E. Business Opening. You agree not to open your Hotel until:

• (4) you hire a staff to operate your Hotel, and train such staff to protect the Marks in compliance with the Brand Standards;

• N. Employees, Agents, and Independent Contractors. You acknowledge and agree that you are solely responsible for all decisions relating to employees, agents, and independent contractors that you may hire or engage to assist in the operation of your Hotel. You agree that any employee, agent or independent contractor that you hire or engage will be your or the Management Company's employee, agent, or independent contractor, and not our employee, agent or independent contractor. You also agree that you are exclusively responsible for the terms and conditions of employment of your employees, including recruiting, hiring, firing, training, compensation, work hours and schedules, work assignments, safety and security, discipline, and supervision. You agree to manage the employment functions of your Hotel in compliance with applicable federal, state, and local employment laws. You must notify all your employees in writing that they are your employees and not our employees, and you must never contend otherwise.

4. TRAINING AND ASSISTANCE.

A. Training. Prior to opening your Hotel, or within ninety (90) days of activating your Hotel in the Franchise System, we will provide initial brand training for one of your Hotel Representative(s), which person must complete the initial brand training to our satisfaction. "Hotel Representative" refers to your general manager or other representative having equivalent authority and responsibilities (such as your owner). We will conduct initial brand training virtually, or at a location we designate, as we may determine in our discretion. The initial brand training typically will consist of up to four days of training (although the specific number of days depends on our opinion of your Hotel Representative's experience and needs). If space permits, we may allow you to send additional attendee(s) to the initial brand training. If we determine that your Hotel Representative cannot complete initial brand training to our satisfaction, we may terminate this Agreement. You will pay our initial brand training fee (currently $1,500). You also will be responsible for our personnel's travel and living expenses, and your employee's travel and living expenses, wages, and workers' compensation insurance while attending training, if applicable.

The initial brand training program will cover material aspects of operating a Brand Hotel including (a) brand culture, (b) the loyalty program and certain related software, and (c) brand programs, marketing, and sales.

We may require that your Hotel Representative complete our required training within a designated time period, prior to or after your Opening Date. All training must be completed to our satisfaction and verification of successful completion must be presented upon our request. Additionally, you must ensure at all times that your personnel is adequately trained, and you agree to provide such evidence and verification of your personnels' training as we may request from time to time.

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