Document:

EXHIBIT 10.7

 Exhibit 10.7 
  
 

 
  
 HOST MARRIOTT CORPORATION

 AND 
 HOST
MARRIOTT, L.P. 
  
 1997 COMPREHENSIVE STOCK AND CASH
INCENTIVE PLAN 
  
 (AS AMENDED IN 1999 AND IN 2004)

  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page No.

	ARTICLE I. ESTABLISHMENT, PURPOSE AND DURATION	  	3
				
	 	 	1.3	  	Establishment of the Plan	  	3
	 	 	1.4	  	Purpose of the Plan	  	3
	 	 	1.5	  	Duration of the Plan	  	3
		
	ARTICLE II. DEFINITIONS AND CONSTRUCTION	  	4
				
	 	 	2.1	  	Definitions	  	4
	 	 	 	  	Allocation Agreement	  	4
	 	 	 	  	Award	  	4
	 	 	 	  	Award Agreement	  	4
	 	 	 	  	Beneficial Owner	  	4
	 	 	 	  	Beneficiary	  	4
	 	 	 	  	Board	  	4
	 	 	 	  	Chief Executive Officer	  	4
	 	 	 	  	Code	  	4
	 	 	 	  	Committee	  	4
	 	 	 	  	Company	  	4
	 	 	 	  	Contribution Date	  	4
	 	 	 	  	Covered Employee	  	4
	 	 	 	  	Current Award	  	5
	 	 	 	  	Deferred Award	  	5
	 	 	 	  	Deferred Stock	  	5
	 	 	 	  	Deferred Stock Bonus Award	  	5
	 	 	 	  	Deferred Stock Agreement	  	5
	 	 	 	  	Director	  	5
	 	 	 	  	Disability	  	5
	 	 	 	  	Distribution Agreement	  	5
	 	 	 	  	Effective Date	  	5
	 	 	 	  	Employee	  	5
	 	 	 	  	Engaging in Competition	  	5
	 	 	 	  	Exchange Act	  	5
	 	 	 	  	Fair Market Value	  	6
	 	 	 	  	Host Marriott Corporation	  	6
	 	 	 	  	Incentive Stock Option	  	6
	 	 	 	  	Insider	  	6
	 	 	 	  	1998 Conversion Award	  	6

  

 i 

							
	 	 	 	  	Non-Employee Director	  	6
	 	 	 	  	Nonqualified Stock Option	  	6
	 	 	 	  	Operating Partnership	  	6
	 	 	 	  	Option	  	6
	 	 	 	  	Option Price	  	6
	 	 	 	  	Other Cash Performance-Based Awards	  	6
	 	 	 	  	Other Share-Based Award	  	6
	 	 	 	  	Participant	  	6
	 	 	 	  	Performance-Based Exception	  	7
	 	 	 	  	Person	  	7
	 	 	 	  	Plan	  	7
	 	 	 	  	Restricted Stock	  	7
	 	 	 	  	Shares	  	7
	 	 	 	  	Special Recognition Stock Award	  	7
	 	 	 	  	Subsidiary	  	7
	 	 	 	  	Year of Service	  	7
		
	ARTICLE III. ADMINISTRATION	  	8
				
	 	 	3.1	  	The Committee	  	8
	 	 	3.2	  	Authority of the Committee	  	8
	 	 	3.3	  	Decisions Binding	  	8
	 	 	3.4	  	Unanimous Consent in Lieu of Meeting	  	8
	 	 	3.5	  	Compensation; Professional Assistance; Good Faith Actions	  	8
		
	ARTICLE IV. SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS	  	9
				
	 	 	4.1	  	Number of Shares	  	9
	 	 	4.2	  	Lapsed Awards	  	9
	 	 	4.3	  	Adjustments in Authorized Shares	  	9
	 	 	4.4	  	Limitation on Participation	  	10
		
	ARTICLE V. ELIGIBILITY AND PARTICIPATION	  	11
				
	 	 	5.1	  	Eligibility	  	11
	 	 	5.2	  	Actual Participation by Employees	  	11
	 	 	5.3	  	Award Agreement	  	11
	 	 	5.4	  	Provisions Applicable to Section 162(m) Participants	  	11
	 	 	5.5	  	Limitations Applicable to Section 16 Persons	  	12
	 	 	5.6	  	Consideration	  	 
	 	 	5.7	  	At-Will Employment	  	12
		
	ARTICLE VI. STOCK OPTIONS	  	13
				
	 	 	6.1	  	Grant of Options	  	13
	 	 	6.2	  	Award Agreement	  	13

  

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	 	 	  6.3	  	Option Price	  	13
	 	 	  6.4	  	Duration of Options	  	13
	 	 	  6.5	  	Exercise of Options	  	14
	 	 	  6.6	  	Payment	  	14
	 	 	  6.7	  	Restrictions on Share Transferability	  	15
	 	 	  6.8	  	Termination of Employment or Leave of Absence	  	15
	 	 	  6.9	  	Non-transferability of Options	  	16
	 	 	  6.10	  	Rights as a Shareholder	  	16
		
	ARTICLE VII. RESTRICTED STOCK	  	17
				
	 	 	  7.1	  	Grant of Restricted Stock	  	17
	 	 	  7.2	  	Restricted Stock Agreement	  	17
	 	 	  7.3	  	Transferability Restriction	  	17
	 	 	  7.4	  	Other Restrictions	  	17
	 	 	  7.5	  	Voting Rights	  	18
	 	 	  7.6	  	Dividends and Other Distributions	  	18
	 	 	  7.7	  	Termination of Employment	  	18
	 	 	  7.8	  	Legend	  	18
	 	 	  7.9	  	Section 83(b) Election	  	18
		
	ARTICLE VIII. DEFERRED STOCK	  	19
				
	 	 	  8.1	  	Award of Deferred Stock	  	19
	 	 	  8.2	  	Deferred Stock Bonus Awards	  	19
	 	 	  8.3	  	Deferred Stock Agreements	  	21
	 	 	  8.4	  	Assignment	  	21
	 	 	  8.5	  	Lump Sum Payments	  	22
	 	 	  8.6	  	Rights as a Shareholder	  	22
		
	ARTICLE IX. SPECIAL RECOGNITION STOCK AWARDS	  	23
		
	ARTICLE X. OTHER AWARDS	  	24
				
	 	 	10.1	  	Grant of Other Share-Based Awards	  	24
	 	 	10.2	  	Terms of Other Share-Based Awards	  	24
	 	 	10.3	  	Other Share-Based Award Agreement	  	24
	 	 	10.4	  	Other Cash Performance-Based Awards	  	24
		
	ARTICLE XI. PERFORMANCE MEASURES FOR AWARDS	  	25
				
	 	 	11.1	  	Performance Measures	  	25
	 	 	11.2	  	Adjustments	  	25
	 	 	11.3	  	Committee Discretion	  	25

  

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	ARTICLE XII. CONVERSION AWARDS	  	26
		
	ARTICLE XIII. BENEFICIARY DESIGNATION	  	27
		
	ARTICLE XIV. MISCELLANEOUS PROVISIONS	  	28
				
	 	 	14.1	  	Not Transferable	  	28
		
	ARTICLE XV. DEFERRALS	  	29
		
	ARTICLE XVI. RIGHTS OF PARTICIPANTS	  	30
				
	 	 	16.1	  	Employment or Service	  	30
	 	 	16.2	  	Participation	  	30
		
	ARTICLE XVII. AMENDMENT, MODIFICATION AND TERMINATION	  	31
				
	 	 	17.1	  	Amendment, Modification, and Termination	  	31
	 	 	17.2	  	Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events	  	31
	 	 	17.3	  	Awards Previously Granted	  	32
	 	 	17.4	  	Compliance with Code Section 162(m)	  	32
	 	 	17.5	  	Substitution of Awards in Mergers and Acquisitions	  	32
		
	ARTICLE XVIII. WITHHOLDING	  	33
				
	 	 	18.1	  	Tax Withholding	  	33
	 	 	18.2	  	Share Withholding	  	33
		
	ARTICLE XIX. INDEMNIFICATION	  	34
		
	ARTICLE XX. SUCCESSORS	  	35
		
	ARTICLE XXI. LEGAL CONSTRUCTION	  	36
				
	 	 	21.1	  	Gender and Number	  	36
	 	 	21.2	  	Severability	  	36
	 	 	21.3	  	Requirements of Law	  	36
	 	 	21.4	  	Securities Law Compliance	  	36
	 	 	21.5	  	Governing Law	  	36

  

 iv 

 HOST MARRIOTT CORPORATION 
 AND 
 HOST MARRIOTT, L.P. 
 COMPREHENSIVE STOCK AND CASH INCENTIVE PLAN 
  
 PREAMBLE 
  
 WHEREAS, Host Marriott Corporation sponsors the Host Marriott Corporation 1997 Comprehensive Stock Incentive Plan (the “Plan”); and 

 
 WHEREAS, Host Marriott Corporation entered into certain transactions
pursuant to a plan to reorganize its business operations so that qualifies as a real estate investment trust as of January 1, 1999 (“Host REIT Conversion”) and 
  
 WHEREAS, as part of the Host REIT Conversion, (i) Host Marriott Corporation transferred its liabilities, including but not
limited to liabilities relating to employee benefits to Host Marriott, L.P., (ii) Host Marriott Corporation merged with and into HMC Merger Corporation (renamed Host Marriott Corporation), and (iii) holders of Host Marriott Corporation common stock
received a dividend of outstanding common shares of Crestline Capital Corporation (“Crestline”); and 
  
 WHEREAS, in connection with the Host REIT Conversion, Host Marriott Corporation and Crestline entered into a Distribution Agreement (the
“Distribution Agreement”), and Host Marriott Corporation and Host Marriott, L.P. entered into a Contribution Agreement (the “Contribution Agreement”); and 
  
 WHEREAS, pursuant to the Distribution Agreement, Host Marriott Corporation and Crestline agreed to enter into an agreement
allocating responsibilities with respect to employee compensation, benefits, labor, and certain other employment matters pursuant to the terms and conditions set forth in the Employee Benefits and Other Employment Matters Allocation Agreement (the
“Allocation Agreement”); and 
  
 WHEREAS, pursuant to
the Contribution Agreement, Host Marriott Corporation and Host Marriott, L.P. also agreed to enter into an agreement allocating responsibilities with respect to employee compensation, benefits, labor, and certain other employment matters pursuant to
the terms and conditions set forth in the Allocation Agreement; and 
  
 WHEREAS, pursuant to the Allocation Agreement, (a) Host Marriott Corporation continues to reserve those shares already reserved under the Plan, (b) all future awards under the Plan after the Host REIT Conversion are denominated in Host
Marriott Corporation common stock, and (c) the effect of the Distribution and the Host REIT Conversion on Existing HMC Stock Awards (as such term is defined in the Allocation Agreement) made under the Plan prior to the Distribution Date were
determined as provided in the Allocation Agreement; and 
  

 WHEREAS, Host Marriott Corporation desires to make certain administrative amendments to the Plan.

  
 NOW, THEREFORE, this Host Marriott Corporation and Host
Marriott, L.P. Comprehensive Stock and Cash Incentive Plan (the “Plan) amends and restates in its entirety the Host Marriott Corporation 1997 Comprehensive Stock Incentive Plan. Set forth herein are all of the terms of the three plans
comprising the Plan, one for the benefit of the employees of Host Marriott Corporation (the Host REIT Plan), one for the benefit of the employees of Host Marriott, L.P., (the Operating Partnership Plan), and one for the benefit of the employees of
any Subsidiary of Host Marriott Corporation or Host Marriott, L.P. (the Subsidiary Company’s Plan). The Committee shall administer all three plans. 
  

