Party shall cease using and arrange for the destruction of all copies of any Confidential Information then in the receiving Party’s possession or under such Party’s control. The receiving Party agrees to dispose of the Confidential Information in such a manner that the information cannot be read or reconstructed after destruction. Upon the written request of the disclosing Party, the receiving Party shall certify in writing that it has complied with the obligations set forth in this paragraph.

	6.
	INFORMATION SECURITY. (a) The receiving Party shall take appropriate measures designed to protect the security, confidentiality, and integrity of Confidential Information; (b) the receiving Party shall restrict access to Confidential Information to those officers, directors, employees, contractors, agents or other third parties whose access the disclosing Party deems appropriate; (c) Confidential Information shall continue to be subject to the terms of this Agreement indefinitely; and (d) the disclosing Party shall have the right to review the receiving Party’s operations and procedures to ensure compliance with the foregoing requirements. The receiving Party agrees to indemnify the disclosing Party for all reasonable fees, costs, charges, and expenses resulting from any unauthorized access to Confidential Information.

	7.
	OWNERSHIP OF CONFIDENTIAL INFORMATION. The disclosing Party shall retain all right, title and interest in and to its own Confidential Information. Neither this Agreement nor any disclosure of Confidential Information shall be deemed to grant the receiving Party any license or other intellectual property right.

	8.
	DISCLAIMERS. The receiving Party acknowledges and agrees that the disclosing Party provides Confidential Information disclosed hereunder on an “AS IS” basis, without warranties of any kind, except as specified in Section 7 above. Without limiting the foregoing, the disclosing Party does not represent or warrant that Confidential Information is accurate, complete or current. The disclosure of Confidential Information containing business plans is for planning purposes only. The disclosing Party may change or cancel its plans at any time at such Party's sole discretion. The receiving Party further acknowledges and understands that disclosure of Confidential Information is not a representation that the parties will enter into any type of business relationship.

	9.
	INJUNCTIVE RELIEF. The receiving Party acknowledges that the unauthorized use or disclosure by such Party of Confidential Information would cause immediate and irreparable damage that could not be fully remedied by monetary damages. The receiving Party therefore agrees that the disclosing Party may specifically enforce this Agreement and shall be entitled to injunctive or other equitable relief to prevent unauthorized use or disclosure without the necessity of proving actual damage.

​

Exhibit F
2

​

	10.
	TERMINATION. This Agreement shall remain in full force and effect until the earlier of (i) the Parties’ execution of a binding agreement superseding this Agreement, or (ii) a date two years after the conclusion of business discussions between the Parties.

	11.
	SEVERABILITY. If any provision of this Agreement is held invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired.

	12.
	GENERAL. This Agreement supplements the LOI, and to the extent inconsistent, supersedes any other non- disclosure or confidentiality agreement between the Parties. The Parties may not amend this Agreement except in a writing that each party signs. The terms of such an amendment shall apply as of the effective date of the amendment, unless the amendment specifies otherwise. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. The laws of the State of North Dakota shall govern this Agreement. No provision of this Agreement may be waived, except pursuant to a writing executed by the party against whom the waiver is sought to be enforced. No failure or delay in exercising any right or remedy or requiring the satisfaction of any condition under this Agreement operates as a waiver or estoppel of any right, remedy or condition. All remedies provided for in this Agreement shall be cumulative and in addition to and not in lieu of any other remedies available at law, in equity or otherwise.

	LODGING FUND REIT III OP, LP
	    
	ELP MC Venture, LLC

	on behalf of itself and its subsidiaries,
owners and affiliates
	​
	a Delaware limited liability company

	​
	​
	​

	By:
	​
	​
	By:
	​

	Name:
	Samuel C. Montgomery
	​
	Name:
	Sean Hawkins

	Title:
	Chief Operating Officer
	​
	Title:
	Authorized Member

​
​

Exhibit F
3

​

EXHIBIT G
TO
AMENDED AND RESTATED CONTRIBUTION AGREEMENT
TAX INFORMATION
​
​

Exhibit G
1

​

Exhibit H
Limitations on Trust Units
The Trust Units shall accrue distributions, as declared and paid by the OP, but shall only be distributed to Contributor based on the following criteria.
	NOI
	Distributions

	$1.2M+
	100%

	$1.1‐$1.2M
	75%

	$1.0‐$1.1M
	50%

	$0.9‐$1.0M
	25%

	Less than 0.9M
	0%

​
The Trust Units shall remain in Trust until such time the Contributed Asset achieves a full-year T12 $1.2M NOI measured on successive anniversary date(s) of the contribution.
​
​

Exhibit H
1

​

Schedule 2.2
List of Contributed Assets, Assumed Agreements and Leases
Contributed Assets:
All FF&E and linen inventory, including and not limited to the attached FF&E Summary and Linen Inventory (to be updated for closing)
2017 Ford Transit 350 VIN# 1FBZX2CM9HKA16845
Assumed Agreements and Leases
Ecolab Dish Machine and Water Softener – Month to Month Agreement
Thyssen Krupp Platinum Premier Maintenance Agreement dated August 1, 2011
​
​

Schedule 2.2
1

​

2/4/2022
	ELPCY Linen Inventory
	​
	​
	​
	​

	Par Levels
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	Items
	1.0 PAR
	Recommended
PAR
	Recommended
Amount
	​
	In Room
	Storage
	​
	Total
	Par
Actual Par
	Shortage
of 3 Par
	​
	​
	Cost to

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	# in Unit

	Unit Cost

	Bring to 3 Par

	Bath Towels
	248
	3
	744
	​
	270
	157
	​
	427
	1.7218
	317
	12
	63.48
	$
	1,676.93

	Hand towels
	248
	3
	744
	​
	180
	39
	​
	219
	0.8831
	525
	12
	13.92
	$
	609.00

	Wash Cloth
	248
	3
	744
	​
	270
	77
	​
	347
	1.3992
	397
	12
	5
	$
	165.42

	Bath Mats
	90
	3
	270
	​
	90
	47
	​
	137
	1.5222
	133
	12
	27.21
	$
	301.58

	Pool Towels
	40
	2
	80
	​
	0
	62
	​
	62
	1.5500
	18
	12
	65.04
	$
	97.56

	Gym Towels
	40
	2
	80
	​
	6
	39
	​
	45
	1.1250
	35
	12
	65.04
	$
	189.70

	KING Headboard Pillow
	102
	3
	306
	​
	100
	0
	​
	100
	0.9804
	206
	12
	124.92
	$
	2,144.46

	QUEEN Headboard Pillow
	78
	3
	234
	​
	80
	15
	​
	95
	1.2179
	139
	12
	65.88
	$
	763.11

	KING Headboard Pillow Case
	102
	3
	306
	​
	100
	36
	​
	136
	1.3333
	170
	12
	20.88
	$
	295.80

	QUEEN Headboard Pillow Case
	78
	3
	234
	​
	80
	53
	​
	133
	1.7051
	101
	12
	20.88
	$
	175.74

	Queen Fitted Sheets
	131
	3
	393
	​
	78
	87
	​
	165
	1.2595
	228
	12
	116.28
	$
	2,209.32

	Queen Flats Sheets
	131
	3
	393
	​
	78
	95
	​
	173
	1.3206
	220
	12
	93.48
	$
	1,713.80

	Queen Decorative Sheets
	78
	3
	234
	​
	78
	59
	​
	137
	1.7564
	97
	12
	293.03
	$
	2,368.66

	Queen Duvet
	78
	3
	234
	​
	78
	2
	​
	80
	1.0256
	154
	12
	381.6
	$
	4,897.20

	Pillow Cases
	531
	3
	1593
	​
	438
	356
	​
	794
	1.4953
	799
	12
	20.88
	$
	1,390.26

	Pillow Protectors
	531
	3
	1593
	​
	438
	8
	​
	446
	0.8399
	1147
	12
	19.56
	$
	1,869.61

	King Fitted Sheets
	51
	3
	153
	​
	51
	90
	​
	141
	2.7647
	12
	12
	130.08
	$
	130.08

	King Flat Sheets
	51
	3
	153
	​
	51
	90
	​
	141
	2.7647
	12
	12
	136.56
	$
	136.56

	King Decorative Sheets
	51
	3
	153
	​
	51
	80
	​
	131
	2.5686
	22
	12
	240.24
	$
	440.44

	King Duvet
	51
	3
	153
	​
	51
	2
	​
	53
	1.0392
	100
	12
	431.4
	$
	3,595.00

	King Bed Mattress Protector
	51
	3
	153
	​
	51
	14
	​
	65
	1.2745
	88
	12
	139.92
	$
	1,026.08

	Queen Bed Mattress Protector
	78
	3
	234
	​
	78
	16
	​
	94
	1.2051
	140
	12
	121.08
	$
	1,412.60

	Brown Blankets
	51
	3
	153
	​
	51
	5
	​
	56
	1.0980
	97
	1
	7.45
	$
	722.65

	Shower Curtains
	47
	3
	141
	​
	49
	4
	​
	53
	1.1277
	88
	12
	41.39
	$
	303.53

	Feather Pillows
	265
	3
	795
	​
	258
	7
	​
	265
	1.0000
	530
	12
	124.92
	$
	5,517.30

	Foam Pillows
	239
	3
	717
	​
	230
	9
	​
	239
	1.0000
	478
	12
	65.88
	$
	2,624.22

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	Total
	$
	36,053.95

​
​
​

​
​

​

​
	​

	​

	​

	​

	​

	​

	​

	​

	​

	October Guest Supplies Inventory

	10/1/2021

	10/29/2021

	Vendor
	Items
	Cases/Boxes
	In House
	Comsuption
	Price per
Unit
	October Cost
Consumption

	HD Supplies
	Shampoo Paul Mitchelle (170 CS)
	16
	16
	0
	$
	95.87
	$
	-

	HD Supplies
	Shampoo H2O (300 CS)
	5
	3
	2
	$
	83.65
	$
	167.30

	HD Supplies
	Conditioner Paul Mitchelle 170 CS)
	5
	2
	3
	$
	95.87
	$
	287.61

	HD Supplies
	Conditioner Eco (280CS)
	2
	2
	0
	$
	77.06
	$
	-

	HD Supplies
	Paul Mitchelle Lotion (170 CS)
	5
	3
	2
	$
	94.58
	$
	189.16

	HD Supplies
	CFRST Flow Wrap Soap .72 oz (450 CS)
	5
	3
	2
	$
	48.98
	$
	97.96

	HD Supplies
	Wrapped Paper Cup 10 oz (1000 CS)
	2
	1
	1
	$
	90.01
	$
	90.01

	HD Supplies
	Coaster Round 3, 1/2 (5000 CS)
	2
	1
	1
	$
	100.73
	$
	100.73

	HD Supplies
	Wolfgang 10-16 oz fit Plg lid (1000 CS)
	1
	0.5
	0.5
	$
	60.03
	$
	30.02

	HD Supplies
	Courtyard Bic Stick Pen (500/CS)
	1
	0.5
	0.5
	$
	45.99
	$
	23.00

	Courtesy Pro
	Coffee Regular (265)
	4
	3
	1
	$
	93.99
	$
	93.99

	Courtesy Pro
	Coffee Decaf (265 CS)
	3
	3
	0
	$
	93.99
	$
	-

	Courtesy Pro
	Coffee Clutch (1000 CS)
	2
	0.5
	1.5
	$
	59.99
	$
	89.99

	HD Supplies
	Make up Remover (500 CS)
	1
	0.5
	0.5
	$
	38.94
	$
	19.47

	HD Supplies
	Note Pads (1000 CS)
	1
	0.5
	0.5
	$
	3.00
	$
	1.50

	Courtesy Pro
	Sugar & Creamer (1000 CS)
	2
	1
	1
	$
	55.99
	$
	55.99

	HD Supplies
	Generic Toothbrush (144/CS)
	1
	1
	0
	$
	40.27
	$
	-

	US Foods
	Monogram Can Liner 56 gallons (100 CS)
	5
	3
	2
	$
	22.40
	$
	44.80

	US Foods
	Monogram Can Liner 33 gallons
	2
	2
	0
	$
	17.09
	$
	-

	US Foods
	Monogram Can Liner 13 inches (24x24)
	5
	3
	2
	$
	16.10
	$
	32.20

	US Foods
	L Gloves
	5
	2
	3
	$
	9.37
	$
	28.11

	US Foods
	M Gloves
	12
	2
	10
	$
	9.37
	$
	93.70

	US Foods
	Pacific Blue Paper Towel
	3
	3
	0
	$
	41.80
	$
	-

	US Foods
	Interfold Facial Tissue
	1
	1
	0
	$
	32.70
	$
	-

	US Foods
	Georcia Preferecence Klennex (36 per box)
	10
	9
	1
	$
	32.76
	$
	32.76

	US Foods
	Georcia PreferecenceToliet Paper 80
	8
	4
	4
	$
	41.80
	$
	167.20

	​
	​
	​
	​
	​
	Sub-total
	$
	1,645.49

	​
	​
	​
	​
	​
	Taxes:
	​
	8.25%

	​
	​
	​
	​
	​
	Total
	$
	1,781.24

​
​

​

​

October 2021 Ecolab/Laundry Inventory Report
	Products  
	  
	​
	  
	Units In
Stock
	  
	October 1, 2021
Order
	  
	Units
	  
	In Stock
	  
	Monthly
Unit Use
	  
	Unit Price
	  
	Quantity
Per CS
	  
	Montly Cost

	1
	​
	
	​
	AQN2 SOLID DETERGENT 4-9LB
(#1 Bottle lasted from 10/01/21- 10/04/21)
	​
	4 per CS
	​
	3
	​
	4 cs = 
	16 units
	​
	18
	​
	10
	​
	8
	​
	$
	204.34
	​
	4
	​
	$
	408.68

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	2
	​
	
	​
	AQN2 SOL CLY SFT PLS 2-6LB
	​
	2 per CS
	​
	2
	​
	5 cs = 
	10 units
	​
	12
	​
	8
	​
	4
	​
	$
	97.10
	​
	2
	​
	$
	194.20

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	3
	​
	
	​
	Low-Temp Laundry Solid Chlorine Sanitizer
	​
	2 per CS
	​
	3
	​
	2 cs = 
	4 units
	​
	7
	​
	5
	​
	2
	​
	$
	80.00
	​
	2
	​
	$
	80.00

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	4
	​
	
	​
	Scrub Free Bathroom Cleaner and Disinfectant,
2L, Fruity, Clear Pink; 2/Case
	​
	2 per CS
	​
	6
	​
	0 to order
	​
	6
	​
	5
	​
	1
	​
	​
	586.83
	​
	2
	​
	$
	293.42

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	5
	​
	
	​
	Peroxide Multi-Surface Cleaner - 2 L
	​
	2 per CS
	​
	8
	​
	2 cs = 
	4 units
	​
	12
	​
	11
	​
	1
	​
	​
	278.59
	​
	2
	​
	$
	139.30

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

​

​

	6
	​
	
	​
	Cleaner Ammoniated Liquid
	​
	2 per CS
	​
	3
	​
	1 cs = 
	2 units
	​
	5
	​
	4
	​
	1
	​
	$
	139.00
	​
	2
	​
	$
	69.50

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	7
	​
	
	​
	Alcohol Based Liquid
	​
	2 per CS
	​
	3
	​
	1 cs = 
	2 units
	​
	5
	​
	4
	​
	1
	​
	$
	139.00
	​
	2
	​
	$
	69.50

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	8
	​
	
	​
	Lemon-Eze
	​
	12 per CS
	​
	13
	​
	1 cs =
	12 units
	​
	25
	​
	15
	​
	10
	​
	$
	52.50
	​
	12
	​
	$
	43.75

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	9
	​
	
	​
	Citrus Scent NonSterile
	​
	12 per CS
	​
	12
	​
	1 cs = 
	12 units
	​
	24
	​
	6
	​
	18
	​
	$
	67.11
	​
	12
	​
	$
	100.67

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	Total
	​
	$
	1,399.01

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	Sale Tax
	​
	$
	115.42

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	$
	1,514.42

	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​
	​

​
​
​

​

​

Marriott Approved PC
		1.
	On Property Desktop Workstation

		i.
	Front Desk Pod A

		1.
	Lenovo Mini PC Tower (Refreshed in 2019 – Win10)

		2.
	Lenovo Think Vision (Original Monitor, Purchase Date Unknown)

		ii.
	Front Desk Pod B

		1.
	Lenovo Mini PC Tower (Refreshed in 2019 – Win 10)

		2.
	Lenovo Think Vision (Original Monitor, Purchase Date Unknown)

		iii.
	Front Office

		1.
	Lenovo Mini PC Tower (Refreshed in 2019 – Win 10)

		2.
	Lenovo Think Vision (Original Wide 22’ Widescreen)

GM Desktop Workstation
		1.
	Currently the GM does not have a desktop workstation in her office.

Marriott Approved Printer
		1.	On Property

		a.	Folio 1 (Lexmark MS610)

		b.	Folio 2 (Lexmark MS610)

Marriott Approved CC Processor
		1.
	On Property

		a.
	1 Bistro Terminal

​
​

​

​

​
	​

	​

	​

	​

	​

	​

	​

	TYPE OF ROOM
	Marriott ID
	PO
	ID
	VENDOR
	DESCRIPTION
	TOTAL PER ROOM

	EXT DBL DBL RIGHT
	V‐396 AL
	50240699
	237977
	MDC WALL COVERINGS
	WALL MURAL‐MAR1007 ABSTRACT LEFT‐TYPE II‐194"W X 108"H
	1

	EXT DBL DBL RIGHT
	Q‐104
	50240707
	267112
	P KAUFMANN
	BED BOX COVER‐DBL ‐MCY HMT SPATTER‐CUST CEMENT‐53 X 79 X 11
	2

	EXT DBL DBL RIGHT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	EXT DBL DBL RIGHT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	EXT DBL DBL RIGHT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	EXT DBL DBL RIGHT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	2

	EXT DBL DBL RIGHT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	2

	EXT DBL DBL RIGHT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	EXT DBL DBL RIGHT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	EXT DBL DBL RIGHT
	X‐221R
	50240711
	234053
	FAIRMONT
	CABINET HOSPITALITY+RIGHT‐47"W
	1

	EXT DBL DBL RIGHT
	X‐220R
	50240711
	234038
	FAIRMONT
	PANEL TECH DROP+RIGHT‐66 W
	1

	EXT DBL DBL RIGHT
	X‐216R
	50240711
	234013
	FAIRMONT
	DESK MOBILE+RIGHT 48 W‐HIGHLINE/WALNUT
	1

	EXT DBL DBL RIGHT
	X‐300OPT
	50240709
	233800
	KICHLER LIGHTING
	LAMP‐TASK‐3 WATT‐LED‐14.25"
	1

	EXT DBL DBL RIGHT
	Q‐107
	50240717
	HKL‐0019K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273910‐SC‐DBL BOLSTER‐CY CYNERGYHEADBOARD SE
	4

	EXT DBL DBL RIGHT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	2

	EXT DBL DBL RIGHT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	2

	EXT DBL DBL RIGHT
	X‐203
	50240711
	263218
	FAIRMONT
	NIGHTSTAND QN TR W/DRAWER 28" W X 19" D X 25" H
	1

	EXT DBL DBL RIGHT
	X‐207
	50240711
	234008
	FAIRMONT
	MIRROR QUEEN+LOWER‐28 W x 43.25"H‐HIGHLINE
	1

	EXT DBL DBL RIGHT
	X ‐ 408
	50240716
	248424
	PROJECT LIGHT INC
	SCONCE‐WALL‐DBL.‐106534‐WHITTED RIBBED‐ 28
	1

	EXT DBL DBL RIGHT
	X ‐ 408 B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐18W‐33118Q30K‐GU24 BASE FOR 235016 (4)
	4

	EXT DBL DBL RIGHT
	X‐217R
	50240711
	234020
	FAIRMONT
	CONSOLE BRIDGE RIGHT 24 W+HIGHLINE/WALNUT
	1

	EXT DBL DBL RIGHT
	X‐218R
	50240711
	234035
	FAIRMONT
	LUGGAGE DROP RIGHT+33"W‐NO QUARTZ TOP
	1

	EXT DBL DBL RIGHT
	X‐219R
	50240711
	234059
	FAIRMONT
	STONE+FOR RIGHT LUGGAGE BENCH‐33"W
	1

	EXT DBL DBL RIGHT
	X‐420
	50240713
	259946
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	EXT DBL DBL RIGHT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	EXT DBL DBL RIGHT
	X‐231
	50240710
	262818
	DYSTLE INC
	TABLE‐C‐20 X 10 X 24H‐STAINLESS‐SKYLINE WALNUT
	1

	EXT DBL DBL RIGHT
	X‐239 A ALT2
	50240706
	240033
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐LUMBAR FOR 75.5" SOFA‐16" X 42 " X 4.5
	1

	EXT DBL DBL RIGHT
	X‐239 ALT2
	50240706
	240868
	CHARTER FURNITURE CORPORATION
	SOFA‐+‐SLPR‐NX1VC1 EFES‐CUST CEMENT‐BLUE‐75.5
	1

	EXT DBL DBL RIGHT
	X‐241
	50240706
	238626
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR SOFA‐ NX1CV1 EFESC CUST CEMENT
	1

	EXT DBL DBL RIGHT
	X‐239BALT2
	50240706
	241757
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐ FOR SOFA‐NX1‐MLB‐MOD ORNAMENT‐14" X 18
	1

	EXT DBL DBL RIGHT
	X‐239COPT2
	50240706
	241767
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐MLB NX1‐GOLDBRICK‐CUST AQUA13" X 17
	1

