酒店管理合同(英文版 第三部分)

日期:2018-01-10 / 人气: / 来源:http://www.ldsfunny.com/ 作者:译声翻译公司

  28.13Confidentiality.TheManagershallkeepconfidentialallnon-publicinformationobtainedinconnectionwiththeservicesrenderedunderthisAgreementandshallnotdiscloseanysuchinformationoruseanysuchinformationexceptinfurtheranceofitsdutiesunderthisAgreementorasmayberequiredbyapplicableLegalRequirementsorcourtorder,orasmayberequiredunderanyFranchiseAgreement,HotelMortgage,LeaseorGroundLease.

  28.7Consents.WhenevertheconsentorapprovalofLesseeisrequiredunderthetermsofthisAgreement,unlessotherwisestatedtothecontrary,suchconsentorapprovalmaybegrantedorwithheldbyLesseeinitsreasonablediscretion.

  (a)ManagershallnotpermitwageringactivitiestobeconductedatorinconnectionwiththeHotelsbyanypersonwhoisengagedinthebusinessofacceptingwagersandwhoislegallyauthorizedtoengageinsuchbusinessatorinconnectionwiththeHotels;

  Exhibit“B-1”LegalDescriptionsofSites

  (f)ThefailureofLesseeorManagertoperform,keeporfulfillanyoftheothercovenants,undertakings,obligationsorconditionssetforthinthisAgreement,andthecontinuanceofsuchdefaultforaperiodofthirty(30)daysafterwrittennoticeofsaidfailure;provided,however,ifsuchdefaultcannotbecuredwithinsuchthirty(30)dayperiodandLesseeorManager,asthecasemaybe,commencestocuresuchdefaultwithinsuchthirty(30)dayperiodandthereafterdiligentlyandexpeditiouslyproceedstocurethesame,suchthirty(30)dayperiodshallbeextendedsolongasitshallrequireLesseeorManager,asthecasemaybe,intheexerciseofduediligencetocuresuchdefault,itbeingagreedthatnosuchextension(includingtheoriginal30daycureperiod)shallbeforaperiodinexcessofonehundredtwenty(120)days.

  (d)Suchothermattersasmaybereasonablyrequested.

  Exhibit“C”DescriptionofFranchiseAgreementsandFranchisors

  Anysuchcertificatesmayberelieduponbyanypartytowhomthecertificateisdirected.

  By:Name:Title:

  28.9Subleasing.DuringtheTermofthisAgreement,ManagershallnotsublettheHotelsorenterintoanysimilararrangementonanybasissuchthattherentalorotheramountstobepaidbythesublesseethereunderwouldbebased,inwholeorinpart,oneither(i)thenetincomeorprofitsderivedbythebusinessactivitiesofthesublessee,or(ii)anyotherformulasuchthatanyportionoftherentwouldfailtoqualifyas“rentsfromrealproperty”withinthemeaningofSection856(d)oftheCode,oranysimilarorsuccessorprovisionthereto.

  25.2LesseeIndemnity.ExceptwithrespecttomattersforwhichManagerisobligatedtoprovideindemnificationpursuanttoSection25.1,LesseeshallindemnifyandholdManager(andManager’sagents,principals,partners,members,officers,directors,andemployees)harmlessfromandagainstallliabilities,losses,claims,damages,costsandexpenses(including,butnotlimitedto,reasonableattorneys’feesandexpenses)whicharenotcoveredbyinsuranceproceedsandthatmaybeincurredbyorassertedagainstsuchpartyandthatarisefromorinconnectionwith(a)theperformanceofManager’sservicesunderthisAgreement;(b)theconditionoruseoftheHotels,tothefullestextentpermittedbylaw,includingwithoutlimitation,anyinjurytoperson(s)ordamagetopropertyorbusinessbyreasonofanycausewhatsoeverinorabouttheHotels;(c)anyEmployeeRelatedTerminationCosts,includinganyliabilitytowhichManagerissubjectedpursuanttotheWarnActinconnectionwiththeterminationofthisAgreement,providedthatManagerhasprovidednoticesintheform(otherthananyreferencetothetimeperiod)requiredbytheWarnActwithinfive(5)businessdaysofManager’sreceiptofanoticeoftheterminationofthisAgreement(excludinganyterminationofthisAgreementwhichresultsfromthecommissionofanytheft,embezzlementorothercriminalmisappropriationoffundsoftheHotelsorfromtheLesseeoranyfraudorfelonybyanyExecutiveEmployeethatrelatestoormateriallyaffectstheoperationorreputationoftheHotels);(d)theEmployeeCostsandExpensesassetforthinArticleIXhereinabove;or(e)anyEmployeeClaims,butexcludinganyExcludedEmployeeClaims.ManagershallpromptlyprovideLesseewithwrittenNoticeofanyclaimorsuitbroughtagainstitbyathirdpartywhichmightresultinsuchindemnification.

