Document:

Exhibit 10.3

 Exhibit 10.3 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the
“Agreement”) is made this [            ] day of [            ], 2009, by Chesapeake Lodging, L.P., a
Delaware limited partnership (the “Company”), and Chesapeake Lodging Trust, a Maryland real estate investment trust (the “REIT”), each with its principal place of business at 710 Route 46 East, Suite 206, Fairfield, NJ 07004, and
D. Rick Adams, residing at the address on file with the REIT (the “Executive”). 
 WHEREAS, the REIT is the general
partner of the Company; and 
 WHEREAS, the parties desire to enter into this agreement to reflect the Executive’s
executive capacities in the REITs business and to provide for the Company’s and the REIT’s employment of the Executive; and 
 WHEREAS, the parties wish to set forth the terms and conditions of that employment; 
 NOW THEREFORE, in consideration
of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties agree as follows: 
  

	1.	Term of Employment 

 The
Company and the REIT hereby employ the Executive, and the Executive hereby accepts employment with the Company and the REIT, upon the terms and conditions set forth in this Agreement. Unless terminated earlier pursuant to Section 5, the
Executive’s employment pursuant to this Agreement shall be for the two (2) year period commencing on the date of closing of the initial public offering of the REIT’s common shares of beneficial interest pursuant to the REIT’s
registration statement on Form S-11 filed with the Securities and Exchange Commission (the “Commencement Date”) and ending on the second anniversary of the Commencement Date (the “Initial Term”). The Initial Term shall be
extended for an additional twelve (12) months on each anniversary of the Commencement Date unless the Company or the Executive provides written notice to the contrary at least ninety (90) days before the applicable anniversary of the
Commencement Date. The Initial Term, together with any such extensions, shall be referred to herein as the “Employment Period.” In the event that the Board of Trustees of the REIT (the “Board of Trustees”) determines that active
efforts to complete the closing of the initial public offering have been abandoned, this Agreement shall become null and void. 
  

	2.	Title; Duties 

 The
Executive shall be employed as Senior Vice President and Chief Investment Officer of the REIT. The Executive shall report to the Board of Trustees, who shall have the authority to direct, control and supervise the activities of the Executive. The
Executive shall perform such services consistent with his position as may be assigned to him from time to time by the Board of Trustees and are consistent with the bylaws of the REIT and the Agreement of Limited Partnership of the Company as it may
be amended from time to time, including, but not limited to, managing the affairs of the REIT and the Company. 

	3.	Extent of Services 

  

	 	(a)	General. The Executive agrees not to engage in any business activities during the Employment Period except those which are for the sole benefit of the Company or
the REIT and their subsidiaries (the Company and the REIT are hereinafter referred to as the “Company Group”), and to devote his entire business time, attention, skill and effort to the performance of his duties under this Agreement.
Notwithstanding the foregoing, the Executive may, without impairing or otherwise adversely affecting the Executive’s performance of his duties to the Company Group, (i) engage in personal investments and charitable, professional and civic
activities, and (ii) with the prior approval of the Board of Trustees, serve on the boards of directors of corporations other than the REIT, provided, however, that no such approval shall be necessary for the Executive’s continued service
on any board of directors on which he was serving on the date of this Agreement, all of which have been previously disclosed to the Board of Trustees in writing and provided further, that in no event shall the Executive be permitted to serve on the
board of directors of any other entity that owns, operates, acquires, sells, develops and/or manages any hotel or similar asset in the lodging industry. The Executive shall perform his duties to the best of his ability, shall adhere to the Company
Group’s published policies and procedures, and shall use his best efforts to promote the Company Group’s interests, reputation, business and welfare. 

  

	 	(b)	Corporate Opportunities. The Executive agrees that he will not take personal advantage of any business opportunities which arise during his employment with the
Company Group and which may be of benefit to the Company Group. All material facts regarding such opportunities must be promptly reported by the Executive to the Board of Trustees for consideration by the Company Group. 

  

	4.	Compensation and Benefits 

  

	 	(a)	Salary. The Company shall pay the Executive a gross base annual salary (“Base Salary”) of $275,000. The salary shall be payable in arrears in
approximately equal semi-monthly installments (except that the first and last such semi-monthly installments may be prorated if necessary) on the Company’s regularly scheduled payroll dates, minus such deductions as may be required by law or
reasonably requested by the Executive. The REIT’s Compensation Committee (the “Compensation Committee”) shall review his Base Salary annually in conjunction with its regular review of employee salaries and may increase (but not
decrease) his Base Salary as in effect from time to time as the Compensation Committee shall deem appropriate. 

  

	 	(b)	 Annual Bonus. Executive shall be entitled to earn bonuses with respect to each fiscal year (or partial fiscal year), based upon Executive’s
and the Company Group’s achievement of performance objectives set by the Company, with a threshold bonus of twenty- five percent (25%) of Executive’s annual salary for such fiscal year (or partial fiscal year), a targeted bonus of
fifty percent (50%) of Executive’s annual salary for such fiscal year (or partial fiscal year), and a

	 	 
maximum bonus of seventy-five percent (75%) of Executive’s annual salary for such fiscal year (or partial fiscal year). Any such bonus earned by the Executive shall be paid annually by
March 15 of the year following the end of the year for which the bonus was earned. 

  

	 	(c)	Restricted Share Grants. The Company shall grant to the Executive 40,000 of the REIT’s common shares of beneficial interest subject to certain time vesting
requirements and other conditions set forth in the applicable award agreement. 

  

	 	(d)	Other Benefits. The Executive shall be entitled to paid time off and holiday pay in accordance with the Company Group’s policies in effect from time to time
and shall be eligible to participate in such life, health, and disability insurance, pension, deferred compensation and incentive plans, options and awards, performance bonuses and other benefits as the Company Group extends, as a matter of policy,
to its executive employees. The Company Group shall maintain a disability insurance policy or plan covering the Executive during the Employment Period. 

  

	 	(e)	Reimbursement of Business Expenses. The Company shall reimburse the Executive for all reasonable travel, entertainment and other expenses incurred or paid by the
Executive in connection with, or related to, the performance of his duties, responsibilities or services under this Agreement, upon presentation by the Executive of documentation, expense statements, vouchers, and/or such other supporting
information as the Company may reasonably request. 

  

	 	(f)	Timing of Reimbursements. Any reimbursement under this Agreement that is taxable to the Executive shall be made by December 31 of the calendar year
following the calendar year in which the Executive incurred the expense. 

  

	5.	Termination 

  

	 	(a)	Termination by the Company for Cause. The Company may terminate the Executive’s employment under this Agreement at any time for Cause, upon written notice
by the Company to the Executive. For purposes of this Agreement, “Cause” for termination shall mean any of the following: (i) the conviction of the Executive of, or the entry of a plea of guilty or nolo contendere by the Executive to,
any felony; (ii) fraud, misappropriation or embezzlement by the Executive; (iii) the Executive’s willful failure or gross negligence in the performance of his assigned duties for the Company Group, which failure or negligence
continues for more than fifteen (15) calendar days following the Executive’s receipt of written notice of such willful failure or gross negligence; (iv) the Executive’s breach of any of his fiduciary duties to the Company Group;
(v) any act or omission of the Executive that has a demonstrated and material adverse impact on the Company Group’s reputation for honesty and fair dealing; or (vi) the breach by the Executive of any material term of this Agreement.

	 	(b)	Termination by the Company Without Cause or by the Executive Without Good Reason. Either party may terminate this Agreement at any time without Cause (in the
case of the Company) or without Good Reason (in the case of the Executive), upon giving the other party sixty (60) days’ written notice. At the Company’s sole discretion, it may substitute sixty (60) days’ salary (or any
lesser portion for any shortened period provided) in lieu of notice. Any salary paid to the Executive in lieu of notice shall not be offset against any entitlement the Executive may have to the Severance Payment pursuant to Section 6(c).

  

	 	(c)	Termination by Executive for Good Reason. The Executive may terminate his employment under this Agreement at any time for Good Reason, upon written notice by the
Executive to the Company. For purposes of this Agreement, Good Reason for termination shall mean, without the Executive’s consent, (i) the assignment to the Executive of substantial duties or responsibilities inconsistent with the
Executive’s position at the Company Group, or any other action by the Company Group which results in a substantial diminution of the Executive’s duties or responsibilities other than any such reduction which is remedied by the Company
Group within 30 days of receipt of written notice thereof from the Executive; (ii) a requirement that the Executive work principally from a location outside the fifty (50) mile radius from the Company’s address first written above or
the headquarters to be established upon the closing of the Company’s initial public offering; (iii) a substantial reduction in the Executive’s aggregate Base Salary and other compensation taken as a whole, excluding any reductions
caused by the failure to achieve performance targets. Good Reason shall not exist pursuant to any subsection of this Section 5(c) unless (A) the Executive shall have delivered notice to the Board within 90 days of the initial occurrence of
such event constituting Good Reason, and (B) the Board fails to remedy the circumstances giving rise to the Executive’s notice within 30 days of receipt of notice. The Executive must terminate his employment under this Section 5(c) at
a time agreed reasonably with the Company, but in any event within two years from the initial occurrence of an event constituting Good Reason. 

  

	 	(d)	Executive’s Death or Disability. The Executive’s employment shall terminate immediately upon his death or, upon written notice as set forth below, his
Disability. As used in this Agreement, Disability shall mean such physical or mental impairment as would render the Executive eligible to receive benefits under the long-term disability insurance policy or plan then made available by the Company
Group to the Executive. If the Employment Period is terminated by reason of the Executive’s Disability, either party shall give thirty (30) days’ advance written notice to that effect to the other. 

  

	6.	Effect of Termination 

  

	 	(a)	 General. Regardless of the reason for any termination of this Agreement, the Executive (or the Executive’s estate if the Employment Period
ends on account of the Executive’s death) shall be entitled to (i) payment of any unpaid portion of his Base Salary through the effective date of termination; (ii) reimbursement for any

	 	 
outstanding reasonable business expense he has incurred in performing his duties hereunder; (iii) continued insurance benefits to the extent required by law; (iv) payment of any vested
but unpaid rights as required independent of this Agreement by the terms of any bonus or other incentive pay or equity plan, or any other employee benefit plan or program of the Company Group; and (v) except in the case of Termination by the
Company for Cause, any bonus or incentive compensation that was approved but not paid. 

  

	 	(b)	Termination by the Company for Cause or by Executive Without Good Reason. If the Company terminates the Executive’s employment for Cause or the Executive
terminates his employment without Good Reason, the Executive shall have no rights or claims against the Company Group except to receive the payments and benefits described in Section 6(a). 

  

	 	(c)	Termination by the Company Without Cause. Except as provided in Section 6(d), if the Company terminates the Executive’s employment without Cause
pursuant to Section 5(b), the Executive shall be entitled to receive, in addition to the items referenced in Section 6(a), the following: 

  

	 	(i)	continued payment of his Base Salary, at the rate in effect on his last day of employment, for a period of twelve (12) months (the “Severance Payment”).
The Severance Payment shall be paid in approximately equal installments on the Company’s regularly scheduled payroll dates, subject to all legally required payroll deductions and withholdings for sums owed by the Executive to the Company Group;

  

	 	(ii)	continued payment by the Company for the Executive’s life and health insurance coverage during the twelve (12) month severance period referenced in
Section 6(c)(i) to the same extent that the Company paid for such coverage immediately prior to the termination of the Executive’s employment and subject to the eligibility requirements and other terms and conditions of such insurance
coverage, provided that if any such insurance coverage shall become unavailable during the twelve (12) month severance period, the Company thereafter shall be obliged only to pay to the Executive an amount which, after reduction for income and
employment taxes, is equal to the employer premiums for such insurance for the remainder of such severance period; 

  

	 	(iii)	vesting as of the last day of his employment in any unvested portion of any option and any restricted shares previously issued to the Executive by the Company Group;
and 

  

	 	(iv)	a bonus equal to the greater of (x) the average of all bonuses paid to the Executive (taking into account a payment of no bonus or a payment of a bonus of $0) over
the preceding thirty-six (36) months (or the period of the Executive’s employment if shorter), and (y) the most recent bonus paid to the Executive. Such bonus shall be paid to the Executive within sixty (60) days following the
end of the fiscal year in which such termination occurs. 