	EXT DBL DBL RIGHT
	X‐251
	50240706
	232070
	CHARTER FURNITURE CORPORATION
	CHAIR‐LOUNGE‐+‐SUITE‐NXB MIAMI STRIPE‐CUST GREY‐28.5" W
	1

	EXT DBL DBL LEFT
	V‐396 AR
	50240699
	237978
	MDC WALL COVERINGS
	WALL MURAL‐MAR1006 ABSTRACT RIGHT‐TYPE II‐194"W X 108"H
	1

	EXT DBL DBL LEFT
	Q‐104
	50240707
	267112
	P KAUFMANN
	BED BOX COVER‐DBL ‐MCY HMT SPATTER‐CUST CEMENT‐53 X 79 X 11
	2

	EXT DBL DBL LEFT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	EXT DBL DBL LEFT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	EXT DBL DBL LEFT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	EXT DBL DBL LEFT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	2

	EXT DBL DBL LEFT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	2

	EXT DBL DBL LEFT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	EXT DBL DBL LEFT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	EXT DBL DBL LEFT
	X‐221L
	50240711
	234052
	FAIRMONT
	CABINET HOSPITALITY+LEFT‐47"W
	1

	EXT DBL DBL LEFT
	X‐220L
	50240711
	234036
	FAIRMONT
	PANEL TECH DROP+LEFT‐66 W
	1

	EXT DBL DBL LEFT
	X‐216L
	50240711
	234012
	FAIRMONT
	DESK MOBILE+LEFT 48 W‐HIGHLINE/WALNUT
	1

	EXT DBL DBL LEFT
	X‐300OPT
	50240709
	233800
	KICHLER LIGHTING
	LAMP‐TASK‐3 WATT‐LED‐14.25"
	1

​

​

​

​
	​

	​

	​

	​

	​

	​

	​

	EXT DBL DBL LEFT
	Q‐107
	50240717
	HKL‐0019K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273910‐SC‐DBL BOLSTER‐CY CYNERGYHEADBOARD SE
	4

	EXT DBL DBL LEFT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	2

	EXT DBL DBL LEFT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	2

	EXT DBL DBL LEFT
	X‐203
	50240711
	263218
	FAIRMONT
	NIGHTSTAND QN TR W/DRAWER 28" W X 19" D X 25" H
	1

	EXT DBL DBL LEFT
	X‐207
	50240711
	234008
	FAIRMONT
	MIRROR QUEEN+LOWER‐28 W x 43.25"H‐HIGHLINE
	1

	EXT DBL DBL LEFT
	X ‐ 408
	50240716
	248424
	PROJECT LIGHT INC
	SCONCE‐WALL‐DBL.‐106534‐WHITTED RIBBED‐ 28
	1

	EXT DBL DBL LEFT
	X ‐ 408 B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐18W‐33118Q30K‐GU24 BASE FOR 235016
	4

	EXT DBL DBL LEFT
	X‐217L
	50240711
	234018
	FAIRMONT
	CONSOLE BRIDGE‐+‐LEFT 24 W‐HIGHLINE/WALNUT
	1

	EXT DBL DBL LEFT
	X‐218L
	50240711
	234034
	FAIRMONT
	LUGGAGE DROP LEFT+33"W‐NO QUARTZ TOP
	1

	EXT DBL DBL LEFT
	X‐219L
	50240711
	234057
	FAIRMONT
	STONE+FOR LEFT LUGGAGE BENCH‐33"W
	1

	EXT DBL DBL LEFT
	X‐420
	50240713
	259946
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	EXT DBL DBL LEFT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	EXT DBL DBL LEFT
	X‐231
	50240710
	262818
	DYSTLE INC
	TABLE‐C‐20 X 10 X 24H‐STAINLESS‐SKYLINE WALNUT
	1

	EXT DBL DBL LEFT
	X‐239 A ALT2
	50240706
	240033
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐LUMBAR FOR 75.5" SOFA‐16" X 42 " X 4.5
	1

	EXT DBL DBL LEFT
	X‐239 ALT2
	50240706
	240868
	CHARTER FURNITURE CORPORATION
	SOFA‐+‐SLPR‐NX1VC1 EFES‐CUST CEMENT‐BLUE‐75.5
	1

	EXT DBL DBL LEFT
	X‐241
	50240706
	238626
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR SOFA‐ NX1CV1 EFESC CUST CEMENT
	1

	EXT DBL DBL LEFT
	X‐239BALT2
	50240706
	241757
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐ FOR SOFA‐NX1‐MLB‐MOD ORNAMENT‐14" X 18
	1

	EXT DBL DBL LEFT
	X‐239COPT2
	50240706
	241767
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐MLB NX1‐GOLDBRICK‐CUST AQUA13" X 17
	1

	EXT DBL DBL LEFT
	X‐251
	50240706
	232070
	CHARTER FURNITURE CORPORATION
	CHAIR‐LOUNGE‐+‐SUITE‐NXB MIAMI STRIPE‐CUST GREY‐28.5" W
	1

	DBL DBL RIGHT
	V‐396 AL
	50240699
	237977
	MDC WALL COVERINGS
	WALL MURAL‐MAR1007 ABSTRACT LEFT‐TYPE II‐194"W X 108"H
	1

	DBL DBL RIGHT
	Q‐104
	50240707
	267112
	P KAUFMANN
	BED BOX COVER‐DBL ‐MCY HMT SPATTER‐CUST CEMENT‐53 X 79 X 11
	2

	DBL DBL RIGHT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	DBL DBL RIGHT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	DBL DBL RIGHT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	DBL DBL RIGHT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	1

	DBL DBL RIGHT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	1

	DBL DBL RIGHT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	DBL DBL RIGHT
	X‐255 A ALT 2
	50240706
	240038
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐NX1‐PAT PRT BEDROCK‐14" X 18" X 4.5
	1

	DBL DBL RIGHT
	X‐255 ALT 2
	50240706
	240897
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐LOUNGE‐NX1VC1 EFESC‐CUST CEMENT‐BLUE37.5" W
	1

	DBL DBL RIGHT
	X‐256
	50240706
	232199
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR LOUNGECHAIR‐NXB EFES CUST CEMENT‐22"/18" W
	1

	DBL DBL RIGHT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	DBL DBL RIGHT
	X‐221R
	50240711
	234053
	FAIRMONT
	CABINET HOSPITALITY+RIGHT‐47"W
	1

	DBL DBL RIGHT
	X‐220R
	50240711
	234038
	FAIRMONT
	PANEL TECH DROP+RIGHT‐66 W
	1

	DBL DBL RIGHT
	X‐216R
	50240711
	234013
	FAIRMONT
	DESK MOBILE+RIGHT 48 W‐HIGHLINE/WALNUT
	1

	DBL DBL RIGHT
	X‐300OPT
	50240709
	233800
	KICHLER LIGHTING
	LAMP‐TASK‐3 WATT‐LED‐14.25"
	1

	DBL DBL RIGHT
	Q‐107
	50240717
	HKL‐0019K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273910‐SC‐DBL BOLSTER‐CY CYNERGYHEADBOARD SE
	4

	DBL DBL RIGHT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	2

	DBL DBL RIGHT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	2

	DBL DBL RIGHT
	X‐203
	50240711
	263218
	FAIRMONT
	NIGHTSTAND QN TR W/DRAWER 28" W X 19" D X 25" H
	1

	DBL DBL RIGHT
	X‐207
	50240711
	234008
	FAIRMONT
	MIRROR QUEEN+LOWER‐28 W x 43.25"H‐HIGHLINE
	1

	DBL DBL RIGHT
	X ‐ 408
	50240716
	248424
	PROJECT LIGHT INC
	SCONCE‐WALL‐DBL.‐106534‐WHITTED RIBBED‐ 28
	1

	DBL DBL RIGHT
	X ‐ 408 B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐18W‐33118Q30K‐GU24 BASE FOR 235016 (4)
	4

	DBL DBL RIGHT
	X‐217R
	50240711
	234020
	FAIRMONT
	CONSOLE BRIDGE RIGHT 24 W+HIGHLINE/WALNUT
	1

	DBL DBL RIGHT
	X‐218R
	50240711
	234035
	FAIRMONT
	LUGGAGE DROP RIGHT+33"W‐NO QUARTZ TOP
	1

​
​

​

​

​
	​

	​

	​

	​

	​

	​

	​

	DBL DBL RIGHT
	X‐219R
	50240711
	234059
	FAIRMONT
	STONE+FOR RIGHT LUGGAGE BENCH‐33"W
	1

	DBL DBL RIGHT
	X‐420
	50240713
	259946
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	DBL DBL RIGHT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	DBL DBL LEFT
	V‐396 AR
	50240699
	237978
	MDC WALL COVERINGS
	WALL MURAL‐MAR1006 ABSTRACT RIGHT‐TYPE II‐194"W X 108"H
	1

	DBL DBL LEFT
	Q‐104
	50240707
	267112
	P KAUFMANN
	BED BOX COVER‐DBL ‐MCY HMT SPATTER‐CUST CEMENT‐53 X 79 X 11
	2

	DBL DBL LEFT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	DBL DBL LEFT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	DBL DBL LEFT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	DBL DBL LEFT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	1

	DBL DBL LEFT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	1

	DBL DBL LEFT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	DBL DBL LEFT
	X‐255 A ALT 2
	50240706
	240038
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐NX1‐PAT PRT BEDROCK‐14" X 18" X 4.5
	1

	DBL DBL LEFT
	X‐255 ALT 2
	50240706
	240897
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐LOUNGE‐NX1VC1 EFESC‐CUST CEMENT‐BLUE37.5" W
	1

	DBL DBL LEFT
	X‐256
	50240706
	232199
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR LOUNGECHAIR‐NXB EFES CUST CEMENT‐22"/18" W
	1

	DBL DBL LEFT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	DBL DBL LEFT
	X‐221L
	50240711
	234052
	FAIRMONT
	CABINET HOSPITALITY+LEFT‐47"W
	1

	DBL DBL LEFT
	X‐220L
	50240711
	234036
	FAIRMONT
	PANEL TECH DROP+LEFT‐66 W
	1

	DBL DBL LEFT
	X‐216L
	50240711
	234012
	FAIRMONT
	DESK MOBILE+LEFT 48 W‐HIGHLINE/WALNUT
	1

	DBL DBL LEFT
	X‐300OPT
	50240709
	233800
	KICHLER LIGHTING
	LAMP‐TASK‐3 WATT‐LED‐14.25"
	1

	DBL DBL LEFT
	Q‐107
	50240717
	HKL‐0019K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273910‐SC‐DBL BOLSTER‐CY CYNERGYHEADBOARD SE
	4

	DBL DBL LEFT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	2

	DBL DBL LEFT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	2

	DBL DBL LEFT
	X‐203
	50240711
	263218
	FAIRMONT
	NIGHTSTAND QN TR W/DRAWER 28" W X 19" D X 25" H
	1

	DBL DBL LEFT
	X‐207
	50240711
	234008
	FAIRMONT
	MIRROR QUEEN+LOWER‐28 W x 43.25"H‐HIGHLINE
	1

	DBL DBL LEFT
	X ‐ 408
	50240716
	248424
	PROJECT LIGHT INC
	SCONCE‐WALL‐DBL.‐106534‐WHITTED RIBBED‐ 28
	1

	DBL DBL LEFT
	X ‐ 408 B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐18W‐33118Q30K‐GU24 BASE FOR 235016
	4

	DBL DBL LEFT
	X‐217L
	50240711
	234018
	FAIRMONT
	CONSOLE BRIDGE‐+‐LEFT 24 W‐HIGHLINE/WALNUT
	1

	DBL DBL LEFT
	X‐218L
	50240711
	234034
	FAIRMONT
	LUGGAGE DROP LEFT+33"W‐NO QUARTZ TOP
	1

	DBL DBL LEFT
	X‐219L
	50240711
	234057
	FAIRMONT
	STONE+FOR LEFT LUGGAGE BENCH‐33"W
	1

	DBL DBL LEFT
	X‐420
	50240713
	259946
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	DBL DBL LEFT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	EXT KING LEFT
	V‐374 AL
	50240699
	237975
	MDC WALL COVERINGS
	WALL MURAL‐MAR1003 ABSTRACT LEFT‐TYPE II‐130"W X 108"H
	1

	EXT KING LEFT
	K‐104
	50240707
	267122
	P KAUFMANN
	BED BOX COVER‐KG 72"‐MCY HMT PR SPATTER‐CUST CEMENT‐"71
	1

	EXT KING LEFT
	K‐107
	50240717
	HKL‐0017K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273905‐SC‐KG BOLSTER‐CY CYNERGYHEADBOARD SE (2)
	2

	EXT KING LEFT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	1

	EXT KING LEFT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	1

	EXT KING LEFT
	X‐231
	50240710
	262818
	DYSTLE INC
	TABLE‐C‐20 X 10 X 24H‐STAINLESS‐SKYLINE WALNUT
	1

	EXT KING LEFT
	X‐239 A ALT2
	50240706
	240033
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐LUMBAR FOR 75.5" SOFA‐16" X 42 " X 4.5
	1

	EXT KING LEFT
	X‐239 ALT2
	50240706
	240868
	CHARTER FURNITURE CORPORATION
	SOFA‐+‐SLPR‐NX1VC1 EFES‐CUST CEMENT‐BLUE‐75.5
	1

	EXT KING LEFT
	X‐241
	50240706
	238626
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR SOFA‐ NX1CV1 EFESC CUST CEMENT
	1

	EXT KING LEFT
	X‐239BALT2
	50240706
	241757
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐ FOR SOFA‐NX1‐MLB‐MOD ORNAMENT‐14" X 18
	1

	EXT KING LEFT
	X‐239COPT2
	50240706
	241767
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐MLB NX1‐GOLDBRICK‐CUST AQUA13" X 17
	1

	EXT KING LEFT
	X‐249
	50240706
	232194
	CHARTER FURNITURE CORPORATION
	CHAIR‐SIDE‐+‐NX1VC1 EFESC‐CUST CEMENT‐24" W
	1

​
​

​

​

​
	​
	​
	​
	​
	​
	​
	​

	EXT KING LEFT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	EXT KING LEFT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	EXT KING LEFT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	EXT KING LEFT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	2

	EXT KING LEFT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	1

	EXT KING LEFT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	EXT KING LEFT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	EXT KING LEFT
	X‐221L
	50240711
	234052
	FAIRMONT
	CABINET HOSPITALITY+LEFT‐47"W
	1

	EXT KING LEFT
	X‐220L
	50240711
	234036
	FAIRMONT
	PANEL TECH DROP+LEFT‐66 W
	1

	EXT KING LEFT
	X‐216L
	50240711
	234012
	FAIRMONT
	DESK MOBILE+LEFT 48 W‐HIGHLINE/WALNUT
	1

	EXT KING LEFT
	X‐205
	50240711
	234001
	FAIRMONT
	MIRROR KING+LOWER‐12 W X 28.25"H‐HIGHLIN
	1

	EXT KING LEFT
	X‐206
	50240711
	234005
	FAIRMONT
	MIRROR KING+12"W X 43.25"H‐HIGH LI
	1

	EXT KING LEFT
	X‐201
	50240711
	263221
	FAIRMONT
	NIGHTSTAND‐KG‐+‐TR‐W/DRAWER‐12"W X 19"D X 25
	1

	EXT KING LEFT
	X‐202L
	50240711
	263220
	FAIRMONT
	NIGHTSTAND‐KG‐+‐LEFT‐TR‐W/O DRAWER‐14"W X 19"DX 25"H
	1

	EXT KING LEFT
	X‐407L
	50240716
	248426
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐LEFT FACING‐106580‐WHITTED RIBBED‐12 FOR 2 SCONCES / 2 NIGHTSTANDS
	1

	EXT KING LEFT
	X‐407LB
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐GU24‐ LED10A19GUDODD3
	4

	EXT KING LEFT
	X‐217L
	50240711
	234018
	FAIRMONT
	CONSOLE BRIDGE‐+‐LEFT 24 W‐HIGHLINE/WALNUT
	1

	EXT KING LEFT
	X‐218L
	50240711
	234034
	FAIRMONT
	LUGGAGE DROP LEFT+33"W‐NO QUARTZ TOP
	1

	EXT KING LEFT
	X‐219L
	50240711
	234057
	FAIRMONT
	STONE+FOR LEFT LUGGAGE BENCH‐33"W
	1

	EXT KING LEFT
	X‐420
	50240713
	234409
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	EXT KING LEFT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	KING RIGHT
	V‐374 AR
	50240699
	237976
	MDC WALL COVERINGS
	WALL MURAL‐MAR1002 ABSTRACT RIGHT‐TYPE II‐130"W X 108"H
	1

	KING RIGHT
	K‐104
	50240707
	267122
	P KAUFMANN
	BED BOX COVER‐KG 72"‐MCY HMT PR SPATTER‐CUST CEMENT‐"71
	1

	KING RIGHT
	K‐107
	50240717
	HKL‐0017K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273905‐SC‐KG BOLSTER‐CY CYNERGYHEADBOARD SE (2)
	2

	KING RIGHT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	1

	KING RIGHT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	1

	KING RIGHT
	X‐239 A ALT2
	50240706
	240033
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐LUMBAR FOR 75.5" SOFA‐16" X 42 " X 4.5
	1

	KING RIGHT
	X‐239 ALT2
	50240706
	240868
	CHARTER FURNITURE CORPORATION
	SOFA‐+‐SLPR‐NX1VC1 EFES‐CUST CEMENT‐BLUE‐75.5
	1

	KING RIGHT
	X‐241
	50240706
	238626
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR SOFA‐ NX1CV1 EFESC CUST CEMENT
	1

	KING RIGHT
	X‐239BALT2
	50240706
	241757
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐ FOR SOFA‐NX1‐MLB‐MOD ORNAMENT‐14" X 18
	1

	KING RIGHT
	X‐239COPT2
	50240706
	241767
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐MLB NX1‐GOLDBRICK‐CUST AQUA13" X 17
	1

	KING RIGHT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	KING RIGHT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	KING RIGHT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	KING RIGHT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	1

	KING RIGHT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	1

	KING RIGHT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	KING RIGHT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	KING RIGHT
	X‐221R
	50240711
	234053
	FAIRMONT
	CABINET HOSPITALITY+RIGHT‐47"W
	1

	KING RIGHT
	X‐220R
	50240711
	234038
	FAIRMONT
	PANEL TECH DROP+RIGHT‐66 W
	1

	KING RIGHT
	X‐216R
	50240711
	234013
	FAIRMONT
	DESK MOBILE+RIGHT 48 W‐HIGHLINE/WALNUT
	1

	KING RIGHT
	X‐205
	50240711
	234001
	FAIRMONT
	MIRROR KING+LOWER‐12 W X 28.25"H‐HIGHLIN
	1

	KING RIGHT
	X‐206
	50240711
	234005
	FAIRMONT
	MIRROR KING 12 W 43.25 H
	1

​
​

​

​

​
	​

	​

	​

	​

	​

	​

	​

	KING RIGHT
	X‐201
	50240711
	263221
	FAIRMONT
	NIGHTSTAND‐KG‐+‐TR‐W/DRAWER‐12"W X 19"D X 25
	1

	KING RIGHT
	X‐202R
	50240711
	263219
	FAIRMONT
	NIGHTSTAND K+W/0 DRAWER‐14 W X 19 D X 25 H
	1

	KING RIGHT
	X‐407R
	50240716
	248431
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐RT. FACING‐106532‐WHITTED RIBBED‐12
	1

	KING RIGHT
	X‐407RB
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐GU24‐ LED10A19GUDODD3 (2)
	4

	KING RIGHT
	X‐217R
	50240711
	234020
	FAIRMONT
	CONSOLE BRIDGE RIGHT 24 W+HIGHLINE/WALNUT
	1

	KING RIGHT
	X‐218R
	50240711
	234035
	FAIRMONT
	LUGGAGE DROP RIGHT+33"W‐NO QUARTZ TOP
	1

	KING RIGHT
	X‐219R
	50240711
	234059
	FAIRMONT
	STONE+FOR RIGHT LUGGAGE BENCH‐33"W
	1

	KING RIGHT
	X‐420
	50240713
	234409
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	KING RIGHT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	KING LEFT
	V‐374 AL
	50240699
	237975
	MDC WALL COVERINGS
	WALL MURAL‐MAR1003 ABSTRACT LEFT‐TYPE II‐130"W X 108"H
	1

	KING LEFT
	K‐104
	50240707
	267122
	P KAUFMANN
	BED BOX COVER‐KG 72"‐MCY HMT PR SPATTER‐CUST CEMENT‐"71
	1

	KING LEFT
	K‐107
	50240717
	HKL‐0017K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273905‐SC‐KG BOLSTER‐CY CYNERGYHEADBOARD SE
	2

	KING LEFT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	1

	KING LEFT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	1

	KING LEFT
	X‐239 A ALT2
	50240706
	240033
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐LUMBAR FOR 75.5" SOFA‐16" X 42 " X 4.5
	1

	KING LEFT
	X‐239 ALT2
	50240706
	240868
	CHARTER FURNITURE CORPORATION
	SOFA‐+‐SLPR‐NX1VC1 EFES‐CUST CEMENT‐BLUE‐75.5
	1

	KING LEFT
	X‐241
	50240706
	238626
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR SOFA‐ NX1CV1 EFESC CUST CEMENT
	1

	KING LEFT
	X‐239BALT2
	50240706
	241757
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐ FOR SOFA‐NX1‐MLB‐MOD ORNAMENT‐14" X 18
	1