  Exhibit“E”FormofAmendmenttoHotelMasterManagementAgreement

ARTICLEXVIPAYMENTBYLESSEEANDDISTRIBUTIONSTOLESSEE

  ARTICLEXXIIISUBORDINATION;NON-DISTURBANCE

  Exhibit“B”DescriptionofLeases

  A“qualifiedlodgingfacility”isdefinedinSection856(d)(9)(D)oftheCodeandmeansa“LodgingFacility”(definedbelow),unlesswageringactivitiesareconductedatorinconnectionwithsuchfacilitybyanypersonwhoisengagedinthebusinessofacceptingwagersandwhoisfullyauthorizedtoengageinsuchbusinessatorinconnectionwithsuchfacility.A“LodgingFacility”isahotel,motelorotherestablishmentmorethanone-halfofthedwellingunitsinwhichareusedonatransientbasis,andincludescustomaryamenitiesandfacilitiesoperatedaspartyof,orassociatedwith,thelodgingfacilitysolongassuchamenitiesandfacilitiesarecustomaryforotherpropertiesofacomparablesizeandclassownedbyotherownersunrelatedtoMHI.

  ARTICLEXXVIIGOVERNINGLAWVENUE

  25.4Survival.TheprovisionsofthisArticleshallsurvivetheterminationofthisAgreementwithrespecttoacts,omissionsandoccurrencesarisingduringtheTerm.

  LISTOFEXHIBITS

  24.1ComputerSoftwareandEquipment.All“Software”(meaningallcomputersoftwareandaccompanyingdocumentation,otherthansoftwarewhichiscommerciallyavailable,whichareusedbyManagerinconnectionwiththepropertymanagementsystem,anyreservationsystemandallfutureelectronicsystemsdevelopedbyManagerforuseintheHotels)isandshallremaintheexclusivepropertyofManageroranyoneofitsManagerAffiliateEntities(orthelicensorofsuchSoftware,asthecasemaybe),andLesseeshallhavenorighttouse,ortocopy,anySoftware.UponTermination,ManagershallhavetherighttoremovefromtheHotels,withoutcompensationtoLessee,allSoftware,andanycomputerequipmentwhichisutilizedaspartofacentralizedpropertymanagementsystemorisotherwiseconsideredproprietarybyManager,exceptinganysoftwarewhichisownedbytheapplicableFranchisor;providedthatManagershallcooperatewithLesseeinthetransitionofthecentralizedmanagementsystemtothenewmanager,includinginthechangeofanySoftwareandcomputerequipment.IfanyofsuchcomputerequipmentisownedbyLessee,ManagershallreimburseLesseeforpreviousexpendituresmadebyLesseeforthepurchaseofsuchequipment,subjecttoareasonableallowancefordepreciation.

  28.14Modification.Anyamendment,supplementormodificationofthisAgreementmustbeinwritingsignedbybothpartieshereto;providedthatamajorityoftheIndependentDirectorsofMHIapprovesuchamendment,supplementormodification.

  (c)Theenteringofanorder,judgmentordecreebyanycourtofcompetentjurisdiction,ontheapplicationofacreditor,adjudicatingLesseeorManagerasbankruptorinsolvent,orapprovingapetitionseekingreorganizationorappointingareceiver,trustee,orliquidatorofallorasubstantialpartofsuchparty’sassets,andsuchorder,judgmentordecreecontinuesunstayedandineffectforanyperiodofninety(90)daysormore;

  19.2ConsequenceofDefault.UpontheoccurrenceofanyEventofDefault,thenon-defaultingpartymaygivethedefaultingpartyNoticeofintentiontoterminatethisAgreement(aftertheexpirationofanyapplicablegraceorcureperiodprovidedinSection19.1),andupontheexpirationofthirty(30)daysfromthedateofsuchnotice,thisAgreementshallterminate,whereuponthenon-defaultingpartyshallbeentitledtopursueallofitsrightsandremedies,atlaworinequity,underthisAgreement(including,withoutlimitation,anyindemnityobligationswhichshallsurviveterminationofthisAgreement)andanyotherrightsandremediesavailableunderLegalRequirementsexceptasotherwiseexpresslylimitedbythetermsofArticleII.Notwithstandingtheforegoing,intheeventthatanEventofDefaultisapplicabletooneormoreoftheHotelsbutnotalloftheHotels,suchterminationshallonlybeastosuchapplicableHotel(s).

  28.15Counterparts.ThisAgreementmaybeexecutedinmultiplecounterparts,eachofwhichisanoriginalandallofwhichcollectivelyconstituteoneinstrument.

  18.1DamageandRepair.If,duringtheTermhereof,aHotelisdamagedordestroyedbyfire,casualty,orothercauseorintheeventtheunderlyingLeaserelatingtosuchdamagedHotelisterminatedpursuanttotheprovisionsofsuchLease,LesseemayterminatethisAgreementwithrespecttosuchHoteluponsixty(60)days’Noticefromthedateofsuchdamageordestruction,inwhichcasethisAgreementshallthenterminatewithrespecttosuchHotelsixty(60)daysfromthedateofsuchnoticeandneitherpartyshallhaveanyfurtherrights,obligations,liabilitiesorremediesonetotheotherhereunderwithrespecttosuchHotel,exceptasotherwiseprovidedinArticleII;provided,however,thatLesseeshallnotberequiredtopayManageranyterminationfee.