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 ARTICLE I. 
 ESTABLISHMENT, PURPOSE AND DURATION 
  
 .1 Establishment of the Plan. Host Marriott Corporation, a Maryland corporation (Host Marriott Corporation) and Host Marriott, L.P., a Delaware Limited Partnership (Operating Partnership)
(collectively referred to herein as the Company), hereby amend and restate the 1997 Comprehensive Stock Incentive Plan known as the Host Marriott Corporation and Host Marriott, L.P. Comprehensive Stock and Cash Incentive Plan (hereinafter referred
to as the Plan), as set forth in this document, effective as of the Contribution Date (as such term is defined in the Allocation Agreement), comprising the Host REIT Plan, the Operating Partnership Plan and the Subsidiary Companies Plan. The Plan
shall also include the Host Marriott Corporation 1993 Comprehensive Stock Incentive Plan. The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Restricted Stock, Bonus Awards, Deferred Stock Agreements, Stock
Appreciation Rights, Special Recognition Awards and other stock-based Awards. 
  
 .2 Purpose of the Plan. The purpose of the Plan is to promote and enhance the long-term growth, development and financial success of the Host Marriott Corporation, the Operating Partnership
and any Subsidiary by aligning the personal interests of key management employees to those of Host Marriott Corporation shareholders and allowing such employees to participate in the growth, development and financial success of the Host Marriott
Corporation. Awards under the Plan may be, but need not be, Performance-Based Awards. 
  
 The Plan is further intended to provide flexibility to Host Marriott Corporation, the Operating Partnership and the Subsidiaries in their ability to motivate, attract and retain the services of key employees who have
been or will be given management responsibilities. 
  
 .3
Duration of the Plan. This amendment and restatement of the Plan shall become effective on the Contribution Date, and shall remain in effect, subject to the right of the Board of Directors of the Host Marriott Corporation to terminate the
Plan at any time pursuant to Article XVII hereof, until all Shares subject to it shall have been purchased or acquired according to the Plan’s provisions. 
  

 3 

 ARTICLE II. 
 DEFINITIONS AND CONSTRUCTION 
  
 .1 Definitions. Whenever used in the Plan, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized: 
  
 “Allocation Agreement” means the Employee Benefits Allocation and
Other Employment Matters Agreement between the Host Marriott Corporation, Host Marriott, L.P. and Crestline Capital Corporation. 
  
 “Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock Options, Restricted Stock,
Deferred Stock, Special Recognition Stock Awards, 1998 Conversion Awards, Other Share-Based Awards, Other Cash Performance-Based Awards. 
  
 “Award Agreement” means an agreement entered into by the Company and each Participant setting forth the terms and provisions applicable to
Awards granted under this Plan. 
  
 “Beneficial Owner”
or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
  
 “Beneficiary” means the person or persons designated pursuant to Article XIII hereof. 
  
 “Board” or “Board of Directors” means the Board of
Directors of Host Marriott Corporation. 
  
 “Chief Executive
Officer” means the chief executive officer of the Company however such person may be titled. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 “Committee” means the Compensation Policy Committee of the Board, as specified in Article III herein, or such
other Committee appointed by the Board to administer the Plan with respect to grants of Awards. 
  
 “Company” means Host Marriott Corporation, as to the Host REIT Plan, the Operating Company as to the Operating Partnership Plan, and any
Subsidiary of Host Marriott Corporation or the Operating Partnership as to any Subsidiary Companies’ Plan. 
  
 “Contribution Date” means the Contribution Date as defined in the Allocation Agreement. 
  
 “Covered Employee” means a Participant who, as of the date of
grant, vesting and/or payout of an Award, as applicable, is one of the group of covered employees, as defined in the regulations promulgated under Section 162(m) of the Code, or any successor statute. 
  

 4 

 “Current Award” means a Deferred Stock Bonus Award granted under the terms and conditions
described in Section 8.2(c) hereof. 
  
 “Deferred Award”
means a Deferred Stock Bonus Award granted under the terms and conditions described in Section 8.2(b) hereof. 
  
 “Deferred Stock” means an Award granted to a Participant as described in Article VIII herein. 
  
 “Deferred Stock Bonus Award” means a grant of a right to receive
Shares on a deferred basis, pursuant to Section 8.2 hereof. 
  
 “Deferred Stock Agreement” means an Award granted to a Participant as described in Section 8.3 herein. 
  
 “Director” means any member of the Board. 
  
 “Disability” means a permanent and total disability, within the meaning of Code Section 22(e)(3), as determined by the Committee in good faith,
upon receipt of sufficient competent medical advice from one or more individuals, selected by or satisfactory to the Committee, who are qualified to give professional medical advice. 
  
 “Distribution Agreement” means the Distribution Agreement as defined in the Allocation Agreement. 
  
 “Domestic Relations Order” or “DRO” means a domestic
relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended or the rules thereunder. 
  
 “Effective Date” has the meaning set forth in Section 1.1 hereof. 
  
 “Employee” means any individual who is classified by the Company as a full-time, active non-union employee of the
Company. An individual who is not classified by the Company as a full-time, active non-union employee will not be an Employee for purposes of this plan, regardless of whether the Internal Revenue Service or other governmental agency deems such
individual to be a common law employee. 
  
 “Engaging in
Competition” means (a) engaging, individually or as an employee, consultant or owner (more than 5%) of any entity, in any business engaged in significant competition with any business operated by the Company, (b) soliciting and hiring a key
employee of the Company in another business, whether or not in significant competition with any business operated by the Company; or (c) using or disclosing confidential Company information, in each case, without the approval of the Company.

  
 “Exchange Act” means the Securities Exchange Act of
1934, as amended from time to time, or any successor Act thereto. 
  

 5 

 “Fair Market Value” means the average of the highest and lowest quoted selling prices for the
Shares on the relevant date, or (if there were no sales on such date) the average so computed on the nearest day before and the nearest day after the relevant date, as reported in the Wall Street Journal or a similar publication selected by
the Committee. 
  
 “Host Marriott Corporation” means
Host Marriott Corporation, a Delaware corporation for the period before the Contribution Date, and Host Marriott Corporation, a Maryland corporation, for the period beginning on and after the Contribution Date. 
  
 “Incentive Stock Option” or “ISO” means an Award of an
option to purchase Shares, granted under Article VI hereof, which is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422 of the Code. 
  
 “Insider” shall mean an individual who is, on the relevant date, an officer, Director or more than ten percent
(10%) beneficial owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, all as defined under Section 16 of the Exchange Act. 
  
 “1998 Conversion Award” means an Award pursuant to Article XII to
reflect the effect of the Distribution on outstanding awards, which were held by the grantee immediately before the Distribution. 
  
 “Non-Employee Director” means a Director who is not an Employee of the Company. 
  
 “Nonqualified Stock Option” or “NQSO” means an Award of an option to purchase Shares, granted under
Article VI herein and which is not intended to meet the requirements of Code Section 422. 
  
 “Operating Partnership” means Host Marriott, L.P., a Delaware limited partnership. 
  
 “Option” means an Award of an Incentive Stock Option or of a Nonqualified Stock Option. 
  
 “Option Price” means the price at which a Share may be purchased by
a Participant pursuant to an Option. 
  
 “Other Cash
Performance-Based Awards” means an Other Cash Performance-Based Award as described in Article X herein. 
  
 “Other Share-Based Award” means an Other Share-Based Award as described in Article X herein. 
  
 “Participant” means an Employee or former Employee of Host Marriott
Corporation, the Operating Partnership or any Subsidiary to whom an Award granted under the Plan is outstanding, or any other individual to whom a 1998 Conversion Award granted under the Plan is outstanding. 
  

 6 

 “Performance-Based Exception” means the performance-based exception from the tax deductibility
limitations of Code Section 162(m). 
  
 “Period of
Restriction” means the period during which the transfer of Shares of Restricted Stock is limited (based on the passage of time, the achievement of performance objectives, or upon the occurrence of other events as determined by the Committee, in
its discretion, and the Shares are subject to a substantial risk of forfeiture, as provided in Article VII hereof. 
  
 “Person” has the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a
group as defined in Section 13(d) thereof. 
  
 “Plan”
has the meaning set forth in the Preamble herein. 
  
 “Restricted Stock” means an Award granted to a Participant pursuant to Article VII hereof. 
  
 “Shares” means shares of Host Marriott Corporation, par value $1.00 per share, for the period before the Contribution Date, and shares of Host
Marriott Corporation, par value $0.01 per share, for the period beginning on or after the Contribution Date. 
  
 “Special Recognition Stock Award” means an award granted to a Participant pursuant to Article IX hereof. 
  
 “Subsidiary” means any corporation, partnership, joint venture or
other entity other than the Operating Partnership in which the Company owns a majority of the equity interest by vote or by value or in which the Company has a majority capital or profits interest. 
  
 “Year of Service” means a period of twelve (12) consecutive
calendar months during which an Employee was paid for 1200 or more hours of work for the Company. 
  

 7 

 ARTICLE III. 
 ADMINISTRATION 
  
 .1
The Committee. The Plan shall be administered by the Compensation Policy Committee of the Board, or by any other Committee appointed by the Board, the members of which shall consist solely of two (2) or more Non-Employee Directors
within the meaning of Rule 16b-3 under the Exchange Act and an “outside director” for purposes of Section 162(m) of the Code, or any successor provision. The members of the Committee shall be appointed from time to time by, and shall serve
at the discretion of, the Board. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may be filled by the Board. 
  
 .2 Authority of the Committee. Except as limited by law or by the Articles of Incorporation or Bylaws of Host
Marriott Corporation, and subject to the provisions herein, the Committee shall have the power and authority to conduct the general administration of the Plan in accordance with its provisions. The Committee shall have full power to select Employees
who shall participate in the Plan, determine the sizes and types of Awards, determine the terms and conditions of Awards in a manner consistent with the Plan, construe and interpret the Plan and any agreement or instrument entered into under the
Plan, establish, amend, or waive rules and regulations for the Plan’s administration, and (subject to the provisions of Article XVII herein) amend the terms and conditions of any outstanding Award to the extent a Participant’s rights are
not affected adversely, except that Deferred Stock Bonus Awards authorized by Article VIII hereof shall be granted and administered by the Chief Executive Officer in the case of any recipients who are not Officers or Covered Employees. Further, the
Committee shall make all other determinations, which may be necessary or advisable for the administration of the Plan. The Committee’s determinations under the Plan (including without limitation, determinations of the persons to receive Awards,
the form, amount and timing of such Awards, the terms and provisions of such Awards and the Award Agreements evidencing such Awards) need not be uniform and may be made by the Committee selectively among persons who receive, or are eligible to
receive, Awards under the Plan, whether or not such persons are similarly situated. Interpretations and rules with respect to Incentive Stock Options shall be consistent with the provisions of Code Section 422. As permitted by law, the Committee may
delegate its authority under the Plan to a Director or Employee. 
  
 .3 Decisions Binding. All determinations and decisions made by the Committee or its designee pursuant to the provisions of the Plan and all related orders or resolutions of the Board shall be final, conclusive and binding on
all parties. 
  
 .4 Unanimous Consent in Lieu of
Meeting. Except as otherwise required by law, a memorandum signed by all members of the Committee members shall constitute the act of the Committee without the necessity in such event to hold a meeting. 
  
 .5 Compensation; Professional Assistance; Good Faith Actions.
Members of the Committee shall receive such compensation, if any, for their services as members as may be determined by the Board. All expenses and liabilities which members of the Committee incur in connection with the administration of the Plan
shall be borne by the Company. The Committee may, with the approval of the Board, employ attorneys, consultants, accountants, appraisers, brokers or other persons. The Committee, the Company and the Company’s officers and Directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations may by the Committee or the Board in good faith shall be final and binding upon all Holders, the Company and
all other interested persons. 
  

 8 

 ARTICLE IV. 
 SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS 
  
 .1 Number of Shares. Subject to Sections 4.2 and 4.3 herein, (a) in the aggregate, no more than 44,442,911 shares of the Common Stock of the Host Marriott Corporation may be issued pursuant to
Awards granted under the Plan, and (b) the maximum aggregate number of Shares that may be subject to any Awards (other than 1998 Conversion Awards) granted in any one fiscal year to any single Employee shall be two million (2,000,000). No more than
30% of the Shares available for Awards will be issued with respect to Awards other than Options. 
  
