SEC Contract Filing

Filing Date: 2015-05-01

Document Content:
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>19
<FILENAME>d905819dex1021.htm
<DESCRIPTION>EX-10.21
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<TITLE>EX-10.21</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.21 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ENVIRONMENTAL INDEMNITY AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>THIS <B>ENVIRONMENTAL INDEMNITY AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) is made as of February&nbsp;27, 2015, by AMERICAN
REALTY CAPITAL HOSPITALITY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, having an office at c/o American Realty Capital, 405 Park Avenue, New York, New York 10022, AMERICAN REALTY CAPITAL HOSPITALITY TRUST, INC., a Maryland
corporation, having an office at c/o American Realty Capital, 405 Park Avenue, New York, New York 10022, Nicholas S. Schorsch, an individual, William M. Kahane, an individual, Edward M. Weil, Jr., an individual, and Peter M. Budko, an individual
(each of the foregoing, an &#147;<B></B><B><I>Indemnitor</I></B><B></B>&#148;, and together with their respective permitted successors and assigns, collectively, &#147;<B></B><B><I>Indemnitors</I></B><B></B>&#148;), in favor of W2007 EQUITY INNS
PARTNERSHIP, L.P., a Tennessee limited partnership, and W2007 EQUITY INNS TRUST, a Maryland trust, each having an office at c/o Goldman Sachs Realty Management, L.P., 6011 Connection Drive, Irving, Texas 75039 (collectively, and together with their
respective successors and/or assigns, &#147;<B></B><B><I>Indemnitee</I></B><B></B>&#148;) and the other Indemnified Parties (defined below).<B> </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>RECITALS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B><I></I></B>A. Indemnitee is prepared to make an investment (the &#147;<B><I>Investment</I></B>&#148;) in ARC Hospitality Portfolio II
Holdco, LLC, a Delaware limited liability company (the &#147;<B><I>Company</I></B>&#148;), in the amount of $99,799,180 as described in the Amended and Restated Limited Liability Company Agreement of the Company, of even date herewith, among
Indemnitee, American Realty Capital Hospitality Portfolio Member, LP, a Delaware limited partnership (the &#147;<B><I>Class B Member</I></B>&#148;), and William G. Popeo, as special member (as the same may be amended, modified or supplemented from
time to time, the &#147;<B><I>Operating Agreement</I></B>&#148;). Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Operating Agreement. <B><I> </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">B. Each Indemnitor acknowledges receipt and approval of copies of the Operating Agreement and the other Transaction Documents. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">C. Each Indemnitor acknowledges that it owns, either directly or indirectly, a beneficial interest in the Class B Member and, as a result of
such beneficial interest, will receive substantial economic and other benefits from Indemnitee making the Investment in the Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">D.
Indemnitee is unwilling to make the Investment or to enter into the Operating Agreement unless Indemnitors agree to provide the indemnification, representations, warranties, covenants and other matters described in this Agreement for the benefit of
the Indemnified Parties. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">E. Indemnitors are entering into this Agreement to induce Indemnitee to make the Investment, enter into the
Operating Agreement and become a Member of the Company. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Indemnitors hereby represent, warrant, covenant and agree for the benefit of the Indemnified Parties as follows: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.
<B><U>Environmental Covenants</U></B>. Each Indemnitor covenants and agrees that (a)&nbsp;all uses and operations on or of each Property, whether by any of the Indemnitors or any other Person, shall be in compliance with all Environmental Laws and
permits issued pursuant thereto; (b)&nbsp;there shall be no Releases of Hazardous Substances in, on, under or from any Property (except in compliance with all applicable Environmental Laws and with permits issued pursuant thereto); (c)&nbsp;there
shall be no Hazardous Substances in, on or under any Property, except those that are both (i)&nbsp;in compliance with all applicable Environmental Laws and with any necessary permits issued pursuant thereto and (ii)&nbsp;fully disclosed to
Indemnitee in writing; (d)&nbsp;Indemnitors shall keep each Property free and clear of all liens and other encumbrances imposed pursuant to any Environmental Law, whether due to any act or omission of any of the Indemnitors or any other Person (the
&#147;<B><I>Environmental Liens</I></B>&#148;);<I><U> provided</U></I>, that after prior notice to Indem