  (d)neitherMHI,thePartnership,theLandlords,northeLessee,shallderiveanyincomefromtheManageroranyofitssubsidiaries;and

  28.11EquityandDebtOfferings.TheLesseeorManager(asan“IssuingParty”)maymakereferencetotheotherparty(the“Non-IssuingParty”)oranyofitsAffiliatesinanyprospectus,privateplacementmemorandum,offeringcircularorofferingdocumentationrelatedthereto(collectively,referredtoasthe“Prospectus”),issuedbytheissuingparty.Innoeventwillthenon-issuingpartybedeemedasponsoroftheofferingdescribedinanysuchProspectus,norwillithaveanyresponsibilityfortheProspectus.TheissuingpartyshallbeentitledtoincludeintheProspectusanaccuratesummaryofthisAgreementbutshallnotincludeanyproprietarymarkofthenon-issuingpartywithoutpriorwrittenconsentofthenon-issuingparty.Theissuingpartyshallindemnify,defendandholdthenon-issuingpartyanditsAffiliates(andtheirrespectivedirectors,officers,shareholders,employeesandagents)harmlessfromandagainstallloss,costs,liabilityanddamage(includingattorneys’feesandexpenses,andthecostoflitigation),arisingoutofanyProspectusortheofferingdescribedtherein,exceptforanysuchlosses,costs,liabilityanddamagearisingfrommaterialmisstatementsoromissionsinaProspectusbasedoninformationprovidedinwritingbythenon-issuingpartyexpresslyforinclusionintheProspectus.

  (b)Theconsenttoanyinvoluntarypetitioninbankruptcyorthefailuretovacate,withinninety(90)daysfromthedateofentrythereof,anyorderapprovinganinvoluntarypetitionbyLesseeorManager;

  (b)IfaportionofthePremisesshallbetakenbytheeventsdescribedinSection18.2(a)ortheentirePremisesaretemporarilyaffected,theresultofeitherofwhichisnottomakeit,inthereasonablebusinessjudgmentofLessee,unreasonabletocontinuetooperatetheapplicableHotel,subjecttotherequirementsoftheapplicableunderlyingLease,thisAgreementshallnotterminatewithrespecttosuchHotel.However,somuchofanyawardforanysuchpartialtakingorcondemnationshallbemadeavailabletotheextentnecessarytorendertheapplicablePremisesequivalenttoitsconditionpriortosucheventandthebalanceshallbepaidtoLesseeortheHolder,ifrequiredbyanyHotelMortgagecoveringthePremises.

  28.2Agency.Manager’slimitedagencyestablishedbythisAgreementiscoupledwithaninterestandmaynotbeterminatedbyLesseeuntiltheexpirationoftheTermofthisAgreementexceptasotherwiseprovidedinthisAgreement.

  SubjecttotherequirementsofanyHotelMortgage,FranchiseAgreement,GroundLeaseoranyoftheLeases,neitherpartyshallassignortransfer(byoperationoflaworotherwise)orpermittheassignmentortransferofthisAgreementwithoutthepriorwrittenconsentoftheother(whichmaybewithheldinitssolediscretion)andanysuchprohibitedassignmentortransfershallbenullandvoid;provided,however,thatManagershallhavetheright,withoutsuchconsent,toassignitsinterestinthisAgreementtoany“ManagerAffiliateEntity”,providedsuchManagerAffiliateEntityqualifiesasanEligibleIndependentContractorasofthedateofsuchtransfer.Theterm“ManagerAffiliateEntity”shallmeananyentitycontrolleddirectlyorindirectlyby(i)DrewSims,ChrisSimsand/orKimSims,(ii)familypartnershipsortrusts(thesolemembersorbeneficiariesofwhichareatalltimeslinealdescendantsofDrewSims,ChrisSimsand/orKimSims(includingstep-children)andspousesofanyoftheforegoing),or(iii)bylinealdescendantsofDrewSims,ChrisSimsand/orKimSims(includingstep-children)andspousesofanyoftheforegoing.Forpurposeshereof,“controlled”shallmean(i)thepossession,directlyorindirectlyofamajorityofthevotingpowerandcapitalstockorownershipinterestofsuchentity,or(ii)thepowertodirectorcausethedirectionofthemanagementandpoliciesofsuchentityinthecapacityofchiefexecutiveofficer,president,chairman,orothersimilarcapacitywheretheyareactivelyengagedand/orinvolvedinprovidingsuchdirectionorcontrolandspendasubstantialamountoftimemanagingsuchentity.AnysuchpermittedassigneeshallbedeemedtobetheManagerforpurposesofthisAgreementprovidedsuchassigneeassumesallofManager’sfutureobligationsunderthisAgreementpursuanttoanassumptionagreementreasonablyacceptabletoLessee.Anyandallsuchassignments,however,shallatalltimesbesubjecttothepriorright,titleandinterestofLesseewithrespecttothePremises.AnassignmentbyManageroranypermittedassigneeofitsinterestinthisAgreement,shallnotrelieveManageroranysuchpermittedassignee,asthecasemaybe,fromtheirrespectiveobligationsunderthisAgreement,andshallinuretothebenefitof,andbebindingupon,theirpermittedsuccessorsandassigns.ForpurposesofthisArticleXXIanychangeintheownershipoftheManagerorothereventthatwouldcausetheManagertofailtobeaManagerAffiliateEntityshallbedeemedtobeatransferofthisAgreement,prohibitedbythisArticleXXIunlessfirstconsentedtoinwritingbyLessee(whichmaybewithheldinitssolediscretion).

