Document:

EXHIBIT 10.47

 

 
  
 HOST MARRIOTT, L.P.

 RETIREMENT AND SAVINGS PLAN 
 (Amended and Restated) 
  
 Effective January 1,
2004, as amended May 20, 2004 
  

 HOST MARRIOTT, L.P. 
  
 RETIREMENT AND SAVINGS PLAN 
  
 PREAMBLE 
  
 WHEREAS, Host Marriott, L.P. has entered into the Employee Benefits and Other Employment Matters Allocation Agreement between Host Marriott Corporation,
Host Marriott, L.P. and Crestline Capital Corporation (the “Agreement”) in connection with the distribution of outstanding common shares of the Company (the “Distribution”); 
  
 WHEREAS, pursuant to the Agreement, Host Marriott, L.P. assumed sponsorship
of the Host Marriott Corporation (HMC) Retirement and Savings Plan (the “Plan”); 
  
 WHEREAS, Host Marriott, L.P. amended and restated the Plan, effective as of January 31, 2002, to reflect certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001; 
  
 NOW, THEREFORE, Host Marriott, L.P. hereby amends and restates the Host
Marriott Corporation (HMC) Retirement and Savings Plan to reflect certain additional changes in the tax laws. This amendment is intended as good faith compliance with the requirements of the Code and ERISA and is to be construed in accordance with
the Code and ERISA and guidance issued thereunder. Except as otherwise provided, this amendment shall be effective as of January 1, 2004. 
  
 This amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of its various amendments.

  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	ARTICLE I.	  	 
	DEFINITIONS	  	1
			
	1.1	  	 “Account”
	  	1
	1.2	  	 “Actual Contribution Percentage”
	  	1
	1.3	  	 “Actual Deferral Percentage”
	  	1
	1.4	  	 “Additional After-tax Savings”
	  	1
	1.5	  	 “Additions”
	  	1
	1.6	  	 “Administrative Expenses”
	  	1
	1.7	  	 “Affiliated Company”
	  	1
	1.8	  	 “After-tax Savings”
	  	1
	1.9	  	 “After-tax Savings Account”
	  	1
	1.10	  	 “Allocable Portion”
	  	1
	1.11	  	 “Allocation Agreement”
	  	2
	1.12	  	 “Alternate Payee”
	  	2
	1.13	  	 “Annuity Starting Date”
	  	2
	1.14	  	 “Authorized Leave of Absence”
	  	2
	1.15	  	 “Basic After-tax Savings”
	  	2
	1.16	  	 “Beneficiary”
	  	2
	1.17	  	 “Board of Directors”
	  	2
	1.18	  	 “Code”
	  	2
	1.19	  	 “Combined Basic Savings”
	  	2
	1.20	  	 “Committee”
	  	2
	1.21	  	 “Company”
	  	2
	1.22	  	 “Company Contribution Account”
	  	2
	1.23	  	 “Compensation”
	  	3
	1.24	  	 “Default”
	  	3
	1.25	  	 “Distributee”
	  	3
	1.26	  	 “Effective Date”
	  	4
	1.27	  	 “Eligible Rollover Distribution”
	  	4
	1.28	  	 “Eligible Retirement Plan”
	  	4
	1.29	  	 “Employee”
	  	4
	1.30	  	 “Entry Date”
	  	5
	1.31	  	 “ERISA”
	  	5
	1.32	  	 “Fiduciary”
	  	5
	1.33	  	 “Fiscal Year”
	  	5
	1.34	  	 “Flexible Compensation”
	  	5
	1.35	  	 “FLSA”
	  	5
	1.36	  	 “Fund”
	  	5
	1.37	  	 “Hardship”
	  	5
	1.38	  	 “Highly Compensated Employee”
	  	6
	1.39	  	 “Hire Date”
	  	6
	1.40	  	 “Host Marriott L.P.”
	  	6