 None of the benefits described in this Section 6(c) will be payable unless the
Executive has signed a general release (attached hereto as Exhibit A) within 45 days of date of termination, which has (and not until it has) become irrevocable, satisfactory to the Company in the reasonable exercise of its discretion,
releasing the Company, its affiliates, including the REIT, and their officers, trustees and employees, from any and all claims or potential claims arising from or related to the Executive’s employment or termination of employment. 

 

	 	(d)	Termination Following Change in Control. If, during the Employment Period and within twelve (12) months following a Change in Control, the Company (or its
successor) terminates the Executive’s employment without Cause pursuant to Section 5(b) or the Executive terminates his employment for Good Reason pursuant to Section 5(c), the Executive shall be entitled to receive, in addition to
the items referenced in Section 6(a), the following: 

  

	 	(i)	continued payment of his Base Salary, at the rate in effect on his last day of employment, for a period of twenty-four (24) months (the “Control Change
Severance Payment”). The Control Change Severance Payment shall be paid in approximately equal installments on the Company’s regularly scheduled payroll dates, subject to all legally required payroll deductions and withholdings for sums
owed by the Executive to the Company Group; 

  

	 	(ii)	continued payment by the Company for the Executive’s life and health insurance coverage during the twenty-four (24) month severance period referenced in
Section 6(d)(i) to the same extent that the Company paid for such coverage immediately prior to the termination of the Executive’s employment and subject to the eligibility requirements and other terms and conditions of such insurance
coverage, provided that if any such insurance coverage shall become unavailable during the twenty-four (24) month severance period, the Company thereafter shall be obliged only to pay to the Executive an amount which, after reduction for income
and employment taxes, is equal to the employer premiums for such insurance for the remainder of such severance period; 

  

	 	(iii)	vesting as of the last day of his employment in any unvested portion of any option and any restricted shares previously issued to the Executive by the Company Group;
and 

  

	 	(iv)	a bonus equal to two (2) times the greater of (x) the average of all bonuses paid to the Executive (taking into account a payment of no bonus or a payment of
a bonus of $0) over the preceding thirty-six (36) months (or the period of the Executive’s employment if shorter), and (y) the most recent bonus paid to the Executive. Such bonus shall be paid to the Executive within sixty
(60) days following the end of the fiscal year in which such termination occurs. 

	 	(v)	            (A) In the event that any Control Change Severance Payment, insurance benefits, accelerated
vesting, pro-rated bonus or other benefit payable to the Executive (under this Agreement or otherwise), shall (1) constitute “parachute payments” within the meaning of Section 280G (as it may be amended or replaced) of the
Internal Revenue Code (the “Code”) (“Parachute Payments”) and (2) be subject to the excise tax imposed by Section 4999 (as it may be amended or replaced) of the Code (the “Excise Tax”), then the Company shall
pay to the Executive an additional amount (the “Gross-Up Amount”) such that the net benefits retained by the Executive after the deduction of the Excise Tax (including interest and penalties) and any federal, state or local income and
employment taxes (including interest and penalties) upon the Gross-Up Amount shall be equal to the benefits that would have been delivered hereunder had the Excise Tax not been applicable and the Gross-Up Amount not been paid. Any such Gross-Up
Amount shall be paid by the end of the taxable year following the taxable year in which the Excise Tax was paid. 

 (B) For purposes of determining the Gross-Up Amount: (1) Parachute Payments provided under arrangements with the Executive other than under any bonus or other incentive pay or equity plan or program
of the Company (collectively, the “Plan”) and this Agreement, if any, shall be taken into account in determining the total amount of Parachute Payments received by the Executive so that the amount of excess Parachute Payments that are
attributable to provisions of the Plan and Agreement is maximized; and (2) the Executive shall be deemed to pay federal, state and local income taxes at the highest marginal rate of taxation for the Executive’s taxable year in which the
Parachute Payments are includable in the Executive’s income for purposes of federal, state and local income taxation. 
 (C) The determination of whether the Excise Tax is payable, the amount thereof, and the amount of any Gross-Up Amount shall be made in writing in good faith by a nationally recognized independent
certified public accounting firm selected by the Company and approved by the Executive, such approval not to be unreasonably withheld (the “Accounting Firm”). If such determination is not finally accepted by the Internal Revenue Service
(or state or local revenue authorities) on audit, then appropriate adjustments shall be computed (including Executive’s return of excess payments) based upon the amount of Excise Tax and any interest or penalties so determined; provided,
however, that the Executive in no event shall owe the Company any interest on any portion of the Gross-Up Amount that is returned to the Company. For purposes of making the calculations required by this Section 6(d)(v), to the extent not
otherwise specified herein, reasonable assumptions and approximations

 
may be made with respect to applicable taxes and reasonable, good faith interpretations of the Code may be relied upon. The Company and the Executive shall furnish such information and documents
as may be reasonably requested in connection with the performance of the calculations under this Section 6(d)(v). The Company shall bear all costs incurred in connection with the performance of the calculations contemplated by this
Section 6(d)(v). The Company shall pay the Gross-Up Amount to the Executive no later than sixty (60) days following receipt of the Accounting Firm’s determination of the Gross-Up Amount. 
  

	 	(vi)	None of the benefits described in this Section 6(d) will be payable unless the Executive has signed a general release (attached hereto as Exhibit A) within
45 days of date of termination, which has (and not until it has) become irrevocable, satisfactory to the Company in the reasonable exercise of its discretion, releasing the Company, its affiliates, including the REIT, and their officers, trustees
and employees, from any and all claims or potential claims arising from or related to the Executive’s employment or termination of employment. 

  

	 	(vii)	For purposes of this Agreement, a “Change in Control” shall mean any of the following events: 

 (A) the dissolution or liquidation of the Company or a merger, consolidation, or reorganization of the Company with one or
more other entities in which the Company is not the surviving entity; 
 (B) a sale of substantially all of the
assets of the Company to another person or entity; or 
 (C) any transaction (including without limitation a
merger or reorganization in which the Company is the surviving entity) which results in any person or entity (other than persons who are shareholders or affiliates of the Company or affiliates of such shareholders immediately prior to the
transaction) owning 50% or more of the combined voting power of all classes of shares of beneficial interest of the Company. 
  

	 	(e)	Termination In the Event of Death or Disability. 

  

	 	(i)	If the Executive’s employment terminates because of his death, any unvested portion of any option and any restricted shares previously issued to the Executive by
the Company Group shall become fully vested as of the date of his death. In addition, the Executive’s estate shall be entitled to receive a pro-rata share of any performance bonus to which he otherwise would have been entitled for the fiscal
year in which his death occurs. 

	 	(ii)	In the event the Executive’s employment terminates due to his Disability, he shall be entitled to receive his Base Salary until such date as he shall commence
receiving disability benefits pursuant to any long-term disability insurance policy or plan provided to him by the Company Group. In addition, as of the effective date of the termination notice specified in Section 5(d), the Executive shall
vest in any unvested portion of any option and any restricted shares previously granted to him by the Company Group. The Executive also shall be entitled to receive a pro-rata share of any performance bonus to which he otherwise would have been
entitled for the fiscal year in which his employment terminates due to his Disability. 

  

	7.	Confidentiality 

  

	 	(a)	Definition of Proprietary Information. The Executive acknowledges that he may be furnished or may otherwise receive or have access to confidential information
which relates to the Company Group’s past, present or future business activities, strategies, services or products, research and development; financial analysis and data; improvements, inventions, processes, techniques, designs or other
technical data; profit margins and other financial information; fee arrangements; terms and contents of leases, asset management agreements and other contracts; tenant and vendor lists or other compilations for marketing or development; confidential
personnel and payroll information; or other information regarding administrative, management, financial, marketing, leasing or sales activities of the Company Group, or of a third party which provided proprietary information to the Company Group on
a confidential basis. All such information, including any materials or documents containing such information, shall be considered by the Company Group and the Executive as proprietary and confidential (the “Proprietary Information”).

  

	 	(b)	Exclusions. Notwithstanding the foregoing, Proprietary Information shall not include information in the public domain not as a result of a breach of any duty by
the Executive or any other person. 

  

	 	(c)	Obligations. Both during and after the Employment Period, the Executive agrees to preserve and protect the confidentiality of the Proprietary Information and all
physical forms thereof, whether disclosed to him before this Agreement is signed or afterward. In addition, the Executive shall not (i) disclose or disseminate the Proprietary Information to any third party, including employees of the Company
Group (or their affiliates) without a legitimate business need to know during the Employment Period; (ii) remove the Proprietary Information from the Company Group’s premises without a valid business purpose; or (iii) use the
Proprietary Information for his own benefit or for the benefit of any third party. 

  

	 	(d)	 Return of Proprietary Information. The Executive acknowledges and agrees that all the Proprietary Information used or generated during the
course of working for the Company Group is the property of the Company Group. The Executive

	 	 
agrees to deliver to the Company Group all documents and other tangibles (including diskettes and other storage media) containing the Proprietary Information at any time upon request by the Board
of Trustees during his employment and immediately upon termination of his employment. 

  

	8.	Noncompetition 

  

	 	(a)	Restriction on Competition. For the period of the Executive’s employment with the Company Group and for twelve (12) months following the expiration or
termination of the Executive’s employment by the Company Group (the “Restricted Period”), the Executive agrees not to engage, directly or indirectly, as an owner, director, trustee, manager, member, employee, consultant, partner,
principal, agent, representative, stockholder, or in any other individual, corporate or representative capacity, in any of the following: (i) any public or private lodging company, or (ii) any other business that the Company Group conducts
as of the date of the Executive’s termination of employment. Notwithstanding the foregoing, the Executive shall not be deemed to have violated this Section 8(a) solely by reason of his passive ownership of 1% or less of the outstanding
stock of any publicly traded corporation or other entity. 

  

	 	(b)	Non-Solicitation of Clients. During the Restricted Period, the Executive agrees not to solicit, directly or indirectly, on his own behalf or on behalf of any
other person(s), any client of the Company Group to whom the Company Group had provided services at any time during the Executive’s employment with the Company Group in any line of business that the Company Group conducts as of the date of the
Executive’s termination of employment or that the Company Group is actively soliciting, for the purpose of marketing or providing any service competitive with any service then offered by the Company Group. 

  

	 	(c)	Non-Solicitation of Employees. During the Restricted Period, the Executive agrees that he will not, directly or indirectly, hire or attempt to hire or cause any
business, other than an affiliate of the Company Group, to hire any person who is then or was at any time during the preceding six (6) months an employee of the Company Group and who is at the time of such hire or attempted hire, or was at the
date of such employee’s separation from the Company Group a vice president, senior vice president or executive vice president or other senior executive employee of the Company Group. 

  

	 	(d)	Acknowledgement. The Executive acknowledges that he will acquire much Proprietary Information concerning the past, present and future business of the Company
Group as the result of his employment, as well as access to the relationships between the Company and the REIT and their clients and employees. The Executive further acknowledges that the business of the Company Group is very competitive and that
competition by him in that business during his employment, or after his employment terminates, would severely injure the Company Group. The Executive understands and agrees that the restrictions contained in this Section 8 are reasonable and
are required for the Company Group’s legitimate protection, and do not unduly limit his ability to earn a livelihood. 