	KING LEFT
	X‐239COPT2
	50240706
	241767
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐MLB NX1‐GOLDBRICK‐CUST AQUA13" X 17
	1

	KING LEFT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	KING LEFT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	KING LEFT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	KING LEFT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	1

	KING LEFT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	1

	KING LEFT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	KING LEFT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	KING LEFT
	X‐221L
	50240711
	234052
	FAIRMONT
	CABINET HOSPITALITY+LEFT‐47"W
	1

	KING LEFT
	X‐220L
	50240711
	234036
	FAIRMONT
	PANEL TECH DROP+LEFT‐66 W
	1

	KING LEFT
	X‐216L
	50240711
	234012
	FAIRMONT
	DESK MOBILE+LEFT 48 W‐HIGHLINE/WALNUT
	1

	KING LEFT
	X‐205
	50240711
	234001
	FAIRMONT
	MIRROR KING+LOWER‐12 W X 28.25"H‐HIGHLIN
	1

	KING LEFT
	X‐206
	50240711
	234005
	FAIRMONT
	MIRROR KING 12 W 43.25 H
	1

	KING LEFT
	X‐201
	50240711
	263221
	FAIRMONT
	NIGHTSTAND‐KG‐+‐TR‐W/DRAWER‐12"W X 19"D X 25
	1

	KING LEFT
	X‐202L
	50240711
	263220
	FAIRMONT
	NIGHTSTAND‐KG‐+‐LEFT‐TR‐W/O DRAWER‐14"W X 19"DX 25"H
	1

	KING LEFT
	X‐407L
	50240716
	248426
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐LEFT FACING‐106580‐WHITTED RIBBED‐12 FOR 2 SCONCES / 2 NIGHTSTANDS
	1

	KING LEFT
	X‐407LB
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐GU24‐ LED10A19GUDODD3 (2)
	4

	KING LEFT
	X‐217L
	50240711
	234018
	FAIRMONT
	CONSOLE BRIDGE‐+‐LEFT 24 W‐HIGHLINE/WALNUT
	1

	KING LEFT
	X‐218L
	50240711
	234034
	FAIRMONT
	LUGGAGE DROP LEFT+33"W‐NO QUARTZ TOP
	1

	KING LEFT
	X‐219L
	50240711
	234057
	FAIRMONT
	STONE+FOR LEFT LUGGAGE BENCH‐33"W
	1

	KING LEFT
	X‐420
	50240713
	234409
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	KING LEFT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	KING SUITE LEFT
	V‐374 AR
	50240699
	237975
	MDC WALL COVERINGS
	WALL MURAL‐MAR1003 ABSTRACT RIGHT‐TYPE II‐130"W X 108"H
	1

	KING SUITE LEFT
	K‐104
	50240707
	267122
	P KAUFMANN
	BED BOX COVER‐KG 72"‐MCY HMT PR SPATTER‐CUST CEMENT‐"71
	1

​
​

​

​

​
	​

	​

	​

	​

	​

	​

	​

	KING SUITE LEFT
	K‐107
	50240717
	HKL‐0017K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273905‐SC‐KG BOLSTER‐CY CYNERGYHEADBOARD SE (2)
	2

	KING SUITE LEFT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	1

	KING SUITE LEFT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	1

	KING SUITE LEFT
	X‐239 ALT2
	50240706
	240868
	CHARTER FURNITURE CORPORATION
	SOFA‐+‐SLPR‐NX1VC1 EFES‐CUST CEMENT‐BLUE‐75.5
	1

	KING SUITE LEFT
	X‐241
	50240706
	238626
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR SOFA‐ NX1CV1 EFESC CUST CEMENT
	1

	KING SUITE LEFT
	X‐239BALT2
	50240706
	241757
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐ FOR SOFA‐NX1‐MLB‐MOD ORNAMENT‐14" X 18
	1

	KING SUITE LEFT
	X‐239COPT2
	50240706
	241767
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐MLB NX1‐GOLDBRICK‐CUST AQUA13" X 17
	1

	KING SUITE LEFT
	X‐249
	50240706
	232194
	CHARTER FURNITURE CORPORATION
	CHAIR‐SIDE‐+‐NX1VC1 EFESC‐CUST CEMENT‐24" W
	1

	KING SUITE LEFT
	X‐251
	50240706
	232070
	CHARTER FURNITURE CORPORATION
	CHAIR‐LOUNGE‐+‐SUITE‐NXB MIAMI STRIPE‐CUST GREY‐28.5" W
	1

	KING SUITE LEFT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	KING SUITE LEFT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	KING SUITE LEFT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	KING SUITE LEFT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	2

	KING SUITE LEFT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB FOR 234994
	1

	KING SUITE LEFT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	KING SUITE LEFT
	X‐417
	50240715
	279373
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐60"X46
	1

	KING SUITE LEFT
	X‐243
	50240711
	234056
	FAIRMONT
	DRESSER+4 DRAWER‐48"W
	1

	KING SUITE LEFT
	X‐220R
	50240711
	234038
	FAIRMONT
	PANEL TECH DROP+RIGHT‐66 W
	1

	KING SUITE LEFT
	X‐216R
	50240711
	234013
	FAIRMONT
	DESK MOBILE+RIGHT 48 W‐HIGHLINE/WALNUT
	1

	KING SUITE LEFT
	X‐201
	50240711
	263221
	FAIRMONT
	NIGHTSTAND‐KG‐+‐TR‐W/DRAWER‐12"W X 19"D X 25
	1

	KING SUITE LEFT
	X‐202L
	50240711
	263220
	FAIRMONT
	NIGHTSTAND‐KG‐+‐LEFT‐TR‐W/O DRAWER‐14"W X 19"DX 25"H
	1

	KING SUITE LEFT
	X‐205
	50240711
	234001
	FAIRMONT
	MIRROR KING+LOWER‐12 W X 28.25"H‐HIGHLIN
	1

	KING SUITE LEFT
	X‐407L
	50240716
	248426
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐LEFT FACING‐106580‐WHITTED RIBBED‐12 FOR 2 SCONCES / 2 NIGHTSTANDS
	2

	KING SUITE LEFT
	X‐407LB
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐GU24‐ LED10A19GUDODD3
	4

	KING SUITE LEFT
	X‐217R
	50240711
	234020
	FAIRMONT
	CONSOLE BRIDGE RIGHT 24 W+HIGHLINE/WALNUT
	1

	KING SUITE LEFT
	X‐206
	50240711
	234005
	FAIRMONT
	MIRROR KING 12 W 43.25 H
	1

	KING SUITE LEFT
	X‐218R
	50240711
	234035
	FAIRMONT
	LUGGAGE DROP RIGHT+33"W‐NO QUARTZ TOP
	1

	KING SUITE LEFT
	X‐219R
	50240711
	234059
	FAIRMONT
	STONE+FOR RIGHT LUGGAGE BENCH‐33"W
	1

	EXT KING RIGHT
	V‐374 AR
	50240699
	237976
	MDC WALL COVERINGS
	WALL MURAL‐MAR1002 ABSTRACT RIGHT‐TYPE II‐130"W X 108"H
	1

	EXT KING RIGHT
	K‐104
	50240707
	267122
	P KAUFMANN
	BED BOX COVER‐KG 72"‐MCY HMT PR SPATTER‐CUST CEMENT‐"71
	1

	EXT KING RIGHT
	K‐107
	50240717
	HKL‐0017K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273905‐SC‐KG BOLSTER‐CY CYNERGYHEADBOARD SE (2)
	2

	EXT KING RIGHT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	1

	EXT KING RIGHT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	1

	EXT KING RIGHT
	X‐231
	50240710
	262818
	DYSTLE INC
	TABLE‐C‐20 X 10 X 24H‐STAINLESS‐SKYLINE WALNUT
	1

	EXT KING RIGHT
	X‐239 A ALT2
	50240706
	240033
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐LUMBAR FOR 75.5" SOFA‐16" X 42 " X 4.5
	1

	EXT KING RIGHT
	X‐239 ALT2
	50240706
	240868
	CHARTER FURNITURE CORPORATION
	SOFA‐+‐SLPR‐NX1VC1 EFES‐CUST CEMENT‐BLUE‐75.5
	1

	EXT KING RIGHT
	X‐241
	50240706
	238626
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR SOFA‐ NX1CV1 EFESC CUST CEMENT
	1

	EXT KING RIGHT
	X‐239BALT2
	50240706
	241757
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐ FOR SOFA‐NX1‐MLB‐MOD ORNAMENT‐14" X 18
	1

	EXT KING RIGHT
	X‐239COPT2
	50240706
	241767
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐MLB NX1‐GOLDBRICK‐CUST AQUA13" X 17
	1

	EXT KING RIGHT
	X‐249
	50240706
	232194
	CHARTER FURNITURE CORPORATION
	CHAIR‐SIDE‐+‐NX1VC1 EFESC‐CUST CEMENT‐24" W
	1

	EXT KING RIGHT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	EXT KING RIGHT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	EXT KING RIGHT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

​

​

​

​
	​

	​

	​

	​

	​

	​

	​

	EXT KING RIGHT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	2

	EXT KING RIGHT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	1

	EXT KING RIGHT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	EXT KING RIGHT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	EXT KING RIGHT
	X‐221R
	50240711
	234053
	FAIRMONT
	CABINET HOSPITALITY+RIGHT‐47"W
	1

	EXT KING RIGHT
	X‐220R
	50240711
	234038
	FAIRMONT
	PANEL TECH DROP+RIGHT‐66 W
	1

	EXT KING RIGHT
	X‐216R
	50240711
	234013
	FAIRMONT
	DESK MOBILE+RIGHT 48 W‐HIGHLINE/WALNUT
	1

	EXT KING RIGHT
	X‐205
	50240711
	234001
	FAIRMONT
	MIRROR KING+LOWER‐12 W X 28.25"H‐HIGHLIN
	1

	EXT KING RIGHT
	X‐206
	50240711
	234005
	FAIRMONT
	MIRROR KING+12"W X 43.25"H‐HIGH LI
	1

	EXT KING RIGHT
	X‐201
	50240711
	263221
	FAIRMONT
	NIGHTSTAND‐KG‐+‐TR‐W/DRAWER‐12"W X 19"D X 25
	1

	EXT KING RIGHT
	X‐202R
	50240711
	263219
	FAIRMONT
	NIGHTSTAND K+W/0 DRAWER‐14 W X 19 D X 25 H
	1

	EXT KING RIGHT
	X‐407R
	50240716
	248431
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐RT. FACING‐106532‐WHITTED RIBBED‐12
	1

	EXT KING RIGHT
	X‐407RB
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐GU24‐ LED10A19GUDODD3
	4

	EXT KING RIGHT
	X‐217R
	50240711
	234020
	FAIRMONT
	CONSOLE BRIDGE RIGHT 24 W+HIGHLINE/WALNUT
	1

	EXT KING RIGHT
	X‐218R
	50240711
	234035
	FAIRMONT
	LUGGAGE DROP RIGHT+33"W‐NO QUARTZ TOP
	1

	EXT KING RIGHT
	X‐219R
	50240711
	234059
	FAIRMONT
	STONE+FOR RIGHT LUGGAGE BENCH‐33"W
	1

	EXT KING RIGHT
	X‐420
	50240713
	234409
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	EXT KING RIGHT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	ACC KING RIGHT
	V‐374 AR
	50240699
	237976
	MDC WALL COVERINGS
	WALL MURAL‐MAR1002 ABSTRACT RIGHT‐TYPE II‐130"W X 108"H
	1

	ACC KING RIGHT
	K‐104
	50240707
	267122
	P KAUFMANN
	BED BOX COVER‐KG 72"‐MCY HMT PR SPATTER‐CUST CEMENT‐"71
	1

	ACC KING RIGHT
	K‐107
	50240717
	HKL‐0017K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273905‐SC‐KG BOLSTER‐CY CYNERGYHEADBOARD SE
	2

	ACC KING RIGHT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	1

	ACC KING RIGHT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	1

	ACC KING RIGHT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	ACC KING RIGHT
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	ACC KING RIGHT
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	2

	ACC KING RIGHT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	1

	ACC KING RIGHT
	X‐402B
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULBS FOR WALL SCONCE
	1

	ACC KING RIGHT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	ACC KING RIGHT
	X‐255 A ALT 2
	50240706
	240038
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐NX1‐PAT PRT BEDROCK‐14" X 18" X 4.5
	1

	ACC KING RIGHT
	X‐255 ALT 2
	50240706
	240897
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐LOUNGE‐NX1VC1 EFESC‐CUST CEMENT‐BLUE37.5" W
	1

	ACC KING RIGHT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	ACC KING RIGHT
	X‐221R
	50240711
	234053
	FAIRMONT
	CABINET HOSPITALITY+RIGHT‐47"W
	1

	ACC KING RIGHT
	X‐220R
	50240711
	234038
	FAIRMONT
	PANEL TECH DROP+RIGHT‐66 W
	1

	ACC KING RIGHT
	X‐216R
	50240711
	234013
	FAIRMONT
	DESK MOBILE+RIGHT 48 W‐HIGHLINE/WALNUT
	1

	ACC KING RIGHT
	X‐205
	50240711
	234001
	FAIRMONT
	MIRROR KING+LOWER‐12 W X 28.25"H‐HIGHLIN
	1

	ACC KING RIGHT
	X‐407R
	50240716
	248431
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐RT. FACING‐106532‐WHITTED RIBBED‐12
	1

	ACC KING RIGHT
	X‐407L
	50240716
	248426
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐LEFT FACING‐106580‐WHITTED RIBBED‐12 FOR 2 SCONCES / 2 NIGHTSTANDS
	1

	ACC KING RIGHT
	X‐407RB
	50240702
	259410
	TECHNICAL CONSUMER PRODUCTS
	BULB‐18W‐33118Q30K‐GU24 BASE FOR 234496 / 234997
	4

	ACC KING RIGHT
	X‐217R
	50240711
	234020
	FAIRMONT
	CONSOLE BRIDGE RIGHT 24 W+HIGHLINE/WALNUT
	1

	ACC KING RIGHT
	X‐218R
	50240711
	234035
	FAIRMONT
	LUGGAGE DROP RIGHT+33"W‐NO QUARTZ TOP
	1

	ACC KING RIGHT
	X‐219R
	50240711
	234059
	FAIRMONT
	STONE+FOR RIGHT LUGGAGE BENCH‐33"W
	1

	ACC KING RIGHT
	X‐420
	50240713
	234409
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

​
​

​

​

​
	​

	​

	​

	​

	​

	​

	​

	ACC KING RIGHT
	X‐420B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐23W‐SPRINGLAMP‐33123SP30/BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K
	1

	ACC KING RIGHT
	X‐300OPT
	50240709
	233800
	KICHLER LIGHTING
	LAMP‐TASK‐3 WATT‐LED‐14.25"
	1

	EXT KING RIGHT
	X‐407R
	50240716
	248426
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐RT. FACING‐106532‐WHITTED RIBBED‐12
	1

	MOD EXT KING R
	V‐374 AL
	50240699
	237976
	MDC WALL COVERINGS
	WALL MURAL‐MAR1002 ABSTRACT RIGHT‐TYPE II‐130"W X 108"H
	1

	MOD EXT KING R
	K‐104
	50240707
	267122
	P KAUFMANN
	BED BOX COVER‐KG 72"‐MCY HMT PR SPATTER‐CUST CEMENT‐"71
	1

	MOD EXT KING R
	LM‐405
	50240710
	256862
	DYSTLE INC
	LAMP FLOOR WITH WOOD TABLE 64"H
	1

	MOD EXT KING R
	K‐107
	50240717
	HKL‐0017K
	JDT WORLDWIDE LL
	KIT‐DNU‐SEE #273905‐SC‐KG BOLSTER‐CY CYNERGYHEADBOARD SE (2)
	1

	MOD EXT KING R
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	1

	MOD EXT KING R
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	1

	MOD EXT KING R
	X‐231
	50240710
	262818
	DYSTLE INC
	TABLE‐C‐20 X 10 X 24H‐STAINLESS‐SKYLINE WALNUT
	1

	MOD EXT KING R
	X‐239 A ALT2
	50240706
	240033
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐LUMBAR FOR 75.5" SOFA‐16" X 42 " X 4.5
	1

	MOD EXT KING R
	X‐239 ALT2
	50240706
	240868
	CHARTER FURNITURE CORPORATION
	SOFA‐+‐SLPR‐NX1VC1 EFES‐CUST CEMENT‐BLUE‐75.5
	1

	MOD EXT KING R
	X‐241
	50240706
	238626
	CHARTER FURNITURE CORPORATION
	OTTOMAN‐FOR SOFA‐ NX1CV1 EFESC CUST CEMENT
	1

	MOD EXT KING R
	X‐239BALT2
	50240706
	241757
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐ FOR SOFA‐NX1‐MLB‐MOD ORNAMENT‐14" X 18
	1

	MOD EXT KING R
	X‐239COPT2
	50240706
	241767
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐MLB NX1‐GOLDBRICK‐CUST AQUA13" X 17
	1

	MOD EXT KING R
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	MOD EXT KING R
	X‐301
	50240713
	253907
	CHALLENGER LIGHTING
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	MOD EXT KING R
	X‐301B
	50240702
	279451
	TECHNICAL CONSUMER PRODUCTS
	BULB‐10W‐LED‐3000K‐MEDIUM‐ L9A19D2530K ‐ (2) 253907
	1

	MOD EXT KING R
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	1

	MOD EXT KING R
	X‐402B
	​
	?
	​
	BULBS FOR WALL SCONCE
	1

	MOD EXT KING R
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	MOD EXT KING R
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	MOD EXT KING R
	X‐221R
	50240711
	234053
	FAIRMONT
	CABINET HOSPITALITY+RIGHT‐47"W
	1

	MOD EXT KING R
	X‐220R
	50240711
	234038
	FAIRMONT
	PANEL TECH DROP+RIGHT‐66 W
	1

	MOD EXT KING R
	X‐216R
	50240711
	234013
	FAIRMONT
	DESK MOBILE+RIGHT 48 W‐HIGHLINE/WALNUT
	1

	MOD EXT KING R
	X‐205
	50240711
	234001
	FAIRMONT
	MIRROR KING+LOWER‐12 W X 28.25"H‐HIGHLIN
	2

	MOD EXT KING R
	X‐201
	50240711
	263221
	FAIRMONT
	NIGHTSTAND‐KG‐+‐TR‐W/DRAWER‐12"W X 19"D X 25
	2

	MOD EXT KING R
	X‐407L
	50240716
	248426
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐LEFT FACING‐106580‐WHITTED RIBBED‐12 FOR 2 SCONCES / 2 NIGHTSTANDS
	1

	MOD EXT KING R
	X‐407R
	50240716
	234997
	PROJECT LIGHT INC
	SCONCE‐WALL‐SINGLE‐RT. FACING‐106532‐WHITTED RIBBED‐12
	1

	MOD EXT KING R
	X‐407LB/RB
	​
	259410
	TECHNICAL CONSUMER PRODUCTS INC
	BULB‐10W‐LED‐3000K‐GU24‐ LED10A19GUDODD3
	1

	MOD EXT KING R
	X‐217R
	50240711
	234020
	FAIRMONT
	CONSOLE BRIDGE RIGHT 24 W+HIGHLINE/WALNUT
	1

	MOD EXT KING R
	X‐218R
	50240711
	234035
	FAIRMONT
	LUGGAGE DROP RIGHT+33"W‐NO QUARTZ TOP
	1

	MOD EXT KING R
	X‐219R
	50240711
	234059
	FAIRMONT
	STONE+FOR RIGHT LUGGAGE BENCH‐33"W
	1

	MOD EXT KING R
	X‐223
	50240710
	234704
	DYSTLE INC
	TABLE END SUITES BR STAINLESS MONTANA WALNUT
	1

	MOD EXT KING R
	X‐420
	50240713
	234409
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

	MOD EXT KING R
	X‐420B
	50241839
	128066
	TECHNICAL CONSUMER PRODUCTS INC
	BULB‐23W‐SPRINGLAMP‐33123SP30
	1

	MOD EXT KING R
	X‐251
	50240706
	232070
	CHARTER FURNITURE CORPORATION
	CHAIR‐LOUNGE‐+‐SUITE‐NXB MIAMI STRIPE‐CUST GREY‐28.5" W
	2

	EXT KING RIGHT
	X‐502
	50240712
	237913
	PI FINE ART
	ARTWORK CITY OF T.O CANVAS ‐ 59 3/4" W X 24 3/4 H
	1

	EXT KING LEFT
	X‐502
	50240712
	237913
	PI FINE ART
	ARTWORK CITY OF T.O CANVAS ‐ 59 3/4" W X 24 3/4 H
	1

	KING LEFT
	X‐502
	50240712
	237913
	PI FINE ART
	ARTWORK CITY OF T.O CANVAS ‐ 59 3/4" W X 24 3/4 H
	1

	KING RIGHT
	X‐502
	50240712
	237913
	PI FINE ART
	ARTWORK CITY OF T.O CANVAS ‐ 59 3/4" W X 24 3/4 H
	1

	KING SUITE LEFT
	X‐502
	50240712
	237913
	PI FINE ART
	ARTWORK CITY OF T.O CANVAS ‐ 59 3/4" W X 24 3/4 H
	1

	MOD EXT KING R
	X‐502
	50240712
	237913
	PI FINE ART
	ARTWORK CITY OF T.O CANVAS ‐ 59 3/4" W X 24 3/4 H
	1

	MOD EXT KING L
	X‐502
	50240712
	237913
	PI FINE ART
	ARTWORK CITY OF T.O CANVAS ‐ 59 3/4" W X 24 3/4 H
	1

​

​

​

​
	​

	​

	​

	​

	​

	​

	​

	ACC DBL RIGHT
	V‐396AL
	50240699
	237978
	MDC WALL COVERINGS
	WALL MURAL‐MAR1006 ABSTRACT RIGHT‐TYPE II‐194"W X 108"H
	1

	ACC DBL RIGHT
	X‐106A
	50240696
	231492
	AMERICAN HOTEL REGISTER
	PILLOW SHAM‐WHITE‐+‐CY‐CYNERGY‐KNIFE EDGE‐18X18
	2

	ACC DBL RIGHT
	X‐106B
	50240696
	231513
	AMERICAN HOTEL REGISTER
	PILLOW‐EURO SQUARE‐+‐WHITE‐18X
	2

	ACC DBL RIGHT
	X‐250
	50240706
	235221
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐TASK‐800‐149‐CY‐SKINTEX KARMA‐PEWTERALUM. BAS
	1