  LesseeandManagershallnotbeconstruedaspartners,jointventurersorasmembersofajointenterpriseandneithershallhavethepowertobindorobligatetheotherexceptassetforthinthisAgreement.Nevertheless,ManagerisgrantedsuchauthorityandpowerasmaybereasonablynecessaryforittocarryouttheprovisionsofthisAgreement.ThisAgreement,eitheraloneorinconjunctionwithanyotherdocuments,shallnotbedeemedtoconstitutealeaseofanyportionofthePremises.NothingcontainedhereinshallprohibitorrestrictManageroranyaffiliateofManagerfromoperating,owning,managing,leasingorconstructinganyhotelofanynatureordescriptionwhichmayinanymannercompetewiththatofthePremises,exceptasotherwisesetforthintheStrategicAllianceAgreement;providedthatManageragreestocomplywiththeconflictspoliciesofMHI.ExceptasotherwiseexpresslyprovidedinthisAgreement,(a)alldebtsandliabilitiestothirdpersonsincurredbyManagerinthecourseofitsoperationandmanagementoftheHotelsinaccordancewiththeprovisionsofthisAgreementshallbethedebtsandliabilitiesofLesseeonly,and(b)Managershallnotbeliableforanysuchobligationsbyreasonofitsmanagement,supervision,directionandoperationoftheHotelsasagentforLessee.ManagermaysoinformthirdpartieswithwhomitdealsonbehalfofLesseeandmaytakeanyotherreasonablestepstocarryouttheintentofthisparagraph.

  28.1RightstomakeAgreement.Eachpartywarrants,withrespecttoitself,thatneithertheexecutionofthisAgreementnorthefinalizationofthetransactionscontemplatedherebyshallviolateanyprovisionoflaworjudgment,writ,injunction,orderordecreeofanycourtorgovernmentalauthorityhavingjurisdictionoverit;resultinorconstituteabreachordefaultunderanyindenture,contract,othercommitmentorrestrictiontowhichitisapartyorbywhichitisbound;orrequireanyconsent,voteorapprovalwhichhasnotbeengivenortaken.EachpartycovenantsthatithasandwillcontinuetohavethroughoutthetermofthisAgreementandanyextensionsthereof,thefullrighttoenterintothisAgreementandperformitsobligationshereunder.

  By:President

  20.1Waiver.ThefailureofeitherpartytoinsistuponastrictperformanceofanyofthetermsorprovisionsofthisAgreementortoexerciseanyoption,rightorremedyhereincontained,shallnotbeconstruedasawaiverorasarelinquishmentforthefutureofsuchterm,provision,option,rightorremedy,butthesameshallcontinueandremaininfullforceandeffect.Nowaiverbyeitherpartyofanytermorprovisionhereofshallbedeemedtohavebeenmadeunlessexpressedinwritingandsignedbysuchparty.

  LESSEE:

  ARTICLEXIXDEFAULTANDTERMINATION

  ARTICLEXVIIIDAMAGE,CONDEMNATIONANDFORCEMAJEURE

  By:President

  (a)ThefilingofavoluntarypetitioninbankruptcyorinsolvencyorapetitionforreorganizationunderanybankruptcylawbyLesseeorManager;

  28.4Headings.HeadingsofArticlesandSectionsareinsertedonlyforconvenienceandareinnowaytobeconstruedasalimitationonthescopeoftheparticularArticlesorSectionstowhichtheyrefer.

  24.2IntellectualProperty.All“IntellectualProperty”(meaningallSoftwareandmanuals,brochuresanddirectivesissuedbyManagertoitsemployeesattheHotelregardingproceduresandtechniquestobeusedinoperatingtheHotel)shallatalltimesbeproprietarytoManageroritsAffiliates,andshallbetheexclusivepropertyofManageroritsAffiliates.UponTermination,allIntellectualPropertyshallberemovedfromtheHotelsbyManager,withoutcompensationtoLessee.

  (b)Managershallnotown,directlyorindirectly(withinthemeaningofSection856(d)(5)oftheCode),morethanthirty-fivepercent(35%)oftheoutstandingstockofMHI;

  (h)TheManagerdoesnotqualifyasanEligibleIndependentContractor.

  ARTICLEXXIINOTICES

  19.1EventsofDefault.Thefollowingshallconstituteeventsofdefault(eachan“EventofDefault”):

  16.2PaymentofIncentiveManagementFee.Onthesixtieth(60)dayaftertheendofeachFiscalYearduringtheTermofthisAgreement,ManagershallbepaidoutoftheOperatingAccounttheIncentiveManagementFeefortheprecedingAccountingPeriod,ifany,asdeterminedfromthebooksandrecordsreferredtoinArticleXV.

  18.2Condemnation.

  16.1PaymentofBaseManagementFee.Onthetenth(10th)dayofeachmonthduringthetermofthisAgreement,ManagershallbepaidoutoftheOperatingAccount,theBaseManagementFeefortheprecedingAccountingPeriod,asdeterminedfromthebooksandrecordsreferredtoinArticleXV.

  28.12EstoppelCertificates.LesseeandManagerwill,atanytimeandfromtimetotimewithinfifteen(15)daysoftherequestoftheotherpartyoraHolder,oraFranchisor(ifsopermittedundertheapplicableFranchiseAgreement),oraLandlord(ifsopermittedundertheapplicableLease),execute,acknowledge,anddelivertotheotherpartyandsuchHolder,FranchisororLandlord,asapplicable,acertificatecertifying:

  (c)Intheeventofthediscoveryofhazardousmaterials(assuchtermmaybedefinedinanyapplicableenvironmentallaw)onthePremisesorintheHotelsduringtheTermofthisAgreement,Lesseeshallpromptlyremove,ifrequiredbyapplicableenvironmentallaw,suchhazardousmaterials,togetherwithallcontaminatedsoilandcontainers,andshallotherwiseremedytheprobleminaccordancewithallenvironmentallaws(excepttotheextentknowinglyorrecklesslycausedbyManagerduringtheTermofthisAgreement,whereupontheresponsibilitytopromptlyremoveand/orremedytheenvironmentalproblemshallbethatofManagerandatManager’ssolecostandexpense).AllcostsandexpensesofthecompliancewithallenvironmentallawsshallbepaidbyLesseefromitsownfunds(excepttotheextentknowinglyorrecklesslycausedbyManagerduringtheTermofthisAgreementassetforthhereinabove).