	 	(e)	Rights and Remedies upon Breach. The Executive acknowledges and agrees that any breach by him of any of the provisions of Sections 7 and 8 (the “Restrictive
Covenants”) would result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Executive breaches, or threatens to commit a breach of, any of the provisions of the Restrictive
Covenants, the Company and its affiliates, including the REIT, shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be
in addition to, and not in lieu of, any other rights and remedies available to the Company and its affiliates, including the REIT, under law or in equity (including, without limitation, the recovery of damages): 

  

	 	(i)	The right and remedy to have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages) by any court of competent
jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then
continuing, of such covenants; and 

  

	 	(ii)	The right and remedy to require the Executive to account for and pay over to the Company and its affiliates all compensation, profits, monies, accruals, increments or
other benefits (collectively, “Benefits”) derived or received by him as the result of any transactions constituting a breach of the Restrictive Covenants, and the Executive shall account for and pay over such Benefits to the Company and,
if applicable, its affected affiliates. 

  

	 	(f)	Without limiting Section 12(i), if any court or other decision-maker of competent jurisdiction determines that any of the Restrictive Covenants, or any part
thereof, is unenforceable because of the duration or geographical scope of such provision, then, after such determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such
provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced. 

  

	9.	Executive Representation 

 The Executive represents and warrants to the Company Group that he is not now under any obligation of a contractual or other nature to any person, business or other entity which is inconsistent or in conflict with this Agreement or which
would prevent him from performing his obligations under this Agreement. 

	10.	Arbitration 

  

	 	(a)	Except as provided in Section 10(b), any disputes between the Company Group and the Executive in any way concerning the Executive’s employment, the
termination of his employment, this Agreement or its enforcement shall be submitted at the initiative of either party to mandatory arbitration in Maryland before a single arbitrator pursuant to the Commercial Arbitration Rules of the American
Arbitration Association, or its successor, then in effect. The decision of the arbitrator shall be rendered in writing, shall be final, and may be entered as a judgment in any court in the State of Maryland. The parties irrevocably consent to the
jurisdiction of the federal and state courts located in Maryland for this purpose. Each party shall be responsible for its or his own costs incurred in such arbitration and in enforcing any arbitration award, including attorneys’ fees and
expenses. 

  

	 	(b)	Notwithstanding the foregoing, the Company or the REIT, in its sole discretion, may bring an action in any court of competent jurisdiction to seek injunctive relief and
such other relief as the Company or the REIT shall elect to enforce the Restrictive Covenants. If the courts of any one or more of such jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of breadth of scope or otherwise it
is the intention of the Company Group and the Executive that such determination not bar or in any way affect the Company Group’s right, or the right of any of its affiliates, to the relief provided in Section 8(e) above in the courts of
any other jurisdiction within the geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in such other respective jurisdictions, such Restrictive Covenants as they relate to each jurisdiction being, for this
purpose, severable, diverse and independent covenants, subject, where appropriate, to the doctrine of res judicata. The parties hereby agree to waive any right to a trial by jury for any and all disputes hereunder (whether or not relating to the
Restrictive Covenants). 

  

	11.	Required Delay For Certain Deferred Compensation and Section 409A. 

 In the event that any compensation with respect to the Executive’s termination is “deferred compensation” within the meaning
of Section 409A of the Code (“Section 409A”), the common shares of beneficial interest of the Company or any affiliate is publicly traded on an established securities market or otherwise, and the Executive is determined to be a
“specified employee,” as defined in Section 409A(a)(2)(B)(i) of the Code, payment of such compensation shall be delayed as required by Section 409A. Such delay shall last six (6) months from the date of the Executive’s
“separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) with the Company, except in the event of the Executive’s death. On the first day of the seventh month following the date of separation from service
with the Company, or, if earlier, the Executive’s death, the Company will make a catch-up payment to the Executive equal to the total amount of such payments that would have been made during the six (6)-month period but for this
Section 11. Such catch-up payment shall bear simple interest at the prime rate of interest as published by The Wall Street Journal’s bank survey as of the first day of the six (6)-month period, which such interest shall be paid with
the catch-up payment. Wherever payments under

 
this Agreement are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Section 409A. Whenever a payment under this Agreement specifies
a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company. 
  

	12.	Miscellaneous 

  

	 	(a)	Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed effective (i) upon personal delivery, (ii) upon
deposit with the United States Postal Service, by registered or certified mail, postage prepaid, or (iii) in the case of facsimile transmission or delivery by nationally recognized overnight delivery service, when received, addressed as
follows: 

  

	 	(i)	If to the Company or the REIT, to: 

 Chesapeake Lodging Trust 
 710 Route 46 East 
 Suite 206 
 Fairfield, NJ 07004 
 Attention: Chief Financial Officer

 Fax No. (201) 599-0527 
  

	 	(ii)	If to the Executive, to: 

 D. Rick Adams 
 Address on file with the REIT 
 or to such other address or addresses as either party shall designate to the other in writing from time to time by like notice. 

 

	 	(b)	Pronouns. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular forms of nouns and pronouns shall include the plural, and vice versa. 

  

	 	(c)	Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or
oral, relating to the subject matter of this Agreement. 

  

	 	(d)	Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company and the Executive, which amendment or modification
is consented to by the REIT. 

  

	 	(e)	Governing Law. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of Maryland, without regard to its conflicts
of laws principles. 

	 	(f)	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any
entity with which or into which the Company or the REIT may be merged or which may succeed to its assets or business or any entity to which the Company or the REIT may assign its rights and obligations under this Agreement; provided, however, that
the obligations of the Executive are personal and shall not be assigned or delegated by him. 

  

	 	(g)	Waiver. No delays or omission by the Company, the REIT or the Executive in exercising any right under this Agreement shall operate as a waiver of that or any
other right. A waiver or consent by the Company shall not be effective unless consented to by the REIT. A waiver or consent given by the Company or the Executive on any one occasion shall be effective only in that instance and shall not be construed
as a bar or waiver of any right on any other occasion. 

  

	 	(h)	Captions. The captions appearing in this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any
section of this Agreement. 

  

	 	(i)	Severability. In case any provision of this Agreement shall be held by a court or arbitrator with jurisdiction over the parties to this Agreement to be invalid,
illegal or otherwise unenforceable, such provision shall be restated to reflect as nearly as possible the original intentions of the parties in accordance with applicable law, and the validity, legality and enforceability of the remaining provisions
shall in no way be affected or impaired thereby. 

  

	 	(j)	Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument. 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written. 
  

			
	CHESAPEAKE LODGING TRUST
		
	By:	 	  

		 	James L. Francis
		 	President and Chief Executive Officer
	
	CHESAPEAKE LODGING, L.P.
		
	By:	 	Chesapeake Lodging Trust, itsgeneral partner
		
	By:	 	  

		 	James L. Francis
		 	President and Chief Executive Officer
	
	D. RICK ADAMS
		
		 	  

 Exhibit A 
 WAIVER AND RELEASE AGREEMENT 
 THIS WAIVER AND RELEASE
AGREEMENT (this “Release”) is entered into as of [            ] (the “Effective Date”), by D. Rick Adams (“Executive”) in consideration of
severance pay (the “Severance Payment”) provided to Executive by Chesapeake Lodging Trust, a Maryland real estate investment trust (the “Company”), pursuant to the Employment Agreement by and between the Company,
Chesapeake Lodging, L.P. and Executive (the “Employment Agreement”). 
 1. Waiver and Release.
Subject to the last sentence of the first paragraph of this Section 1, Executive, on his own behalf and on behalf of his heirs, executors, administrators, attorneys and assigns, hereby unconditionally and irrevocably releases, waives and
forever discharges the Company and each of its affiliates, parents, successors, predecessors, and the subsidiaries, directors, trustees, owners, members, shareholders, officers, agents, and employees of the Company and its affiliates, parents,
successors, predecessors, and subsidiaries (collectively, all of the foregoing are referred to as the “Employer”), from any and all causes of action, claims and damages, including attorneys’ fees, whether known or unknown,
foreseen or unforeseen, presently asserted or otherwise arising through the date of his signing of this Release, concerning his employment or separation from employment. Subject to the last sentence of the first paragraph of this Section 1,
this Release includes, but is not limited to, any payments, benefits or damages arising under any federal law (including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Employee
Retirement Income Security Act of 1974, the Americans with Disabilities Act, Executive Order 11246, the Family and Medical Leave Act, and the Worker Adjustment and Retraining Notification Act, each as amended); any claim arising under any state or
local laws, ordinances or regulations (including, but not limited to, any state or local laws, ordinances or regulations requiring that advance notice be given of certain workforce reductions); and any claim arising under any common law principle or
public policy, including, but not limited to, all suits in tort or contract, such as wrongful termination, defamation, emotional distress, invasion of privacy or loss of consortium. Notwithstanding any other provision of this Release to the
contrary, this Release does not encompass, and Executive does not release, waive or discharge, the obligations of the Company (a) to make the payments and provide the other benefits contemplated by the Employment Agreement, or (b) under
any restricted shares agreement, option agreement or other agreement pertaining to Executive’s equity ownership, or (c) under any indemnification or similar agreement with Executive. 
 Executive understands that by signing this Release, he is not waiving any claims or administrative charges which cannot be waived by law.
He is waiving, however, any right to monetary recovery or individual relief should any federal, state or local agency (including the Equal Employment Opportunity Commission) pursue any claim on his behalf arising out of or related to his employment
with and/or separation from employment with the Company. 

 Executive further agrees without any reservation whatsoever, never to sue the Employer or
become a party to a lawsuit on the basis of any and all claims of any type lawfully and validly released in this Release. 
 2.
Acknowledgments. Executive is signing this Release knowingly and voluntarily. He acknowledges that: 
  

	 	(a)	He is hereby advised in writing to consult an attorney before signing this Release; 

  

	 	(b)	He has relied solely on his own judgment and/or that of his attorney regarding the consideration for and the terms of this Release and is signing this Release knowingly
and voluntarily of his own free will; 

  

	 	(c)	He is not entitled to the Severance Payment unless he agrees to and honors the terms of this Release; 

  

	 	(d)	He has been given at least twenty-one (21) calendar days to consider this Release, or he or she expressly waives his right to have at least twenty-one
(21) days to consider this Release; 

  

	 	(e)	He may revoke this Release within seven (7) calendar days after signing it by submitting a written notice of revocation to the Employer. He further understands
that this Release is not effective or enforceable until after the seven (7) day period of revocation has expired without revocation, and that if he or she revokes this Release within the seven (7) day revocation period, he will not receive
the Severance Payment; 

  

	 	(f)	He has read and understands the Release and further understands that, subject to the limitations contained herein, it includes a general release of any and all known
and unknown, foreseen or unforeseen claims presently asserted or otherwise arising through the date of his signing of this Release that he may have against the Employer; and 

  

	 	(g)	No statements made or conduct by the Employer has in any way coerced or unduly influenced him or her to execute this Release. 

 3. No Admission of Liability. This Release does not constitute an admission of liability or wrongdoing on the part of the
Employer, the Employer does not admit there has been any wrongdoing whatsoever against the Executive, and the Employer expressly denies that any wrongdoing has occurred. 
 4. Entire Agreement. There are no other agreements of any nature between the Employer and Executive with respect to the matters discussed in this Release, except as expressly stated herein,
and in signing this Release, Executive is not relying on any agreements or representations, except those expressly contained in this Release. 