	ACC DBL RIGHT
	X‐301
	50240713
	253907
	PROJECT LIGHT INC
	LAMP‐+‐FA4479‐03‐FLOOR‐TRIPOD‐15" W X 72" H
	1

	ACC DBL RIGHT
	X‐402
	50240713
	234994
	CHALLENGER LIGHTING
	WALL SCONCE‐+‐SA4630‐00‐BRUSHED NICKEL‐12
	1

	ACC DBL RIGHT
	X‐599
	50240705
	232868
	MAJESTIC MIRROR AND FRAME INC
	MIRROR‐MAKEUP 3X MAGNIFICATION‐5 1/2" x 8 1/2
	1

	ACC DBL RIGHT
	X‐255A ALT2
	50240706
	240038
	CHARTER FURNITURE CORPORATION
	PILLOW‐+‐THROW‐NX1‐PAT PRT BEDROCK‐14" X 18" X 4.5
	1

	ACC DBL RIGHT
	X‐255 ALT2
	50240706
	240897
	CHARTER FURNITURE CORPORATION
	CHAIR‐+‐LOUNGE‐NX1VC1 EFESC‐CUST CEMENT‐BLUE37.5" W
	1

	ACC DBL RIGHT
	X‐415
	50240715
	279379
	ELECTRIC MIRROR
	VANITY LIGHT & MIRROR‐LED‐+‐30"X4
	1

	ACC DBL RIGHT
	X‐221R
	50240711
	234053
	FAIRMONT
	CABINET HOSPITALITY+RIGHT‐47"W
	1

	ACC DBL RIGHT
	X‐220R
	50240711
	234038
	FAIRMONT
	PANEL TECH DROP+RIGHT‐66 W
	1

	ACC DBL RIGHT
	X‐216R
	50240711
	234013
	FAIRMONT
	DESK MOBILE+RIGHT 48 W‐HIGHLINE/WALNUT
	1

	ACC DBL RIGHT
	X‐203ADA
	50240711
	263217
	FAIRMONT
	NIGHTSTAND QN+ ADA W/DRAWER 36"W X 19" D X 25 H
	1

	ACC DBL RIGHT
	X‐207
	50240711
	234008
	FAIRMONT
	MIRROR QUEEN+LOWER‐28 W x 43.25"H‐HIGHLINE
	1

	ACC DBL RIGHT
	X‐408
	50240716
	235016
	PROJECT LIGHT INC
	SCONCE‐WALL‐DBL.‐106534‐WHITTED RIBBED‐ 28
	1

	ACC DBL RIGHT
	X‐217R
	50240711
	234020
	FAIRMONT
	CONSOLE BRIDGE RIGHT 24 W+HIGHLINE/WALNUT
	1

	ACC DBL RIGHT
	X‐218R
	50240711
	234035
	FAIRMONT
	LUGGAGE DROP RIGHT+33"W‐NO QUARTZ TOP
	1

	ACC DBL RIGHT
	X‐219R
	50240711
	234059
	FAIRMONT
	STONE+FOR RIGHT LUGGAGE BENCH‐33"W
	1

	ACC DBL RIGHT
	X‐420
	50240713
	234409
	CHALLENGER LIGHTING
	PENDANT‐CA4478‐01‐13‐POLISHED CHROME
	1

​
​

​

​

Schedule 2.4
List of Excluded Assets
		1.
	Contributor’s cash, cash equivalents and investments not relating to the operation of the Property.

		2.
	Any Fixtures and Personal Property that contains hazardous materials that the Operating Partnership requires to be removed.

		3.
	Any management agreement pertaining to the Property, which management agreements must be terminated at Closing.

​
​

Schedule 2.4
1

​

Schedule 2.5
​
List of Assumed Liabilities; Permitted Liens
​
​

Schedule 2.5
1

​

Schedule 2.6
​
List of Excluded Liabilities
​
​

Schedule 2.6
1

​

Schedule 2.10
Allocation of Total Consideration
​
​

Schedule 2.10
1

​

Schedule 3.1.8
3-05 Audit
Contributor acknowledges that under either Rule 3-05 or Rule 3-14 of Regulation S-X, the Operating Partnership is required to provide certain information in connection with reports the Company is required to file with the Securities and Exchange Commission.
Accordingly, Contributor agrees to:
(a)allow the Operating Partnership and its representatives which includes third party auditors, at the Operating Partnership’s sole cost and expense, to perform an audit of the Property, the Contributed Assets and business operations of and at the Property to the extent required under either Rule 3-05 or Rule 3-14 of Regulation S-X (hereinafter a “Rule 3-05 or 3-14 Audit”); and
(b)make available to the Operating Partnership and its representatives for inspection and audit following the Closing, at the Contributor’s offices the Contributor’s books and records relating solely to the Contributor’s operations that are reasonably requested by the Operating Partnership (but specifically excluding Contributor’s tax returns) for any full or partial years reasonably necessary to complete the Rule 3-05 or 3-14 Audit; and
(c)sign the management representation letter to be provided by the Operating Partnership’s independent auditors.
In connection with the foregoing, the Operating Partnership will give the Contributor no less than 10 business days’ prior written notice of the Operating Partnership’s plans to inspect and audit such books and records, and the Contributor’s obligation to perform herein shall extend beyond the Closing.
Notwithstanding the foregoing, the Contributor will not be required to (a) prepare or compile any materials, (b) incur any third-party costs or expenses in connection with the Rule 3-05 or 3-14 Audit, (c) provide any books, records or materials that could reasonably be expected to be books, records or materials in the possession or control of the tenant parties, (d) provide any books, records or materials that are not within the possession or control of the Contributor, or (e) make any representations or warranties with respect to such information beyond a customary management representation letter signed by the Contributor reasonably requested by any accounting firm engaged by the Operating Partnership to deliver its auditors report with respect to the Rule 3-05 or Rule 3-14 Audit. The Operating Partnership acknowledges and agrees that the foregoing accounting and financial materials to be provided by the Contributor does not include any information or materials related to the period prior to the date the Contributor acquired the Property and the Contributed Assets and is to be limited solely to information regarding the Property and the Contributed Assets after they were placed into operation by the Contributor. The Contributor acknowledges that the Rule 3-05 or Rule 3-14 Audit may require the Operating Partnership to perform a Rule 3-05 or 3-14 Audit both after the Effective Date and after the Closing Date and the Contributor agrees that the Contributor’s obligations under this Schedule 3.1.8 are material terms of this Agreement, and breach of this Schedule 3.1.8 will constitute a default under the terms of this Agreement. The Contributor further agrees, that the Operating Partnership’s sole and absolute remedy in the event of default is that of specific performance.

Schedule 3.1.8
1Exhibit 10.158

	
	
13879309.14
          EXECUTION VERSION

HOTEL MANAGEMENT AGREEMENT

between

LF3 EL PASO AIRPORT TRS LLC,
as Owner

and

AIMBRIDGE HOSPITALITY, LLC
as Manager

Courtyard by Marriott® El Paso Airport

El Paso, Texas

February 8, 2022

 

	
	 1
#13879309v14

HOTEL MANAGEMENT AGREEMENT

THIS HOTEL MANAGEMENT AGREEMENT is made as of the 8th day of February , 2022, between
LF3 EL PASO AIRPORT TRS, LLC, LLC, a Delaware limited liability company, as Owner, and
AIMBRIDGE HOSPITALITY, LLC, a Delaware limited liability company, as Manager.

RECITALS
A. Owner is the lessee of the Hotel from LF3 El Paso Airport, LLC an affiliate to Owner and the fee simple
Owner (“Fee Simple Owner”).
B. Owner and Fee Owner have entered into the Operating Lease pursuant to which Fee Owner leases the
Hotel to Owner; and
C. Manager is experienced in the management and operation of hotels, directly and through its Affiliates;
and
D. Owner and Manager desire to evidence their agreement with respect to the operation, direction,
management, and supervision of the Hotel as more particularly set forth below.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in
this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Owner and Manager agree as follows:

ARTICLE 1
ENGAGEMENT OF MANAGER AND RELATIONSHIP OF THE PARTIES
1.1 Owner hereby engages and appoints Manager, pursuant to the terms of this Agreement, as the
sole and exclusive manager of the Hotel during the Operating Term to operate and manage the Hotel, and Manager
hereby agrees and contracts to plan, operate, repair and manage the Hotel pursuant to the terms of this Agreement.
1.2 Owner and Manager acknowledge and agree that this Agreement creates an agency relationship;
provided, however, that (a) each Hotel Employee shall be the employee of Manager or Manager’s Affiliate and
not of Owner, (b) Manager’s authority is subject to the terms and conditions of this Agreement, and (c) nothing
in this Agreement shall constitute, or be construed to be, or create, a partnership, joint venture or lease or
employment arrangement between Owner and Manager with respect to the Hotel or the operation thereof.
1.3 Except as otherwise provided in this Agreement, (a) all debts and liabilities to third persons
incurred by Manager in the course of its operation and management of the Hotel in accordance with the provisions
of this Agreement shall be the debts and liabilities of Owner only, (b) Manager shall in no event be required to
advance any of its funds (whether by waiver or deferral of its Management Fees or otherwise) for the operation
of the Hotel, and (c) Manager shall not be liable for any such obligations by reason of its management, supervision,
direction and operation of the Hotel as agent for Owner.  Manager may so inform third parties with whom it deals
on behalf of Owner and may take any other reasonable steps to carry out the intent of this paragraph.  Manager
shall not be deemed to be in default of its obligations under this Agreement to the extent it is unable to perform
any obligation due to (i) the lack of sufficient funds therefor, either through Hotel operations or directly from
Owner, or (ii) the failure of Owner to provide any applicable requisite Owner consent.
1.4 The parties further acknowledge and agree that for the purposes of determining the nature and
scope of any fiduciary duties of Manager under this Agreement, the terms of this Agreement, and the duties and
obligations set forth herein, are intended to satisfy all such fiduciary duties that may exist as a result of the 

	
	 2
#13879309v14
relationship between the parties, including all duties of loyalty, good faith, fair dealing and full disclosure, and
any other duty deemed to exist under the common law principles of agency or otherwise (other than the duty of
good faith and fair dealing implied under general contract principles, independent of the common law principles
of agency).  To the extent any fiduciary or other duties that exist or are implied under the common law principles
of agency or otherwise, including those resulting from the relationship between the parties, and including all duties
of loyalty, good faith, fair dealing, care, full disclosure, or any other duty deemed to exist under the common law
principles of agency or otherwise (collectively for the purposes of this Section 1.4, the “Implied Duties”) are
inconsistent with, or would have the effect of modifying, limiting or restricting, the express provisions of this
Agreement, the terms of this Agreement will prevail.  Owner acknowledges and agrees that its consent to the
transactions and conduct by Manager and its Affiliates described in this Agreement and its waiver of any Implied
Duties: (a) has been obtained by Manager in good faith; (b) is made knowingly by Owner based on its adequate
informed judgment as a sophisticated party after seeking the advice of competent and informed counsel; and (c)
arises from the Owner’s knowledge and understanding of the specific transactions and actions or inactions of
managers that are normal, customary, and reasonably expected in the hotel industry generally, and also arises from
those specific transactions and action or inactions of Manager that are normal, customary and reasonably expected
by Owner under this Agreement.
1.5 This Agreement shall not be deemed at any time to be an interest in real estate or a lien or security
interest against the Hotel, the Premises or any other land used in connection with the Hotel, or any equipment,
fixtures, inventory, motor vehicles, contracts, documents, accounts, notes, drafts, acceptances, instruments, chattel
paper, general intangibles, or other personal property now existing or that may hereafter be acquired or entered
into with respect to the Hotel or the operation thereof.
ARTICLE 2
OPERATION OF HOTEL
2.1 Subject to the terms of this Agreement, Hotel operations shall be under the exclusive supervision
and control of Manager, which, except as otherwise specifically provided in this Agreement, shall be responsible
for the proper and efficient operation, maintenance and repair of the Hotel in accordance with the terms of this
Agreement, in each case subject to the availability of funds in the Operating Account or otherwise supplied by
Owner.  Subject to the terms of this Agreement, Manager shall have control and discretion in all aspects of the
operation, direction, management and supervision of the Hotel.  Specifically, during the Operating Term,
Manager, as agent and for the account of Owner, or its Affiliates shall in accordance with the other applicable
provisions of this Agreement, and only to the extent Owner has provided both (a) sufficient funds therefor (either
through Hotel operations or directly from Owner) and (b) any applicable consent required of Owner under this
Agreement:
A. Devote its knowledge, experience and efforts to operate and manage the Hotel pursuant
to this Agreement in a businesslike manner in accordance with the Operating Standards;
B. Determine Hotel policies including but not limited to (i) credit policies (including
entering into agreements with credit card organizations), (ii) terms of admittance, (iii) charges for rooms, (iv) food
and beverage policies, (v) Employment Policies, and (vi) entertainment and amusement policies;
C. Recruit, train, direct, supervise, employ and dismiss the Hotel Employees for the
operation of the Hotel;
D. Arrange and contract for advertising, marketing, promotion, publicity and similar
programs for the Hotel;
E. Negotiate and enter into (i) Leases, collect the rent under such Leases and otherwise
administer the Leases and (ii) contracts for the provision of services to the Hotel; 

	
	 3
#13879309v14
F. Upon receipt of all necessary information from Owner, apply for, process and take all
necessary steps to procure and keep in effect in Owner’s name (or, if requested by Owner and/or if required by
the licensing authority, in Manager’s name or that of one of its Affiliates, or both) all Permits and the sales tax
registration(s) required for the operation of the Hotel;
G. Upon Owner’s request, provide purchasing services for routine replacements and
renewals of FF&E, Operating Equipment and Supplies necessary for the operation of the Hotel; non-routine
purchases of such items may be provided pursuant to a separate written agreement on terms and conditions set
forth therein (including a separate fee); provided, however, to the extent that Owner purchases any of the FF&E,
Operating Equipment and Supplies used in connection with the operation of the Hotel, Owner will (i) provide to
Manager sufficient information for Manager to maintain accurate books and records regarding sales and use tax
accruals with respect to such purchases and pay such accruals out of Total Operating Revenues from the Hotel,
and (ii) fully cooperate with Manager in the event of any related tax audit;
H. Provide accounting services as set forth in accordance with Sections 7.1 and 7.2;
I. Develop and implement policies, procedures and programs reasonably designed to
comply with all Legal Requirements;
J. Cause all needed ordinary repairs and maintenance to the Hotel of which Manager is
aware to be made, and supervise such repairs and maintenance; and
K. Provide such other services as are required under the terms of this Agreement.
2.2 Manager will be available to consult with and advise Owner, at Owner’s reasonable request,
concerning all policies and procedures affecting all phases of the conduct of business at the Hotel.  Owner shall
consult directly with Manager’s regional oversight team or such other corporate employee of Manager as the
parties may agree, and shall not contact any Hotel Employee, regarding the operations of the Hotel.
2.3 Notwithstanding any other provision of this Agreement to the contrary, Manager’s performance
under this Agreement with respect to any Major Agreement shall be limited to the extent:
(a) complete and accurate copies thereof, or summaries of the relevant provisions thereof, have been
delivered to Manager sufficiently in advance to allow Manager to perform such obligations; and
(b) the provisions thereof and/or compliance with such provisions by Manager (i) are applicable to
the day-to-day operation, maintenance and non-capital repair and replacement of the Hotel or any portion
thereof, (ii) do not require contribution of capital, (iii) do not materially increase Manager’s obligations
hereunder or materially decrease Manager’s other rights hereunder, (iv) do not limit or purport to limit
any corporate activity or transaction with respect to Manager or its Affiliates or any other activity, transfer,
transaction, property or other matter involving Manager or its Affiliates other than at the site of the Hotel,
and (v) are otherwise within the scope of Manager’s duties under this Agreement.
Owner acknowledges and agrees, without limiting the foregoing, that any failure of Manager or the Hotel
to comply with the provisions of any Major Agreement arising out of (1) the condition of the Hotel and/or the
failure of the Hotel to comply with the provisions of such Major Agreement, prior to Manager’s assuming the
day-to-day management thereof, (2) construction activities at the Hotel, (3) inherent limitations in the design
and/or construction of, location of and/or parking at the Hotel, (4) instructions from Owner to operate the Hotel
in a manner inconsistent with the Major Agreements and/or (5) Owner’s failure to approve any matter requested
by Manager in Manager’s reasonable good faith business judgment as necessary or appropriate to achieve
compliance with any Major Agreement, shall not be deemed a breach by Manager of its obligations under this
Agreement.  Owner agrees to promptly provide Manager copies of any notice of default or breach received under
any Major Agreement. 

	
	 4
#13879309v14
2.4 A. Manager may institute Legal Proceedings of a “non-extraordinary nature” (hereafter
defined), in the name of Manager or the Hotel or Owner and by counsel designated by Manager.  Initiation of, or
defense of, Legal Proceedings of an “extraordinary nature” (hereafter defined) shall require Owner’s prior
approval of the proceedings and counsel approved by Owner.  In addition, Manager shall have the right to defend,
through counsel designated by Manager, Legal Proceedings of a non-extraordinary nature against Owner or
Manager resulting from the operation of the Hotel; provided, however, excluding proceedings which are defined
in clause (B)(ii) below, for proceedings in which the monetary exposure after the application of applicable
insurance is greater than $10,000 Owner may recommend counsel and selection of counsel shall be subject to
Owner’s reasonable approval.  The defense of Legal Proceedings against the Hotel of an extraordinary nature
(including, without limitation, any aspect of any claims against Manager or Owner arising out of the operation of
the Hotel as to which the insurance company denies coverage) shall be coordinated with Owner, and designated
counsel shall be subject to Owner’s discretionary approval (provided that Owner will not withhold its approval of
panel counsel or similar commercially reasonable legal counsel requirements of an insurance company for claims
that are reasonably projected to be covered by such insurance to the extent required in order to achieve the
maximum protection to Owner, Manager and the Hotel).  All Legal Proceedings against Owner and/or Manager
arising out of the management or operation of the Hotel: (a) which are not covered by insurance shall be promptly
communicated to Owner (with the goal of doing so within 24-48 hours of Manager obtaining actual knowledge
of such a Legal Proceeding) and (b) which are covered in whole or in part by insurance shall be following receipt
of notice thereof by Manager, promptly forwarded by Manager to the appropriate insurer (with a copy thereof to
Owner in the case of claims against Owner).
B. Legal Proceedings of a “non-extraordinary nature” shall be proceedings in which (i) the
monetary exposure after the application of applicable insurance coverage is less than $50,000 that are (1) initiated
by Manager or Owner relating to the operation of the Hotel for matters such as collections, maintenance of licenses
and permits, enforcement of contracts and proceedings against Hotel tenants; and/or (2) defense of actions against
the Owner or Manager resulting from the operation of the Hotel, for matters such as guest claims for loss of
property or injury to persons and/or (ii) claims relating to employment or the application for employment at the
Hotel for which Manager shall select counsel in coordination with the applicable insurance provider. Legal
Proceedings of an “extraordinary nature” shall mean all other Legal Proceedings. Manager shall be responsible
for ensuring notices received by Manager with respect to the Hotel that are legal in nature are timely processed,
and if required under the terms of such notice or this Agreement delivered to the Owner.
ARTICLE 3
OPERATING TERM
3.1 This Agreement is effective on the Effective Date and shall have an Initial Term commencing on
the Commencement Date and expiring on the fifth (5th) anniversary of the Commencement Date, unless sooner
terminated in accordance with the provisions of this Agreement or unless extended as provided by the terms of
this Agreement or as otherwise provided by the written agreement of Owner and Manager.  This Agreement shall
automatically renew for the Renewal Term unless either party gives the other party written notice of termination
not later than ninety (90) days before the end of the Initial Term or the then applicable Renewal Term.
3.2 On the expiration or sooner termination of the Operating Term, Manager shall quit and surrender
the Premises to Owner and take such other actions as contemplated by Article 14 hereof.
ARTICLE 4
FEES AND PAYMENTS TO MANAGER
4.1 For each Fiscal Year or portion thereof, Manager shall receive, by a distribution made by Manager
out of Total Operating Revenues at the end of each Accounting Period in respect of its management services
hereunder, a fee calculated as follows:
(a) the Base Fee set forth on Schedule 1;  

	
	 5
#13879309v14

(b) the Accounting Fee and Additional Accounting Fee, each set forth on Schedule 1;

(c) the Revenue Management Fee set forth on Schedule 1; plus

(d) the eCommerce Fee set forth on Schedule 1.