 .2 Lapsed Awards. If any Award granted under this Plan is canceled, terminates, expires, or lapses without having been fully
exercised, or is exercised in whole or in part for cash as permitted by the Plan, for any reason, any Shares subject to such Award shall again be available for the grant of an Award under the Plan. If any shares of Restricted Stock are surrendered
by a Participant, such Shares may again be optioned, granted or awarded hereunder, subject to the limitations of Section 4.1. Notwithstanding the provisions of this Section 4.2, no Shares may again be optioned, granted or awarded if such action
would cause an Incentive Stock Option to fail to qualify as an incentive stock option under Code Section 422. To the extent required by 162(m) of the Code, shares subject to Options which are canceled continue to be counted against the limits on
Awards set forth in Section 4.1 of the Plan. 
  
 .3
Adjustments in Authorized Shares. In the event of any change in corporate capitalization, such as a stock split, or a corporate transaction, such as any merger, consolidation, separation, including a
spin-off, or other distribution of stock or property of the Company, any reorganization (whether or not such reorganization comes within the definition of such term in Code Section 368) or any partial or complete liquidation of the Company, (a) such
adjustment may be made in the number and class of Shares which may be delivered under Section 4.1 and the Award limits set forth in Section 4.1 as may be determined to be appropriate and equitable by the Committee, in its sole discretion, to prevent
dilution or enlargement of rights; and (b) the Committee or the Board of Directors, Compensation Policy Committee or similar body of any other legal entity assuming the obligations of the Company hereunder, may either (i) make appropriate provision
for the protection of outstanding Awards by the substitution on an equitable basis of appropriate equity interest or awards similar to the Awards, provided that the substitution neither enlarges nor diminishes the value and rights under the Awards;
or (ii) upon written notice to the Participants, provide that Awards will be exercised, distributed, purchased, canceled or exchanged for value or provide that, for a specified period of time prior to such event, the restrictions imposed under an
Award Agreement upon some or all of the Shares covered by a stock Award may be terminated or, in the case of Restricted Stock, cease to be subject to repurchase or forfeiture pursuant to such terms and conditions (including the waiver of any
existing terms or conditions) as shall be specified in the notice. Any adjustments of an ISO under this paragraph shall be made in such a manner so as not to constitute a modification within the meaning of Section 424(h)(3) of the Code. With respect
to Awards which are granted to Covered Employees and are intended to qualify as performance based compensation under Section 162(m)(4)(c), no adjustment or action described in this Section 4.3 or in any other provision of the Plan shall be
authorized to the extent that such adjustment or action would cause 

  

 9 

 
such Award to fail to qualify under Section 162(m)(4)(C), or any successor provisions thereto. No adjustment or action described in this Section 4.3 or in
any other provision of the Plan shall be authorized to the extent that such adjustment or action would result in short-swing profits liability under Section 16 or violate the exemptive conditions of Rule 16b-3 unless the Administrator determines the
Award is not to comply with such exemptive conditions. 
  
 .4 Limitation on Participation. Notwithstanding any other provision to the contrary, effective as of the Contribution Date, an Employee shall not be eligible to participate in the Plan and
shall cease to be a Participant, to the extent such Employee was a Participant immediately before the application of this Section 4.4 to such Employee, if the participation of such Employee would violate the ownership limits set forth in Article
VIII of Host Marriott Corporation’s Articles of Amendment and Restatement of Articles of Incorporation. 
  

 10 

 ARTICLE V. 
 ELIGIBILITY AND PARTICIPATION 
  
 .1 Eligibility. Employees shall be eligible to participate in this Plan with respect to Awards specified in Articles VI through X. Persons eligible to receive 1998 Conversion Awards under the Allocation Agreement shall be
eligible to participate in the Plan with respect to Awards specified in Article XII and shall be considered a Participant to the extent such Awards are outstanding. 
  
 .2 Actual Participation by Employees. Subject to the provisions of the Plan, and with the exception that Bonus
Awards (other than those to Officers and Covered Employees) shall be approved by the Chief Executive Officer, the Committee in its sole and absolute discretion may, from time to time, select from all eligible Employees, those to whom Awards shall be
granted and shall determine the nature and amount of each Award. No Employee otherwise eligible under Section 5.1 shall have any right to be granted an Award under this Plan. 
  
 .3 Award Agreement. Each Award shall be evidenced by an Award Agreement. Award Agreements evidencing Awards
intended to qualify as performance-based compensation pursuant to the Performance-Based Exception shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 162(m) of the Code. 
  
 .4 Provisions Applicable to Section 162(m) Participants.

  
 (a) The Committee, in its discretion, may
determine whether an Award is to qualify as performance-based compensation pursuant to the Performance-Based Exception. 
  
 (b) Notwithstanding anything in the Plan to the contrary, the Committee may grant any Award to a Covered Employee, including Restricted
Stock the restrictions with respect to which lapse upon the attainment of performance goals which are related to one or more of the performance criteria and any performance or incentive award described in the Plan that vests or becomes exercisable
or payable upon the attainment of performance goals which are related to one or more of the performance criteria. 
  
 (c) To the extent necessary to comply with the Performance-Based Exception, with respect to any Award granted under the Plan which may be
granted to one or more Covered Employees, no later than ninety (90) days following the commencement of any fiscal year in question or any other designated fiscal period or period of service (or such other time as may be required or permitted by
Section 162(m) of the Code), the Committee shall, in writing, (i) designate one or more Covered Employees, (ii) select the performance criteria applicable to the fiscal year or other designated fiscal period or period of service, (iii) establish the
various performance targets, in terms of an objective formula or standard, and amounts of such Awards, as applicable, which may be earned for such fiscal year or other designated fiscal period or period of service, and (iv) specify the relationship
between performance criteria and the performance targets and the 

  

 11 

 
amounts of such Awards, as applicable, to be earned by each Covered Employee for such fiscal year or other designated fiscal period or period of service.
Following the completion of each fiscal year or other designated fiscal period or period of service, the Committee shall certify in writing whether the applicable performance targets have been achieved for such fiscal year or other designated fiscal
period or period of service. In determining the amount earned by a Covered Employee, the Committee shall have the right to reduce (but not to increase) the amount payable at a given level of performance to take into account additional factors that
the Committee may deem relevant to the assessment of individual or corporate performance for the fiscal year or other designated fiscal period or period of service. 
  
 (d) Furthermore, notwithstanding any other provision of the Plan or any Award which is granted to a Covered
Employee and is intended to qualify for the Performance-Based Exception shall be subject to any additional limitations set forth in Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or any regulations or rulings
issued thereunder that are requirements for the Performance-Based Exception, and the Plan shall be deemed amended to the extent necessary to conform to such requirements. 
  
 .5 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan,
and any Award granted or awarded to any individual who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any
amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule. 
  
 .6 At-Will Employment. Nothing in the Plan or in any Award Agreement hereunder shall confer upon any Holder any right to continue in the employ of, or as a Consultant for, the Company or any Subsidiary, or as a director of the
Company, or shall interfere with or restrict in any way the rights of the Company and any Subsidiary, which are hereby expressly reserved, to discharge any Holder at any time for any reason whatsoever, with or without cause, except to the extent
expressly provided otherwise in a written employment agreement between the Holder and the Company and any Subsidiary. 
  

 12 

 ARTICLE VI. 
 STOCK OPTIONS 
  
 .1
Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Employees selected by the Committee in such number, and upon such terms, and at any time and from time to time as shall be determined by the
Committee. Options may include provisions for reload of Options exercised by the tender of Shares or the withholding of Shares with respect to the exercise of the Options. No person may be granted an ISO if such person, at the time the ISO is
granted, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or then existing Subsidiary or parent corporation (within the meaning of Code Section 424(e) unless such ISO conforms to the
applicable provisions of Code Section 422. 
  
 .2 Award
Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the duration of the Option, the number of Shares to which the Option pertains, and such other provisions as the Committee shall
determine. The Award Agreement shall also specify whether the Option is intended to be an ISO or an NQSO. Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the applicable
provisions of Section 422 of the Code. Any ISO granted under the Plan may be modified by the Committee, with the consent of the Participant, to disqualify such Option for treatment as an ISO. 
  
 .3 Option Price. The Option Price for each
grant of an Option (other than an Option covered by a 1998 Conversion Award) under this Article VI shall be at least equal to one hundred percent (100%) of the Fair Market Value of a Share on the date the Option is granted. In the case of an ISO
granted to a Participant then owning (within the meaning of Code Section 424(d)) more than ten percent (10%) of the combined voting power of all classes of stock of the Company or any Subsidiary or parent corporation thereof (within the meaning of
Code Section 424(e)), such price shall not be less than one hundred and ten percent (110%) of the Fair Market Value of a Share on the date the Option is granted (or the date the Option is modified, extended or renewed for purposes of Code Section
424(h)). 
  
 .4 Duration of Options. Each Option
granted under this Article VI shall expire at such time as the Committee shall determine at the time of grant; provided, however, that no NQSO shall be exercisable later than the fifteenth (15th) anniversary date of its grant and no ISO shall be exercisable later than the tenth (10th) anniversary date of its grant or the fifth (5th) anniversary date of the grant of an ISO if the ISO is granted to a Participant then owning (within the meaning of Code Section 424(d)) more than ten percent (10%) of the combined voting power of all classes of stock of the
Company or any Subsidiary or parent corporation thereof (within the meaning of Code Section 424(e)). Except as limited by the requirements of Code Section 422 and the regulations and rulings thereunder applicable to ISOs, the Committee may extend
the term of any outstanding Option in connection with any termination of employment, or amend any other term or condition of such Option relating to such termination. 
  

 13 

 .5 Exercise of Options. Options granted under this Article VI shall be
exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which need not be the same for each grant or for each Employee. 
  
 The ability of an Employee to exercise an Option is conditioned upon the
Employee not committing any criminal offense or malicious tort relating to or against the Company. Unless the Committee otherwise provides in the terms of the Award Agreement or otherwise, no Option shall be exercisable by any Participant who is
then subject to Section 16 of the Exchange Act within the period ending six-months and one day after the date the Option is granted. 
  
 (a) No portion of an Option granted to a Participant which is unexercisable at a termination of employment shall thereafter become
exercisable, except as may otherwise be provided by the Committee either in the Award Agreement or by action of the Committee following the grant of an Option. 
  

(b) To the extent that the aggregate Fair Market Value of stock with respect to which “incentive stock options” (within the
meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by a Holder during any calendar year (under the Plan and all other incentive stock option plans of the Company and any parent or
subsidiary corporation, within the meaning of Section 422 of the Code) of the Company, exceeds $100,000, such Options shall be treated as Non-Qualified Stock Options to the extent required by Section 422 of the Code. The rule set forth in the
preceding sentence shall be applied by taking Options into account in the order in which they were granted. For purposes of this Section 6.5(b), the Fair Market Value of stock shall be determined as of the time the Option with respect to such stock
is granted. 
  
 (c) An exercisable Option may be
exercised in whole or in part. However, an Option shall not be exercisable with respect to fractional shares and the Committee may require that, by the terms of the Option, a partial exercise be with respect to a minimum number of shares.

  
 .6 Payment. Options granted
under this Article VI shall be exercised by the delivery of a written notice of exercise to the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. 

 
 The Option Price upon exercise of any Option shall be payable to the
Company in full either (a) in cash or its equivalent, or (b) if permitted in the governing Award Agreement, by tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the total Option Price
(provided that the Shares which are tendered must have been held by the Participant for at least six (6) months prior to their tender to satisfy the Option Price), or (c) if permitted in the governing Award Agreement, by a combination of (a) and
(b). 
  
 The Committee also may allow cashless exercise as
permitted under the Federal Reserve Board’s Regulation T, subject to applicable securities law restrictions, or by any other means which the Committee determines to be consistent with the Plan’s purpose and applicable law. 
  