 5. Execution. It is not necessary that the Employer sign this Release
following Executive’s full and complete execution of it for it to become fully effective and enforceable. 
 6.
Severability. If any provision of this Release is found, held or deemed by a court of competent jurisdiction to be void, unlawful or unenforceable under any applicable statute or controlling law, the remainder of this Release shall
continue in full force and effect. 
 7. Governing Law. This Release shall be governed by the laws of the State of
Maryland, excluding the choice of law rules thereof. 
 8. Headings. Section and subsection headings contained in
this Release are inserted for the convenience of reference only. Section and subsection headings shall not be deemed to be a part of this Release for any purpose, and they shall not in any way define or affect the meaning, construction or scope of
any of the provisions hereof. 
 IN WITNESS WHEREOF, the undersigned has duly executed this Agreement as of the day and year
first herein above written. 
  

	
	EXECUTIVE:
	
	  

	D. Rick AdamsExhibit 10.4

 Exhibit 10.4 
  
  
 CHESAPEAKE LODGING TRUST 
 EQUITY PLAN 
  
  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page
			
	 1.
	 	PURPOSE	  	1
	 2.
	 	DEFINITIONS	  	1
	 3.
	 	ADMINISTRATION OF THE PLAN	  	5
		 	3.1.	 	Board	  	5
		 	3.2.	 	Committee	  	5
		 	3.3.	 	Terms of Awards	  	6
		 	3.4.	 	Deferral Arrangement	  	7
		 	3.5.	 	No Liability	  	7
		 	3.6.	 	Share Issuance/Book-Entry	  	7
		 	3.7.	 	No Repricing	  	7
	 4.
	 	SHARE SUBJECT TO THE PLAN	  	7
		 	4.1.	 	Number of Shares Available for Awards and Share Usage	  	7
		 	4.2.	 	Adjustments in Authorized Shares	  	8
	 5.
	 	DURATION AND AMENDMENTS	  	8
		 	5.1.	 	Effective Date	  	8
		 	5.2.	 	Term	  	8
		 	5.3.	 	Amendment and Termination of the Plan	  	8
	 6.
	 	AWARD ELIGIBILITY AND LIMITATIONS	  	9
		 	6.1.	 	Service Providers; Outside Trustees; Other Persons	  	9
		 	6.2.	 	Successive Awards	  	9
		 	6.3.	 	Limitation on Shares Subject to Awards and Cash Awards	  	9
		 	6.4.	 	Stand-Alone, Additional, Tandem, and Substitute Awards	  	9
	 7.
	 	AWARD AGREEMENT	  	10
	 8.
	 	TERMS AND CONDITIONS OF OPTIONS	  	10
		 	8.1.	 	Option Price	  	10
		 	8.2.	 	Vesting	  	10
		 	8.3.	 	Term	  	10
		 	8.4.	 	Termination of Service	  	10
		 	8.5.	 	Method of Exercise	  	10
		 	8.6.	 	Rights of Holders of Options	  	11
		 	8.7.	 	Delivery of Share Certificates	  	11
		 	8.8.	 	Limitations on Incentive Share Options	  	11
		 	8.9.	 	Notice of Disqualifying Disposition	  	11
	 9.
	 	TRANSFERABILITY OF OPTIONS	  	11
		 	9.1.	 	Transferability of Options	  	11
		 	9.2.	 	Transfers	  	11
	 10.
	 	SHARE APPRECIATION RIGHTS	  	12
		 	10.1.	 	Right to Payment	  	12
		 	10.2.	 	Other Terms	  	12
	 11.
	 	RESTRICTED SHARES AND SHARE UNITS	  	13
		 	11.1.	 	Grant of Restricted Shares or Share Units	  	13

  

 - i - 

									
		 	11.2.	 	Restrictions	  	13
		 	11.3.	 	Restricted Shares Certificates	  	13
		 	11.4.	 	Rights of Holders of Restricted Shares	  	13
		 	11.5.	 	Rights of Holders of Share Units	  	14
		 		 	11.5.1.	 	No Voting and Dividend Rights	  	14
		 		 	11.5.2.	 	Creditor’s Rights	  	14
		 	11.6.	 	Termination of Service	  	14
		 	11.7.	 	Purchase of Restricted Shares	  	14
		 	11.8.	 	Delivery of Shares	  	14
	 12.
	 	UNRESTRICTED SHARES AWARDS	  	15
	 13.
	 	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED SHARES AND SHARE UNITS	  	15
		 	13.1.	 	General Rule	  	15
		 	13.2.	 	Surrender of Shares	  	15
		 	13.3.	 	Cashless Exercise	  	15
		 	13.4.	 	Other Forms of Payment	  	15
	14. DIVIDEND EQUIVALENT RIGHTS	  	16
		 	14.1.	 	Dividend Equivalent Rights	  	16
		 	14.2.	 	Termination of Service	  	16
	15. PERFORMANCE AND ANNUAL INCENTIVE AWARDS	  	16
		 	15.1.	 	Performance Conditions	  	16
		 	15.2.	 	Performance or Annual Incentive Awards Granted to Designated Covered Employees	  	17
		 		 	15.2.1.	 	Performance Goals Generally	  	17
		 		 	15.2.2.	 	Business Criteria	  	17
		 		 	15.2.3.	 	Timing For Establishing Performance Goals	  	17
		 		 	15.2.4.	 	Performance or Annual Incentive Award Pool	  	18
		 		 	15.2.5.	 	Settlement of Performance or Annual Incentive Awards; Other Terms	  	18
		 	15.3.	 	Written Determinations	  	18
		 	15.4.	 	Status of Section 15.2 Awards Under Code Section 162(m)	  	18
	 16.
	 	PARACHUTE LIMITATIONS	  	18
	 17.
	 	REQUIREMENTS OF LAW	  	19
		 	17.1.	 	General	  	19
		 	17.2.	 	Rule 16b-3	  	20
	18. EFFECT OF CHANGES IN CAPITALIZATION	  	20
		 	18.1.	 	Changes in Shares	  	20
		 	18.2.	 	Changes in Capitalization; Merger; Liquidation	  	21
		 	18.3.	 	Adjustments	  	21
		 	18.4.	 	No Limitations on Company	  	21
	 19.
	 	GENERAL PROVISIONS	  	21
		 	19.1.	 	Disclaimer of Rights	  	21
		 	19.2.	 	Nonexclusivity of the Plan	  	22
		 	19.3.	 	Withholding Taxes	  	22

  

 - ii - 

									
		 	19.4.	 	Captions	  	23
		 	19.5.	 	Other Provisions	  	23
		 	19.6.	 	Number And Gender	  	23
		 	19.7.	 	Severability	  	23
		 	19.8.	 	Governing Law	  	23
		 	19.9.	 	Code Section 409A	  	23

  

 - iii - 

 CHESAPEAKE LODGING TRUST 
 EQUITY PLAN 
 Chesapeake Lodging Trust, a Maryland
real estate investment trust (the “Company”), sets forth herein the terms of its Equity Plan (as amended from time to time, the “Plan”), as follows: 
  

	1.	PURPOSE 

 This Plan is
intended to (a) provide incentive to eligible persons to stimulate their efforts toward the continued success of the Company and to operate and manage their businesses in a manner that will provide for the long-term growth and profitability of
the Company; and (b) provide a means of obtaining, rewarding and retaining key personnel. To this end, the Plan provides for the grant of share options, share appreciation rights, restricted shares, share units, unrestricted shares, dividend
equivalent rights and cash awards. Any of these awards may, but need not, be made as performance incentives to reward attainment of annual or long-term performance goals in accordance with the terms hereof. Share options granted under the Plan may
be non-qualified share options or incentive share options, as provided herein. 
  

	2.	DEFINITIONS 

 For purposes
of interpreting the Plan and related documents (including Award Agreements), the following definitions shall apply: 
 2.1
“Affiliate” means, with respect to the Company, any company or other trade or business that controls, is controlled by or is under common control with the Company within the meaning of Rule 405 of Regulation C under the Securities
Act, including, without limitation, any Subsidiary. For purposes of granting Options or Share Appreciation Rights, an entity may not be considered an Affiliate unless the Company holds a “controlling interest” in such entity, where the
term “controlling interest” has the same meaning as provided in Treasury Regulations section 1.414(c)-2(b)(2)(i), provided that the language “at least 50 percent” is used instead of “at least 80 percent” and, provided
further, that where granting of Options or Share Appreciation Rights is based upon a legitimate business criteria, the language “at least 20 percent” is used instead of “at least 80 percent” each place it appears in Treasury
Regulations section 1.414(c)-2(b)(2)(i). 
 2.2 “Annual Incentive Award” means an Award made subject to
attainment of performance goals (as described in Section 15) over a performance period of up to and including one year (the fiscal year, unless otherwise specified by the Committee). 
 2.3 “Award” means a grant of an Option, Share Appreciation Right, Restricted Share, Unrestricted Share, Share Unit,
Dividend Equivalent Right, or cash award under the Plan. 
 2.4 “Award Agreement” means the written or
electronic agreement between the Company and a Grantee that evidences and sets out the terms and conditions of an Award. 
 2.5
“Benefit Arrangement” shall have the meaning set forth in Section 16 hereof. 
 2.6
“Board” means the Board of Trustees of the Company. 

 2.7 “Cause” unless otherwise provided by the Board or the Committee in the
Award Agreement, has the same meaning as provided in the employment agreement between the Service Provider and the Company or any Affiliate of the Company, on the date of Termination of Employment, or if no such definition or employment agreement
exists, “Cause” means conduct amounting to (i) fraud or dishonesty against the Company or any Affiliate of the Company, (ii) Service Provider’s willful misconduct, repeated refusal to follow the reasonable directions of the
Board, any executive officer or departmental head of the Company or any Affiliate, or knowing violation of law in the course of performance of the duties of Service Provider’s employment with the Company or any Affiliate of the Company,
(iii) repeated absences from work without a reasonable excuse, (iv) intoxication with alcohol or drugs while on the Company’s or any Affiliate of the Company’s premises or while performing Services for the Company or any of its
Affiliates, (v) a conviction or plea of guilty or nolo contendere to a felony or a crime involving dishonesty, or (vi) a material breach or violation of the terms of any employment or other agreement to which Service Provider and the
Company, or, if applicable, any Affiliate of the Company are parties. 
 2.8 “Code” means the Internal Revenue
Code of 1986, as now in effect or as hereafter amended. 
 2.9 “Committee” means the Compensation Committee of
the Board or other committee of the Board to which authority has been delegated pursuant to Section 3.2. 
 2.10
“Company” means Chesapeake Lodging Trust, a Maryland real estate trust. 
 2.11 “Corporate
Transaction” means (i) the dissolution or liquidation of the Company or a merger, consolidation, or reorganization of the Company with one or more other entities in which the Company is not the surviving entity, (ii) a sale of
substantially all of the assets of the Company to another person or entity, or (iii) any transaction (including without limitation a merger or reorganization in which the Company is the surviving entity) which results in any person or entity
(other than persons who are shareholders or Affiliates of the Company or Affiliates of such shareholders immediately prior to the transaction) owning 50% or more of the combined voting power of all classes of shares of beneficial interest of the
Company. 
 2.12 “Covered Employee” means a Grantee who is a Covered Employee within the meaning of
Section 162(m)(3) of the Code. 
 2.13 “Disability” has the same meaning as provided in the long-term
disability plan or policy maintained by the Company or, if applicable, any Affiliate of the Company for the Service Provider. If no long-term disability plan or policy was ever maintained on behalf of the Service Provider, Disability shall mean that
condition described in Code Section 22(e)(3), as amended from time to time. In the event of a dispute, the determination of Disability shall be made by the Board and shall be supported by advice of a physician competent in the area to which
such Disability relates. 
 2.14 “Dividend Equivalent” means a right, granted to a Grantee under
Section 14 hereof, to receive cash, Shares, other Awards or other property equal in value to dividends paid with respect to a specified number of Shares, or other periodic payments. 
  

