What is the condition for the grant of the Sonesta Simply Suites franchise?

ks, and may create, use, and license other trademarks, service marks, and commercial symbols to identify Brand Hotels and the products and services they offer (collectively, the "Marks").

• C. We grant to persons who we determine satisfactorily meet our qualifications, and who confirm their willingness to undertake the investment and effort, a franchise to own and operate a Brand Hotel offering the products and services we authorize and using our and our affiliates' distinct business formats, methods, procedures, signs, designs, layouts, standards, specifications, and Marks (the "Franchise System"), which we may improve, further develop, or modify.
• D. We and our affiliates own, operate and license others to own and operate hotels under various service marks, trademarks and trade names, including, without limitation, the Marks, Classico Collection By Sonesta, MOD A Sonesta Collection, The James, Sonesta Hotels and Resorts, Royal Sonesta, Hotel RL, Sonesta Select Hotels, Sonesta Essential Hotels, Sonesta ES Suites, Red Lion Hotel, Red Lion Inn & Suites, RL, Americas Best Value Inn, Knights Inn, Signature Inn, GuestHouse, Signature, Canadas Best Value Inn, Country Hearth, Jameson Inn, Lexington, America's Best Inn, and any other trademarks, service marks, and trade names that we or our affiliates may hereafter develop, adopt or acquire from time to time (collectively referred to as the "Network Marks"). Our affiliate also has a master franchise agreement with a franchisee that operates hotels located outside the United States under the trademark Sonesta Posadas del Inca, which is also considered a Network Mark. The hotels that we, our affiliates, and our and their franchisees or licensees operate under the Network Marks are collectively referred to as "Network Hotels."
• E. You have applied for a franchise to own and operate a Brand Hotel and have provided us with certain information in support of your application. We are willing to grant you the franchise on the terms and conditions contained in this Agreement.

AGREEMENT

In consideration of and in reliance of the foregoing Recitals, and upon the terms and conditions set forth herein, and for other valuable consideration, the delivery, receipt, and sufficiency of which are hereby acknowledged by each party, and in accordance with all terms, conditions, covenants, agreements, representations, and warranties contained in this Agreement, you and we agree as follows:

1. GRANT OF FRANCHISE; NO EXCLUSIVITY; RESERVATION OF RIGHTS.

A. Grant of Franchise. Subject to this Agreement's terms, we grant you a limited and non-exclusive franchise (the "Franchise") to establish and operate your Hotel under the Franchise System at

the Premises, and to use the Franchise System and the Brand Standards (as defined in Section 2.A) in its operation, for a term beginning on the Opening Date (as defined in Section 2.E) and expiring 20 years from the Opening Date, unless sooner terminated under Section 14 of this Agreement (the "Term").

You agree to, at all times, faithfully, honestly, and diligently perform your obligations under this Agreement and to use your best efforts to promote your Hotel. You agree to use the Premises only for your Hotel, and, once it opens for business, to continuously operate your Hotel in accordance with this Agreement for the duration of the Term. You agree not to conduct the business of your Hotel at any location other than the Premises. You may not promote or sell any products or services, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system, except as expressly set forth herein or as set forth in the Brand Manual, as hereinafter defined.

• B.

Source: Item 22 — CONTRACTS (FDD pages 79–80)