 14 

 .7 Restrictions on Share Transferability. The Committee may impose such restrictions on any
Shares acquired pursuant to the exercise of an Option granted under this Article VI as it may deem advisable, including, without limitation, restrictions under applicable Federal securities laws, under the requirements of any stock exchange or
market upon which such Shares are then listed or traded, and under any blue sky or state securities laws applicable to such Shares. 
  
 .8 Termination of Employment or Leave of Absence. In the event that an Employee, during the Employee’s lifetime has been on leave of
absence for a period of greater than twelve (12) months (except a leave of absence approved by the Board or the Committee, as the case may be), or ceases to be an Employee of the Company or of any Subsidiary for any reason, including retirement, the
portion of any Option which is not exercisable on the date on which the Employee ceased to be an Employee or has been on leave for over twelve (12) months (except a leave of absence approved by the Board or the Committee, as the case may be) shall
expire on such date and any unexercised portion thereof which was otherwise exercisable on such date shall expire unless exercised within a period of three (3) months (one year in the case of a Participant who is Disabled) from such date, but in no
event after the expiration of the term for which the Option was granted; provided, however, that in the case of an optionee of an NQSO who is an Approved Retiree (as herein defined), said optionee may exercise such Option until the sooner to occur
of (i) the expiration of such Option in accordance with its original term, or (ii) the expiration of five years from the date of retirement. For purposes of the proviso to the preceding sentence: 
  
 (a) An Approved Retiree is any optionee who (1) retires from
employment with the Company with the specific approval of the Committee on or after such date on which the optionee has completed twenty (20) Years of Service or has attained age Fifty-Five (55) and completed Ten (10) Years of Service, and (2) has
entered into and has not breached an agreement to refrain from Engaging in Competition in form and substance satisfactory to the Committee. 
  
 (b) Any time period during which an optionee may continue to exercise an Option within clause (ii) of said proviso shall count in
determining compliance with any schedule established pursuant to Section 6.5 herein; and 
  
 (c) If an Approved Retiree is subsequently found by the Committee to have violated the provisions of the agreement to refrain from
Engaging in Competition referred to in clause 6.8(a)(2) of this section, such Approved Retiree shall have ninety (90) days from the date of such finding within which to exercise any Options or portions thereof which are exercisable on such date, any
Options or portions thereof which are not exercised within such ninety (90) day period shall expire and any Options or portion thereof which are not exercisable on such date shall be canceled on such date. 
  
 In the event of the death of an optionee during the three (3) month period
described above for exercise of an Option by a terminated optionee or one on leave for over twelve (12) months (except a leave of absence approved by the Board or the Committee, as the case may be), the Option shall be exercisable by the
optionee’s personal representatives, heirs or legatees to the 

  

 15 

 
same extent and during the same period that the optionee could have exercised the Option if the optionee had not died. 
  
 Notwithstanding anything in Section 6.5 to the contrary, in the event of the
death of an optionee while an Employee or Approved Retiree of the Company or any Subsidiary, an outstanding Option held by such optionee upon death shall become fully vested upon death and shall be exercisable by the optionee’s personal
representatives, heirs or legatees at any time prior to the expiration of one (1) year from the date of death of the optionee, but in no event after the expiration of the term for which the Option was granted. 
  
 .9 Non-transferability of Options. 
  
 (a) Incentive Stock Options. No ISO granted
under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Further, all ISOs granted to a Participant under the Plan shall be exercisable during
his or her lifetime only by such Participant. 
  
 (b) Nonqualified Stock Options. Except as otherwise provided in a Participant’s Award Agreement or Article XIV, no NQSO granted under this Article VI may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. Further, except as otherwise provided in a Participant’s Award Agreement, all NQSOs granted to a Participant under this Article VI shall be exercisable during his or
her lifetime only by such Participant. 
  
 .10 Rights as a
Shareholder. The Participant shall have no rights as a shareholder with respect to any Shares covered by an Option until the date of issuance of a stock certificate or confirmation for such Shares. Except as otherwise expressly provided by
the Board or the Committee, no adjustment shall be made for dividends or other rights for which the record date is prior to the date of issuance of a stock certificate or confirmation for such Shares. 
  

 16 

 ARTICLE VII. 
 RESTRICTED STOCK 
  
 .1 Grant of Restricted Stock. Subject to the terms and conditions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock to Employees selected by the Committee in such amounts as
the Committee shall determine. 
  
 .2 Restricted Stock
Agreement. Each Restricted Stock grant shall be evidenced by a Restricted Stock Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock granted, and such other provisions as the Committee
shall determine. 
  
 .3 Transferability Restriction.
Except as provided in this Article VII, the Shares of Restricted Stock granted herein may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction established by the
Committee and specified in the Restricted Stock Award Agreement, or upon earlier satisfaction of any other conditions, as specified by the Committee in its sole discretion and set forth in the Restricted Stock Award Agreement. All rights with
respect to the Restricted Stock granted to a Participant under the Plan shall be available during his or her lifetime only to such Participant. 
  
 .4 Other Restrictions. The Committee shall impose such conditions and/or restrictions on any Shares of Restricted Stock granted pursuant to
the Plan as it may deem advisable, including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock, restrictions based upon the achievement of specific performance objectives
(Company-wide, business unit, and/or individual), continued employment with the Company over a prescribed period of time, time-based restrictions on vesting following the attainment of the performance objectives, and/or restrictions under applicable
Federal or state securities laws. 
  
 (a) The
Company shall retain the certificates representing Shares of Restricted Stock in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied. 
  
 (b) Except as otherwise provided in this Article VII, Shares
of Restricted Stock covered by each Restricted Stock grant made under the Plan shall become freely transferable by the Participant after the last day of the applicable Period of Restriction. 
  
 (c) Distribution of Shares of Restricted Stock is
conditioned upon the Participant not committing any criminal offense or malicious tort relating to or against the Company. 
  
 (d) Unless the Committee otherwise provides in the terms of the Award Agreement or otherwise, no share of Restricted Stock granted to a
person subject to Section 16 of the Exchange Act shall be sold, assigned or otherwise transferred until at least six months and one day have elapsed from the date on which the Restricted Stock was issued, and provided, further, that,
except with respect to shares of Restricted Stock granted to Covered Employees, by action taken after the Restricted Stock is issued, the Committee may, on such terms and conditions as it may 

  

 17 

 
determine to be appropriate, remove any or all of the restrictions imposed by the terms of the Award Agreement. Restricted Stock may not be sold or
encumbered until all restrictions are terminated or expire. If no consideration was paid by the Participant upon issuance, a Participant’s rights in unvested Restricted Stock shall lapse, and such Restricted Stock shall be surrendered to the
Company without consideration, upon a termination of employment with the Company; provided, however, except with respect to shares of Restricted Stock granted to Covered Employees, the Committee in its sole and absolute discretion may
provide that no such lapse or surrender shall occur in the event of a termination of employment, without cause or following any change in control of the Company or because of the Participant’s retirement, or otherwise. 
  
 .5 Voting Rights. During the Period of Restriction,
Participants holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares. 
  
 .6 Dividends and Other Distributions. If determined by the Committee in its absolute discretion, during the Period of Restriction,
Participants holding Shares of Restricted Stock granted hereunder may be credited with regular cash dividends paid with respect to the underlying Shares while they are so held. Such dividends may be paid currently, accrued as contingent cash
obligations, or converted into additional shares of Restricted Stock, upon such terms as the Committee establishes. 
  
 The Committee may apply any restrictions to the dividends that the Committee deems appropriate. Without limiting the generality of the preceding sentence,
if the grant or vesting of Restricted Stock granted to a Covered Employee is designed to comply with the requirements of the Performance-Based Exception, the Committee may apply any restrictions it deems appropriate to the payment of dividends
declared with respect to such Restricted Stock, such that the dividends and/or the Restricted Stock maintain eligibility for the Performance-Based Exception. 
  
 .7 Termination of Employment. In the event a Participant’s employment with the Company is terminated because of the Participant’s
Disability or death during the Period of Restriction, the Period of Restriction shall end and the Participant’s rights thereunder shall inure to the benefit or his or her Beneficiary. 
  
 In the event that the Participant’s employment with the Company is
terminated for any reason other than death or Disability during the Period of Restriction, such Participant’s outstanding Restricted Shares shall be forfeited to the Company without payment, unless the Committee, in its sole discretion,
determines otherwise. 
  
 .8 Legend. In order to
enforce the restrictions imposed upon shares of Restricted Stock hereunder, the Committee shall cause a legend or legends to be placed on certificates representing all shares of Restricted Stock that are still subject to restrictions under award
agreements, which legends shall make appropriate reference to the conditions imposed thereby. 
  
 .9 Section 83(b) Election. If a Participant makes an election under Section 83(b) of the Code, or any successor section thereto, to be taxed with respect to the Restricted Stock as of the date of
transfer of the Restricted Stock rather than as of the date or dates upon which the Participant would otherwise be taxable under Section 83(a) of the Code, the Participant shall deliver a copy of such election to the Company immediately after filing
such election with the Internal Revenue Service. 
  

 18 

 ARTICLE VIII. 
 DEFERRED STOCK 
  
 .1
Award of Deferred Stock. Subject to the terms and provisions of the Plan, at any time and from time to time, (a) the Chief Executive Officer may grant Deferred Stock Bonus Awards or Deferred Stock Agreements to Employees who are not Officers
or Covered Employees and (b) the Committee may grant Deferred Stock Bonus Awards or Deferred Stock Agreements to Officers or Covered Employees. The Chief Executive Officer or the Committee shall have complete discretion in determining to whom such
Deferred Stock Bonus Award or Deferred Stock Agreement shall be awarded, the amount of Deferred Stock granted to each Employee (subject to Article IV herein) and, consistent with the provisions of the Plan, in determining the terms and conditions
pertaining to such Awards of Deferred Stock. 
  
 .2 Deferred
Stock Bonus Awards. Deferred Stock Bonus Awards may be granted as part of a management incentive program under which part of the annual performance bonus awarded to managers and other key employees is made in Deferred Stock. Subject to the
terms of the Plan, Deferred Stock Bonus Awards shall have such terms and conditions as determined by (a) the Chief Executive Officer with respect to Employees who are not Officers or Covered Employees and (b) the Committee with respect to Officers
or Covered Employees. As determined in the discretion of (a) the Chief Executive Officer with respect to Employees who are not Officers or Covered Employees and (b) the Committee with respect to Officers or Covered Employees, and subject to the
terms of the Plan, Participants may elect to receive their Deferred Stock Bonus Award in the form of either a Current Award or a Deferred Award. 
  
 (a) Method of Election. Each Participant who is granted a Deferred Stock Bonus Award and selected by (i) the Chief Executive
Officer with respect to Employees who are not Officers or Covered Employees and (ii) the Committee with respect to Officers or Covered Employees, in their respective discretion, may elect, in writing, on a form to be furnished by the Company, to
receive a Current Award or a Deferred Award. Notwithstanding the foregoing, any eligible Participant who does not elect to receive a Deferred Award within the time designated by the Committee shall be granted a Current Award. 
  
 (b) Deferred Award. 
  
 (i) Vesting. Deferred Stock granted in
connection with a Deferred Award shall contingently vest, pro rata, in annual installments commencing one (1) year after the date of the Deferred Stock Bonus Award and continuing on each January 2 thereafter until the expiration of a ten (10) year
period from such commencement date. Notwithstanding the foregoing, all unvested Deferred Stock subject to a Deferred Award shall vest upon the Participant’s (1) termination of employment following attainment of age Fifty-Five (55) with ten (10)
Years of Service, (2) termination of employment with retirement approval from the Committee and with twenty (20) Years of Service; (3) Disability; or (4) death. Subject to Section 4.3 herein, unvested Deferred Stock shall not continue to vest
following termination of employment for any other reason. 
  