 - 2 - 

 2.15 “Exchange Act” means the Securities Exchange Act of 1934, as now in
effect or as hereafter amended. 
 2.16 “Fair Market Value” means the value of a Share, determined as follows:
if on the Grant Date or other determination date the Shares are listed on an established national or regional stock exchange, or is publicly traded on an established securities market, the Fair Market Value of a Share shall be the closing price of
the Shares on such exchange or in such market (if there is more than one such exchange or market, the principal exchange or market on which the Shares are listed) on the Grant Date or such other determination date or, if no sale of Shares is
reported for such date, the Fair Market Value shall be the Fair Market Value on the next preceding day on which any sale shall have been reported. If the Shares are not listed on such an exchange, quoted on such system or traded on such a market,
Fair Market Value shall be the value of the Shares as determined by the Board in good faith. For purposes of determining taxable income and the amount of the related tax withholding obligation under Section 19.3, notwithstanding this
Section 2.16 or Section 19.3, for any Shares that are sold on the same day that such shares are first legally saleable pursuant to the terms of the applicable award agreement, Fair Market Value shall be determined based upon the sale price
for such Shares so long as the grantee has provided the Company with advance written notice of such sale. 
 2.17
“Family Member” means a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law,
or sister-in-law, including adoptive relationships, of the Grantee, any person sharing the Grantee’s household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent of the beneficial
interest, a foundation in which any one or more of these persons (or the Grantee) control the management of assets, and any other entity in which one or more of these persons (or the Grantee) own more than fifty percent of the voting interests.

 2.18 “Grant Date” means, as determined by the Board or the Committee, the latest to occur of (i) the
date as of which the Board or such Committee approves an Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award under Section 6 hereof, or (iii) such other date as may be specified by
the Board or such Committee. 
 2.19 “Grantee” means a person who receives or holds an Award under the Plan.

 2.20 “Incentive Share Option” means an “incentive stock option” within the meaning of
Section 422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time. 
 2.21 “Non-qualified Share Option” means an Option that is not an Incentive Share Option. 
 2.22
“Option” means an option to purchase one or more Shares pursuant to the Plan. 
 2.23 “Option
Price” means the purchase price for each Share subject to an Option. 
 2.24 “Other Agreement” shall
have the meaning set forth in Section 16 hereof. 
 2.25 “Outside Trustee” means a member of the
Board who is not an officer or employee of the Company. 
  

 - 3 - 

 2.26 “Performance Award” means an Award made subject to the attainment of
performance goals (as described in Section 15) over a performance period of more than one year. 
 2.27
“Plan” means this Chesapeake Lodging Trust Equity Plan, as amended, modified or restated from time to time. 
 2.28 “Purchase Price” means the purchase price for each Share pursuant to a grant of Restricted Shares or Share Units. 
 2.29 “Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange Act. 
 2.30 “Restricted Shares” means Shares, awarded to a Grantee pursuant to Section 11 hereof. 
 2.31 “SAR Exercise Price” means the per share exercise price of an SAR granted to a Grantee under Section 10
hereof. 
 2.32 “Securities Act” means the Securities Act of 1933, as now in effect or as hereafter amended.

 2.33 “Service” means service as an employee, officer, Outside Trustee or other Service Provider of the
Company or an Affiliate. Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be an employee, officer,
Outside Trustee or other Service Provider of the Company or an Affiliate. Subject to the preceding sentence, whether a termination of Service shall have occurred for purposes of the Plan shall be determined by the Board, which determination shall be
final, binding and conclusive. 
 2.34 “Service Provider” means an employee, officer or Outside Trustee of the
Company or an Affiliate, or an individual who is a consultant or adviser providing services to the Company or an Affiliate. 
 2.35 “Shares” means the common shares of beneficial interest, par value $.01 per share, of the Company. 
 2.36 “Share Appreciation Right” or “SAR” means a right granted to a Grantee under Section 10 hereof. 
 2.37 “Share Unit” means a bookkeeping entry representing the equivalent of a Share, awarded to a Grantee pursuant to Section 11 hereof. 
 2.38 “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of
the Code. 
 2.39 “Substitute Award” means an Award granted upon assumption of, or in substitution for, an
outstanding award previously granted by a company or other entity acquired by the Company or any Affiliate with which the Company or any Affiliate combines. 
  

 - 4 - 

 2.40 “Termination Date” means the date upon which an Option or SAR shall
terminate or expire, as set forth in Section 8.3 hereof. 
 2.41 “Ten Percent Shareholder” means an
employee who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding shares of beneficial interest in the Company or any of its Subsidiaries. In determining share ownership, the attribution rules of
Section 424(d) of the Code shall be applied. 
 2.42 “Unrestricted Share” means an Award pursuant to
Section 12 hereof. 
  

	3.	ADMINISTRATION OF THE PLAN 

 3.1. Board 
 The Board shall have such powers and authorities related to the administration of the Plan as are
consistent with the Company’s declaration of trust and by-laws, in each case, as amended, modified or supplemented from time to time, and applicable law. The Board shall have full power and authority to take all actions and to make all
determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and
provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan, any Award or any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the
Board present at a meeting or by unanimous consent of the Board executed in writing in accordance with the Company’s declaration of trust and by-laws, in each case, as amended, modified or supplemented from time to time, and applicable law. The
interpretation and construction by the Board of any provision of the Plan, any Award or any Award Agreement shall be final and conclusive. 
 3.2. Committee 
 The Board from time to time may delegate to the Committee
such powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 above and other applicable provisions, as the Board shall determine, consistent with the declaration of trust and
by-laws of the Company, in each case, as amended, modified or supplemented from time to time, and applicable law. The Board may also appoint one or more separate committees of the Board, each composed of one or more trustees of the Company who need
not be Outside Trustees, who may administer the Plan with respect to employees or other Service Providers who are not executive officers or trustees of the Company or its Affiliates, may grant Awards under the Plan to such employees or other Service
Providers, and may determine all terms of such Awards. In addition, the Committee may delegate to one or more executive officers of the Company or its Affiliates the authority to grant Awards to employees or other Service Providers who are not
executive officers or trustees of the Company. Such delegation shall specify the maximum number of Shares that may be granted by such officer(s), as well as the time period during which the delegation shall remain in effect. In the event that the
Plan, any Award or any Award Agreement entered into hereunder provides for any action to be taken by or determination to be made by the Board, such action may be taken or such determination may be made by the Committee if the power and authority to
do so has been delegated to the Committee by the Board as provided for in this Section. Unless otherwise expressly determined by the Board, any such action or determination by the Committee shall be final, binding and conclusive. To the extent
permitted by law, the Committee may delegate its authority under the Plan to a member of the Board. 
  

 - 5 - 

 3.3. Terms of Awards 
 Subject to the other terms and conditions of the Plan, the Board shall have full and final authority to: 
 (i) designate Grantees, 
 (ii) determine the type or types of Awards to be made to a Grantee, 
 (iii) determine the number of Shares to be
subject to an Award, 
 (iv) establish the terms and conditions of each Award (including, but not limited to, the exercise price
of any Option, the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the Shares subject thereto, the treatment of an Award in the event of a
Corporate Transaction and any terms or conditions that may be necessary to qualify Options as Incentive Share Options), 
 (v)
prescribe the form of each Award Agreement evidencing an Award, and 
 (vi) amend, modify, or supplement the terms of any
outstanding Award, subject to Section 3.7. Such authority specifically includes the authority, in order to effectuate the purposes of the Plan but without amending the Plan, to make or modify Awards to eligible individuals who are foreign
nationals or are individuals who are employed outside the United States to recognize differences in local law, tax policy, or custom. 
 The Board shall have the right, in its discretion, to make Awards in substitution or exchange for any other award under another plan of the Company, any Affiliate, or any business entity to be acquired by
the Company or an Affiliate. The Committee may retain the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any
non-competition agreement, any agreement prohibiting solicitation of employees or clients of the Company or any Affiliate thereof or any confidentiality obligation with respect to the Company or any Affiliate thereof, to the extent specified in such
Award Agreement applicable to the Grantee. Furthermore, the Company may annul an Award if the Grantee is an employee of the Company or an Affiliate thereof and is terminated for Cause as defined in the applicable Award Agreement or the Plan or any
other agreement with the Grantee, as applicable. 
 Furthermore, if the Company is required to prepare an accounting restatement
due to the material noncompliance of the Company as a result of misconduct, with regard to any financial reporting requirement under the securities laws, the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley
Act of 2002 and any Grantee who knowingly engaged in the misconduct, was grossly negligent in engaging in the misconduct, knowingly failed to prevent the misconduct or was grossly negligent in failing to prevent the misconduct, shall reimburse the
Company the amount of any payment in settlement of an Award earned or accrued during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the
financial document that contained such material noncompliance. 
 Notwithstanding any other provision of this Plan or any
provision of any Award Agreement, if the Company is required to prepare an accounting restatement, then Grantees shall forfeit any cash or Shares received in connection with an Award (or an amount equal to the fair market value of such
Shares on the date of delivery if the Grantee no longer holds the Shares) if pursuant to the terms of the Award

  

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Agreement for such Award, the amount of the Award earned or the vesting in the Award was explicitly based on the achievement of pre-established performance goals set forth in the Award Agreement
(including earnings, gains, or other criteria) that are later determined, as a result of the accounting restatement, not to have been achieved. 
 3.4. Deferral Arrangement 
 The Board may permit or require the deferral of
any award payment into a deferred compensation arrangement, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest or dividend equivalents, including converting such credits
into deferred Share equivalents and restricting deferrals to comply with hardship distribution rules affecting 401(k) plans. Any such deferrals shall be made in a manner that complies with Code Section 409A. 
 3.5. No Liability 
 No member of the Board or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award or Award Agreement. 
 3.6. Share Issuance/Book-Entry. 
 Notwithstanding any other provision of this Plan to the contrary, the issuance of the Shares under the Plan may be evidenced in such a manner as the Board, in its discretion, deems appropriate, including,
without limitation, book-entry registration or issuance of one or more share certificates. 
 3.7. No Repricing.

 Other than pursuant to Section 18 and except in connection with a Corporate Transaction involving the Company
and/or any share dividend, share split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares, notwithstanding any other provision in the Plan to the contrary,
the terms of outstanding Options or SARs may not be amended without shareholder approval to (i) reduce their Option Price or SAR Exercise Price, as applicable or (ii) cancel, exchange, substitute, buyout or surrender such outstanding
Options or SARs in exchange for cash, other Awards or Options or SARs with an Option Price or SAR Exercise Price, as applicable, that is less than the Option Price or SAR Exercise Price, as applicable, of the original Options or SARs. 
  

	4.	SHARES SUBJECT TO THE PLAN 

 4.1. Number of Shares Available for Awards and Share Usage 
 Subject to adjustment as provided in
Section 18 hereof, the number of Shares available for issuance under the Plan shall be 735,756, which amount shall, if the underwriters for the initial registered public offering of the Shares exercise their over-allotment option to
purchase additional Shares pursuant to their underwriting agreement, be increased 45 days following the consummation of the initial registered public offering of the Shares by five percent (5%) of the number of Shares issued by the Company
pursuant to the exercise of the underwriter’s over-allotment option with respect to such public offering. 735,756 Shares available for issuance under the Plan may be awarded as Incentive Share Options. Any Shares that are subject to Awards
shall be counted against this limit as one (1) Share for every one (1) Share issued.