  ARTICLEXXIASSIGNMENT

  [Signaturesfollowonnextpage]

  AllnoticesgivenpursuanttothisArticleXXIIshallbedeemedtohavebeengiven(i)ifdeliveredbyhandonthedateofdeliveryoronthedatethatdeliverywasrefusedbytheaddressee,or(ii)ifdeliveredbycertifiedmailorbyovernightcourier,onthedateofdeliveryasestablishedbythereturnreceiptorcourierserviceconfirmation(orthedateonwhichthereturnreceiptorcourierserviceconfirmsthatacceptanceofdeliverywasrefusedbytheaddressee).

  25.1ManagerIndemnity.ManagershallindemnifyandholdLessee(andLessee’sagents,shareholders,officers,directors,andemployees)harmlessfromandagainstallliabilities,losses,claims,damages,costsandexpenses(including,butnotlimitedto,reasonableattorneys’feesandexpenses)whicharenotcoveredbyinsuranceproceedsthatmaybeincurredbyorassertedagainstanysuchpartyandthatarisefrom(a)thefraud,willfulmisconductorgrossnegligenceofManager;provided,however,thattheactoromissionofanyemployeeofManagerwhoisnotanExecutiveEmployee,whichactoromissioniswillfulorconstitutesfraudorgrossnegligenceonthepartofsuchemployee,shallnotconstitutefraud,grossnegligenceorwillfulmisconductonthepartofManagerunlessManager’shomeofficeorregionalstaff,oranExecutiveEmployee,actedwithgrossnegligenceinemploying,training,supervisingorcontinuingtheemploymentofsuchemployee;(b)theinfringementofanyofManager’sintellectualpropertyrights(includingtrademarks,software,etc.)ontheintellectualpropertyrightsofanythirdparty;(c)anyExcludedEmployeeClaims;(d)knowingorrecklessplacing,discharge,leakage,useorstorage,ofhazardousmaterialsonthePremisesorintheHotelsbyManagerduringtheTermofthisAgreementassetforthinSection28.10(c);or(e)thebreachbyManagerofanyprovisionofthisAgreement,including,withoutlimitation,anyactiontakenbyManagerwhichisbeyondthescopeofManager’sauthorityunderthisAgreement,whichisnotcuredwithinanyapplicablenoticeandcureperiods.LesseeshallpromptlyprovideManagerwithwrittennoticeofanyclaimorsuitbroughtagainstitbyathirdpartywhichmightresultinsuchindemnification.

  ARTICLEXXVIFUTUREHOTELS

  ARTICLEXVIIRELATIONSHIPANDAUTHORITY

  28.5Attorneys’FeesandCosts.IfanyactionatlaworinequityisnecessarytoenforceorinterpretthetermsofthisAgreement,theprevailingpartyshallbeentitledtoreasonableattorneys’fees,costsandnecessarydisbursementsinadditiontoanyotherrelieftowhichsuchpartymaybeentitled.

  ARTICLEXXVINDEMNIFICATION

  (e)Manager(orapersonwhoisa“relatedperson”withinthemeaningofSection856(d)(9)(F)oftheCode(a“RelatedPerson”)withrespecttoManager)shallbeactivelyengagedinthetradeorbusinessofoperating“qualifiedlodgingfacilities”withinthemeaningofSection856(d)(9)(D)oftheCode(definedbelow)foroneormorepersonswhoarenotRelatedPersonswithrespecttoMHIorLessee(“UnrelatedPersons”).Forpurposesofdeterminingwhethertherequirementofthisparagraph(e)hasbeenmet,Managershallbetreatedasbeing“activelyengaged”insuchatradeorbusinessifManager(i)derivesatleast10%ofbothitsprofitsandrevenuefromoperating“qualifiedlodgingfacilities”withinthemeaningofSection856(d)(9)(D)oftheCodeforUnrelatedPersonsor(ii)complieswithanyregulationsorotheradministrativeguidanceunderSection856(d)(9)oftheCodethatprovidea“safeharbor”rulewithrespecttothehotelmanagementbusinesswithUnrelatedPersonsthatisnecessarytoqualifyasan“eligibleindependentcontractor”withinthemeaningofsuchCodesection.

  (c)WhetherthereareanyexistingEvent(s)ofDefaultoreventswhich,withthepassageoftime,wouldbecomeanEventofDefault,bytheotherpartytotheknowledgeofthepartymakingsuchcertification,andspecifyingthenatureofsuchEvent(s)ofDefaultordefaultsoreventswhich,withthepassageoftime,wouldbecomeanEventofDefault,ifany;and

  (a)ThattheAgreementisunmodifiedandinfullforceandeffect(or,iftherehavebeenmodifications,thatthesameisinfullforceandeffectasmodifiedandstatingsuchmodifications);

  Allnotices,demands,elections,orothercommunicationsthatanypartythisAgreementmaydesireorberequiredtobegivenhereundershallbeinwritingandshallbegivenbyhand,bydepositingthesameintheUnitedStatesmail,firstclass,postageprepaid,certifiedmail,returnreceiptrequested,orbyarecognizedovernightcourierserviceprovidingconfirmationofdelivery,totheaddressessetforthbelow,oratsuchaddressasmaybedesignatedbytheaddresseeuponwrittennoticetotheotherparty,(hereincalled“NOTICE”).