 19 

 (ii) Distribution of Shares. Vested Shares shall be distributed to the
Participant in two (2) to ten (10) approximately equal annual installments, as elected by the Participant, or over such shorter period as determined by the Committee. Such distribution shall commence in the month of January following the date the
Participant terminates employment; provided, however, that the Participant may elect to receive his or her vested Shares in a single distribution which shall take place in the month of January following his or her termination of employment.

  
 All such elections made pursuant to this
Section 8.2(b)(ii) shall be made at the time the Deferred Stock Bonus Award is granted, and shall be made, in writing, on a form prescribed by the Committee. Upon a Participant’s death, all undistributed vested Deferred Stock will be
distributed in one distribution as provided in Article XIII herein. 
  
 (c) Current Award. 
  
 (i) Distribution of Shares. Shares subject to a Current Award will be distributed in ten (10) consecutive, approximately equal, annual installments, commencing one (1) year after the date of the Deferred
Stock Bonus Award. If the Participant dies prior to distribution of all Shares to which he or she is entitled, the remaining Shares will be distributed in one distribution as provided in Article XIII herein. 
  
 (ii) Forfeiture of Shares. Any undistributed
Shares subject to a Current Award will be forfeited and the Deferred Stock Bonus Award relating thereto terminated, without payment, if the Participant’s employment with the Company is terminated for any reason other than the Participant’s
(1) termination of employment at or beyond age Fifty-Five (55) with Ten (10) Years of Service, (2) retirement after Twenty (20) Years of Service with approval from the Committee, (3) Disability, or (4) death. Any undistributed Shares not subject to
forfeiture shall continue to be distributed to the Participant under the distribution schedule which would have applied to those Shares if the Participant had not terminated employment, or over such shorter period as may be determined by the
Committee. 
  
 (d) Conditions.
Distribution of Shares under Current Awards and Deferred Awards is conditioned upon: 
  
 (i) the Participant not committing any criminal offense or malicious tort relating to or against the Company; 
  
 (ii) the Participant not Engaging in Competition; and

  
 (iii) the Participant having provided the
Committee with a current address where the Deferred Stock Bonus Award may be distributed. 
  

 20 

 If said conditions are not met, all undistributed Shares will be forfeited and the
Deferred Stock Bonus Award terminated, without payment. 
  
 .3 Deferred Stock Agreements. Deferred Stock Agreements represent Deferred Stock granted to a Participant subject to the following conditions: 
  
 (a) Vesting. Deferred Stock granted pursuant to this Section 8.3
shall contingently vest over a specified number of years, as determined by (i) the Chief Executive Officer with respect to Employees who are not Officers or Covered Employees or (ii) the Committee with respect to Officers or Covered Employees.
Notwithstanding the foregoing, all unvested Deferred Stock subject to a Deferred Stock Agreement shall immediately vest upon the Participant’s: (1) termination of employment following attainment of age Fifty-Five (55) with Ten (10) Years of
Service, (2) termination of employment with retirement approval from the Committee and with Twenty (20) Years of Service, (3) termination of employment as a result of Disability, or (4) termination of employment as a result of death. Subject to
Section 4.3 herein, unless otherwise provided in the Deferred Stock Agreement, if the Participant’s employment with the Company shall be terminated for any other reason, all Deferred Stock, which is not vested before such termination of
employment shall be forfeited and the Deferred Stock Agreement terminated without payment. 
  
 (b) Distribution of Shares. Vested Deferred Stock granted pursuant to this Section 8.3 shall be distributed to the
Participant in the form of Shares in the manner specified in the Deferred Stock Agreement, or over such shorter period as the Committee may direct. Such distribution shall commence on January 2 following the first to occur of the date the
Participant (i) retires, (ii) becomes Disabled, or (iii) attains at least age Sixty-Five (65) and is no longer employed by the Company. Upon the Participant’s death or as soon as practicable thereafter, all unpaid vested Deferred Stock shall be
distributed in the form of Shares, in one distribution, as provided in Article XIII. 
  
 (c) Conditions. Distribution of Shares subject to Deferred Stock Agreements is conditioned upon: 
  
 (i) the Participant not engaging in Competition; 

 
 (ii) the Participant not committing any criminal offense
or malicious tort relating to or against the Company; and 
  
 (iii) the Participant having provided the Committee with a current address where the Deferred Stock may be distributed. 
  
 If such conditions are not met, all undistributed Deferred Stock will be forfeited and the Deferred Stock Agreement terminated without
payment. 
  
 .4 Assignment. A Participant’s
rights under a Deferred Stock Agreement or Deferred Stock Bonus Award may not, without the written consent of the Company, be assigned or otherwise transferred, nor shall they be subject to any right or claim of a Participant’s creditors,
provided that the Company may offset any amounts owing to or guaranteed by the Company, or 

  

 21 

 
owing to any credit union related to the Company against the value of Deferred Stock and underlying Shares to be distributed under Deferred Stock Agreements
and Deferred Stock Bonus Awards. 
  
 .5 Lump Sum
Payments. Notwithstanding anything in the Plan to the contrary, any Participant entitled upon termination of employment to receive a distribution pursuant to this Article VIII, the amount of which distribution has a total Fair Market Value
at the time of such termination of Three Thousand Dollars ($3,000.00) or less, shall receive such distribution in one lump sum as soon as possible following termination of employment. 
  
 .6 Rights as a Shareholder. The Participant shall have no rights as a shareholder with respect to Deferred
Stock until the date of issuance of a stock certificate or confirmation for such Shares. Except as otherwise expressly provided by the Board or the Committee, no adjustment shall be made for dividends or other rights for which the record date is
prior to the date of issuance of a stock certificate or confirmation for such Shares. 
  

 22 

 ARTICLE IX. 
 SPECIAL RECOGNITION STOCK AWARDS 
  
 Subject to the terms and provisions of the Plan, the Committee or its designee, at any time and from time to time, may grant Special Recognition Stock Awards to Employees in such amounts and upon such conditions as the Committee or its
designee shall determine. 
  

 23 

 ARTICLE X. 
 OTHER AWARDS 
  
 .1
Grant of Other Share-Based Awards. The Committee may grant other Share-Based Awards to Participants in such number, and upon such terms, and at any time and from time to time, as shall be determined by the Committee. 
  
 .2 Terms of Other Share-Based Awards. Other Share-Based Awards
shall contain such terms and conditions as the Committee may from time to time specify and may be denominated in cash, in Shares, in Share-equivalent units, in Share appreciation units, in securities or debentures convertible into Shares or in a
combination of the foregoing and may be paid in cash or in Shares, all as determined by the Committee. Other Share-Based Awards may be issued alone or in tandem with other Awards granted to Employees. 
  
 .3 Other Share-Based Award Agreement. Each Other Share-Based
Award shall be evidenced by an Award Agreement that shall specify such terms and conditions as the Committee may determine. 
  
 .4 Other Cash Performance-Based Awards. The Committee may grant Other Cash Performance-Based Awards based on performance measures set forth
in Article XI not based on Shares upon such terms and at any time and from time to time as shall be determined by the Committee. Each such Other Cash Performance-Based Award shall be evidenced by an award agreement that shall specify such terms and
conditions as the Committee shall determine. An Other Cash Performance-Based Award not based upon Shares shall not decrease the number of Shares under Article IV, which may be issued pursuant to other Awards. No individual shall be eligible to
receive a payment with respect to cash performance-based awards in excess of Four Million Dollars ($4,000,000.00) in any calendar year. Other Cash Performance-Based Awards may relate to annual bonus or long-term performance awards. 
  

 24 

 ARTICLE XI. 
 PERFORMANCE MEASURES FOR AWARDS 
  
 .1 Performance Measures. Unless and until the Committee proposes for shareholder vote and shareholders approve a change in the general performance measures set forth in this Article XI, the attainment of which may determine
the degree of payout and/or vesting with respect to Awards which are designed to qualify for the Performance-Based Exception, the performance measure(s) to be used for purposes of such Awards shall be chosen by the Committee from among the following
alternatives: 
  
 (a) Consolidated cash flows,

  
 (b) Consolidated financial reported earnings,

  
 (c) Consolidated economic earnings,

  
  
 (d) Earnings per share, 
  
 (e) Earnings as a percentage of average capital, 
  
 (f) Earnings as a multiple of interest expense, 
  

(g) Business unit financial reported earnings, 
  
 (h) Business unit economic earnings, 
  
 (i) Business unit cash flows, 
  
 (j) Appreciation in the Fair Market Value of Shares either alone or as measured against the performance of
the stocks of a group of companies approved by the Committee, 
  
 (k) Total capital invested in assets, and 
  
 (l) Capital invested in assets subject to the strategic alliance with Marriott International, Inc. 
  
 .2 Adjustments. The Committee shall have the discretion to adjust the determinations of the degree of attainment of pre-established
performance objectives, provided, however, that Awards which are designed to qualify for the Performance-Based Exception, and which are held by Covered Employees, may not be adjusted upward (the Committee shall retain the discretion to adjust such
Awards downward). 
  
 .3 Committee Discretion. In
the event that applicable tax and/or securities laws change to permit Committee discretion to alter the governing performance measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such
changes without obtaining shareholder approval. In addition, in the event that the Committee determines that it is advisable to grant Awards, which do not qualify for the Performance-Based Awards, or to make modifications that would not satisfy the
requirements to qualify for the Performance-Based Exception, the Committee may make such grants without satisfying the requirements of Section 162(m) of the Code. 
  

 25 

 ARTICLE XII. 
 CONVERSION AWARDS 
  
 All
1998 Conversion Awards, which, under the Allocation Agreement, are to be denominated in shares of Host Marriott Corporation, shall be issued under the Host REIT Plan as provided in the Allocation Agreement. The Committee shall administer all such
1998 Conversion Awards under the Host REIT Plan, giving service credit to the grantee of each such 1998 Conversion Award to the extent required under the Allocation Agreement. All 1998 Conversion Awards shall be subject to substantially similar
terms and conditions as provided in the holder’s outstanding awards prior to the Contribution Date. 
  

 26 

 ARTICLE XIII. 
 BENEFICIARY DESIGNATION 
  
 Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of the Participant’s death before
the Participant has received any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in
writing with the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
  

 27 

 ARTICLE XIV. 
 MISCELLANEOUS PROVISIONS 
  
 .1 Not Transferable. 
  
 (a) No Award under the Plan may be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent of the Committee, pursuant to a DRO, unless and until such Award
has been exercised, or the shares underlying such Award have been issued, and all restrictions applicable to such shares have lapsed. No Award or interest or right therein shall be liable for the debts, contracts or engagements of the Participant or
his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding
sentence. 
  
 (b) During the lifetime of the
Participant, only he or she may exercise an Option or other Award (or any portion thereof) granted to him or her under the Plan, unless it has been disposed of with the consent of the Committee pursuant to a DRO. After the death of the Participant,
any exercisable portion of an Option or other Award may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Award Agreement, be exercised by his or her personal representative or by any person empowered to do
so under the deceased Participant’s will or under the then applicable laws of descent and distribution. 
  

 28 

 ARTICLE XV. 
 DEFERRALS 
  
 The Committee
may permit or require a Participant to defer such Participant’s receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant by virtue of an exercise of an Option, or the payment of or the lapse or
waiver of restrictions with respect to any other Award. If any such deferral election is required or permitted, the Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. 
  

 29 

 ARTICLE XVI. 
 RIGHTS OF PARTICIPANTS 
  
 .1 Employment or Service. Nothing in this Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, nor confer upon any Participant any right
to continue in the employ or service of the Company. 
  