  

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Shares issued or to be issued under the Plan shall be authorized but unissued Shares. If any Shares covered by an Award granted under the Plan are not purchased or are forfeited or expire, or if
an award in either case otherwise terminates without delivery of any Shares subject thereto or is settled in cash in lieu of Shares, then the number of Shares counted against the aggregate number of Shares available under the Plan with respect to
such Award shall, to the extent of any such forfeiture, termination or expiration, again be available for making Awards under the Plan as set forth in this Section 4.1. Any Shares that again become available for grant pursuant to this
Section 4.1 shall be added back as one (1) Share. Shares issued pursuant to Awards granted in substitution for awards held by employees of a business entity acquired by the Company or an Affiliate shall not count against the Shares
available for issuance under the Plan. 
 4.2. Adjustments in Authorized Shares. 
 The Board shall have the right to substitute or assume Awards in connection with mergers, reorganizations, separations, or other transactions
to which Section 424(a) of the Code applies. The number of Shares reserved pursuant to Section 4.1 shall be increased by the corresponding number of awards assumed and, in the case of a substitution, by the net increase in the
number of Shares subject to awards before and after the substitution. Available shares under a shareholder approved plan of an acquired company (as appropriately adjusted to reflect the transaction) may be used for Awards under the Plan and do not
reduce the number of Shares available under the Plan, subject to applicable stock exchange requirements. 
  

	5.	DURATION AND AMENDMENTS 

 5.1. Effective Date 
 The Plan shall be effective as of the Effective Date, subject to approval of the Plan by
the Company’s shareholders within one year of the Effective Date. Upon approval of the Plan by the shareholders of the Company as set forth above, all Awards made under the Plan on or after the Effective Date shall be fully effective as if the
shareholders of the Company had approved the Plan on the Effective Date. If the shareholders fail to approve the Plan within one year of the Effective Date, any Awards made hereunder shall be null and void and of no effect. 
 5.2. Term 
 The Plan shall terminate automatically on [            ] and may be terminated on any earlier date as provided in Section 5.3. 
 5.3. Amendment and Termination of the Plan 
 The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any Shares as to which Awards have not been made. An amendment shall be contingent on approval of the
Company’s shareholders only (i) to the extent stated by the Board or required by applicable law or (ii) if the amendment would (A) materially increase the benefits accruing to participants under the Plan, (B) materially
increase the aggregate number of Shares that may be issued under the Plan, or (C) materially modify the requirements as to eligibility for participation in the Plan. No amendment will be made to the no repricing provisions of Section 8 of
the Plan without the approval of the Company’s shareholders. No amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, impair rights or obligations under any Award theretofore awarded under the Plan.

  

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	6.	AWARD ELIGIBILITY AND LIMITATIONS 

 6.1. Service Providers; Outside Trustees; Other Persons 
 Subject to this Section 6, Awards may be
made under the Plan to: (i) any Service Provider to the Company or of any Affiliate, including any such Service Provider who is an officer or trustee of the Company, or of any Affiliate, as the Board shall determine and designate from time to
time and (ii) any other individual whose participation in the Plan is determined to be in the best interests of the Company by the Board. 
 6.2. Successive Awards 
 An eligible person may receive more than one Award,
subject to such restrictions as are provided herein. 
 6.3. Limitation on Shares Subject to Awards and Cash Awards

 (i) the maximum number of Shares subject to Options or SARs that can be issued under the Plan to any person eligible for
an Award under Section 6 hereof is 350,000 (three hundred fifty thousand) in any calendar year; 
 (ii) the maximum
number of Shares that can be issued under the Plan, other than pursuant to an Option, SAR, or Restricted Shares or Share Unit grant that is not performance based, to any person eligible for an Award under Section 6 hereof is 350,000
(three hundred fifty thousand) in any calendar year; 
 (iii) the maximum amount that may be earned as an Annual Incentive Award
or other cash Award in any fiscal year by any one Grantee shall be $5,000,000 and the maximum amount that may be earned as a Performance Award or other cash Award in respect of a performance period by any one Grantee shall be $15,000,000.

 The preceding limitations in this Section 6.3 are subject to adjustment as provided in Section 18 hereof.

 6.4. Stand-Alone, Additional, Tandem, and Substitute Awards 
 Subject to Section 3.7, Awards granted under the Plan may, in the discretion of the Board, be granted either alone or in addition
to, in tandem with, or in substitution or exchange for, any other Award or any award granted under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate, or any other right of a Grantee to
receive payment from the Company or any Affiliate. Such additional, tandem, and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Board shall require the surrender of
such other Award in consideration for the grant of the new Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash amounts payable under other plans of the Company or any Affiliate. Notwithstanding
Sections 8.1 and 10.1 but subject to Section 3.7, the Option Price of an Option or the grant price of an SAR that is a Substitute Award may be less than 100% of the Fair Market Value of a Share on the original date of
grant; provided, that, the Option Price or grant price is determined in accordance with the principles of Code Section 424 and the regulations thereunder for any Incentive Share Option and consistent with Code Section 409A for any other
Option or SAR. 
  

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	7.	AWARD AGREEMENT 

 Each
Award granted pursuant to the Plan shall be evidenced by an Award Agreement, in such form or forms as the Board shall from time to time determine. Award Agreements granted from time to time or at the same time need not contain similar provisions but
shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Share Options or Incentive Share Options, and in the absence of such
specification such options shall be deemed Non-qualified Share Options. 
  

	8.	TERMS AND CONDITIONS OF OPTIONS 

 8.1. Option Price 
 The Option Price of each Option shall be fixed by the Board and stated in the Award
Agreement evidencing such Option. The Option Price of each Option shall be at least the Fair Market Value on the Grant Date of a Share; provided, however, that in the event that a Grantee is a Ten Percent Shareholder, the Option Price
of an Option granted to such Grantee that is intended to be an Incentive Share Option shall be not less than 110 percent of the Fair Market Value of a Share on the Grant Date. In no case shall the Option Price of any Option be less than the par
value of a Share. 
 8.2. Vesting 
 Subject to Sections 8.3 and 18 hereof, each Option granted under the Plan shall become exercisable at such times and under such conditions as shall be determined by the Board and stated in
the Award Agreement. 
 8.3. Term 
 Each Option granted under the Plan shall terminate, and all rights to purchase Shares thereunder shall cease, upon the expiration of ten years from the date such Option is granted, or under such
circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Board and stated in the Award Agreement relating to such Option (the “Termination Date”); provided, however, that in the event
that the Grantee is a Ten Percent Shareholder, an Option granted to such Grantee that is intended to be an Incentive Share Option shall not be exercisable after the expiration of five years from its Grant Date. 
 8.4. Termination of Service 
 Each Award Agreement shall set forth the extent to which the Grantee shall have the right to exercise the Option following termination of the Grantee’s Service. Such provisions shall be determined in
the sole discretion of the Board, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. An Option that is intended to be an Incentive Share Option shall no
longer be exercisable as an Incentive Share Option ninety (90) days after the termination of the Grantee’s Service. 
 8.5. Method of Exercise 
 An Option that is exercisable may be exercised by the Grantee’s delivery to the
Company of written or electronic notice of exercise on any business day, on the form specified by the Company. Such notice shall specify the number of Shares with respect to which the Option is being exercised and shall be

  

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accompanied by payment in full of the Option Price of the Shares for which the Option is being exercised plus the amount (if any) of federal and/or other taxes which the Company many, in its sole
and absolute judgment, determine to be required to withhold with respect to an Award pursuant to Section 19.3. 
 8.6. Rights of Holders of Options 
 Unless otherwise stated in the applicable Award Agreement, an individual
holding or exercising an Option shall have none of the rights of a shareholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject Shares or to direct the voting of the subject Shares) until the
Shares covered thereby are fully paid and issued to him. Except as provided in Section 18 hereof, no adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date of such issuance.

 8.7. Delivery of Share Certificates 
 Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a share certificate or certificates evidencing his or
her ownership of the Shares subject to the Option. Notwithstanding any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement under this Plan for the delivery of share certificates through the use of
book-entry. 
 8.8. Limitations on Incentive Share Options 
 An Option shall constitute an Incentive Share Option only (i) if the Grantee of such Option is an employee of the Company or any
Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the Shares with respect to
which all Incentive Share Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its Affiliates) does not exceed $100,000. This limitation
shall be applied by taking Options into account in the order in which they were granted. 
 8.9. Notice of Disqualifying
Disposition. 
 If any Grantee shall make any disposition of Shares issued pursuant to the exercise of an Incentive Share
Option under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof. 
  

	9.	TRANSFERABILITY OF OPTIONS 

 9.1. Transferability of Options 
 Except as provided in Section 9.2, during the lifetime of a
Grantee, only the Grantee (or, in the event of legal incapacity or incompetency, the Grantee’s guardian or legal representative) may exercise an Option. Except as provided in Section 9.2, no Option shall be assignable or
transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution. 
 9.2.
Transfers 
 If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an Option
which is not an Incentive Share Option to any Family Member or to any entity that is

  

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exempt from income tax pursuant to Section 501(c)(3) of the Code, or any successor provision. For the purpose of this Section 9.2, a “not for value” transfer is a
transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family
Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under this Section 9.2, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to
transfer. Subsequent transfers of transferred Options are prohibited except to Family Members of the original Grantee in accordance with this Section 9.2 or by will or the laws of descent and distribution. The events of termination of
Service of Section 8.4 hereof shall continue to be applied with respect to the original Grantee, following which the Option shall be exercisable by the transferee only to the extent, and for the periods specified, in
Section 8.4. 
  

	10.	SHARE APPRECIATION RIGHTS 

 The Board is authorized to grant Share Appreciation Rights (“SARs”) to Grantees on the following terms and conditions: 
 10.1. Right to Payment 
 A SAR shall confer on the Grantee to whom it is
granted a right to receive, upon exercise thereof, an amount not greater than the excess of (A) the Fair Market Value of one Share on the date of exercise over (B) the grant price of the SAR, as determined by the Board. The Award Agreement
for an SAR shall specify the SAR Exercise Price of the SAR, which shall be at least the Fair Market Value of a Share on the Grant Date. The Award Agreement for a SAR shall specify the SAR Exercise Price, which shall be at least the Fair Market Value
of a Share on the Grant Date. SARs may be granted in conjunction with all or part of an Option granted under the Plan or at any subsequent time during the term of such Option, in conjunction with all or part of any other Award or without regard to
any Option or other Award; provided that a SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Exercise Price that is no less than the Fair Market Value of a Share on the Option Grant Date. 
 10.2. Other Terms 
 Each SAR granted under the Plan shall terminate upon the expiration of ten years from the Grant Date of such SAR or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Board and
stated in the Award Agreement relating to such SAR. The Board shall determine at the Grant Date or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of
performance goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions, the method of exercise, method of settlement, form of
consideration payable in settlement which may be cash or Shares, method by or forms in which Shares will be delivered or deemed to be delivered to Grantees, whether or not a SAR shall be in tandem or in combination with any other Award, and any
other terms and conditions of any SAR, provided, however, that each SAR granted under the Plan shall terminate under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Board and stated in the
Award Agreement relating to such SAR. 
  

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	11.	RESTRICTED SHARES AND SHARE UNITS 

 11.1. Grant of Restricted Shares or Share Units 
 The Board may from time to time grant Restricted Shares or
Share Units to persons eligible to receive Awards under Section 6 hereof, subject to such restrictions, conditions and other terms, if any, as the Board may determine. 
 11.2. Restrictions 
 At the time a grant of Restricted Shares or Share Units is made, the Board may, in its sole discretion, establish a period of time (a “restricted period”) applicable to such Restricted Shares or Share Units. Each Award of
Restricted Shares or Share Units may be subject to a different restricted period. The Board may, in its sole discretion, at the time a grant of Restricted Shares or Share Units is made, prescribe restrictions in addition to or other than the
expiration of the restricted period, including the satisfaction of corporate or individual performance objectives, which may be applicable to all or any portion of the Restricted Shares or Share Units in accordance with Section 15.1
and 15.2. Neither Restricted Shares nor Share Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the restricted period or prior to the satisfaction of any other restrictions prescribed by the
Board with respect to such Restricted Shares or Share Units. 
 11.3. Restricted Shares Certificates 
 The Company shall issue, in the name of each Grantee to whom Restricted Shares has been granted, share certificates representing the total
number of Restricted Shares granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Board may provide in an Award Agreement that either (i) the Secretary of the Company, or his delegate, shall hold such certificates
for the Grantee’s benefit until such time as the Restricted Shares are forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be delivered to the Grantee, provided, however, that all such
certificates, regardless of whether held by the Secretary, his delegate or delivered to the Grantee, shall bear a legend or legends that comply with the applicable securities laws and regulations and makes appropriate reference to the restrictions
imposed under the Plan and the Award Agreement. If the Company utilizes book-entry form with appropriate restrictions noted in the Company records, and the Grantee so requests, the Company will furnish without charge the powers, designations,
preferences and relative, participating, optional, or other special rights of the Share and the qualifications, limitations or restrictions of such preferences and/or rights. Such requests shall be made in writing to the Company’s Secretary.