4.2 For each calendar quarter of each Fiscal Year or portion thereof, Manager shall receive, upon the
submission of the Monthly Report for the last month of the applicable quarter, the Incentive Fee set forth on
Schedule 1.
4.3 The Management Fees generally shall be computed separately for each Fiscal Year and shall not
be accumulated from Fiscal Year to Fiscal Year, provided that the determination of the Incentive Fee, may
necessitate the use of information from multiple Fiscal Years.  The Incentive Fee shall be adjusted, if necessary,
within sixty (60) days after receipt by Owner of the annual accounting for such Fiscal Year or receipt by Manager
of the Owner’s documentation.  Owner or Manager shall be entitled to audit the determination and calculation of
the Incentive Fee.  In the event that an audit reflects an underpayment or overpayment of the Incentive Fee to
Manager or Owner, Manager shall correct same by a corrective payment to Owner or Manager, as appropriate,
within ten (10) days following notice of the results of such audit to the other party.  The calculation and payment
of the Incentive Fee shall survive the expiration or termination of this Agreement.
4.4 Owner shall reimburse Manager for all Reimbursable Expenses incurred by it in connection with
the performance of this Agreement.  Any such amount shall be payable within thirty (30) days of billing, and upon
request of Owner, Manager shall provide a statement showing in reasonable detail the nature and amount of such
expenses, together with supporting documentation reasonably requested by Owner.  Owner shall be liable for and
shall pay Manager for any applicable sales, use, excise consumption or similar taxes that are payable to any taxing
jurisdiction with respect to any fees, Reimbursable Expenses or other amounts due to Manager under this
Agreement to ensure that the net amount of such fees, Reimbursable Expenses or other amounts received by
Manager shall be equal to the full amount that Manager would have otherwise received if no such taxes applied
to such amounts.  This Section 4.4 does not apply to federal or state income taxes payable by Manager as a result
of its gross or net income relating to any fees collected under this Agreement.
ARTICLE 5
CENTRALIZED SERVICES;
MULTI-PROPERTY PROGRAMS; INFORMATION TECHNOLOGY
5.1 Manager may, subject to the Budgets, provide or cause its Affiliates to provide for the Hotel and
its guests, the Centralized Services.  The current list and cost of Centralized Services offered by Manager is shown
on Exhibit A to this Agreement and will be modified on an annual basis in connection with the review and approval
of the Budgets.  Subject to the provisions of the applicable Budgets, Manager (or such of its Affiliates as provide
Centralized Services) shall be entitled to be reimbursed for the Hotel’s share of the total costs that are reasonably
incurred in providing Centralized Services on a system-wide basis to hotels managed by Manager or its Affiliates.
Such costs include costs and fees for services payable to the Manager and/or third-party providers charged in the
following manner:  (a) reasonable corporate overhead, including, without limitation, the cost of salaries (including
payroll taxes and employee benefits) of employees of Manager and its Affiliates and costs of all supplies and
equipment employed in the provision of such services, as modified on an annual basis in connection with the
review and approval of the Budgets; and (b) direct-bill or pass-through costs paid to third-party providers (such
as software license fees and service agreement costs).
To the extent any of the foregoing are based on allocations among properties operated by Manager and its
Affiliates, the Hotel’s share of such costs shall be determined in an equitable manner by Manager as part of the
annual Budgets or otherwise substantiated to Owner, shall be an Operating Expense of the Hotel and shall be
borne by Owner and paid or reimbursed to Manager out of the Operating Account or if the amounts therein are 

	
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insufficient by Owner in accordance with Section 8.1.  Manager shall maintain and make available to Owner
invoices or other evidence supporting all of the charges for Centralized Services.  Notwithstanding the foregoing,
Manager’s fee for providing accounting services shall be the Accounting Fee.
Owner acknowledges and agrees that Manager or its Affiliates may receive administrative fees or reimbursements
from participating vendors or suppliers of goods or services under Centralized Services, which fees or
reimbursements are used to off-set the cost of Manager’s administration and implementation of the Centralized
Services as described in clause (a) above. Owner acknowledges and agrees that (a) Manager has disclosed to
Owner the types of Centralized Services Manager currently makes available to properties which it operates,
including those that require mandatory participation by the Hotel, (b) the Hotel is likely to receive a benefit from
its participation in such Centralized Services, (c) Manager is not obligated to provide such Centralized Services
under Article 2 of this Agreement, but will offer such Centralized Services to the Hotel so long as Manager
continues to offer them to other similar hotels operated by Manager or its Affiliates, (d) Manager is entitled to
payment for such Centralized Services in the manner set forth above in addition to its Management Fees, and (e)
the receipt by Manager of any such payment, or of the administrative fees or reimbursements described above,
does not breach any duty which Manager may have to Owner.
5.2 Manager shall arrange for the procurement, as an Operating Expense, of all operating supplies,
inventory, and/or services necessary for the normal and ordinary course of operation or oversight of the Hotel, on
a direct-bill or pass-through cost basis.  Owner acknowledges and agrees that Manager or its Affiliates, subject to
the Major Agreements and the Budgets, may enter into certain Multi-Property Programs pursuant to which
Manager or its Affiliates may receive rebates, administrative fees or other volume- based incentive compensation
from participating vendors or suppliers of goods or services.  Owner acknowledges and agrees that (a) Manager
has disclosed to Owner the types of Multi-Property Programs Manager currently makes available to properties
which it operates, (b) the Hotel is likely to receive a benefit from its participation in such Multi-Property Programs,
which benefit the Hotel could not obtain on its own and (c) the receipt by Manager of any such rebates does not
breach any duty which Manager may have to Owner.  Owner may opt-in or-out of the Multi-Property Programs
during the budget process each year.
5.3 A. Owner shall pay the costs of all information technology equipment, software and costs
associated with business changes from time to time, as reasonably determined by Manager, to (i) comply with the
Operating Standards, (ii) make reasonable adaptations to changing technology, (iii) be otherwise consistent with
industry standards for similar hotel operations, and (iv) achieve and sustain compliance on an on-going basis with
the Data Security Requirements.  To the extent requested by Owner, Manager may provide project management
services in connection with the procurement and installation of information technology for the Hotel during the
Operating Term on terms and conditions (including separate fees for such services) mutually agreed upon by
Owner and Manager.
B. During the Operating Term, in connection with performance of the services under this
Agreement and accordance with the other applicable provisions of this Agreement, Manager or its Affiliates shall
collect, maintain, transmit, disclose, process, and use any Protected Data obtained or derived from the operation
of the Hotel in a manner that (i) complies with the terms of this Agreement and the applicable License Agreement,
and (ii) is designed to achieve and sustain compliance on an on-going basis with the Data Security Requirements;
provided, however, that Owner acknowledges and agrees that the Protected Data is collected, maintained,
transmitted, disclosed, processed and used in and through systems owned, licensed and/or under the sole control
of Licensor and/or Owner or a third party contracted by Owner, and Manager does not warrant, represent, guaranty
or have any liability with respect to the systems, software, policies or other matters that may exist or be utilized
with respect thereto.
ARTICLE 6
HOTEL EMPLOYEES 

	
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6.1 All Hotel Employees shall be employees of Manager or its Affiliate.  All compensation (including
without limitation all wages, fringe benefits and severance payments) of the Hotel Employees shall be an
Operating Expense and shall be borne by Owner and paid or reimbursed to Manager or its Affiliate out of the
Operating Account or if the amounts therein are insufficient by Owner upon demand therefor by Manager.  Owner
acknowledges and agrees that Manager or its Affiliate shall have the right to institute severance payment policies
and bonus programs for the Hotel Employees so long as such policies are reasonable and customary in the industry.
All severance and bonus payments shall be in accordance with the severance policy guidelines and bonus programs
approved by Owner in connection with the annual Budget approval process, or otherwise approved by Owner.  If
this Agreement is terminated in the middle of any Fiscal Year, Owner shall pay a pro-rata portion of any Hotel
Employee’s bonus that accrued during the Operating Term.
6.2 Manager may enroll the Hotel Employees in retirement, health and welfare employee benefit
plans substantially similar to corresponding plans implemented in other hotels with similar service levels managed
by Manager.  Such plans may be, at Manager’s option, joint plans for the benefit of employees at more than one
hospitality property owned, leased or managed by Manager or its Affiliates.  Employer contributions to such plans
and reasonable administrative costs which Manager may expend in connection therewith shall be the responsibility
of Owner and shall be an Operating Expense.  The administrative expenses of any joint plans will be equitably
apportioned by Manager among properties covered by such plan, based on the Hotel’s payroll expense as it relates
to the total expense of such joint plan.
6.3
A. Owner hereby agrees that Manager may (a) negotiate any collective bargaining
agreement in place for the Hotel Employees, and (b) subject to Owner’s reasonable approval, not to be
unreasonably withheld or delayed, enter into or amend any collective bargaining agreement in place for the Hotel
Employees; provided that, Manager shall consult with Owner regarding, and keep Owner advised of, any
collective bargaining negotiations.  For the avoidance of doubt, it shall be unreasonable for Owner to withhold
approval if such failure to approve would cause Manager to violate applicable Legal Requirements.  Owner
acknowledges that any collective bargaining agreement for Hotel Employees shall be entered into by Manager as
agent for Owner.
B. Manager and Owner agree that with respect to any withdrawal liability arising under any
collective bargaining agreement or other “multi-employer plan” (as defined in Section 3(37) of Employee
Retirement Income Security Act of 1974 (“ERISA”)) in which the Hotel Employees become participants, the
obligations of the parties shall be determined as follows: withdrawal liability arising with respect to Hotel
Employees shall be the responsibility of Owner, and Owner shall either pay the amount of such withdrawal
liability directly to such plan or reimburse Manager for withdrawal liability payments made to such plan by
Manager with respect to Hotel Employees (including withdrawal liability arising after the sale or other termination
of this Agreement, provided that such liability arises as a result of such sale, disposition, termination or other
similar event).  If a collective bargaining agreement is in place for the Hotel Employees immediately prior to the
termination or expiration of this Agreement, Owner shall cooperate with Manager and sign (or cause the successor
employer of the Hotel Employees to sign) an assumption agreement with respect to such collective bargaining
agreement.  In addition, to the extent permitted under then applicable Legal Requirements, regulations and
agreements, Manager shall cooperate with Owner in structuring transactions and transferring actual or contingent
withdrawal liability to a successor in ownership or purchaser of the Hotel in accordance with “relief” provisions
of ERISA, such as ERISA Section 4204 or then applicable statutory or regulatory provisions of a similar nature.
For purpose of this Section 6.3(B), the term “withdrawal liability” shall mean the actual amount assessed by and
payable to a multi-employer pension fund upon a complete or partial withdrawal of the Hotel or Hotel Employees
from such fund.  Manager and Owner shall cooperate in challenging a plan’s assessment of such liability, provided
that all costs of litigation, arbitration or other procedures shall be paid by Owner (including any bonds that must
be posted).  If Manager or its Affiliates have employees at other locations who participate in the same multi-
employer plan as Hotel Employees, Owner shall be charged with and be responsible only for multi-employer plan 

	
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withdrawal liability arising solely with respect to the participation of Hotel Employees in such plan.  The
provisions of this Section 6.3(B) shall survive the expiration or termination of this Agreement.
6.4 Employees or agents of Manager are not by this Agreement or by any actions of Owner and/or
Manager hereunder made employees of Owner, and are not entitled to the benefits provided by Owner or its
Affiliates to its employees, including but not limited to, group insurance, leave and pension plans.
ARTICLE 7
BOOKS, RECORDS AND STATEMENTS; BUDGETS
7.1 Manager shall keep full and accurate books of account and other records reflecting the results of
the operation of the Hotel in accordance with the Uniform System and GAAP with such exceptions as may be
required by the provisions of this Agreement; provided, however, that Manager may, with prior notice to Owner,
make such modifications to the methodology in the Uniform System and GAAP as are consistent with Manager’s
standard practice in accounting for its operations under management contracts generally, so long as such
modifications do not affect the determination of Total Operating Revenues, Operating Expenses or Non-Operating
Income and Expenses.  Except for the books and records which may be kept in Manager’s home office or other
suitable location pursuant to the adoption of a central billing system or other centralized service, the books of
account and all other records relating to or reflecting the operation of the Hotel shall be kept at the Hotel and,
excluding employment records, shall be available to Owner and its representatives at all reasonable times for
examination, audit, inspection and transcription.  All of such books and records including, without limitation,
books of account, guest records and front office records (but excluding employment records), shall be the property
of Owner.  Upon expiration or any termination of this Agreement, (a) physical possession of all of such books and
records shall be transferred to Manager’s off-site storage facility and held for the benefit of Owner, and remain
available to Owner and its representatives at all reasonable times for examination, audit, inspection and
transcription (except for employment records which are held for the sole benefit of Manager) for five (5) years or
such other period as required by Manager’s document retention policy, and (b) Owner shall pre-pay Manager for
all costs or expenses incurred by Manager in connection with the storage and eventual destruction of such
documents.  Owner and Manager shall mutually determine the inventory of books and records for retention;
provided, however, copies of all sales tax returns and supporting documents relating to all tax reporting periods
for the Hotel covered by the Operating Term shall be retained.
7.2 Manager shall deliver to Owner in electronic format within fifteen (15) days after the end of each
month, the Monthly Reports.  The Monthly Reports shall be prepared in accordance with the Uniform System and
GAAP unless otherwise set forth in this Agreement.  In addition, (a) on or before the February 14th following each
Fiscal Year and (b) within forty-five (45) days after the end of the Operating Term of this Agreement, Manager
shall deliver to Owner an annual accounting, showing the results of operation of the Hotel during the Fiscal Year
and a computation of Total Operating Revenues, Operating Expenses, and EBITDA, if any, and any other
information necessary to make the computations required hereby or which may be requested by Owner, all for
such Fiscal Year.  The annual accounting for any Fiscal Year shall be controlling over the interim accountings for
such Fiscal Year.  The Monthly Report for the last calendar month of the Fiscal Year will contain year-to-date
calculations as described in the definition of Monthly Reports. In addition to the Monthly Reports, Owner has
requested that Manager produce the Additional Reporting Analysis, and Manager will use good faith efforts
working with Owner’s asset manager to produce the Additional Reporting Analysis on a monthly basis; provided
that, (i) Owner acknowledges that the accuracy of each Additional Reporting Analysis may decrease for any
periods after the first ninety (90) days covered by such Additional Reporting Analysis; and (ii) Owner shall, and
shall cause Owner’s asset manager to, provide Manager with information regarding owner-level activity (e.g.
fixed assets, loan balances, escrows, equity accounts, etc.) to be contemplated in the Additional Reporting
Analysis.  In consideration of the additional cost and efforts required for Manager to generate the Additional
Reporting Analysis, Owner shall pay the Additional Accounting Fee.
7.3 Manager shall provide reasonable assistance to an accounting firm selected by Owner in order to
permit such accounting firm to deliver to Owner annual audited financial statements of Owner for the immediately 

	
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preceding Fiscal Year.  In addition, at Owner’s request, Manager shall provide to Owner the then-current SSAE
SOC 1 report covering Manager.  The fee for such SSAE SOC 1 report is determined by allocating pro-rata the
total fee incurred by Manager for such report among the owners of all hotels operated by Manager or its Affiliates
which participate in the SSAE SOC 1 program.
7.4 On or before the date that is sixty (60) days following the Commencement Date, Manager shall
submit to Owner the proposed Budgets for the remaining portion of the Fiscal Year in which the Commencement
Date occurs and Owner and Manager shall cooperate to agree on the Budgets for the remainder of the Fiscal Year
in which the Commencement Date occurs.  On or before each December 1 thereafter during the Operating Term,
Manager shall submit the Budgets for the next Fiscal Year to Owner.  The Budgets shall be prepared in accordance
with the Uniform System and GAAP to the extent applicable and shall otherwise be prepared in accordance with
Manager’s standard financial reporting and budgeting practices.  Owner shall notify Manager in writing of its
approval or disapproval of the Budgets not later than fifteen (15) days after the delivery of the Budgets to Owner
and, if Owner disapproves any such Budget, Owner shall state in such notice the reasons therefor with reasonable
particularity.  In the event Owner fails to notify Manager in writing of its approval or disapproval of any Budget
on or before the expiration of such fifteen (15) day approval period, then such Budget shall be deemed approved
by Owner.  Notwithstanding anything to the contrary contained in this Agreement, Manager is not warranting or
guaranteeing in any respect that the actual operating results of the Hotel during the period covered by the Budgets
will not materially vary from the Budgets.  The Budgets are an estimate only and unforeseen circumstances,
including but not limited to, cost of labor, material, services and supplies, casualty, law, economic or market
conditions may make adherence to the Budgets impracticable.
7.5 If the Budgets (or any component of the Budgets) with respect to any Fiscal Year are disapproved
by Owner as provided in Section 7.4 then, until the resolution of such dispute Manager shall cause the Hotel to be
operated substantially in accordance with most recent approved Budgets, except for, or as modified by, (a) those
components of such Budgets for the applicable Fiscal Year approved by Owner, (b) an adjustment to the disputed
Budgets so as to increase (but not decrease) disputed expense items by the same percentage as any percentage
increase in the CPI, from the CPI in effect on the first day of the first month of the Fiscal Year applicable to such
last approved Budget to the CPI in effect on the first day of the first month of the Fiscal Year applicable to the
disputed Budgets, (c) Necessary Expenses which shall be paid as required, (d) Emergency Expenses which shall
be paid as required and (e) Opportunity Expenses.
ARTICLE 8
WORKING CAPITAL AND BANK ACCOUNTS
8.1 Prior to the Commencement Date or as otherwise requested by Manager to fund necessary
expenses related to the operations of the Hotel, Owner will provide Manager with Initial Working Capital for the
Hotel.  Owner shall at all times provide, either from Total Operating Revenues or from other funds of Owner,
sufficient funds as determined in the good faith business judgment of Manager to constitute normal working
capital for the uninterrupted and efficient operation of the Hotel (but which, in no event, shall be an amount less
than the Minimum Working Capital), including without limitation funds sufficient to operate, maintain and equip
the Hotel in accordance with the Operating Standards.
Upon Manager’s notice to Owner that additional funds are required to assure timely payment of all current
liabilities of the Hotel, including but not limited to, payroll expenses and other necessary Operating Expenses,
which notice may be sent by e-mail, Owner shall within five (5) business days provide the funds necessary to pay
such liabilities.  Any such failure to provide such funding shall constitute a breach under Section 12.1A of this
Agreement.
8.2 All funds received by Manager in the operation of the Hotel, including working capital furnished
by Owner, shall be deposited in an Operating Account in such federally insured financial institution as may be
selected by Manager and reasonably approved by Owner.  To the extent funds are currently available in the
Operating Account, Manager, on behalf of Owner and from the Operating Account, shall pay all Operating 

	
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Expenses, the Management Fees, sales, use and occupancy taxes and insurance premiums for the insurance
required under Exhibit B.  Upon Owner’s written request and direction, Manager shall pay on behalf of Owner
from the Operating Account (but only to the extent that such funds are available in the Operating Account
following the payment of all Operating Expenses and such sales, use and occupancy taxes and insurance
premiums), such Owner Payables as may be requested by Owner; provided, however, Manager will not be
required to pay such Owner Payables until Manager receives Owner’s Payables Notice.  Owner agrees to provide
Owner’s Payables Notice at least thirty (30) days prior to the date on which the first payment by Manager is due,
and such Owner’s Payables Notice shall only be revocable upon thirty (30) days’ prior written notice from
Owner. Manager’s payment and accounting of Owner Payables shall be subject to a supplemental accounting fee
as may be mutually agreed to by Owner and Manager.  Together with the financial report provided for in Section
7.2, Manager shall distribute to Owner all sums in the Operating Account in excess of the then working capital
requirements of the Hotel determined in accordance with Section 8.1 of this Agreement.
8.3 An FF&E Reserve shall be maintained for a reserve for replacements, substitutions and additions
to the FF&E. Owner may request that such FF&E Reserve shall be held in a federally insured financial institution
account separate from the Operating Account.  During each Fiscal Year there shall be allocated, and to the extent
such funds are available, and paid on a monthly basis to the FF&E Reserve from Total Operating Revenues or
other funds provided by Owner an amount equal such amount as may be required under the Major Agreements.
All funds in the FF&E Reserve, together with any interest earned thereon shall be used solely for purposes of
replacing or refurbishing the FF&E in accordance with the applicable Capital Budget.  Any funds remaining in
the FF&E Reserve at the end of a Fiscal Year shall be carried forward to the next Fiscal Year.  Upon expiration
or termination of this Agreement, Manager shall remit all remaining amounts in the FF&E Reserve forthwith to
Owner.
8.4 The Operating Account and any FF&E Reserve account shall be in the name of Manager as agent
for Owner and shall be under the control of Manager; provided that, the FF&E Reserve account may be held as
required by Owner’s lender.  Checks or other documents of withdrawal shall be signed only by representatives of
Manager, provided that such representatives shall be bonded or otherwise insured in a manner reasonably
satisfactory to Owner.  The premiums for bonding or other insurance shall be an Operating Expense except for
premiums for bonding off-site executive employees of Manager. Subject to Article 19 herein, Manager agrees to
comply with the reasonable cash requirements of Owner’s Lender provided such requirements shall not adversely
affect the rights and obligations of Manager under this Agreement.
ARTICLE 9
REPAIRS, MAINTENANCE AND CAPITAL IMPROVEMENTS
9.1 If Owner directly performs or contracts for repair, maintenance, refurbishing, construction or
renovations at the Hotel, Owner must coordinate, and require its contractors and subcontractors to coordinate,
with Manager including, but not limited to, causing any Owner employees, contractors or subcontractors to
comply with safety and security rules of the Hotel and communicate on a regular basis the activities being
performed at the Hotel to assure the health, safety and efficient operation of the Hotel, its guests, and the Hotel
Employees.  Owner must comply with all laws, obtain all necessary permits and shall provide Manager copies of
any permits prior to commencement of any such activities.
9.2 Owner may, from time to time, at its sole expense, make Capital Improvements in or to the Hotel
as Owner shall determine are necessary to comply with the Operating Standards. If Capital Improvements included
in the definition of Building and Installations shall be required at any time during the Operating Term by the terms
of any mortgage, the License Agreement, to maintain the Hotel in good operating condition or by reason of any
Legal Requirements, or because Manager and Owner jointly agree upon the desirability thereof, then in such event
all such Capital Improvements shall be made with as little hindrance to the operation of the Hotel as reasonably
possible.  Notwithstanding the foregoing, as long as the Hotel can continue to operate without interruption, Owner
shall have the right to contest the need for any such Capital Improvements required by any Legal Requirements
and may postpone compliance therewith, if so permitted by law and if such postponement will not expose Manager 