  Exhibit“A”HotelInformation

  28.3FailuretoPerform.IfManagerorLesseeatanytimefailstomakeanypaymentsasspecifiedorrequiredhereunderorfailstoperformanyotheractrequiredonitsparttobemadeorperformedhereunderwithoutlimitation,thentheotherpartyafterthirty(30)days’writtennoticetothedefaultingpartymay(butshallnotbeobligatedto)payanysuchdelinquentamountorperformanysuchotheractonthedefaultingparty’spart.Anysumsthuspaidandallcostsandexpensesincurredinconnectionwiththemakingofsuchpaymentortheproperperformanceofanysuchact,togetherwithinterestthereonatthelesserof(i)theinterestrateallowedbytheapplicableusurylawsor(ii)atthePrimeRateplusthreepercent(3%),fromthedatethatsuchpaymentismadeorsuchcostsandexpensesincurred,shallconstitutealiquidatedamounttobepaidbythedefaultingpartyunderthisAgreementtotheotherpartyondemand.ForthepurposesofthisSection28.3,theterm“PrimeRate”shallmeanthe“primerate”aspublishedinthe“MoneyRates”sectionofTheWallStreetJournal;however,ifsuchrateis,atanytimeduringtheTermofthisAgreement,nolongersopublished,theterm“PrimeRate”shallmeantheaverageoftheprimeinterestrateswhichareannounced,fromtimetotime,bythethree(3)largestbanks(byassets)headquarteredintheUnitedStateswhichpublisha“primerate”.

  23.2Non-DisturbanceAgreement.NotwithstandingSection23.1,Lesseeagreesthat,priortoobtaininganyHotelMortgageorexecutinganyLease,LesseewilluseitscommerciallyreasonableeffortstoobtainfromeachprospectiveHolderorLandlord(asapplicable),aNon-DisturbanceAgreementpursuanttowhichManager’srightsunderthisAgreementwillnotbedisturbedasaresultofadefaultstemmingfromnon-monetaryfactorswhich(i)relatetoLesseeanddonotrelatesolelytotheapplicableHotel,and(ii)arenotdefaultsbyManagerunderSection19.1ofthisAgreement.IfLesseedesirestoobtainaHotelMortgageortoexecuteaLease,Manager,onwrittenrequestfromLessee,shallpromptlyidentifythoseprovisionsintheproposedHotelMortgageorLeasedocumentswhichfallwithinthecategoriesdescribedinclauses(i)and(ii)above,andManagershallotherwiseassistinexpeditingthepreparationofanagreementbetweentheprospectiveHolderand/orLandlordandManagerwhichwillimplementtheprovisionsofthisSection23.2.

  28.6EntireAgreement.ThisAgreement,togetherwithotherwritingssignedbythepartiesexpresslystatedtobesupplementaryheretoandtogetherwithanyinstrumentstobeexecutedanddeliveredpursuanttothisAgreement,constitutestheentireagreementbetweenthepartiesandsupersedesallpriorunderstandingsandwritings.

  MHIHOTELSSERVICESLLC,aVirginialimitedliabilitycompany

  24.3BooksandRecords.AllBooksandRecordsmaintainedwithrespecttotheHotels,includingguestrecordsbutexcludingemployeerecords,shallbethesolepropertyofLesseebutmaybeusedbytheManagerduringtheTerminconnectionwithitsmanagementandoperationoftheHotels.

  ARTICLEXXVIIIMISCELLANEOUS

  (c)nomorethanthirty-fivepercent(35%)oftheManager’smembershipinterests(initsassetsornetprofits)shallbeowned(withinthemeaningofSection856(d)(5)oftheCode),directlyorindirectly,byoneormorepersonsowningthirty-fivepercent(35%)(withinthemeaningofSection856(d)(5)oftheCode)ormoreoftheoutstandingstockofMHI;

  18.3ForceMajeure.IfaneventofForceMajeuredirectlyinvolvesaHotelandhasasignificantadverseeffectuponthecontinuedoperationsofsuchHotel,thenLesseeshallbeentitledtoterminatethisAgreementwithrespecttotheapplicableHotelbywrittenNoticewithinsixty(60)daysfromthedateofsuchForceMajeure,andthisAgreementshallthenterminatewithrespecttotheapplicableHotelsixty(60)daysfromsuchnotice,inwhicheventneitherLesseenorManagershallhaveanyfurtherrights,remedies,obligationsorliabilities,onetotheother,hereunder,withrespecttotheapplicablePremisesexceptasotherwiseprovidedinArticleII;provided,however,thatLesseeshallnotberequiredtopayManageranyterminationfee.