 .2
Participation. No Employee shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 
  

 30 

 ARTICLE XVII. 
 AMENDMENT, MODIFICATION AND TERMINATION 
  
 .1 Amendment, Modification, and Termination. The Committee may terminate, amend or modify the Plan. Termination, amendment or modification of the Plan may be in response to changes in the
Code, the Exchange Act or national securities exchange regulations, or for other reasons deemed appropriate by the Committee. However, without the requisite approval of the shareholders of the Company, no such termination, amendment or modification
may: 
  
 (a) Materially increase the total number
of Shares which may be issued under this Plan, or the total number of Shares for which Options may be granted under this Plan, except as provided in Section 4.3 hereof; or 
  
 (b) Materially modify the requirements as to eligibility for participation in the Plan; or 
  
 (c) Extend the maximum period after the date of grant during
which Options may be exercised; or 
  
 (d) Change
the provisions of the Plan regarding Option Price or the exercise of Options, except as provided in Section 4.3 or Article VI hereof or modify the Plan in a manner inconsistent with Rule 16b-3 under the Exchange Act, Sections 422-424 of the Code or
Section 162(m) of the Code. 
  
 The termination or any modification or amendment
of the Plan shall not, without the consent of the Participant, affect a Participant’s rights under an Award previously granted to the Participant; provided, however, that in the event of a transaction described in Section 4.3 hereof, the
authority of the Committee (or, if another legal entity assumes the obligations of the Company hereunder, of the board of directors, compensation committee or similar body of such other legal entity, as applicable) in taking the actions permitted or
required by Section 4.3 hereof shall not be eliminated or diminished in any way by this sentence. With the consent of the affected Participant, the Committee may amend an outstanding Award agreement in a manner consistent with the Plan. 

 
 .2 Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. Subject to the restriction set forth in Article XI herein on the exercise of discretion to adjust upward the determinations of the degree of attainment of pre-established performance objectives with respect to Awards
which have been designed to comply with the Performance-Based Exception, the Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without
limitation, the events described in Section 4.3 hereof) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 
  

 31 

 .3 Awards Previously Granted. No termination, amendment, or modification of the Plan or any
Award shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Participant holding such Award. 
  

.4 Compliance with Code Section 162(m). At all times when Code Section 162(m) is applicable, all Awards granted under this Plan shall
comply with the requirements of Code Section 162(m), provided, however, that in the event the Committee determines that such compliance is not desired with respect to any Award or Awards available for grant under the Plan, then compliance with Code
Section 162(m) will not be required. In addition, in the event that changes are made to Code Section 162(m) to permit greater flexibility with respect to any Award or Awards available under the Plan, the Committee may, subject to this Article XVII,
make any adjustments it deems appropriate. 
  
 .5
Substitution of Awards in Mergers and Acquisitions. Awards may be granted under the Plan from time to time in substitution for awards held by employees or directors of entities who become or are about to become employees or directors of the
Company or a Subsidiary as a result of a merger, consolidation or other acquisition of the employing entity or the acquisition by the Company or a Subsidiary of the assets or stock of the employing entity. The terms and conditions of any substitute
awards so granted may vary from the terms and conditions set forth herein to the extent that the Committee deems appropriate at the time of grant to conform the substitute awards to the provisions of the awards for which they are substituted.

  

 32 

 ARTICLE XVIII. 
 WITHHOLDING 
  
 .1
Tax Withholding. The Company shall have the power and the right to deduct from any amount otherwise due to the Participant, or to withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and
local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. Any adverse consequences to the Optionee arising in connection with the share withholding procedure
set forth in the preceding sentence shall be the sole responsibility of the Optionee. 
  
 .2 Share Withholding. With respect to withholding required in connection with any Award, the Company may require, or the Committee may permit a Participant to elect, that the withholding requirement be
satisfied, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be withheld on the transaction. Any election by a
Participant shall be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 
  

 33 

 ARTICLE XIX. 
 INDEMNIFICATION 
  
 Each
Person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by Host Marriott Corporation, the Operating Partnership or any Subsidiary against and from any loss, cost, liability or expense that
may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to
act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the approval of Host Marriott Corporation, the Operating Partnership or any Subsidiary, or paid by him or her in satisfaction of any judgment
in any such action, suit or proceeding against him or her, provided he or she shall give Host Marriott Corporation, the Operating Partnership or any Subsidiary an opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend the same on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such Persons may be entitled under Host Marriott Corporation’s
Articles of Amendment and Restatement of Articles of Incorporation, as a matter of law or otherwise, or any power that Host Marriott Corporation, the Operating Partnership or any Subsidiary may have to indemnify them or hold them harmless.

  

 34 

 ARTICLE XX. 
 SUCCESSORS 
  
 All
obligations of Host Marriott Corporation, the Operating Partnership or any Subsidiary, respectively, under the Plan, with respect to Awards granted hereunder, shall be binding on any successors to Host Marriott Corporation, the Operating Partnership
or any Subsidiary, respectively, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise, of all or substantially all of the business and/or assets of Host Marriott Corporation, the
Operating Partnership or any Subsidiary, respectively. 
  

 35 

 ARTICLE XXI. 
 LEGAL CONSTRUCTION 
  
 .1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.

  
 .2 Severability. In the event any provision of
the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

  
 .3 Requirements of Law. The granting of Awards
and the issuance of Shares under this Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
  
 .4 Securities Law Compliance. With respect to Insiders,
transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be deemed null
and void to the extent permitted by law and deemed advisable by the Committee. 
  
 .5 Governing Law. To the extent not preempted or otherwise governed by Federal law, the Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of
Maryland without regard to the State of Maryland’s choice of law rules. 
  

 36 

 CERTIFICATE OF SECRETARY 
  
 I, the undersigned secretary of Host Marriott Corporation, do hereby certify that the attached copy of the Host Marriott
Corporation and Host Marriott, L.P. 1997 Comprehensive Stock Incentive Plan is a true and correct copy of the Plan and that there have been no amendments or modifications to the Plan that are not reflected in this copy. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and seal of Host Marriott
Corporation as of the      day of January, 2004. 
  

	
	
	 
	

	 Elizabeth A. Abdoo

	 Secretary

  

 37EXHIBIT 10.14

 Exhibit 10.14 
  
 AMENDMENT NO. 6, DATED AS OF JANUARY 10, 2001, TO DISTRIBUTION 
 AGREEMENT DATED AS OF SEPTEMBER 15, 1993 BETWEEN HOST 
 MARRIOTT CORPORATION AND MARRIOTT
INTERNATIONAL, INC. 
  
 Host Marriott Corporation, a Maryland
corporation and the successor by merger to Host Marriott Corporation, a Delaware corporation f/k/a Marriott Corporation, (“Host Marriott”), and Marriott International, Inc. (“MII”) desire to adopt this Amendment No. 6 to the
Distribution Agreement between Host Marriott and MII dated as of September 15, 1993 (the “Original Agreement,” and, as amended hereby and by that certain Amendment No. 1 to the Original Agreement dated as of December 29, 1995, that certain
Amendment No. 2 to the Original Agreement dated as of June 21, 1997, that certain Amendment No. 3 to the Original Agreement dated as of March 3, 1998, that certain Amendment No. 4 to the Original Agreement dated as of December 28, 1998, and that
certain Amendment No. 5 to the Original Agreement dated as of December 18, 1998 (the “Distribution Agreement”)). 
  
 WHEREAS, on or about December 29, 1998, (i) Host Marriott Corporation, a Delaware corporation (“Old Host”) distributed approximately 93.6% of
the outstanding common stock of Crestline Capital Corporation, a Maryland corporation (“CCC”), to the shareholders of Old Host and contributed the remaining 6.4% of such CCC common stock to Host Marriott, L.P. for delivery to Blackstone
Real Estate Advisors L.P. and certain affiliated entities thereto (or for return to CCC if not delivered to Blackstone Real Estate Advisors L.P. and its affiliated entities) and (ii) thereafter Old Host merged (the “Merger”) into Host
Marriott, with Host Marriott electing to be treated as a “real estate investment trust” under the applicable provisions of the United States Internal Revenue Code effective as of January 1, 1999; 
  
 WHEREAS, since the date of the Merger certain changes have occurred in the
law affecting the requirements for qualification as a “real estate investment trust” under the United States Internal Revenue Code and the regulations and interpretations thereof; and 
  
 WHEREAS, as a result of such changes and in accordance with the undertakings
of the parties in Section 6.07(k) of the Distribution Agreement as currently in effect, the parties hereto now desire to amend the Distribution Agreement. 
  

 NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the parties
hereto hereby agree as follows: 
  
 1. Subsection (j) of Section
6.07 of the Distribution Agreement shall be deleted in its entirety and replaced by the following: 
  
 “(j) Notwithstanding anything to the contrary in this Agreement or otherwise (other than the provisions of subsection (n) of this Section 6.07),
MII’s Right will be limited to the purchase and subsequent ownership of only such number of shares, if any, as would not (i) cause MII, or any Person in which MII owns a direct or indirect interest, to own or be deemed (taking into account the
attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5)) to own more than 9.9% (the “Disqualification Threshold”) of Host Marriott if MII, or any such other Person in which MII owns a direct or indirect interest,
also owns or would be deemed to own (taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5)), more than 9.9% of any tenant of real property leased by Host Marriott or any Subsidiary of Host Marriott
(other than any such lease with MII or any of its Affiliates or Subsidiaries which was in effect at the time of the effectiveness of the Merger or any such lease with a direct or indirect Subsidiary of Host Marriott) (a “Disqualified
Entity”), including CCC (or any subsidiary of CCC) if and for so long as it shall be a Disqualified Entity, (ii) cause any Person that owns (or is deemed to own (taking into account the attribution rules of Code Section 318(a), as modified by
Code Section 856(d)(5))) a direct or indirect interest in MII to exceed the Disqualification Threshold with respect to Host Marriott if such Person owns or would be deemed to own (taking into account the attribution rules of Code Section 318(a), as
modified by Code Section 856(d)(5)) more than 9.9% of a Disqualified Entity (including CCC (or any Subsidiary of CCC) if and for so long as it shall be a Disqualified Entity), or (iii) in the event that Host Marriott L.P. is or could be considered a
“publicly traded partnership” within the meaning of Code Section 7704, cause Host Marriott, L.P. to own more than 9.9% of CCC, if and for so long as it shall be a Disqualified Entity (determined by taking into account (A) the attribution
rules of Code Section 318(a), as modified by Code Sections 856(d)(5) and 7704(d)(3)(B), and (B) any stock of CCC, if and for so long as it shall be a Disqualified Entity, that Host Marriott, L.P. is deemed to own under these rules by reason of the
ownership of an interest in Host Marriott, L.P. by Blackstone Real Estate Advisors L.P. or any of its affiliated entities or any other Person or such other Person’s affiliated entities).” 
  
 2. Section 6.07 is amended by adding the following subsections (k), (l), (m)
and (n) and by relettering the existing subsections (k) and (l) as (o) and (p), respectively: 
  
 “(k) Notwithstanding anything to the contrary in this Agreement or otherwise (other than the provisions of subsection (n) of this Section 6.07), effective as of the date hereof, MII’s Right will be limited
to the purchase and subsequent ownership of only such number of shares, if any, as would not (i) cause MII, or any Person in which MII owns a direct or indirect interest, to own or be deemed (taking 

  

 - 2 - 

 
into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5) and the flush language of Code Section 856(d)(3)(B)) to own
more than thirty five percent (35%) of the shares of Host Marriott (as determined for purposes of Code Section 856(d)(3)(A)), or (ii) cause any one or more Persons that own (or are deemed to own (taking into account the attribution rules of Code
Section 318(a), as modified by Code Section 856(d)(5) and the flush language of Code Section 856(d)(3))) more than thirty five percent (35%) of either the total combined voting power of MII or the total shares of all classes of stock of MII to own
(or to be deemed to own (taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5) and the flush language of Code Section 856(d)(3))) thirty five percent (35%) or more of the shares of Host Marriott (as
determined for purposes of Code Section 856(d)(3)(B) and determined taking into account all other shares of Host Marriott that such Persons own or are deemed to own without regard to MII’s Right). 
  