	
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to any civil or criminal liability.  All recommendations by Manager of Capital Improvements shall be submitted
in conjunction with the Capital Budget for the Fiscal Year described in Section 7.4.  In the event that Owner elects
to perform Major Renovations to the Hotel, Owner shall have the right to cause Manager to oversee the
performance of the Major Renovations for which oversight Manager shall be paid a Project Fee (in addition to the
Management Fees) equal to five percent (5%) of the budgeted hard cost items including contingency and any
Owner-approved changes of the Major Renovations.  With respect to (a) Major Renovations as contemplated by
this Agreement that Owner elects to have Manager oversee and (b) improvements that are not Major Renovations,
Manager shall oversee such projects in a reasonably prudent manner.
ARTICLE 10
REAL ESTATE
10.1 Provided that funds from Total Operating Revenues or funds otherwise provided by Owner are
available, and provided that Manager has received written notice thereof sufficiently in advance to make such
payments, and absent a requirement made by the Lender to escrow Property Taxes, Manager shall pay all Property
Taxes on behalf of Owner not less than ten (10) days prior to the applicable due dates.  Upon Owner’s request,
Manager shall promptly furnish Owner with proof of payment of Property Taxes.
10.2 Owner may initiate a Tax Contest, and Manager agrees to cooperate with Owner in a Tax Contest
and execute any documents or pleadings required for such purpose, provided that the facts set forth in such
documents or pleadings are accurate and that such cooperation or execution does not impose any liability on
Manager.  All costs and expenses incurred by Owner and Manager in connection with a Tax Contest shall be Non-
Operating Income and Expenses.
10.3 Owner represents, warrants and covenants that it holds good and marketable leasehold title to the
Hotel and that it will maintain good and marketable leasehold title to the Hotel free of any and all liens,
encumbrances or other charges except for easements or encumbrances that do not adversely affect the operation
of the Hotel, mortgages or liens for taxes, assessment levies or other public charges not yet due or payable.
10.4 Owner covenants and represents that, at a minimum, it has conducted an Environmental Phase I
survey at the time Owner acquired or leased the Hotel and that there are no Hazardous Materials on any portion
of the Hotel or its surrounding site; that no Hazardous Materials have been released or discharged on the Hotel or
its surrounding site.  Owner agrees that it has provided Manager with all information and reports regarding the
environmental condition of the Hotel and any hazards that are contained in or around the Hotel, including, but not
limited to, any Environmental Phase I or Phase II reports that may have been performed.  Owner shall update
Manager immediately upon any change of this information or status.  In the event of the discovery of any
Hazardous Materials on any portion of the Hotel or its surrounding site, Owner shall promptly remove such
Hazardous Materials and shall remedy the problem in accordance with all laws, rules and regulations of any
governmental authority. To the extent set forth in Section 15.2, Owner shall indemnify, defend and hold Manager
harmless from and against all losses, expenses and liabilities (including but not limited to any professional fees
incurred by Manager to assess the situation or obtain advice on how to proceed) in the event of a violation of this
section or Owner’s failure to act promptly in accordance with this Section 10.4.
ARTICLE 11
REPRESENTATIONS, WARRANTIES AND COVENANTS
 Owner and Manager do hereby make the following representations, warranties and covenants:

A. the execution of this Agreement is permitted by its organizational documents and this
Agreement has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation
and is enforceable in accordance with the terms hereof; 

	
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B. there is no claim, litigation, proceeding or governmental investigation pending, or as far
as is known to either party, threatened, against or relating to, the properties or business or the transactions
contemplated by this Agreement which does, or may reasonably be expected to, materially and adversely affect
the ability of such party to enter into this Agreement or to carry out its obligations hereunder, and there is no basis
for any such claim, litigation, proceedings or governmental investigation, except as has been fully disclosed in
writing to the other party;
C. neither the consummation of the transactions contemplated by this Agreement by this
Agreement nor the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will
result in the breach of any of the terms, conditions or provisions of, or constitute a default under, any agreement,
indenture, instrument or undertaking that either party is a party or by which it is bound;
D. neither party, nor any of their Affiliates (or any of their respective principals, partners or
funding sources), is nor will become (a) a person designated by the U.S. Department of Treasury’s Office of
Foreign Asset Control as a “specially designated national or blocked person” or similar status, (b) a person
described in Section 1 of U.S. Executive Order 13224 issued on September 23, 2001; (c) a person otherwise
identified by a government or legal authority as a person with whom Owner or Manager is prohibited from
transacting business; (d) directly or indirectly owned or controlled by the government of any country that is subject
to an embargo by the United States government; or (e) a person acting on behalf of a government of any country
that is subject to an embargo by the United States government.  Both parties agree that they will notify the other
in writing immediately upon the occurrence of any event which would render the foregoing representations and
warranties contained in this Section (D) incorrect; and
E. (a) that it has not and will not take any action that would constitute a violation, or
implicate  the other party or its Affiliates or personnel in a violation of the United States Foreign Corrupt Practices
Act of 1977, as amended, the United Kingdom Bribery Act, and any other applicable anti-corruption legislation
enacted by the United states or other countries in which either party or their Affiliates conducts business; (b) that
it has not and will not take any action that would constitute a violation, or implicate the other party or its Affiliates
or personnel in a violation of applicable economic sanctions laws administered by the United States (including
the Department of Treasury, Office of Foreign Assets Control), the United Kingdom, or the European Union; and
(c) that the information provided herein, as well as any documentation submitted herewith, is true, accurate, and
complete as of the date hereof, and each party understands and acknowledges that a party or its representatives
may require additional information from the other party in order to comply with applicable anti-corruption and
economic sanctions laws and regulations.
ARTICLE 12
EVENTS OF DEFAULT
12.1 The following shall constitute Events of Default:
A. If Owner shall fail to provide funding in accordance with Section 8.1, and such default
continues for a period of five (5) days after written notice from the Manager;
B. If either party shall be in default in the payment of any amount required to be paid under
the terms of this Agreement, and such default continues for a period of ten (10) days after written notice from the
other party;
C. If either party shall be in material default of its obligations under this Agreement that is
likely to result in a threat to the health and safety of the Hotel Employees or guests, then the non-defaulting party
may terminate this Agreement upon written notice if such default is not immediately cured;
D. If either party shall be in material default in the performance of its other obligations under
this Agreement, and such default continues for a period of thirty (30) days after written notice from the other 

	
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party, provided that if such default cannot by its nature reasonably be cured within such thirty (30) day period, an
Event of Default shall not occur if and so long as the defaulting party promptly commences and diligently pursues
the curing of such default;
E. If either party shall (i) make an assignment for the benefit of creditors, (ii) institute any
proceeding seeking relief under any federal or state bankruptcy or insolvency laws, (iii) institute any proceeding
seeking the appointment of a receiver, trustee, custodian or similar official for its business or assets or (iv) consent
to the institution against it of any Involuntary Proceeding;
F. If an Involuntary Proceeding shall be commenced against either party and shall remain
undismissed for a period of sixty (60) days;
G. If either party violates Article 11D or Article 11E hereof, in which case the other party
may terminate this Agreement immediately;
H. If, within thirty (30) days after receiving Manager’s written request, Owner fails to
approve any changes, repairs, alterations, improvements, renewals or replacements to the Hotel which Manager
determines in its reasonable judgment are necessary to (i) protect the Hotel, Owner and/or Manager from
innkeeper liability exposure, (ii) ensure material compliance with any applicable code requirements pertaining to
life safety systems requirements or (iii) ensure material compliance with any applicable Employment Laws, then,
Manager may terminate this Agreement upon thirty (30) days’ written notice to Owner delivered at any time after
the expiration of Owner’s thirty (30) day approval period; and
I. If Manager shall fail to maintain and operate the Hotel in accordance with the standards
required under Section 2.1A and such failure shall not be due to a refusal on the part of Owner to approve the
Budgets submitted by Manager under Section 7.4 or Owner’s failure to properly provide funds requested pursuant
to the provisions of Section 8.1 and such failure shall continue for a period of sixty (60) days after written notice
by Owner to Manager specifying the matters or conditions which constitute the basis for such Event of Default,
provided that if such failure is not reasonably capable of cure within such sixty (60) day period, then the cure
period shall be extended provided that Manager commences the cure during such initial sixty (60) day period and
thereafter diligently and continuously pursues the cure thereof to completion.
12.2 Unless otherwise stated in Section 12.1 hereof, if any Event of Default shall occur, the non-
defaulting party may terminate this Agreement on five (5) days’ prior written notice to the defaulting party.
12.3 The right of termination set forth in Section 12.2 shall not be in substitution for, but shall be in
addition to, any and all rights and remedies for breach of contract available in law or at equity.
12.4 Each of the parties hereto irrevocably waives any right such party may have against the other
party hereto at law, in equity or otherwise to any consequential damages, statutory or treble damages, punitive
damages or exemplary damages.
12.5 A. If Owner shall fail to make any payment or to perform any act required of Owner pursuant
to this Agreement, Manager may (but shall not be obligated to), without further notice to, or demand upon, Owner
and without waiving or releasing Owner from any obligations under this Agreement, make such payment (either
with its own funds or with funds withdrawn for such purpose from the Operating Accounts or the FF&E Reserve)
or perform such act.  All sums so paid by Manager and all necessary incidental costs and expenses incurred by
Manager in connection with the performance of any such act, together with interest thereon at the Default Rate
from the date of making such expenditure by Manager, shall be payable to Manager on demand.
 B. Manager shall have the right to set-off against any payments to be made to Owner by
Manager under any provision of this Agreement and against all funds from time to time in the Operating Accounts
and the FF&E Reserve, any and all liabilities of Owner to Manager.  Manager may withdraw from the Operating 

	
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Accounts and the FF&E Reserve from time to time such amounts as Manager deems desirable in partial or full
payment of all or any portion of said liabilities, the amount of such withdrawals to be paid by Owner to Manager
on demand and to be replaced in the respective account and fund.

ARTICLE 13
TERMINATION RIGHTS
If Owner proposes to sell or otherwise dispose of the Hotel or Owner’s interests therein in a true arms’
length transaction, to a bona fide third-party, (unless the purchaser retains Manager to operate the Hotel under the
same terms or terms substantially similar to those in this Agreement, as determined by Manager in its sole
discretion), Owner shall provide Manager with written notice of termination of this Agreement not less than ninety
(90) days prior to the scheduled date of closing of the sale of the Hotel and if such sale or disposition is prior to
the third (3rd) anniversary of the Commencement Date, Owner shall pay to Manager the applicable Termination
Fee on the date of the closing of such sale.  This Agreement will terminate effective upon the consummation of
the closing of such sale and the payment to Manager of the applicable Termination Fee and all amounts due to
Manager under this Agreement through the effective date of the closing of such sale or disposition; provided,
however, if such a sale does not actually occur, the notice of termination shall be deemed ineffective and no
Termination Fee shall be due or payable.
ARTICLE 14
ACTIONS UPON TERMINATION
14.1 Upon the termination or expiration of the Operating Term of this Agreement, whether due to the
occurrence of an Event of Default or otherwise, Manager and Owner agree to reasonably cooperate and sign any
documents reasonably necessary to effect the change in management of the Hotel.  Manager shall cooperate with
Owner and shall execute those documents or instruments reasonably requested by Owner in connection with the
transfer or reissuance of the Permits, without payment of a fee to Manager, to Owner or its nominee, provided that
(i) Owner shall cooperate and require that its nominee cooperate with Manager with respect to such transfers, and
(ii) Manager shall not be required to incur liability or out of pocket cost (which shall include any attorney fees) in
connection with such transfers.  Without limiting the generality of the foregoing, Manager shall cause its officers
to execute and deliver documents (and if required under applicable Legal Requirements, visit licensing authorities,
along with Owner’s representatives), in order to expedite the orderly transfer or reissuance to Owner or its
designee of the Permits.
14.2 Upon the expiration or termination of this Agreement for any reason Owner shall pay to Manager
all Management Fees, Reimbursable Expenses and other amounts due under this Agreement through the effective
date of termination.
14.3 Upon the expiration or termination of this Agreement for any reason, a termination reserve shall
be established to (a) reimburse Manager for all costs and expenses incurred by Manager in terminating its Hotel
Employees (such as severance pay, unemployment compensation, employment relocation, earned and accrued
vacation pay, bonus accruals, estimated tax payments and any other employee liability costs arising out of
termination of employment of Manager’s employees at the Hotel); and (b) pay outstanding accounts payable for
liabilities and obligations incurred during the Operating Term.
14.4 Following the termination or expiration of the Operating Term, Manager will provide a final
accounting report in accordance with the provisions set forth in Section 7.2 of this Agreement and in the same
manner and scope as previously provided by Manager following prior Fiscal Years under this Agreement.  In the
event that Owner requests additional reports or assistance from Manager following the third month after the
termination or expiration of this Agreement, notwithstanding anything to the contrary contained in this
Agreement, Owner shall pay to Manager the Accounting Fee through the date on which such additional services
or assistance are to be provided.   

	
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14.5 Owner hereby acknowledges and agrees compliance with the provisions of the WARN Act upon
any disposition of the Hotel, upon expiration or any termination of this Agreement or upon the occurrence of any
other event giving rise to the application of the WARN Act is the responsibility and obligation of Owner, and
Owner shall (i) cause the succeeding employer to hire and retain (for at least the period required under the WARN
Act) a sufficient number of employees at the Hotel to avoid the occurrence of a “mass layoff” or “closing” under
the WARN Act or (ii) provide Manager with sufficient notice of termination to allow Manager to comply with the
WARN Act and avoid any liability thereunder.  The provisions of this Section 14.5 shall survive the expiration or
termination of this Agreement.
ARTICLE 15
INDEMNITY
15.1 To the fullest extent permitted by law, Manager hereby agrees to indemnify, defend and hold
Owner (and Owner’s agents, principals, shareholders, partners, members, officers, directors and employees)
harmless from and against all liabilities, losses, claims (including, but not limited to, employment-related claims
and litigation), causes, damages, costs and expenses (including, but not limited to, reasonable attorneys’ fees and
expenses) that may be incurred by or asserted against any such party and that arise from the fraud, willful
misconduct or gross negligence of the Executive Personnel.
Manager’s obligations under this Section 15.1 shall not include any losses, expenses or damages arising
from any matters relating to the structural integrity of the Hotel or other matters relating to defects in the Hotel
premises including its design, materials, or workmanship in the construction of the Hotel.

15.2 Except as provided in Section 15.1, to the fullest extent permitted by law, Owner hereby agrees
to indemnify, defend and hold Manager (and Manager’s agents, principals, shareholders, partners, members,
officers, directors and employees) harmless from and against all liabilities, losses, claims (including, but not
limited to, employment-related claims and litigation), causes, damages, costs and expenses (including, but not
limited to, reasonable attorneys’ fees and expenses) arising out of, or incurred in connection with, the management
and operation of the Hotel, whether arising before, during or after the Operating Term.
15.3 If any claim, lawsuit or other proceeding is brought against any Indemnified Party hereunder,
arising under or based upon any of the matters for which such party is indemnified under this Agreement, such
Indemnified Party shall promptly notify the Obligor in writing (which may be in the form of email) thereof.  The
Parties shall cooperate in the preparation and conduct of any defense to any such claim or suit. Without limitation
of the indemnification obligations set forth in this Agreement, if the Indemnified Party requests the Obligor to
defend an indemnified matter but Obligor should fail to faithfully and completely cooperate and defend, the
Indemnified Party may defend, pay, or settle the claim with full rights of recourse against the Obligor for any and
all fees, costs, expenses, and payments, including but not limited to attorney’s fees and settlement payments, made
or agreed to be paid in order to discharge the claim, cause of action, dispute, or litigation. EXCEPT AS
EXPRESSLY STATED IN SECTION 15.1 OR 15.2, THE OBLIGOR’S INDEMNIFICATION
OBLIGATIONS SET FORTH IN THIS AGREEMENT SHALL APPLY WITHOUT REGARD TO THE
CAUSES THEREOF, INCLUDING, WITHOUT LIMITATION, PRE-EXISTING CONDITIONS
WHETHER SUCH CONDITIONS BE PATENT OR LATENT, STRICT LIABILITY, TORT, BREACH
OF CONTRACT, OR THE NEGLIGENCE OF ANY PERSON OR PARTY, INCLUDING THE
INDEMNIFIED PARTY OR PARTIES, WHETHER SUCH FORM OF NEGLIGENCE BE SOLE, JOINT
AND/OR CONCURRENT, ACTIVE OR PASSIVE, OR ANY OTHER THEORY OF LEGAL
LIABILITY.
15.4 Notwithstanding the foregoing:
A. Owner and Manager agree that, with respect to liabilities covered under this Article 15,
they will look first to applicable insurance coverages in effect pursuant to this Agreement for recovery and
defense; provided that, the limits of any such coverage shall not limit the indemnification obligations. 

	
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B. Owner acknowledges and agrees that any party’s mere allegation or claim of a fraudulent
act, grossly negligent act or act of willful misconduct by the Executive Personnel does not trigger any obligation
of Manager under Section 15.1 and that, pending the determination of any question as to whether either party is
entitled to indemnification under Sections 15.1 or 15.2, Manager shall be entitled to charge as Operating Expenses
(and pay from the Operating Account) all expenses of defending or otherwise handling any claim or litigation
under this Agreement.
15.5 The provisions of this Article 15 shall survive the expiration or termination of this Agreement
and be enforceable as a separate agreement in the event its survival and enforcement becomes necessary.
ARTICLE 16
INSURANCE
The parties shall comply with the insurance provisions and requirements set forth on Exhibit B attached
hereto and fully incorporated herein.
ARTICLE 17
CASUALTY AND CONDEMNATION
17.1 If the Hotel is damaged by fire or other casualty, Manager shall promptly notify Owner.  This
Agreement shall remain in full force and effect subsequent to such casualty provided that either party may
terminate this Agreement upon thirty (30) days’ prior notice to the other party if (a) Owner shall elect to close the
Hotel as a result of such casualty (except on a temporary basis for repairs or restoration) or (b) Owner shall
determine in good faith not to proceed with the restoration of the Hotel; provided further, Manager may terminate
this Agreement upon thirty (30) days’ prior notice to Owner if twenty percent (20%) or more of the rooms in the
Hotel are unavailable for rental for a period of sixty (60) days or more as a result of such casualty.
17.2 If all or any portion of the Hotel becomes the subject of a condemnation proceeding or if Manager
learns that any such proceeding may be commenced, Manager shall promptly notify Owner upon Manager’s
receipt of written notice thereof.  Either party may terminate this Agreement on thirty (30) days’ notice to the
other party if (a) all or substantially all of the Hotel is taken through condemnation or (b) less than all or
substantially all of the Hotel is taken, but, in the reasonable judgment of the party giving the termination notice,
the Hotel cannot, after giving effect to any restoration as might be reasonably accomplished through available
funds from the condemnation award, be profitably operated as a first-class, full-service hotel.
17.3 Any condemnation award or similar compensation shall be the property of Owner, provided that
Manager shall have the right to bring a separate proceeding against the condemning authority for any damages
and expenses specifically incurred by Manager as a result of such condemnation.
17.4 Actions as to damage or destruction and condemnation shall be taken only in a manner that is
consistent with the terms and conditions of the Major Agreements and any conflict between those terms and
conditions and the provisions of this Agreement shall be resolved in favor of the Major Agreements.
ARTICLE 18
NON-ASSIGNABILITY
This Agreement shall not be assignable by Manager or Owner; provided however, that either party shall
be entitled to assign this Agreement to an Affiliate of such party as part of a modification to such party’s company
structure in which all or substantially all of such party’s assets are transferred to an Affiliate of such party; and
Manager shall have the right to assign its rights to receive payments under this Agreement as security for
indebtedness or other obligations.
 