 11.4. Rights of Holders of Restricted Shares 
 Unless the Board otherwise provides in an Award Agreement, holders of Restricted Shares shall have the right to vote such Shares and the
right to receive any dividends declared or paid with respect to such Shares. The Board may provide that any dividends paid on Restricted Shares must be reinvested in Shares, which may or may not be subject to the same vesting conditions and
restrictions applicable to such Restricted Shares. All distributions, if any, received by a Grantee with respect to Restricted Shares as a result of any share split, share dividend, combination of shares, or other similar transaction shall be
subject to the restrictions applicable to the original Grant. Holders of Restricted Shares may not make an election under Code Section 83(b) with regard to the grant of Restricted Shares, and any holder who attempts to make such an election
shall forfeit the Restricted Shares. 
  

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 11.5. Rights of Holders of Share Units 
 11.5.1. No Voting and Dividend Rights 
 Unless the Board otherwise provides in an Award Agreement, holders of Share Units shall have no rights as shareholders of the Company. The Board may provide in an Award Agreement evidencing a grant of
Share Units that the holder of such Share Units shall be entitled to receive, upon the Company’s payment of a cash dividend on its outstanding Shares, a cash payment for each Share Unit held equal to the per-share dividend paid on the Shares.
Such Award Agreement may also provide that such cash payment will be deemed reinvested in additional Share Units at a price per unit equal to the Fair Market Value of a Share on the date that such dividend is paid, subject to the same vesting
conditions and restrictions applicable to such Share Units. 
 11.5.2. Creditor’s Rights 
 A holder of Share Units shall have no rights other than those of a general creditor of the Company. Share Units represent an unfunded and
unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
 11.6.
Termination of Service 
 Unless the Board otherwise provides in an Award Agreement or in writing after the Award Agreement
is issued, upon the termination of a Grantee’s Service, any Restricted Shares or Share Units held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be
deemed forfeited. Upon forfeiture of Restricted Shares or Share Units, the Grantee shall have no further rights with respect to such Award, including but not limited to any right to vote Restricted Shares or any right to receive dividends with
respect to Restricted Shares or Share Units. 
 11.7. Purchase of Restricted Shares 
 The Grantee shall be required, to the extent required by applicable law, to purchase the Restricted Shares from the Company at a Purchase
Price equal to the greater of (i) the aggregate par value of the Shares represented by such Restricted Shares or (ii) the Purchase Price, if any, specified in the Award Agreement relating to such Restricted Shares. The Purchase Price shall
be payable in a form described in Section 13 or, in the discretion of the Board, in consideration for past Services rendered to the Company or an Affiliate. 
 11.8. Delivery of Shares 
 Upon the expiration or termination of any
restricted period and the satisfaction of any other conditions or restrictions prescribed by the Board as set forth in the Award agreement, the restrictions applicable to Restricted Shares or Share Units settled in Shares shall lapse, and, unless
otherwise provided in the Award Agreement, a share certificate for such Shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be. In the alternative, a book-entry no
longer reflecting any restrictions may be made. Neither the Grantee, nor the Grantee’s beneficiary or estate, shall have any further rights with respect to a Share Unit once the Shares represented by the Share Unit have been delivered. Share
Units may also be settled in cash upon the determination of the Board or as specified in the applicable Award Agreement. 
  

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	12.	UNRESTRICTED SHARES AWARDS 

 The Board may, in its sole discretion, grant to any Grantee under the Plan (or sell at par value or such other higher purchase price determined by the Board) Unrestricted Share Awards pursuant to which Grantees may receive Shares free of
any restrictions (“Unrestricted Shares”). Unrestricted Share Awards may be granted or sold in respect of past services, performance and other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee.
A share certificate for such Shares shall be delivered, free of all restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be. In the alternative, a book-entry may be made. 
  

	13.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED SHARES AND SHARE UNITS 

 13.1. General Rule 
 Payment of the Option Price for the Shares purchased
pursuant to the exercise of an Option or the Purchase Price for Restricted Shares and Share Units shall be made in cash or in cash equivalents acceptable to the Company. 
 13.2. Surrender of Shares 
 To the extent the Award Agreement so provides,
payment of the Option Price for Shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Shares may be made all or in part through the tender or attestation to the Company of Shares, which shall be valued, for
purposes of determining the extent to which the Option Price or Purchase Price has been paid thereby, at their Fair Market Value on the date of exercise or surrender. In addition, and also only to the extent the Award Agreement so provides, payment
of the Option Price may be made by requesting that the Company withhold Shares that would otherwise be deliverable pursuant to the exercise of the Option, which Shares shall be valued at their Fair Market Value on the date of exercise. 

13.3. Cashless Exercise 
 With respect to an Option only (and not with respect to Restricted Shares), to the extent the Award Agreement so provides and subject to compliance with applicable law, payment of the Option Price for
Shares purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable to the Board) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell Shares and to deliver all
or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described in Section 19.3 or, with the consent of the Company, by issuing the number of Shares equal in value to the difference between
the Option Price and the Fair Market Value of the Shares subject to the portion of the Option being exercised. 
 13.4. Other
Forms of Payment 
 To the extent the Award Agreement so provides, payment of the Option Price for Shares purchased pursuant
to exercise of an Option or the Purchase Price for Restricted Shares may be made in any other form that is consistent with applicable laws, regulations and rules. 
  

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	14.	DIVIDEND EQUIVALENT RIGHTS 

 14.1. Dividend Equivalent Rights 
 A Dividend Equivalent Right is an Award entitling the recipient to receive
credits based on cash distributions that would have been paid on the Shares specified in the Dividend Equivalent Right (or other Award to which it relates) if such Shares had been issued to and held by the recipient. A Dividend Equivalent Right may
be granted hereunder to any Grantee as a component of another Award other than an Option or SAR or as a freestanding award. The terms and conditions of Dividend Equivalent Rights shall be specified in the grant. Dividend Equivalents credited to the
holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional Shares, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment.
Dividend Equivalent Rights may be settled in cash or Shares or a combination thereof, in a single installment or installments, all determined in the sole discretion of the Board. Subject to Code Section 409A, a Dividend Equivalent Right granted
as a component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be
forfeited or annulled under the same conditions as such other Award. A Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other Award; provided, however, that Dividend
Equivalents credited pursuant to a Dividend Equivalents Right granted as a component of another Award which vests or is earned based upon achievement of performance goals shall not vest or be paid unless the performance goals for such underlying
Award are achieved. 
 14.2. Termination of Service 
 Except as may otherwise be provided by the Board either in the Award Agreement or in writing after the Award Agreement is issued, a
Grantee’s rights in all Dividend Equivalent Rights or interest equivalents shall automatically terminate upon the Grantee’s termination of Service for any reason. 
  

	15.	PERFORMANCE AND ANNUAL INCENTIVE AWARDS 

 15.1. Performance Conditions 
 The right of a Grantee to exercise or receive
a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Board. The Board may use such business criteria and other measures of performance as it may deem appropriate in
establishing any performance conditions, and may exercise its discretion to reduce the amounts payable under any Award subject to performance conditions, except as limited under Sections 15.2 hereof in the case of a Performance Award or
Annual Incentive Award intended to qualify under Code Section 162(m). If and to the extent required under Code Section 162(m), any power or authority relating to a Performance Award or Annual Incentive Award intended to qualify under Code
Section 162(m), shall be exercised by the Committee and not the Board. 
  

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 15.2. Performance or Annual Incentive Awards Granted to Designated Covered Employees 

 If and to the extent that the Committee determines that a Performance or Annual Incentive Award to be granted to a Grantee who
is designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Performance or Annual Incentive
Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 15.2. 
 15.2.1. Performance Goals Generally 
 The performance goals for such
Performance or Annual Incentive Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 15.2.
Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted by the Committee result in the
achievement of performance goals being “substantially uncertain.” The Committee may determine that such Performance or Annual Incentive Awards shall be granted, exercised and/or settled upon achievement of any one or more performance
goals. Performance goals may differ for Performance or Annual Incentive Awards granted to any one Grantee or to different Grantees. 
 15.2.2. Business Criteria 
 One or more of the following business criteria for the Company, on a consolidated
basis, and/or specified subsidiaries or business units of the Company (except with respect to the total shareholder return and earnings per Share criteria), shall be used exclusively by the Committee in establishing performance goals for such
Performance or Annual Incentive Awards: (1) total shareholder return; (2) such total shareholder return as compared to total return (on a comparable basis) of a publicly available index such as, but not limited to, the Standard &
Poor’s 500 Stock Index or the SNL U.S. REIT Hotel Index prepared by SNL Financial LC; (3) net income; (4) pretax earnings; (5) earnings before interest expense and taxes (EBIT), (6) earnings before interest expense, taxes,
depreciation and amortization (EBITDA); (7) pretax operating earnings after interest expense and before bonuses, service fees, and extraordinary or special items; (8) operating margin; (9) earnings per Share; (10) return on
equity, including risk-adjusted return on equity; (11) return on assets, (12) return on capital; (13) return on investment; (14) operating earnings; (15) working capital; (16) ratio of debt to shareholders’ equity,
(17) revenue; (18) book value; (19) funds from operations (FFO) or FFO per Share; (20) funds (or cash) available for distribution (FAD), per Share, (22) cash flow; (22) economic value-added models or equivalent metrics;
and (23) reduction in costs. 
 15.2.3. Timing For Establishing Performance Goals 
 Performance goals shall be established not later than the earlier of (i) 90 days after the beginning of any performance period
applicable to such Performance or Annual Incentive Awards, (ii) the day on which 25% of any performance period applicable to such Awards has expired, and (iii) at such other date as may be required or permitted for “performance-based
compensation” under Code Section 162(m). 
  