  (d)TheappointmentofareceiverforalloranysubstantialportionofthepropertyofLesseeorManager;

  (e)ThefailureofLesseeorManagertomakeanypaymentrequiredtobemadeinaccordancewiththetermsofthisAgreementwithinten(10)daysafterreceiptofNotice,specifyingsaiddefaultwithreasonablespecificity,whensuchpaymentisdueandpayable;or

  23.1Subordination.ThisAgreementshallbesubjectandsubordinatetoanyHotelMortgageandLease,andManageragreestoenterintoalender-managerorlandlord-manager(asapplicable)agreementwithrespecttoeachHotel,whichagreementshallcontainreasonableprovisions,including,withoutlimitation,Manager’sacknowledgmentthatitsrealestateinterestinandtotheapplicableHotel,ifany,createdbythisAgreementissubjectandsubordinatetotheapplicableHotelMortgageorLease,includingprovidinganypurchaserofsuchHotelataforeclosuresaleordeed-in-lieuofforeclosure,includingtheHolder,withtherighttoterminatethisAgreementwithrespecttotheapplicableHotel;provided,however,innoeventwillManageragreetosubordinateorwaiveitsrighttoreceivefees,reimbursementsorindemnificationpaymentsunderthisAgreementarisingpriortotermination(but(a)ifthisAgreementisterminatedbytheHolderorsuchpurchaserorLandlord(oritsassignee)withrespecttosuchHotel,ManagershallnotlooktotheHolderforpaymentofsuchfees,reimbursementsorindemnificationpaymentsandManager’srighttoreceivesuchfees,reimbursementsorindemnificationpaymentsshallbesubordinatedtotheHolder’srightsand(b)ifthisAgreementisnotterminatedbytheHolderorsuchpurchaserwithrespecttosuchHotel,thensuchfees,reimbursementsorindemnificationpaymentsshallbepayablebytheHolderorsuchpurchaser).Notwithstandingtheforegoing,Managershallinnoeventbeobligatedtoperformitsdutieshereunderwithoutpaymentand/orreasonableassuranceofpaymentofsuchfees,reimbursementsorindemnificationpayments.

  ARTICLEXXIVPROPRIETARYMARKS;INTELLECTUALPROPERTY

  (g)TheoccurrenceofadefaultundertheapplicableLeaseorgroundleasewhichresultsinterminationthereof.

  ARTICLEXXWAIVERANDINVALIDITY

  Lesseeacknowledgesandagreesthatanymoteland/orhotelpropertiesleasedbyLesseefromanyAffiliatesofthePartnership(includingtheLandlords)fromandaftertheEffectiveDate(“FutureHotels”),mayattheelectionofthepartiestotheStrategicAllianceAgreementeitherbesubjecttothetermsandprovisionsofthisAgreementeffectiveuponexecutionofanamendmenttothisAgreement(the“Amendment”)intheformofExhibit“E”attachedhereto;providedthattheredoesnotthenexistanuncuredEventofDefaultbyManagerunderthisAgreementandtheindependentdirectorapprovalrequirementsundertheStrategicAllianceAgreementhavebeensatisfied.UponexecutionofsuchAmendment(assetforththerein),Exhibit“A”(HotelInformation),Exhibit“B”(DescriptionofLeases),Exhibit“B-1”(LegalDescriptionsforSites),Exhibit“C”(DescriptionofFranchiseAgreementsandFranchisors),Exhibit“D”(AnnualOperatingBudget)tothisAgreementshallbeamendedtoaddtheapplicableinformationrequiredbythisAgreementwithrespecttotheFutureHotel(s)subjectoftheAmendment.EffectiveuponexecutionofsaidAmendment,alltermsandconditionsofthisAgreementshallbedeemedamendedtoincludeandapplytosuchFutureHotel(s).

  LESSORS:

  20.2PartialInvalidity.IntheeventthatanyportionofthisAgreementshallbedeclaredinvalidbyorder,decreeorjudgmentofacourt,thisAgreementshallbeconstruedasifsuchportionhadnotbeeninsertedhereinexceptwhensuchconstructionwouldoperateasanunduehardshipontheManagerorLesseeorconstituteasubstantialdeviationfromthegeneralintentandpurposeofsaidpartiesasreflectedinthisAgreement,inwhicheventitshallbeterminated.

  16.3Distributions.SubjecttoretentionofReasonableWorkingCapital(includinganyamountsasrequiredbytheCapitalImprovementBudget)andretentionofsuchreservesasmayberequiredunderanyHotelMortgageand/orGroundLease,asapplicable,ManagershalldelivertoLesseefromtheOperatingAccount,anyExcessWorkingCapitalfortheprecedingAccountingPeriodonthe25thdayofthefollowingmonth,andsuchamountsofLessee’smoneyinthepossessionorunderthecontrolofManagerasLesseeshallfromtimetotimerequest.“ExcessWorkingCapital”shallmeananyWorkingCapitalremainingafterpaymentofDeductions,ManagementFees,allocationsforreservesandretentionofReasonableWorkingCapital.ForpurposesofthisArticle“ReasonableWorkingCapital”shallmeananamountreasonablydeterminedbyManagerasshallbenecessaryforManagertooperatetheHotelsinaccordancewiththeApplicableStandardsbasedupontheAnnualOperatingBudgetandprojectedGrossRevenuesforsuchFiscalYear.Manager’sdeterminationofReasonableWorkingCapitalshallbemadeatthesametimeasthemonthlyfinancialstatementsarepreparedpursuanttoSection15.2hereof,butinnoeventshallsuchamountexceedasumequaltoaratioofcurrentassetstocurrentliabilitiesof2:1(butexcludingfromsuchcalculationcashrestrictedorunavailableunderanyCashManagementAgreement).

  (b)RegardlessofwhetherornotagivenhazardousmaterialispermittedonthePremisesunderapplicableenvironmentallaw,ManagershallonlybringonthePremisessuchhazardousmaterialsasareneededinthenormalcourseofbusinessoftheHotels.