 (l) (i) Notwithstanding anything to the contrary in this Agreement or
otherwise (other than the provisions of subsection (n) of this Section 6.07), effective as of the date hereof, if at any time MII has exercised any portion of MII’s Right and MII thereafter owns any shares of Host Marriott and if any of the
“Disqualification Events” defined in Section 6.07(l)(ii) below occurs, MII shall be considered to have automatically and irrevocably transferred to the Charitable Trust (as defined in the Articles of Amendment and Restatement of Article of
Incorporation of Host Marriott (the “Host Marriott Charter”)), for the benefit of the Charitable Beneficiary (as defined in the Host Marriott Charter), on the date immediately prior to the occurrence of the event, fact or circumstance that
first resulted in the Disqualification Event (the “Deemed Transfer Date”), the lesser of the total number of shares of Host Marriott owned by MII or such number of shares of Host Marriott that, if owned by the Charitable Trust (as defined
in the Host Marriott Charter) on the Deemed Transfer Date, would have prevented the occurrence of the Disqualification Event (the “Transferred Shares”). All of the provisions of Section 8.3 of the Host Marriott Charter relating to the
Charitable Trust, the Charitable Trustee, the Charitable Beneficiary and the ownership and disposition of shares of stock deemed transferred to the Charitable Trustee pursuant thereto (including, without limitation, Section 8.3.6 thereof) shall
apply with respect to the Transferred Shares as if this subsection (l) were part of Article VIII of the Host Marriott Charter. Without limiting the foregoing, within 20 days of receiving notice from Host Marriott or MII that a Deemed Transfer Date
has occurred and Transferred Shares have been transferred to the Charitable Trust, the Charitable Trustee shall sell the Transferred Shares to one or more persons designated by it whose ownership of the Transferred Shares would not result in a
Disqualification Event or otherwise violate Article VIII of the Host Marriott Charter. Upon such sale, the interest of the Charitable Beneficiary in the Transferred Shares shall terminate, and the Charitable Trustee shall distribute the 

  

 - 3 - 

 
net proceeds of such sale as follows: (i) to MII, the lesser of the net proceeds of the sale of the Transferred Shares or an amount equal to the Closing
Price (as defined in the Host Marriott Charter) of the Transferred Shares on the Deemed Transfer Date, and (ii) to the Charitable Beneficiary, the balance, if any, of the net proceeds of such sale. Any dividends and other distributions paid by Host
Marriott with respect to the Transferred Shares that have a record date after the Deemed Transfer Date and prior to the date of the sale of such shares by the Charitable Trustee shall be for the exclusive benefit of the Charitable Beneficiary (and
in the event that MII shall have received any such dividend or other distributions prior to the discovery of the occurrence of a Deemed Transfer Date, it shall pay the full amount thereof over to the Charitable Trustee for the benefit of the
Charitable Beneficiary upon demand). Host Marriott and MII intend that the Charitable Trust shall be considered the legal and beneficial owner of any Transferred Shares for the exclusive benefit of the Charitable Beneficiary at all times from and
after the Deemed Transfer Date and that MII shall not have any legal or equitable interest therein at any time thereafter (other than the right to be paid the purchase price for such shares as set forth above). 
  
 (ii) For purposes of this Distribution Agreement, a
“Disqualification Event” shall mean any one of the following: 
  
 (A) MII, or any Person in which MII owns a direct or indirect interest, would be considered to own or be deemed (taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5)
and the flush language of Code Section 856(d)(3)(B)) to own more than thirty five percent (35%) of the shares of Host Marriott (as determined for purposes of Code Section 856(d)(3)(A)); 
  
 (B) Any one or more Persons that own (or are deemed to own (taking into account the attribution rules of
Code Section 318(a), as modified by Code Section 856(d)(5) and the flush language of Code Section 856(d)(3))) more than thirty five percent (35%) of either the total combined voting power of MII or the total shares of all classes of stock of MII
would be considered to own (or be deemed to own (taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5) and the flush language of Code Section 856(d)(3))) thirty five percent (35%) or more of the
shares of Host Marriott (as determined for purposes of Code Section 856(d)(3)(B) and determined taking into account all other shares of Host Marriott that such Persons own or are deemed to own without regard to MII’s Right); 
  

 - 4 - 

 (C) MII, or any Person in which MII owns a direct or indirect interest, would be
considered to own or be deemed (taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5)) to own more than the Disqualification Threshold of Host Marriott at such time that MII, or any such other Person
in which MII owns a direct or indirect interest, also owns or would be deemed to own (taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5)), more than 9.9% of any Disqualified Entity (including CCC
or any subsidiary of CCC if and for so long as it shall be a Disqualified Entity); 
  
 (D) If any Person that owns (or is deemed to own (taking into account the attribution rules of Code Section 318(a), as modified by Code
Section 856(d)(5))) a direct or indirect interest in MII would, by reason of MII’s ownership of shares of Host Marriott (determined taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5)), exceed
the Disqualification Threshold with respect to Host Marriott at such time that such Person owns or would be deemed to own (taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5)) more than 9.9% of a
Disqualified Entity (including CCC (or any Subsidiary of CCC) if and for so long as it shall be a Disqualified Entity); 
  
 (E) If at any time that Host Marriott L.P. is or could be considered a “publicly traded partnership” within the meaning of Code
Section 7704, MII’s ownership of shares of Host Marriott (determined taking into account the attribution rules of Code Section 318(a), as modified by Code Section 856(d)(5)) would cause Host Marriott, L.P. to be considered to own more than 9.9%
of CCC, if and for so long as it shall be a Disqualified Entity (determined by taking into account (A) the attribution rules of Code Section 318(a), as modified by Code Sections 856(d)(5) and 7704(d)(3)(B), and (B) any stock of CCC, if and for so
long as it shall be a Disqualified Entity, that Host Marriott, L.P. would be deemed to own under these rules by reason of the ownership of an interest in Host Marriott, L.P. by Blackstone Real Estate Advisors L.P. or any of its affiliated entities
or any other Person or such other Person’s affiliated entities); 
  
 (F) Any event (other than an event described in Sections 6.07(l)(ii)(A) through (E) above) involving the ownership or deemed ownership of Host Marriott shares of common stock (taking into account the attribution rules
of Code Section 318(A), as modified by Code Section 856(d)(5)), which event is attributable to the exercise, 

  

 - 5 - 

 
in whole or in part, of MII’s Right (or, if relevant, the Blocked Portion of the Right after assignment thereof), if the consequence of such event would
be Host Marriott’s failure to continue to qualify to be taxed as a “real estate investment trust” (“REIT”) under the applicable Code provisions or Host Marriott, L.P. being considered taxable as a corporation pursuant to
Code Section 7704; or 
  
 (G) If at any time MII
has assigned all or part of the Blocked Portion of the Right, after any representation made by MII for the purpose of obtaining the ruling described in Section 6.07(m)(i)(A) below becomes inaccurate or incomplete and in the reasonable opinion of
Host Marriott there is a realistic and meaningful possibility that, as a result of such inaccuracy or incompleteness, the ruling issued by the Internal Revenue Service could no longer be relied upon by Host Marriott (unless MII obtains a written
opinion of outside counsel reasonably acceptable to Host Marriott, in form and substance reasonably satisfactory to Host Marriott, that Host Marriott should be able to continue to rely on the ruling issued by the Internal Revenue Service that is
described in Section 6.07(m)(i)(A) below). 
  
 (iii) If at any time MII has exercised any portion of MII’s Right and MII thereafter owns any shares of Host Marriott, Host Marriott hereby undertakes to provide to MII reasonable notice of the following events: 
  
 (A) Any changes in the ownership of shares of Host Marriott
stock by a Person who owns, directly or indirectly, five percent (5%) or more of the outstanding shares of such stock as to which Host Marriott has Knowledge (as defined below) could reasonably be expected to (1) result in a Disqualification Event
or (2) increase materially the risk of a Disqualification Event occurring; and 
  
 (B) The implementation of any Host Marriott stock repurchase program. 
  
 For purposes of this Distribution Agreement, “Knowledge” shall mean actual knowledge of any of the
officers of Host Marriott (other than a member of the Marriott family). Notwithstanding any of the foregoing, in no event would the delay or failure of Host Marriott to provide the notice described in this Section 6.07(l)(iii) cause the provisions
of this Agreement (including, without limitation, those set forth in Section 6.07(l)) not to apply. 
  
 (m) (i) In the event that MII’s Right would not be exercisable in full by reason of one or more of the prohibitions set forth in subsection (j) or
subsection (k) of this Section 6.07, MII shall, subject to the conditions set forth 

  

 - 6 - 

 
below, have the right to assign that portion (but only such portion) of the Right that is not exercisable by reason of such prohibition (the “Blocked
Portion of the Right”), subject to further reduction as set forth below, to one or more Persons whose exercise of the assigned Blocked Portion of the Right would not be precluded by either subsection (j) or subsection (k) (applied by replacing
the term “MII” each place it appears in subsection (j) and subsection (k) with the following: “MII and/or any permitted assignees pursuant to subsection (m)(i) below”), subject to the following conditions: 
  
 (A) Host Marriott and MII shall have obtained from the
Internal Revenue Service, for the mutual benefit of Host Marriott and MII, a private letter ruling (the user fees and legal fees related to which shall be shared equally by Host Marriott and MII, provided, however, that in no event shall Host
Marriott be required to pay more than a total of $50,000 with respect to such fees) to the effect that neither the existence of such assignment right nor the exercise of such assignment right shall cause (A) MII (or any Person that is considered
pursuant to Code Section 318(a) to own any stock of Host Marriott considered owned by MII, actually or constructively pursuant to Code Section 318(a)) to be considered for purposes of any of Code Sections 318(a), 856(d)(2), Section 856(d)(3)(A),
Section 856(d)(3)(B), Section 856(d)(8)(B), Section 856(d)(9)(A), Section 856(i) and Section 7704(d)(1)(C) to own all or any portion of the Host Marriott stock that is subject to the Blocked Portion of the Right or (B) Host Marriott otherwise to
fail to continue to qualify to be taxed as a REIT under the applicable Code provisions or Host Marriott, L.P. to be taxed as a corporation pursuant to Code Section 7704; 
  
 (B) the proposed assignee shall not be a “Host Marriott Competitor” (as defined in subsection
(m)(iv) below); 
  
 (C) [Intentionally Omitted];

  
 (D) the proposed assignee enters into a
written agreement with Host Marriott, in such form as shall be satisfactory to Host Marriott in its reasonable discretion, pursuant to which the proposed assignee agrees to be bound by and subject to all of subparagraphs (j), (k), and (l) of this
Section 6.07 (applied by replacing the term “MII” each place it appears in subsections (j), (k) and (l) with the identity of such proposed assignee), but without the rights of MII under this subsection (m)(i) or subsection (n) of this
Section 6.07; and 
  
 (E) such proposed
assignment shall comply in all respects with the factual and other representations made in connection 

  

 - 7 - 

 
with obtaining the ruling described in clause (A) above and there are not other facts or circumstances involved in or related to such proposed assignment
that, in the reasonable opinion of Host Marriott, create a realistic and meaningful possibility that the ruling issued by the Internal Revenue Service could not be relied upon by Host Marriott in connection with such proposed assignment (unless MII
obtains a written opinion of outside counsel reasonably acceptable to Host Marriott, in form and substance reasonably satisfactory to Host Marriott, that Host Marriott should be able to continue to rely on the ruling issued by the Internal Revenue
Service in connection with the proposed assignment). 
  
 Host Marriott agrees that, upon request of MII, it will assist MII in preparing the private letter ruling referred to in clause (A) of the preceding sentence and will join MII in such ruling request. Following any permitted assignment under
this subsection (m)(i), the term “MII,” as used in subsections (j), (k) and (l) hereof, shall be construed to mean “MII and/or any permitted assignee pursuant to subsection (m)(i) and their permitted successors and assignees.”

  
 (ii) Following any permitted assignment under
subsection (m)(i) and with respect only to the portion of the Blocked Portion of the Right assigned pursuant to such subsection, the term “Exercise Period” defined in Section 6.07(a) hereof shall be defined to mean a period commencing on
any Trigger Date (as defined in such Section 6.07(a)) and ending forty-five (45) days thereafter. 
  