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 15.2.4. Performance or Annual Incentive Award Pool 
 The Committee may establish a Performance or Annual Incentive Award pool, which shall be an unfunded pool, for purposes of measuring
performance in connection with Performance or Annual Incentive Awards. 
 15.2.5. Settlement of Performance or Annual
Incentive Awards; Other Terms 
 Settlement of such Performance or Annual Incentive Awards shall be in cash, Shares,
Restricted Shares, Share Units, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance or Annual Incentive
Awards. The Committee shall specify the circumstances in which such Performance or Annual Incentive Awards shall be paid or forfeited in the event of termination of Service by the Grantee prior to the end of a performance period or settlement of
Performance Awards. 
 15.3. Written Determinations 
 All determinations by the Committee as to the establishment of performance goals, the amount of any Performance Award pool or potential
individual Performance Awards and as to the achievement of performance goals relating to Performance Awards, and the amount of any Annual Incentive Award pool or potential individual Annual Incentive Awards and the amount of final Annual Incentive
Awards, shall be made in writing in the case of any Award intended to qualify under Code Section 162(m). To the extent required to comply with, or not prohibited by, Code Section 162(m), the Committee may delegate any responsibility
relating to such Performance Awards or Annual Incentive Awards. 
 15.4. Status of Section 15.2 Awards Under Code
Section 162(m) 
 It is the intent of the Company that Performance Awards and Annual Incentive Awards under
Section 15.2 hereof granted to persons who are designated by the Committee as likely to be Covered Employees within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute
“qualified performance-based compensation” within the meaning of Code Section 162(m) and regulations thereunder. Accordingly, the terms of Section 15.2, including the definitions of Covered Employee and other terms used
therein, shall be interpreted in a manner consistent with Code Section 162(m) and regulations thereunder. The foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Grantee will be a Covered Employee
with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee, at the time of grant of Performance Awards or an Annual Incentive Award, as likely to be a
Covered Employee with respect to that fiscal year. If any provision of the Plan or any Award Agreement relating to such Performance Awards or Annual Incentive Awards does not comply or is inconsistent with the requirements of Code
Section 162(m) or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 
  

	16.	PARACHUTE LIMITATIONS 

 Notwithstanding any other provision of this Plan or of any Award Agreement or agreement, contract, or understanding heretofore or hereafter entered into by a Grantee with the Company or any

  

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Affiliate, except an agreement, contract or understanding between the Grantee and the Company or any Affiliate that expressly addresses Section 280G of the Code (an “Other
Agreement”), and notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the Grantee is a member),
whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a “disqualified individual,” as defined in Section 280G(c) of the
Code, any Option, Restricted Share or Share Unit held by that Grantee and any right to receive any payment or other benefit under this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment,
or benefit, taking into account all other rights, payments, or benefits to or for the Grantee under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Grantee under this Plan to be considered a
“parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts
received by the Grantee from the Company under this Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Grantee without causing any such payment or benefit to be
considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights, payments, or benefits to or for the Grantee under any Other Agreement or
any Benefit Arrangement would cause the Grantee to be considered to have received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount received by the Grantee as described in clause (ii) of the
preceding sentence, then the Grantee shall have the right, in the Grantee’s sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and any Benefit Arrangements that should be reduced or
eliminated so as to avoid having the payment or benefit to the Grantee under this Plan be deemed to be a Parachute Payment; provided, however, that to comply with Code Section 409A, the reduction or elimination will be performed in the order in
which each dollar of value subject to an Award reduces the Parachute Payment to the greatest extent. 
  

	17.	REQUIREMENTS OF LAW 

 17.1. General 
 The Company shall not be required to sell or issue any Shares under any Award if the sale or
issuance of such Shares would constitute a violation by the Grantee, any other individual exercising an Option, or the Company or any Affiliate of any provision of any law or regulation of any governmental authority, including without limitation any
federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any Shares subject to an Award upon any securities exchange or under any governmental
regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of Shares hereunder, no Shares may be issued or sold to the Grantee or any other individual pursuant to such Award unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award or otherwise result
in any claim or damages. Without limiting the generality of the foregoing, specifically, in connection with the Securities Act, upon the exercise of any Option or any SAR that may be settled in Shares or the delivery of any Shares underlying an
Award, unless a registration statement under such Act is in effect with respect to the Shares covered by such Award, the Company shall not be required to sell or issue such Shares unless the Board has received evidence satisfactory to it that the
Grantee or any other individual may acquire such Shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Board shall be final, binding, and

  

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conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any
affirmative action in order to cause the exercise of an Option or SAR or the issuance of Shares pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement
that an Option or any SAR that may be settled in Shares shall not be exercisable until the Shares covered by such Option or SAR are registered or are exempt from registration, the exercise of such Option or SAR (under circumstances in which the laws
of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 
 17.2. Rule 16b-3 
 During any time when the Company has a class of equity
security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards pursuant to the Plan and the exercise of Options or SARs granted hereunder will qualify for the exemption provided by Rule 16b-3 under the
Exchange Act. To the extent that any provision of the Plan or action by the Board does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and shall not
affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this Plan, Awards and Award Agreements in any respect necessary to satisfy the requirements of, or to take
advantage of any features of, the revised exemption or its replacement. 
  

	18.	EFFECT OF CHANGES IN CAPITALIZATION 

 18.1. Changes in Shares 
 If the number of outstanding Shares is increased
or decreased or the Shares are changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, share split, reverse split, combination of shares, exchange of
shares, share dividend or other distribution payable in capital share, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which
grants of Awards may be made under the Plan shall be adjusted proportionately and accordingly by the Board. In addition, the number and kind of shares for which Awards are outstanding shall be adjusted proportionately and accordingly so that the
proportionate interest of the Grantee immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options, SARs, Restricted Shares or Share Units shall not
change the aggregate Option Price, SAR Exercise Price or Purchase Price payable with respect to Shares that are subject to the unexercised portion of an outstanding Option or SAR, or an unvested portion of Restricted Shares or Share Units, as
applicable, but shall include a corresponding proportionate adjustment in the Option Price, SAR Exercise Price or Purchase Price per Share; provided, however, that options that are not Incentive Share Options and SARs may be adjusted pursuant to
Code Section 409A so that the difference between the aggregate exercise price over the aggregate fair market value remains the same before and after the adjustment. The conversion of any convertible securities of the Company shall not be
treated as an increase in Shares effected without receipt of consideration. Notwithstanding the foregoing, in the event of any distribution to the Company’s shareholders of securities of any other entity or other assets (including an
extraordinary dividend but excluding a non-extraordinary dividend) without receipt of consideration by the Company, the Company shall in such manner as the Company deems appropriate, adjust (i) the number and kind of shares subject to
outstanding Awards and/or (ii) the exercise price or purchase price of outstanding Options, SARs, Restricted Shares and Share Units to reflect such distribution 
  

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 18.2. Changes in Capitalization; Merger; Liquidation 
 (a) In the event of a merger, consolidation, reorganization or other Corporate Transaction of the Company, the Board may make such
adjustments with respect to Awards and take such other action as it deems necessary or appropriate to reflect such merger, consolidation, reorganization or other Corporate Transaction, including, without limitation, the substitution of new Awards,
the termination or the adjustment of outstanding Awards, the acceleration of Awards or the removal of restrictions on outstanding Awards, all as may be provided in the applicable Award Agreement or, if not expressly addressed therein, as the Board
subsequently may determine in the event of any such transaction. 
 (b) In addition to or instead of any adjustments authorized
in Section 18.1(a) above, in the event of a merger, consolidation, reorganization or other Corporate Transaction of the Company, the Board may elect, in its sole discretion, to cancel or repurchase any outstanding Awards issued under the
Plan and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value (as determined by the Board acting in good faith), in the case of an Award consisting of Restricted Shares or Share
Units, equal to the formula or fixed price per Share paid to holders of the Shares in connection with such transaction and, in the case of Options or SARs, equal to the product of the number of Shares subject to the Option or SAR multiplied by the
amount, if any, by which (I) the formula or fixed price per Share paid to holders of Shares pursuant to such transaction exceeds (II) the Option Price or SAR Exercise Price applicable to such Option or SAR. Notwithstanding the foregoing, Share
Units subject to Code Section 409A shall be cancelled on a Corporate Transaction only to the extent such Corporate Transaction constitutes a “change in control event” within the meaning of Code Section 409A. 
 18.3. Adjustments 
 Adjustments under this Section 18 related to Shares or securities of the Company shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. No fractional Shares or other securities
shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole Share. The Board may provide in the Award Agreements at the time of
grant, or any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those described in Section 18. 
 18.4. No Limitations on Company 
 The existence of this Plan and the Awards
granted pursuant to this Plan shall not affect in any way the right or power of the Company to make or authorize any adjustment, reclassification, reorganization or other change in its capital or business structure, any merger or consolidation of
the Company, any issue of debt or equity securities having preferences or priorities as to the Shares or the rights thereof, the dissolution or liquidation of the Company, any sale or transfer of all or any part of its business or assets, or any
other act or proceeding. 
  

	19.	GENERAL PROVISIONS 

 19.1. Disclaimer of Rights 
 No provision in the Plan or in any Award or Award Agreement shall be construed to
confer upon any individual the right to remain in the employ or service of the Company or any Affiliate, or to interfere in any way with any contractual or other right or authority of the Company or any Affiliate either to increase or decrease the
compensation or other payments to any individual at any time, or to terminate any employment or other relationship between any individual and the Company or any Affiliate. In addition, notwithstanding

  

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anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Award granted under the Plan shall be affected by any change of duties or position of
the Grantee, so long as such Grantee continues to provide service. The obligation of the Company to pay any benefits pursuant to this Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and
under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under
the terms of the Plan and Awards. 
 19.2. Nonexclusivity of the Plan 
 Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the Company for approval shall be construed as
creating any limitations upon the right and authority of the Board, the Company or its Affiliates to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or
specifically to a particular individual or particular individuals) as the Board, the Company or its Affiliates in their discretion determines desirable, including, without limitation, the granting of Share options otherwise than under the Plan.

 19.3. Withholding Taxes 
 The Company or an Affiliate, as the case may be, shall have the right to deduct or withhold from payments of any kind otherwise due to a Grantee (including by withholding Shares otherwise deliverable
under an Award) any Federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to an Award or upon the issuance of any Shares upon the exercise of an Option or
pursuant to an Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the Affiliate, as the case may be, any amount that the Company or the Affiliate may reasonably determine to be necessary to satisfy such
withholding obligation. Subject to the prior approval of the Company or the Affiliate, which may be withheld by the Company or the Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or
in part, (i) by causing the Company or the Affiliate to withhold Shares otherwise issuable to the Grantee or (ii) by delivering to the Company or the Affiliate Shares already owned by the Grantee. The Shares so delivered or withheld shall
have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the Shares used to satisfy such withholding obligation shall be determined by the Company or the Affiliate as of the date that the amount of tax to
be withheld is to be determined. A Grantee who has made an election pursuant to this Section 19.3 may satisfy his or her withholding obligation only with Shares that are not subject to any repurchase, forfeiture, unfulfilled vesting, or
other similar requirements. The maximum number of Shares that may be withheld from any Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting, lapse of restrictions applicable to such Award or payment of
Shares pursuant to such Award, as applicable, cannot exceed such number of Shares having a Fair Market Value equal to the minimum statutory amount required by the Applicable Entity to be withheld and paid to any such federal, state or local taxing
authority with respect to which such exercise, vesting, lapse of restrictions or payment of Shares. For purposes of determining taxable income and the amount of the related tax withholding obligation under this Section 19.3, notwithstanding
Section 2.16 or this Section 19.3, for any Shares that are sold on the same day that such Shares are first legally saleable pursuant to the terms of the applicable award agreement; Fair Market Value shall be determined based upon the sale
price for such Shares so long as the grantee has provided the Company with advance written notice of such sale. 
  

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 19.4. Captions 
 The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any
provision of the Plan or such Award Agreement. 
 19.5. Other Provisions 
 Each Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the
Board, in its sole discretion. 
 19.6. Number And Gender 
 With respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine
gender, etc., as the context requires. 
 19.7. Severability 
 If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any
jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 
 19.8. Governing Law 
 The validity and construction of this Plan and the instruments evidencing the Award hereunder shall be governed by the laws of the State of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of this Plan and the Award Agreements to the substantive laws of any other jurisdiction. 
 19.9. Code Section 409A 
 The Board or the Committee, as applicable, intends to comply with
Section 409A of the Code, or an exemption to Section 409A, with regard to Awards hereunder that constitute nonqualified deferred compensation within the meaning of Section 409A. To the extent that the Board or the Committee, as
applicable, determines that a Grantee would otherwise be subject to the additional 20% tax imposed on certain nonqualified deferred compensation plans pursuant to Section 409A as a result of any provision of any Award granted under this Plan,
such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Board or the Committee, as applicable. 
  

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