  28.8EligibleIndependentContractor.DuringtheTermofthisAgreement,Managershallatalltimesqualifyasan“eligibleindependentcontractor”asdefinedinSection856(d)(9)oftheCode(“EligibleIndependentContractor”).Tothatend,duringtheTermofthisAgreement,Manageragreesthat:

  25.3IndemnificationProcedure.AnypartyobligatedtoindemnifytheotherpartyunderthisAgreement(the“IndemnifyingParty”)shallhavetheright,byNoticetotheotherparty,toassumethedefenseofanyclaimwithrespecttowhichtheotherpartyisentitledtoindemnificationhereunder.IftheIndemnifyingPartygivessuchnotice,(i)suchdefenseshallbeconductedbycounselselectedbytheIndemnifyingPartyandapprovedbytheotherparty,suchapprovalnottobeunreasonablywithheldordelayed(provided,however,thattheotherparty’sapprovalshallnotberequiredwithrespecttocounseldesignatedbytheIndemnifyingParty’sinsurer);(ii)solongastheIndemnifyingPartyisconductingsuchdefensewithreasonablediligence,theIndemnifyingPartyshallhavetherighttocontrolsaiddefenseandshallnotberequiredtopaythefeesordisbursementsofanycounselengagedbytheotherpartyforservicesrenderedaftertheIndemnifyingPartyhasgiventheNoticeprovidedforabovetotheotherparty,exceptifthereisaconflictofinterestbetweenthepartieswithrespecttosuchclaimordefense;and(iii)theIndemnifyingPartyshallhavetheright,withouttheconsentoftheotherparty,tosettlesuchclaim,butonlyprovidedthatsuchsettlementinvolvesonlythepaymentofmoney,theIndemnifyingPartypaysallamountsdueinconnectionwithorbyreasonofsuchsettlementand,aspartthereof,theotherpartyisunconditionallyreleasedfromallliabilityinrespectofsuchclaim.TheotherpartyshallhavetherighttoparticipateinthedefenseofsuchclaimbeingdefendedbytheIndemnifyingPartyattheexpenseoftheotherparty,buttheIndemnifyingPartyshallhavetherighttocontrolsuchdefense(otherthanintheeventofaconflictofinterestbetweenthepartieswithrespecttosuchclaimordefense).Innoeventshall(i)theotherpartysettleanyclaimwithouttheconsentoftheIndemnifyingPartysolongastheIndemnifyingPartyisconductingthedefensethereofinaccordancewiththisAgreement;or(ii)ifaclaimiscoveredbytheIndemnifyingParty’sliabilityinsurance,takeoromittotakeanyactionwhichwouldcausetheinsurernottodefendsuchclaimortodisclaimliabilityinrespectthereof.

  (b)Thedates,ifany,withrespecttowhichthedistributionsofexcessWorkingCapitalhavebeenpaid;

  (a)IntheeventallorsubstantiallyallofaHotelshallbetakeninanyeminentdomain,condemnation,compulsoryacquisition,orsimilarproceedingbyanycompetentauthorityforanypublicorquasi-publicuseorpurpose,thisAgreementshallterminatewithrespecttosuchHotel,subjecttotherequirementsoftheapplicableunderlyingLease.However,inanyeventofsuchtermination,LesseeshallgiveManageratleastfifteen(15)dayspriorNoticeofsuchtermination.Intheeventofsuchtermination,neitherpartyshallhaveanyfurtherrights,remedies,obligationsorliabilitiesonetotheotherhereunderwithrespecttosuchHotelexceptasotherwiseprovidedinArticleIIabove.

  INWITNESSWHEREOF,thepartiesheretohavecausedthisAgreementtobeexecutedbytheirdulyauthorizedofficers,asoftheEffectiveDate.

  28.10EnvironmentalMatters.

  MHIHospitalityTRS,LLC,aDelawarelimitedliabilitycompany

  (a)ForpurposesofthisSection28.10,“hazardousmaterials”meansanysubstanceormaterialcontainingoneormoreofanyofthefollowing:“hazardousmaterial,”“hazardouswaste,”“hazardoussubstance,”“regulatedsubstance,”“petroleum,”“pollutant,”“contaminant,”or“asbestos,”assuchtermsaredefinedinanyapplicableenvironmentallaw,insuchconcentration(s)oramount(s)asmayimposeclean-up,removal,monitoringorotherresponsibilityunderanyapplicableenvironmentallaw,orwhichmaypresentasignificantriskofharmtoguests,inviteesoremployeesoftheHotels.

  ThisAgreementanditsinterpretation,validityandperformanceshallbegovernedbythelawsoftheCommonwealthofVirginiawithoutregardtoitsconflictsoflawsprinciples.Intheeventanycourtoflawofappropriatejudicialauthorityshallholdordeclarethatthelawofanotherjurisdictionisapplicable,thisagreementshallremainenforceableunderthelawsoftheappropriatejurisdiction.ThepartiesheretoagreethatvenueforanyactioninconnectionherewithshallbeproperinJamesCityCounty,Virginia.Eachpartyheretoconsentstothejurisdictionofanylocal,stateorfederalcourtsituatedinanyofsuchlocationsandwaivesanyobjectionwhichitmayhavepertainingtoimpropervenueorforumnonconvenienstotheconductofanyproceedinginanysuchcourt.

  Exhibit“D”AnnualOperatingBudget

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