	
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ARTICLE 19
SUBORDINATION; ESTOPPEL AND RECOGNITION
19.1 Manager acknowledges and agrees that its rights under this Agreement are subject and
subordinate to the lien of any first mortgage or deed of trust loan, or any junior mortgage or deed of trust loan
held by an institutional investor, encumbering the Hotel whether now or hereafter existing; provided, however,
that (a) Manager shall not be obligated to waive or forbear from receiving, on a current basis and as and when due
under this Agreement, any and all fees due to it under this Agreement prior to an Event of Default under any such
mortgage or deed of trust and (b) Manager shall not be obligated to waive, or to forbear from exercising (unless
and to the extent Manager receives adequate assurance, in Manager’s good faith business judgment, that it will be
paid or reimbursed for any and all amounts due to Manager under this Agreement during the period of any such
forbearance) any right it may have to terminate this Agreement pursuant to Article 13 above.  The provisions of
this Section 19.1 shall be self operative but Manager agrees to execute and deliver promptly any document or
certificate containing such other terms as may be customary and reasonable confirming such subordination as
Owner or the holder of any such lien may reasonably request.
19.2 If any person or entity making or holding a loan to be secured by a mortgage or deed of trust
encumbering the Hotel shall request that Manager agree to modifications of this Agreement, Manager shall enter
into an agreement setting forth such modifications provided that the same do not adversely affect the rights or
obligations of Manager under this Agreement.  Such modifications may include, but shall not be limited to,
Manager’s agreement to give simultaneous notice of, and the opportunity to cure within the applicable cure period
set forth herein, any defaults on the part of Owner to such person or entity.
19.3 Owner and Manager agree, at any time and from time to time, as requested by the other party,
upon not less than ten (10) days’ prior written notice, to execute and deliver to the other a statement certifying
that this Agreement is unmodified and in full force and effect (or if there have been modifications, that the same
are in full force and effect as modified and stating the modifications), certifying the dates to which required
payments have been paid, and stating whether or not, to the best knowledge of the signer, the other party is in
default in performance of any of its obligations under this Agreement, and if so, specifying each such default of
which the signer may have knowledge, it being intended that such statement delivered pursuant hereto may be
relied upon by others with whom the party requesting such certificate may be dealing.
ARTICLE 20
NOTICES
Any notice, statement or demand required to be given under this Agreement shall be in writing, sent by
certified mail, postage prepaid, return receipt requested, or by Federal Express of other nationally-recognized
overnight courier, receipt confirmed, addressed if to:

Owner:
LF3 El Paso Airport TRS, LLC
c/o Linzey Erickson
1635 43rd Street South, Suite 200
Fargo, North Dakota 58103

 

	
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Manager:           Aimbridge Hospitality, LLC
5301 Headquarters Drive
Plano, Texas 75024
Attn: Chief Legal Officer

With copy to: Carla S. Moreland. Esq.
 5112 Briargrove Lane
 Dallas, Texas 75287

or to such other addresses as Manager and Owner shall designate in the manner provided in this Article 20. Any
notice or other communication shall be deemed given (a) on the date third (3rd) business day after it shall have
been mailed, if sent by certified mail, or (b) on the date received if it shall have been sent via Federal Express or
other nationally recognized overnight courier service.

ARTICLE 21
MISCELLANEOUS
21.1 Owner and Manager shall execute and deliver all other appropriate supplemental agreements and
other instruments, and take any other action necessary to make this Agreement fully and legally effective, binding,
and enforceable as between them and as against third parties; provided, however, that neither party shall be
required to execute any other document or instrument or perform any other action that would materially increase
its liability or decrease its rights under this Agreement.
21.2 This Agreement, including the schedules and exhibits attached hereto, constitutes the entire
agreement between the parties relating to the subject matter hereof, superseding all prior agreements or
undertakings, oral or written.  Owner acknowledges that in entering into this Agreement, Owner has not relied on
any projection of earnings, statements as to the possibility of future success, or other similar matter which may
have been prepared by Manager.
21.3 Subject to the express limitations set forth in this Agreement and excluding those obligations that
accrue prior to the occurrence of an event of Unavoidable Interruption or obligations that, if not performed, would
cause a material adverse effect on the Hotel or its operations (for instance, the requirement to maintain the Permits
or insurance obligations hereunder), if either party’s failure to comply with, perform or satisfy any representation,
warranty, covenant, undertaking, obligation or condition set forth in this Agreement is caused by or due to, in
whole or in part, any Unavoidable Interruption, such representation, warranty, covenant, undertaking, obligation
or condition (except regarding insurance coverages and monetary payments) shall be adjusted to the extent and
for so long as such party’s failure is caused by or due to, in whole or in part, such Unavoidable Interruption. In
the event of any occurrence constituting an Unavoidable Interruption, the party claiming the benefit of this Section
21.3 shall promptly notify the other party of such occurrence and, in the case of Manager so notifying Owner,
Manager shall keep Owner informed as to the extent and impact thereof on the Hotel.
21.4 This Agreement shall be construed, both as to its validity and as to the performance of the parties,
in accordance with the laws of the State of Texas without reference to its conflict of laws provisions.
21.5 The headings of the titles to the articles of this Agreement are inserted for convenience only and
are not intended to affect the meaning of any of the provisions hereof.
21.6 A waiver of any of the terms and conditions of this Agreement may be made only in writing and
shall not be deemed a waiver of such terms and conditions on any future occasion.
21.7 This Agreement shall be binding upon and inure to the benefit of Owner and Manager and their
respective successors and permitted assigns.  

	
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21.8 This Agreement may not be modified, amended, surrendered or changed, except by a written
document signed by the Owner and Manager agreeing to be bound thereby.
21.9 Except as herein otherwise provided, whenever in this Agreement the consent or approval of
Manager or Owner is required, such consent or approval shall not be unreasonably withheld or delayed.  Such
consent or approval shall also be in writing only and shall be executed only by an authorized officer or agent of
the party granting such consent or approval.
21.10 Owner and Manager agree to keep the terms and conditions of this Agreement and all information
and data obtained, possessed, or generated in connection with the Hotel (collectively for the purposes of this
Section 21.10, "Privileged Information"), strictly confidential and not to make any public announcements or any
disclosures to any third parties, either orally or in writing, with respect to any Privileged Information without the
written consent of the other party hereunder; provided, however, the restrictions imposed hereby shall not apply
to any Privileged Information (a) which is required to be disclosed in order to comply with any law, ordinance,
governmental decree or any rule, regulation or decree of any interested governmental body, or (b) which must
otherwise be disclosed to relevant third-parties, including franchisors, accountants, attorneys and lenders, in the
course of reasonable and diligent management and operation of the Hotel or the business of Owner, or of any
Affiliate of Owner or Manager, or (c) as may be necessary to comply with its obligations, or enforce its rights,
under this Agreement, provided that the persons to whom any Privileged Information is disclosed pursuant to this
Section 21.10 are informed of the confidential nature of the Privileged Information disclosed to them and agree
to act in accordance with the provisions of this Section 21.10 with respect to all Privileged Information, or (d)
which together with the data from other sources, is used for benchmarking, analytical, internal metrics or other
business purposes so long as such data is on an aggregated or non-attribution basis such that Hotel-specific data,
performance or results cannot be ascertained.  Privileged Information shall not include information that becomes
generally available to the public through no act or default of the recipient.  The provisions of this Section 21.10
shall survive the expiration or termination of this Agreement.
21.11 In the event that any one or more of the phrases, sentences, clauses or paragraphs contained in
this Agreement shall be declared invalid by the final and unappealable order, decree or judgment of any court,
this Agreement shall be construed as if such phrases, sentences, clauses or paragraphs had not been inserted, unless
such construction would substantially destroy the benefit of the bargain of this Agreement to either of the parties
hereto.
21.12 This Agreement may be executed in any number of counterparts each of which shall, when
executed, be deemed to be an original and all of which shall be deemed to be one and the same instrument.
Documents executed, scanned and transmitted electronically and electronic signatures shall be deemed original
signatures for purposes of this Agreement and all matters related thereto, with such scanned and electronic
signatures having the same legal effect as original signatures.  This Agreement, and any other document necessary
for the consummation of the transaction contemplated by this Agreement, may be accepted, executed or agreed to
through the use of an electronic signature in accordance with the Electronic Signatures in Global and National
Commerce Act (“E-Sign Act”), Title 15, United States Code, Sections 7001 et seq., the Uniform Electronic
Transaction Act (“UETA”) and any applicable state law. Any document accepted, executed or agreed to in
conformity with such laws will be binding on each party as if it were physically executed.

ARTICLE 22
JOINDER BY FEE OWNER
Fee Owner enters into this Agreement for the limited purpose of unconditionally and irrevocably
guarantying to Manager that Owner shall timely pay and perform Owner’s obligations under this Agreement and
upon default by Owner under this Agreement, Manager may pursue its rights against Fee Owner. No delay on the
part of Manager in the exercise of any right or remedy shall operate as a waiver of such right or remedy, and no 

	
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single or partial exercise by Manager of any right or remedy shall preclude the further exercise of such right or
remedy. Without affecting the obligations of Fee Owner under this Article 22, Manager may, without notice to
Fee Owner, waive, renew, extend, modify, amend or release any obligation of Owner under this Agreement or
settle, adjust or compromise any claims that Manager may have against Owner. Any notice provided by Manager
to Owner shall constitute notice to Fee Owner. This Article shall survive the expiration or termination of this
Agreement.

Signatures appear on the following page.

	
	/s/ Sam Montgomery
/s/ Sam Montgomery
/s/ Gregory Moundas

	
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13879309.14

SCHEDULE 1
THE HOTEL
Brand Name of Hotel: Courtyard El Paso Airport
Physical Address of Hotel: 6610 International Boulevard, El Paso, Texas 79925
County of Hotel: El Paso County
Vertical: Select Service Hotel

Fee Owner: LF3 EL PASO AIRPORT, LLC
Number of Guest Rooms: 90 guestrooms
Licensor:  Hilton Worldwide Holdings Inc. or its Affiliates for its Hilton® brand
Initial Working Capital:  $100,0001
Minimum Working Capital:    $100,000
Base Fee:  A Base Fee in an amount equal to three percent (3%) of Total Operating Revenues for
services rendered under this Agreement during the Operating Term, including any partial month at the
beginning or at the end of the Operating Term.

Accounting Fee:  An Accounting Fee for accounting services provided by Manager’s corporate employees
on a “centralized” basis for the Hotel in the amount of Three Thousand Dollars ($3,000) per month for
each Accounting Period during the Operating Term and for three (3) months after the expiration or
termination of this Agreement. The Accounting Fee shall be increased annually by three percent (3%)
effective January 1 of each Fiscal Year beginning January 1, 2023.
Additional Accounting Fee: An Additional Accounting Fee for costs incurred by Manager in the delivery of
the Additional Reporting Analysis requested by Owner, in the amount of Four Hundred Dollars ($400)
per month for each Accounting Period during the Operating Term (consisting of: (i) $100 per month for
A3 customization and additional maintenance; and (ii) $300 per month for the additional accounting
services provided to produce the Additional Reporting Analysis). The Additional Accounting Fee shall
be increased annually by three percent (3%) effective January 1 of each Fiscal Year beginning January 1,
2023.
Revenue Management Fee:

A Revenue Management Fee for revenue management services provided by Manager’s corporate
employees on a “centralized” basis calculated at the rate of $15 per guestroom in the Hotel, which equals
One Thousand Three Hundred Fifty Dollars ($1,350) per month for each Accounting Period during the

1 Subject to confirmation that there are no active cash management requirements 

	
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13879309.14
Operating Term.  The Revenue Management Fee shall be increased annually by three percent (3%)
effective January 1 of each Fiscal Year beginning January 1, 2023.

eCommerce Fee: An eCommerce Fee for eCommerce services provided by Manager’s digital team in the
amount of Eight Hundred Dollars ($800) per month for each Accounting Period during the Operating
Term.  The eCommerce Fee shall be increased annually by three percent (3%) effective January 1 of each
Fiscal Year beginning January 1, 2023.

Incentive Fee: In addition to the Base Fee, during each Fiscal Year, if the actual Gross Operating Profit (“GOP”)
of the Hotel equals at least 100% of the budgeted GOP for such Fiscal Year, Manager will be paid an amount
equal to 10% of the amount by which actual GOP of the Hotel exceeds budgeted GOP for such Fiscal Year,
provided that the total Incentive Fee will not exceed 2.5% of the Total Operating Revenue.

 

	
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13879309.14
SCHEDULE 2
DEFINITIONS
“Accounting Fee” shall have the meaning set forth in Article 4.

“Accounting Period” shall mean each calendar month (whether of 28, 29, 30 or 31 days) during each
Fiscal Year.

“Additional Reporting Analysis” shall mean a twelve (12) month (“F-12”) rolling forecast and related
cash flow, involving reporting beyond current calendar year considerations, which shall include the following:
(i) extrapolating and applying long-range trend assumptions to arrive at F-12 view; (ii) seasonality application;
and (iii) COVID handicapping.

“Affiliate(s)” shall mean any person or entity that directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with another person or entity.  The term
“control” (and correlative terms) shall mean the power, whether by contract, equity ownership or otherwise, to
direct the policies or management of a person or entity.  Without limiting the foregoing, an “Affiliate” also
includes any partner or a partnership of any party to this Agreement, any member or membership parties thereto
and any corporation, partnership, individual or trust related to or controlling or controlled by such partnership,
individual or trust related to or controlling or controlled by such partnership party or its partners or such
membership party or its members.  A natural person is related to another natural person if he or she is a spouse,
parent, or lineal descendant of the other person.

“Agreement” shall mean this Hotel Management Agreement.

“Base Fee” shall have the meaning set forth in Article 4.

“Budgets” shall mean the Operating Budget, the Capital Budget, and such other reports or projections as
Owner may reasonably request and to which Manager agrees in writing.

“Building” shall mean a building with (a) the hotel building located on the Premises, and (b)
landscaping and other related facilities, together with all facilities located at, or used in connection with the
operation of the building for hotel purposes including, without limitation, any swimming pools, health club and
recreational facilities, conference and meeting rooms, walkways, and parking facilities.

“Capital Budget” shall mean a capital budget setting forth in reasonable line-item detail proposed capital
projects and expenditures for the Hotel including but not limited to FF&E expenditures which, if any, will be
expensed in the then current Fiscal Year in accordance with GAAP.

“Capital Improvements” shall means structural repairs, replacements, substitutions, alterations,
additions or improvements (exclusive of FF&E).

“Centralized Services” shall mean those services listed on Exhibit A attached hereto and other additional
services more efficiently provided on a group and centralized basis, as are made available generally to similar
properties managed by Manager or its Affiliates from time to time.

“Commencement Date” shall mean the date on which Fee Owner acquires the Hotel and leases the Hotel
to Owner pursuant to the Operating Lease.

“CPI” shall mean the Consumer Price Index - All Urban Consumers (U.S. City Average) (1982-1984
=100), or any successor index thereto appropriately adjusted.
 

	
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13879309.14
“Data Security Requirements” shall mean (a) the then current Payment Card Industry Data Security
Standards and other applicable information security and operating rules and regulations of the credit card
associations and (b) applicable Legal Requirements with respect to data protection and privacy, including, but not
limited to, the California Consumer Privacy Act, as amended, and its implementing regulations.

“Default Rate” shall mean the lesser of (a) the Prime Rate plus four percent (4%) per annum or (b) the
highest lawful rate permitted by applicable Legal Requirements from time to time.

“EBITDA” shall have the meaning set forth in the Uniform System.

“eCommerce Fee” shall have the meaning set forth in Article 4.

“Effective Date” shall mean the date of this Agreement as set forth in the introductory paragraph hereto.

“Emergency Expenses” shall mean expenses, regardless of amount, which in Manager’s good faith
judgment are immediately necessary to protect the physical integrity or lawful operation of the Hotel or the health
or safety of its occupants.

“Employment Laws” shall mean any federal, state, local and foreign statutes, laws, ordinances,
regulations, rules, permits, judgments, orders and decrees affecting labor union activities, civil rights or
employment in the United States, including, without limitation, the Civil Rights Act of 1870, 42 U.S.C. §1981,
the Civil Rights Acts of 1871, 42 U.S.C. §1983 the Fair Labor Standards Act, 29 U.S.C. §201, et seq., the Civil
Rights Act of 1964, 42 U.S.C. §2000e, et seq., as amended, the Age Discrimination in Employment Act of 1967,
29 U.S.C. §621, et seq., the Rehabilitation Act, 29 U.S.C. §701, et seq., the Americans With Disabilities Act of
1990, 29 U.S.C. §706, 42 U.S.C. §12101, et seq., the Employee Retirement Income Security Act of 1974, 29
U.S.C. § 301, et seq., the Equal Pay Act, 29 U.S.C. §201, et seq., the National Labor Relations Act, 29 U.S.C.
§151, et seq., and any regulations promulgated pursuant to such statutes (as amended from time to time, and
together with any similar laws now or hereafter enacted).

“Employment Policies” shall mean the policies, procedures and programs for the Hotel relating to the
employment of Hotel Employees, including wage, benefits and severance policies.

“Event of Default” shall mean any of the events described in Section 12.1, provided that any condition
contained therein for the giving of notice or the lapse of time, or both, has been satisfied.

“Executive Personnel” shall mean the general manager and the director of sales of the Hotel.

“Fee Owner” shall have the meaning set forth on Schedule 1.

“FF&E” shall mean the furniture, furnishings, wall coverings, floor coverings, window treatments,
fixtures and hotel equipment and vehicles.

“FF&E Reserve” shall mean a reserve for replacements, substitutions and additions to the FF&E.

“Fiscal Year” shall mean the fiscal year that ends on the last day of each calendar year.  The first Fiscal
Year shall be the period commencing on the Commencement Date and ending on December 31st of the same
calendar year in which the Commencement Date occurs.  The last Fiscal Year shall be the period commencing on
January 1st of the same calendar year in which the last day of the Operating Term of this Agreement occurs and
ending on such last day of the Operating Term. The words “full Fiscal Year” shall mean any Fiscal Year containing
not fewer than 365 days.  A partial Fiscal Year after the end of the last full Fiscal Year and ending with the
expiration or earlier termination of the Operating Term shall constitute a separate Fiscal Year. 

	
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13879309.14

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

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

“Hazardous Materials” shall mean any substance or material identified by any law, rule or regulation as
being hazardous to the health and safety of guests or Hotel Employees and requiring the monitoring, clean up or
removal of such substance.

“Hotel” shall mean (a) the Building and Installations and the Premises owned by Owner, including any
parking facilities and any other facilities located on such land (b) all FF&E, all Operating Equipment and Supplies,
and all Inventories owned by Owner and located at the address set forth on Schedule 1.

“Hotel Employees” shall mean the on-site staff of the Hotel.

“Incentive Fee” shall have the meaning set forth in Article 4.

“Indemnified Party” shall mean any party to this Agreement required to be indemnified by an Obligor
under this Agreement.

“Initial Term” shall mean the term of the Agreement starting with the Commencement Date and expiring
on the third anniversary of the Commencement Date.

“Initial Working Capital” shall mean an amount specified on Schedule 1.

“Installations” shall mean the mechanical systems and built-in installations of the Building including,
but not limited to, heating, ventilation, air conditioning, electrical and plumbing systems, elevators and escalators,
and built-in laundry, refrigeration and kitchen equipment.

“Inventories” shall mean inventories of supplies, in accordance with the Uniform System, such as soap,
toilet paper, stationery, writing pens, food and beverage inventories, paper products, menus, expendable office
and kitchen supplies, fuel, supplies and items similar to any of the foregoing.

“Involuntary Proceeding” shall mean any of the following instituted against a party by any other person
or entity: (a) assignment for the benefit of creditors, (b) proceeding seeking relief under any federal or state
bankruptcy or insolvency laws, or (c) proceeding seeking the appointment of a receiver, trustee, custodian or
similar official for such party’s business or assets.

“IT Services”  shall mean (a) information technology services provided by Manager or its Affiliates or
third-party providers, such as software licenses and service agreements in support of applications and services
used by Owner; and (b) center and hosted applications, help desk managed services, network managed services
and local information technology support provided on a direct-bill or pass-through cost basis by third-party
providers.

“Leases” shall mean the leases, licenses and concession agreements for stores, office space and lobby
space at the Hotel (including without limitation, car rental counters and gift shops) and commercial space, if any,
that is adjacent to or otherwise part of the Hotel (including without limitation, rooftop antennas).

“Legal Proceedings” shall mean all complaints, counterclaims or cross-claims filed in a court of
competent jurisdiction, any notice of any claim of violation of any Legal Requirement by any governmental 

	
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13879309.14
agency or authority, or any summons or other legal process, in each instance by or against the Hotel or by or
against Owner, or Manager in connection with the Hotel.

“Legal Requirement(s)” shall mean (a) all laws, ordinances, statutes, rules, regulations and orders
relating to the Hotel and the Premises now or hereafter in effect, and (b) all terms, conditions, requirements and
provisions of all Permits.

“License Agreement” shall mean the franchise agreement to be dated on or about August 3, 2021.

“Licensor” shall mean Hilton Worldwide Holdings Inc.

“Major Agreements” shall mean any mortgage, deed of trust and/or the License Agreement applicable
to the Hotel.

“Major Renovations” shall mean a contemporaneously made set or series of alterations, additions and/or
improvements to the Hotel with a total cost in excess of Fifty Thousand Dollars ($50,000) but shall not include
any repairs or maintenance with respect to Capital Improvements or FF&E.

“Management Fees” shall mean the Base Fee, Accounting Fee, Revenue Management Fee, eCommerce
Fee and Incentive Fee, all as set forth in Article 4 hereof.

“Manager” shall have the meaning set forth in the introductory section of this Agreement.

“Minimum Working Capital” shall mean an amount specified on Schedule 1.

“Monthly Cash Flow Forecast” shall mean a monthly cash flow forecast for the Hotel with projections
for the next 90-day period.

“Monthly Reports” shall mean, collectively, with respect to each month during the Operating Term (a)
a balance sheet as of the last day of such month; (b) statement of cash flows for such month; (c) an income and
expense statement for such month, and year to date, including departmental details; (d) Monthly Cash Flow
Forecast, (g) SALT report (or similar guest experience report), and (f) such other monthly reports as Owner may
reasonably request and to which Manager agrees in writing.