 (iii) A permitted assignee of the MII Right pursuant to this subsection (m) that exercises any portion by the MII Right and its Affiliates
shall not be considered a Person for purposes of the definition of “Trigger Date” set forth in Section 6.07(a). 
  
 (iv) (A) For purposes of this subsection (m), a “Host Marriott Competitor” shall mean any one of the following: 
  
 (1) an entity that either qualifies to be taxed as a REIT
under the applicable Code provisions or is a lodging company if (a) the shares of such REIT or lodging company are traded on a United States securities exchange registered under the Exchange Act or a comparable foreign securities exchange (a
“Publicly Traded Entity”) and (b) such Publicly Traded Entity satisfies either the “Ownership Test” (defined below) or the “Operating Test” (defined below); 
  
 (2) any other entity that (a) has as its principal business the ownership or operation of full-service
hotels (taking into account only its activities and the activities of its “Controlled Subsidiaries” (defined 

  

 - 8 - 

 
below)) but whose shares are not traded on a United States securities exchange registered under the Exchange Act or a comparable foreign securities exchange
(a “Non-Publicly Traded Entity”) and (b) meets either the Ownership Test or the Operating Test; or 
  
 (3) the Controlled Subsidiary of an entity described in clause (1) or (2) above. 
  
 (B) For purposes of this subsection (m), the following terms
shall have the meanings set forth below: 
  
 (1)
“Control” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise.

  
 (2) “Controlled Subsidiary”
shall mean a controlled or majority-owned subsidiary, including, without limitation, a corporation, partnership, limited liability company or other entity. 
  
 (3) “Ownership Test” shall mean the ownership, directly or indirectly through one or more Controlled Subsidiaries, of
(i) in the case of a Publicly Traded Entity, more than twenty five (25) full-service hotels, and (ii) in the case of a Non-Publicly Traded Entity, full-service hotels having a total of more than fifteen thousand (15,000) rooms. 
  
 (4) “Operating Test” shall mean the
operation of a branded hotel chain (whether or not such operator is also the owner of the brand) that includes (i) in the case of a Publicly Traded Entity, in the aggregate, more than twenty five (25) full-service hotels, and (ii) in the case of a
Non-Publicly Traded Entity, more than fifteen (15) full-service hotels. 
  
 (C) For purposes of this subsection (m), neither (1) the ownership of non-controlling interests in hotels or hotel operating companies, either directly or indirectly through subsidiaries, affiliates or partnerships,
nor (2) the holding of a mortgage or mortgages secured by one or more hotels, shall be considered in the determination of the principal business of an entity. 
  

 - 9 - 

 (n) Notwithstanding any of the foregoing, the prohibitions set forth in subsections (j) and (k) of this
Section 6.07 shall not apply with respect to MII if all of the conditions set forth below are satisfied (and if all of the conditions set forth below are satisfied, the provisions of subparagraph (l) shall no longer apply with respect to MII):

  
 (i) The Person described in the definition of
“Trigger Date” set forth in subsection (a) of this Section 6.07 is (A) a Person who is, or is controlled by, Persons who have been convicted as felons in any state or federal court, or (B) a Person (or an “Affiliate” (as such
term is defined in Section 1.10 of the Agreement) of a Person) that is engaged in the business of operating (as opposed to owning) a branded hotel chain having five thousand (5,000) or more guest rooms in competition with MII and its successors (a
“Competitor”); 
  
 (ii) The Person
described in the definition of “Trigger Date” set forth in subsection (a) of this Section 6.07 actually consummates either (A) an acquisition of such number of shares of Voting Stock such as would cause the condition in clause (i) of the
definition of “Trigger Date” to be met, or (B) a tender offer or exchange offer, as described in clause (ii) of the definition of Trigger Date, that results in such Person being the Beneficial Owner of a number of shares of Voting Stock
representing 30% or more of the total voting power of the then outstanding shares of Voting Stock (in either case, a “Voting Stock Acquisition”); and 
  

(iii) Either (A) a consequence of the Voting Stock Acquisition is the failure of Host Marriott to continue to qualify to be taxed as a
REIT under the applicable Code provisions, or (B) the Competitor publicly announces (which announcement shall include, without limitation, a report filed pursuant to the Exchange Act) that, following the Voting Stock Acquisition, either (1) Host
Marriott will fail to qualify to be taxed as a REIT under the applicable Code provisions, or (2) the Competitor intends to cause Host Marriott to revoke its election, or otherwise cause Host Marriott to fail to qualify, to be taxed as a REIT and the
Competitor owns a sufficient number of shares of Voting Stock to effectuate this intent. 
  
 In the event that the Exercise Period for the exercise of the MII Right otherwise shall have expired prior to the satisfaction of all three of the above conditions, then, notwithstanding the foregoing, that portion of
the MII Right that otherwise was not exercisable by reason of the prohibitions set forth in subsections (j) and (k) of this Section 6.07 (but only such portion thereof) shall be exercisable for a period of thirty (30) days from the date the last of
such conditions was satisfied.” 
  
 3. New subsection (o) of
Section 6.07 of the Distribution Agreement shall be amended by adding the following language after every appearance of the phrase “subsection (j)”: 
  
 “or subsection (k) or subsection (l) or subsection (m)” 
  

 - 10 - 

 4. Except as specifically amended hereby, the Distribution Agreement continues in full force and effect
without modification and is hereby ratified and confirmed in all respects. 
  
 5. Host Marriott covenants that at the next meeting of its Board of Directors or, if sooner, immediately following any Trigger Date, the Board of Directors shall duly adopt a resolution in the form of Annex A
hereto granting any permitted assignee of MII pursuant to subsection (m) of Section 6.07 of the Distribution Agreement, as an irrevocable exemption under Section 8.2.7 of the Amended and Restated Articles of Incorporation of Host Marriott from the
Ownership Limit (as defined in Section 8.1 of the Amended and Restated Articles of Incorporation of Host REIT) to permit such permitted assigned to exercise any portion of the MII Right that such permitted assignee otherwise would be permitted to
exercise under Section 6.07 of the Distribution Agreement, as amended by this Amendment. Host Marriott covenants that, for as long as MII has the right to exercise the Right, Host Marriott will not revoke or amend such resolution without the prior
written consent of MII. Host Marriott agrees that MII would suffer irreparable damage in the event any of the foregoing provisions of this Paragraph 5 were not to be performed in accordance with the terms hereof, and that, in such event, MII’s
remedy at law would be inadequate. Host Marriott agrees and consents that temporary and permanent injunctive relief may be granted in favor of MII in any proceeding which may be brought to enforce any provision of this Paragraph 5 without the
necessity of proof of actual damage. 
  
 6. This Amendment may be
executed in any number of counterparts, which, when taken together, shall constitute a single binding instrument. The absence of Host Marriott Services Corporation as a party to this Amendment shall not cause this Amendment not to be a binding
agreement as between Host Marriott and MII. 
  
 [signatures
appear on the following page] 
  

 - 11 - 

 IN WITNESS WHEREOF, the parties have caused this Amendment No. 6 to be duly executed and delivered and
effective for all purposes as of January 1, 2001. 
  

			
	MARRIOTT INTERNATIONAL, INC.
		
	 By:
	 	 /s/ KEVIN M. KIMBALL

	 Name:
	 	 Kevin M. Kimball

	 Title:
	 	 Vice President

  

			
	HOST MARRIOTT CORPORATION
		
	 By:
	 	 /s/ W. EDWARD WALTER

	 Name:
	 	 W. Edward Walter

	 Title:
	 	 Executive Vice President

  

 ANNEX A TO 
 AMENDMENT NO. 6, DATED AS OF JANUARY 10, 2001, TO DISTRIBUTION 
 AGREEMENT DATED AS OF SEPTEMBER 15, 1993
BETWEEN HOST 
 MARRIOTT CORPORATION AND MARRIOTT INTERNATIONAL, INC. 
  
 RESOLUTION FOR 
 THE BOARD OF DIRECTORS OF HOST MARRIOTT CORPORATION 
  
 Waiver of “Ownership Limit” for Assignee of Marriott International, Inc.’s Right to Purchase Voting Stock of Host Marriott Corporation 
  
 WHEREAS, pursuant to Section 6.07 of that certain Distribution Agreement between the Corporation (f/k/a as
“Marriott Corporation”) and Marriott International, Inc., dated as of September 15, 1993, as amended (the “Distribution Agreement”), the Corporation previously has granted to Marriott International, Inc. (“MII”) the
right to acquire voting stock of the Corporation upon the occurrence of certain events (the “MII Right”); 
  
 WHEREAS, the Corporation’s Articles of Amendment and Restatement of Articles of Incorporation (the “Articles”) contain restrictions
on ownership of the Corporation’s Capital Stock (all capitalized terms not otherwise defined herein have the meaning set forth in the Articles) intended to facilitate the Corporation’s qualification as a REIT for federal income tax
purposes; 
  
 WHEREAS, Section 8.2.7(a) of the Articles
authorizes the Board of Directors to grant to any Person an exception to the Ownership Limit, subject to certain conditions set forth therein; 
  
 WHEREAS, in accordance with the terms of Amendment No. 4, dated as of December 28, 1998, to the Distribution Agreement, the Board of Directors
previously granted to MII an irrevocable exception to the Ownership Limit solely to permit MII to exercise the MII Right in accordance with, and subject to the terms and restrictions of, the Distribution Agreement, and the Bylaws of the Corporation
were amended to reflect this exception; 
  
 WHEREAS,
pursuant to Section 6.07(m) of the Distribution Agreement, as set forth in Amendment No. 6, dated as of January 10, 2001, to the Distribution Agreement, in the event that the MII Right is not exercisable in full by reason of one or more of the
prohibitions set forth in subsection (j) or subsection (k) of Section 6.07 of the Distribution Agreement (which prohibitions are intended to facilitate the Corporation’s qualification as a REIT for federal income tax purposes), the Corporation
has agreed to permit MII to assign the “blocked” portion of the MII Right to one or more assignees if, and only if, certain conditions set forth in such 

  

 
Section 6.07(m) are satisfied and subject to the restrictions set forth in subsections (j), (k) and (l) of Section 6.07 (each such assignee, a
“Permitted Assignee”); and 
  
 WHEREAS, the Board
of Directors has determined that it is in the best interests of the Corporation to grant a waiver of the Ownership Limit to each Permitted Assignee and to set forth the conditions pursuant to which such waiver shall be continue to be effective.

  
 NOW, THEREFORE, BE IT RESOLVED, that, pursuant to
Section 8.2.7 of the Articles, the Board of Directors of the Corporation hereby grants to each Permitted Assignee of MII a waiver of the Ownership Limit solely for purposes of permitting the Permitted Assignee to acquire shares of stock of the
Corporation pursuant to the exercise of the “blocked” portion of the MII Right assigned to the Permitted Assignee, conditioned upon the Permitted Assignee’s continued compliance with the conditions set forth in Section 6.07(m), and
subject to the restrictions set forth in subsections (j), (k) and (l) of Section 6.07, of the Distribution Agreement, and subject to the condition that no Person who would be treated as an “individual” for purposes of Section 542(a)(2) of
the Code (determined taking into account Section 856(h)(3)(A) of the Code) would be considered to Beneficially Own shares of Capital Stock in excess of the Ownership Limit by reason of the Permitted Assignee’s ownership of shares of stock of
the Corporation. 
  
 RESOLVED FURTHER, that the appropriate
officers of the Corporation, or any one or more of them, hereby are authorized and directed, in the name and on behalf of the Corporation, to do all things, to take all such actions and to execute, deliver and file all such other agreements,
instruments, reports, documents and regulatory and other notices as may be determined by such officer(s) to be necessary or appropriate in effecting this waiver (such determination to be conclusively, but not exclusively, evidenced by the taking of
such actions or the execution, delivery and filing of such agreements, instruments, reports, documents or regulatory or other notices by such officer(s)).

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