Page 103 - Valor Hospitality Partners - Casa Anfa Project

TERM SHEET AND FEES

Property Operating Management

• Valor Hospitality Partners will assume overall operational management immediately upon the hotel opening.

• Suggested yet negotiable Term: 10 Years with rolling 5 year extensions

• No Termination Fee if for cause

• Termination Fee not for cause: 2 years full annual management fees per hotel based on previous year with a
minimum of $250,000 per hotel

• Base Management Fee: 3% of Total Gross Revenues, the components of this number to be defined, yet assumed to

be all aspects of the hotel operations including accommodations, Food and Beverage, and any other revenue
generating facilities yet to be determined and agreed; excluding cash flow from city incentives. For the first 12 months
of the hotel operations, Valor generally negotiate a minimum monthly fee of the greater of 3% or $25,000 as the hotel
ramp up period is experienced.

• Valor will present a full suggested Management Agreement for review immediately upon request