“Multi-Property Programs” shall mean certain group purchasing, maintenance, service or other
contracts with respect to the Hotel, including those group purchasing, maintenance, service or other contracts
currently operated under Manager’s proprietary MarketBasket Plus system.

“Necessary Expenses” shall mean expenses, regardless of amount, that are necessary for the continued
operation of the Hotel in accordance with the requirements of any Major Agreement and the operational standards
set forth in this Agreement and which are not within the reasonable control of Manager (including, but not limited
to, those for insurance, taxes, utility charges, compliance with Legal Requirements and debt service).

“Net Operating Income” for any period shall mean the amount, if any, by which Total Operating
Revenues for such period exceed the sum of the following for such period:
(i) Operating Expenses; and
(ii) Property Taxes; and
(iii) the cost of insurance against physical damage to the Hotel.

“Non-Operating Income and Expenses” shall have the meaning ascribed to such term in the Uniform
System. 

	
	 5

13879309.14

“Obligor” shall mean the party required to provide indemnification under this Agreement.

“Operating Account” shall mean, collectively, one or more accounts bearing the name of the Hotel
where all funds received by Manager in the operation of the Hotel are deposited.

“Operating Budget” shall mean an operating budget setting forth in reasonable line-item detail the
projected income from and expenses of all aspects of the operations of the Hotel.

“Operating Equipment and Supplies” shall mean supply items which constitute “Operating Equipment
and Supplies” under the Uniform System, all miscellaneous serving equipment, linen, towels, uniforms, silver,
glassware, china and similar items.

“Operating Expenses” – shall mean all costs and expenses of maintaining, conducting and supervising
the operation of the Hotel and all of its facilities which are properly attributable under the Uniform System to the
period in question.

 A. Operating Expenses shall include, without limitation: (i) The cost of all Operating Equipment
and Supplies; (ii) Salaries and wages of Hotel Employees, including costs of payroll taxes, employee benefits and
severance payments, if it becomes necessary for an off-site employee of Manager or an Affiliate to temporarily
perform services at the Hotel of a nature normally performed by Hotel Employees (on temporary assignment or
task force), his or her salary (including payroll taxes and employee benefits) for such period only, as well as his
or her traveling expenses, shall be Operating Expenses and reimbursed to Manager; (iii) The cost of all other
goods and services obtained in connection with the operation of the Hotel including, without limitation, heat and
utilities, laundry, landscaping and exterminating services and office supplies; (iv) The cost of all non-capital
repairs to and maintenance of the Hotel; (v) All taxes, assessments, permit fees, inspection fees, and water and
sewer charges and other charges (other than income or franchise taxes) payable by or assessed against Owner with
respect to the operation of the Hotel, excluding Property Taxes; (vi) Legal fees (including, but not limited to, fees
for defense of third-party claims described in Article 15) and fees of any independent certified public accountant
for services directly related to the operation of the Hotel and its facilities; (vii) All expenses for advertising the
Hotel and all expenses of sales promotion and public relations activities; (viii) Reimbursable Expenses, (ix) The
Accounting Fee, Revenue Management Fee, eCommerce Fee and costs of Centralized Services and any fees or
tax levied on those charges by the local jurisdiction; (x) Periodic payments made in the ordinary course of business
under any applicable franchise agreement; (xi) Any other item specified as an Operating Expense in this
Agreement; and (xii) Any other cost or charge classified as an Operating Expense or an Administrative and
General Expense under the Uniform System unless specifically excluded under the provisions of this Agreement.

B. Operating Expenses shall not include: (i)amortization and depreciation; (ii) the making of or the
repayment of any loans or any interest thereon; (iii) the costs of any alterations, additions or improvements which
for federal income tax purposes or under the Uniform System or GAAP must be capitalized and amortized over
the life of such alteration addition or improvement; (iv) payments on account of any equipment lease that is to be
capitalized under GAAP; (v) payments under any ground lease, space lease or easement agreement; (vi) payments
into or out of the FF&E Reserve; or (vii) any item defined as a Non-Operating Income and Expense.

“Operating Lease” shall mean the lease agreement between Fee Owner and Owner, dated Februrary 8,
2022, pursuant to which Fee Owner leases the Hotel to Owner.

 “Operating Standards” shall mean the operation of the Hotel in a manner consistent with (a) the
requirements under the License Agreement; (b) the condition of the Hotel as of the Commencement Date (or,
following completion of a Renovation, the condition of the Hotel as of the completion of the Renovation), normal
wear and tear excepted; (c) the condition and level of the operation of hotels of comparable class and standing to 

	
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13879309.14
the Hotel in its market area; (d) then current market conditions regarding rental rates and lease terms and
conditions with respect to Hotels of comparable class and standing to the Hotel; and (e) then current business and
management practices (including those related to compliance with Legal Requirements) applicable to the
management, operation, leasing, maintenance and repair of a hotel comparable in size, character and location to
the Hotel.

“Operating Term” shall mean the Initial Term and any Renewal Term(s).

“Opportunity Expenses” shall mean any third-party operating expenses which are commercially
desirable to be incurred in order to obtain unbudgeted Hotel revenue in the ordinary course of operating the Hotel
in accordance with the then current business plan provided that such unbudgeted revenue is sufficient in Manager’s
professional judgment to offset such expenses.

“Owner” shall have the meaning set forth in the introductory section of this Agreement.

“Owner Payables” shall mean Non-Operating Income and Expenses (other than insurance premiums for
the insurance required under Exhibit B) that Owner requests Manager to pay on behalf of Owner from the
Operating Account.

“Owner’s Payables Notice” shall mean Owner’s written request and direction (including copies of any
material agreements) for Manager to pay Owner Payables.

“Payment Card Industry Data Security Standards” or “PCI-DSS” shall mean the latest version of
Payment Card Industry Data Security Standards, as amended, including any preface and appendices thereto.

“Permits” shall mean all governmental or quasi-governmental licenses and permits, including but not
limited to any certificate of occupancy, business licenses and liquor licenses.

“Premises” shall mean the land on which the Hotel is located.

“Prime Rate” shall mean the rate per annum announced, designated or published from time to time by
JP Morgan Chase Bank N.A. as its “prime”, “reference” or “base” rate of interest for commercial loans.

“Property Taxes” shall mean real estate taxes, assessments, personal property taxes and any other ad
valorem taxes imposed on or levied in connection with the Hotel, the Installations and the FF&E.

“Project Fee” shall have the meaning set forth in Section 9.2.

“Protected Data” shall mean any information that, either alone or in combination with other information,
identifies, relates to, describes, can reasonably be associated with, or can reasonably be linked, directly or
indirectly, with  a particular individual, and which is obtained, created or shared in connection with the services
or obligations performed by Manager under this Agreement.  As used in this definition, “individual” shall include,
without limitation, employees.

“Reimbursable Expenses” shall mean all out-of-pocket expenses and disbursements reasonably incurred
by Manager (including but not limited to legal and other costs incurred in obtaining and maintaining any liquor
license and management takeover transition expenses), pursuant to, in the course of, and directly related to, the
management and operation of the Hotel under this Agreement, which fees and disbursements shall be paid out of
the Operating Account or paid or reimbursed by Owner to Manager upon demand.  Without limiting the generality
of the foregoing, such charges may include all reasonable travel, telephone, telegram, facsimile, air express and
other incidental expenses and any fees or expenditures required for Manager to operate the Hotel in the given 

	
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13879309.14
jurisdiction, but, except as otherwise provided in this Agreement, shall not include any of the regular expenses of
the central offices maintained by Manager, other than offices maintained at the Hotel for the management of the
Hotel.  Manager shall maintain and make available to Owner invoices or other evidence supporting such charges.

“Renewal Term” shall mean additional successive terms of one (1) year each.

“Renovation” shall mean a renovation of any portion of the Hotel during the Operating Term, pursuant
to a plan proposed by Owner (or proposed by Manager and approved by Owner) and, to the extent required under
the License Agreement, approved by Licensor, to, among other things, bring the Hotel to a physical condition that
satisfies the standards under the License Agreement and to operate in a manner consistent with the assumptions
for the then-current Operating Budget.  A Renovation shall be carried out at the expense of Owner.

“Revenue Management Fee” shall have the meaning set forth in Article 4.

“Tax Contest” shall mean contesting the validity or amount of any Property Tax.

“Termination Fee” shall mean a termination fee paid by Owner to Manager as follows:

A. If such termination occurs on or prior to the first (1st) anniversary of the Commencement Date,
the Termination Fee shall be equal to the average of the total monthly Base Fee projected to be earned by Manager
during the first year of the Operating Term, multiplied by the number of months remaining in the Initial Term;
and

B. If such termination occurs at any time after the first (1st) anniversary but prior to the third (3rd)
anniversary of the Commencement Date, the Termination Fee shall be equal to the trailing twelve (12) month
average of the total Base Fees earned by Manager, multiplied by the number of months remaining until the
expiration of the Initial Term.

“Total Operating Revenues” shall mean all revenues and receipts of every kind derived from the Hotel
and all departments and parts thereof, as finally determined on an accrual basis in accordance with the Uniform
System, including, but not limited to, revenues and income (both cash and credit transactions) before commissions
and discounts for prompt or cash payments, from the rental of rooms and lobby space, exhibit or sales space of
any kind, including without limitation, charges for reservations, deposits and cancellation fees not refunded to
guests; income from vending machines, health club membership fees, wholesale and retail sales of merchandise,
service fees and charges (except to the extent paid or distributed to Hotel Employees), business interruption
insurance claims in respect of the Hotel, condemnation or similar awards for temporary use of the Hotel, license,
lease and concession fees and rentals (but not including the gross receipts of any licensees, lessees and
concessionaires), food and beverages sales, and other sales of every kind conducted by, through or under Manager
in connection with the Hotel.  Total Operating Revenues shall not include (i) Federal, state or municipal excise,
sales and use taxes, hotel room tax, or similar impositions collected directly from patrons or guests or included as
part of the sales price of any goods or services; (ii) credits or refunds to guests; (iii) proceeds arising from the sale
or other disposition of property described in Section 1231 of the Internal Revenue Code or of capital assets; (iv)
proceeds from condemnation and payments received on account of insurance policies (other than the proceeds
from business interruption insurance and from condemnation or similar awards for temporary use of the Hotel
when received); (v) proceeds from claims for damages suffered by Manager or Owner, unless in recompense for
a lost revenue item; (vi) the portion of mandatory service fees and charges that is booked as revenue but with a
corresponding expense and paid or distributed to Hotel Employees, and (vii) interest earned on the FF&E Reserve
or any permitted investments.

“Unavoidable Interruptions” shall mean interruptions in the operation of or access to the Hotel or any
of its essential services on account of an interruption in any one or more of the utility services serving the Hotel, 

	
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13879309.14
or on account of labor disputes, strikes, lockouts, fire or other casualty, war, terrorist actions, epidemics,
pandemics, acts of God and other similar causes beyond the reasonable control of the party claiming an
unavoidable interruption, but never financial inability.

“Uniform System” shall mean the “Uniform System of Accounts” (Eleventh Revised Edition 2014, as
further revised from time to time) as adopted by the American Hotel and Motel Association of the United States
and Canada.

“WARN Act” shall mean the Worker Adjustment and Retraining Notification Act and/or any similar
state or local laws (together with all rules and regulations promulgated thereunder and including without limitation
any such state or local laws).
 

	
	

EXHIBIT A
CENTRALIZED SERVICES

Centralized Services Categories

Central Systems Program Charge  $619.90 per month
The Central Systems Program is made up of:
• Business Intelligence – Aimbridge Advanced Analytics (A3) web-based platform provides
hotel operators, regional teams and owners with access to real-time information for daily
revenue with interfaces to the majority of the property management systems on the market,
customer contribution, monthly operating results, budgeting and forecasting, strategic sales
plans and more.
• Enterprise Resource Planning – Enterprise application for general ledger, GAAP based
financials and accounts payable all integrated and automated with A3 and third-party products
such as Aimbridge’s procurement system to provide financial reporting to hotel owners and
payments to hotel vendors.
• Collaboration – Aimbridge’s web-based collaborative platform allows for the sharing of
information, documentation, SOP’s, and best practices for associates.
•
Information Security Program Charge  $176.80 per month

The Information Security Program is made up of: Network and endpoint protection of Aimbridge
managed devices and networks, cyber threat monitoring, security awareness training, testing of
Aimbridge managed networks and devices, data governance.

While this security program is comprehensive it cannot guarantee protection from all incidents and
breaches. This program is separate and in addition to brand mandated security programs where the
brand manages networks and devices.

Topline Revenue Support Charge  $140.00 per month

Dedicated resources and tools focused on delivering topline revenue and market share success,
including market intelligence; Aimbridge national account team driving sales and managing
relationships; and topline team programming and recognition.

Payroll Services Charge $15.82 per employee per month

Payroll Services include payroll processing, garnishments, W-2 reporting, tax filings, timekeeping,
HRIS and clock rental.
 

	
	

Human Resources Charge  $5.01 per employee per month

The Human Resources platform includes Learning Management System, recruiting and employee
onboarding systems, Compensation and Performance Management system, Compliance Hot Line, an
Associate Survey Platform and Open Enrollment management.

NOTE: These charges will be modified on an annual basis in connection with the review and approval of the
Budgets 

	
	

13879309.14
EXHIBIT B
INSURANCE

1. The following insurance with respect to the Hotel, to the extent such insurance is commercially available,
shall be obtained by Manager and maintained throughout the Operating Term at Owner’s sole cost and expense
provided, however, Owner may elect, at the beginning of the Operating Term or no more than once per year during
the Operating Term, so long as such election is at least sixty (60) days prior to any then-current policy renewal,
to provide such insurance upon written notice to Manager and delivery of certificates of insurance acceptable to
Manager:

A. Property insurance covering the Building, the Installations and the FF&E, on an all-risk
basis that insures against such risks as are customarily covered by such insurance and includes, without limitation,
coverage for boiler and machinery insurance, but excluding damage resulting from, war, and nuclear energy, and
all perils covered by the insurance shall have limits in aggregate amounts which shall be not less than the full
replacement cost of the Building, the Installations and the FF&E (exclusive of foundations, footings and land);
and

i. if the Hotel is located within an area designated “high hazard flood zone” pursuant to the
Federal Emergency Management Agency, as the same may be amended from time to time, then coverage
under the property insurance for loss relating to flood or separate flood insurance shall also be obtained
in such amount as Owner may reasonably require;

ii. if the Hotel is located in an “earthquake zone” as determined by the U.S. Geological
Survey, then coverage under the property policy for loss relating to earthquake shall be obtained in
reasonable amount for a hotel of this type in the geographic area;

iii. alternatively, the foregoing requirements for flood and earthquake insurance coverage
may be satisfied with a separate insurance policy, so long as Manager approves the form of coverage and
the Owner approves the amount of coverage provided; and

iv. insurance coverage for business interruption extra expense covering, without limitation,
loss of income, continuing charges, expenses and payroll, for a minimum period of eighteen (18) months
resulting from interruption of business from physical damage caused by the occurrence of any of the risks
affecting the Hotel insured against under the policy(ies) obtained under this Section 1(A) and
Section 1(E).  The policy limits will be sufficient to cover Owner’s losses plus up to eighteen (18) months
of Management Fees and centralized services reimbursements that Manager would have received if the
Hotel had generated the Total Operating Revenues described in the annual Operating Budget.  The
Manager will be a loss payee as its interests appear, and coverage will include ingress/egress, terrorism,
civil authority and lost income for the enforcement of ordinance of law.  In the event of a covered loss, a
copy of the calculation utilized in arriving at the business income loss will be delivered by Owner to
Manager prior to the claim settlement;

B. occurrence-based commercial general liability insurance with a limits of not less than
$1,000,000 for each occurrence and $2,000,000 per location in the aggregate including the following coverages:
(i) bodily injury including sickness and disease, (ii) death, (iii) property damage, (iv) assault and battery, (v)
mental anguish as a result of bodily injury, (vi) sexual assault and molestation, (vii) personal and advertising injury
including false arrest, false imprisonment, unlawful detention, malicious prosecution, libel, slander or violation of
the right of privacy, (viii) wrongful entry or eviction, (ix) liquor liability (if the Hotel sells, serves or furnishes
alcoholic beverages) and host liquor liability if the sale or service of alcohol is provided by a third party, (x)
contractual liability, (xi) independent contractors, (xii) premises and operation, (xiii) products and completed
operations, and (xiv) pollution coverage for liability arising out of heat, smoke or fumes from a hostile fire vapor 

	
	

13879309.14
or soot produced by or originating from equipment that it utilized by HVAC equipment and bacteria, fungi, carbon
monoxide, pesticides or pool chemicals;

C. umbrella liability insurance with not less than $50,000,000 per occurrence and per
location aggregate limit applying on an excess and follow form basis over the commercial general liability
insurance policy obtained under Section 1(B) and the  auto liability insurance policy obtained under Section 1(E);

D. innkeeper’s liability insurance with minimum coverage meeting statutory limits, which
may be provided as part of the commercial general liability insurance;

E. business automobile liability insurance under Symbol 1 – any auto, with minimum limits
of $1,000,000 combined single limit insuring against damage due to bodily injury, death of any person or property
damage arising out of the ownership, maintenance or use of any motor vehicles, whether owned, non-owned, hired
or leased, in connection with Hotel operations and garage-keeper’s liability if the Manager provides parking
services for guest or customer vehicles; and

F. Such other or additional insurance as may be (i) required under the provisions of any
applicable Major Agreement (provided Manager has been given detailed written notice of such requirements) or
(ii) reasonably requested by Owner in writing and of the type and with coverage limits customarily carried by
prudent Managers of similar service level hotels in the geographic area of the Hotel.

2. Manager shall obtain the following insurance and shall maintain such insurance during the Operating
Term of this Agreement at Owner’s sole cost and expense:

A. worker’s compensation insurance with limits not less than the amounts prescribed by
applicable state law;

B. crime insurance, in such amounts and with such deductibles that are commercially
available and economically feasible, covering Manager’s employees at the Hotel (other than executive employees
of Manager) in job classifications normally insured in other hotels it manages in the United States or as otherwise
required by law;

C. cyber insurance providing coverage that includes network security and privacy liability
coverage, media liability coverage and privacy regulation proceeding coverage for the Owner and Hotel, with
limits not less than $2,000,000 per claim  and in the aggregate; and

D. employment practices liability insurance with limits of $2,000,000 and with
economically feasible deductible.

3. Except where otherwise provided in this Section 3, all insurance policies purchased by Manager shall
name Manager as the named insured and:

A. with respect to insurance coverage required under Section 1, shall name Owner as an
additional named insured, and name as additional insureds such other parties as may be required by the terms of
the Major Agreements; and

B. with respect to insurance coverage required under Section 2(C) and (D), shall name
Owner as additional insured.

If higher coverage limits are required in the future to comply with any of the Major Agreements or are customarily
carried by prudent managers of similar service level hotels in the geographic area of the Hotel, then the coverage
requirements under this Exhibit B will be increased to satisfy such requirements (provided Owner has given 

	
	

13879309.14
Manager detailed written notice of such requirements).  Owner understands that coverage afforded to the Owner
may be solely for liability arising out of Manager’s activities performed by or on behalf of Owner and that it may
be necessary for Owner to purchase separate policies to cover Owner.  In the event that Owner shall purchase any
insurance policies as required under Section 1 of this Exhibit B, other than through the program established by
Manager, (i) such insurance policy shall name Manager, Aimbridge Parent, Inc., its corporate affiliates,
subsidiaries and employees as named insureds and (ii) Owner’s coverage will be on a primary and non-
contributory basis to any insurance issued to Manager for liability arising out of the Hotel and the actions and
responsibilities of the parties relating to this Agreement and the Major Agreements.

4. All insurance policies shall be placed with companies having an A.M. Best’s Rating of A- XV or better
and, provided Owner has given Manager detailed written notice of such requirements, shall comply with the
requirements of any Major Agreement.  Insurance may be provided under blanket or master policies covering one
or more other hotels operated by Manager or owned by Owner as long as the full limits apply per location.  The
portion of the premium for any blanket or master policy which is allocated to the Hotel as an Operating Expense
or Non-Operating Income and Expense shall be determined in an equitable manner by Manager and reasonably
approved by Owner and paid out of the Operating Account or, if the funds therein are insufficient, by Owner upon
demand therefor by Manager.  Such amount shall be determined by a suitable and customary formula applying
the specific hotel exposures against appropriate rates to determine the premium allocation for the Hotel.

5. All insurance policies shall specify that they cannot be canceled or materially modified on less than twenty
(20) days’ prior written notice to both Owner and Manager and any additional insureds (or such longer period as
may be required under a Major Agreement, provided that Manager has been advised in writing of such period)
and shall include a separation of insureds provision.

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

7. For each insurance policy obtained by a party pursuant to this Exhibit B, that party shall provide to the
other party a copy of a certificate of insurance that identifies the form number of the ISO or other form used to
include the other party as an additional named insured or an additional insured (as applicable).  Additionally, if
requested,  the party obtaining the insurance policy shall provide a copy of the portion of the policy  that includes
the other party as an additional named insured or as an additional insured (as applicable), whether by endorsement
or otherwise.

8. Owner and Manager hereby release one another from any and all liability, to the extent of the waivers of
subrogation obtained under Section 5, associated with any damage, loss or liability with respect to which property
insurance coverage is provided, or should have been provided, pursuant to this Article or otherwise.

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

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

11. Subject to the provisions of the Budgets, Manager may act, directly or indirectly, in a brokerage capacity
with respect to the insurance required under this Article or as a direct insurer or reinsurer with respect to the same.

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