  

 i 

							
	1.41	  	 “Investment Expenses”
	  	6
	1.42	  	 “Maximum Permissible Amounts”
	  	6
	1.43	  	 “Month”
	  	6
	1.44	  	 “Month of Credit”
	  	6
	1.45	  	 “Named Fiduciary”
	  	7
	1.46	  	 “Participant”
	  	7
	 	  	 (a)
	  	 “Former Participant”
	  	7
	 	  	 (b)
	  	 “Terminated Participant”
	  	7
	 	  	 (c)
	  	 “Retired Participant”
	  	7
	 	  	 (d)
	  	 “Disabled Participant”
	  	7
	 	  	 (e)
	  	 “Deceased Participant”
	  	7
	1.47	  	 “Participating Company”
	  	7
	1.48	  	 “Permanent Disability”
	  	7
	1.49	  	 “Period of Severance”
	  	7
	1.50	  	 “Plan”
	  	7
	1.51	  	 “Plan Administrator”
	  	7
	1.52	  	 “Plan Year”
	  	8
	1.53	  	 “Predecessor Company”
	  	8
	1.54	  	 “Prior Plan”
	  	8
	1.55	  	 “Pro Rata Share of Administrative Expenses”
	  	8
	1.56	  	 “Qualified Domestic Relations Order”
	  	8
	1.57	  	 “Qualified Joint and Survivor Annuity”
	  	8
	1.58	  	 “Qualifying Employer Real Property”
	  	8
	1.59	  	 “Qualifying Employer Securities”
	  	8
	1.60	  	 “Reemployment Date”
	  	8
	1.61	  	 “Required Beginning Date”
	  	8
	1.62	  	 “Section 401(k) Contribution”
	  	9
	1.63	  	 “Section 401(k) Contribution Account”
	  	9
	1.64	  	 “Separation Date”
	  	9
	1.65	  	 “Service”
	  	9
	1.66	  	 “Spousal Consent”
	  	10
	1.67	  	 “Spouse” or “Surviving Spouse”
	  	10
	1.68	  	 “Subaccount”
	  	10
	1.69	  	 “Subsidiary” or “Affiliated Company”
	  	10
	1.70	  	 “Trustees”
	  	10
	1.71	  	 “Trust Agreement”
	  	10
	1.72	  	 “Trust Fund”
	  	10
	1.73	  	 “Valuation Date”
	  	11
		
	ARTICLE II.	  	 
	ELIGIBILITY AND PARTICIPATION	  	12
			
	2.1	  	 Eligibility and Participation
	  	12
	 	  	 (a)
	  	 Eligibility
	  	12
	 	  	 (b)
	  	 Commencement of Participation
	  	12
	 	  	 (c)
	  	 Continued Participation
	  	12
	 	  	 (d)
	  	 Participation Voluntary
	  	12

  

 ii 

							
	2.2	  	 Reemployment of Employee
	  	12
	2.3	  	 Termination of Plan Participation
	  	12
	2.4	  	 Readmission of Former Participant
	  	12
	2.5	  	 Participation During Authorized Leave of Absence or During Employment by Subsidiary That Has Not Joined Plan
	  	12
	2.6	  	 Treatment of Participants Who Cease Being Employees Pursuant to Section 1.29
	  	13
		
	ARTICLE III.	  	 
	COMPANY CONTRIBUTION	  	14
			
	3.1	  	 Amount of Contribution
	  	14
	3.2	  	 Time of Payment of Contributions
	  	14
	3.3	  	 Form of Payment of Contributions
	  	14
	3.4	  	 Return of Contributions to Company
	  	15
		
	ARTICLE IV.	  	 
	PARTICIPANTS’ AFTER-TAX SAVINGS	  	16
			
	4.1	  	 Participant After-tax Savings
	  	16
	4.2	  	 Amount of After-tax Savings
	  	16
	4.3	  	 Payroll Deduction
	  	16
	4.4	  	 Change in Rate of After-tax Savings
	  	16
	4.5	  	 Payment to Trustees
	  	16
	4.6	  	 Investment of Participants’ After-tax Savings
	  	16
	4.7	  	 In-Service Withdrawal of After-tax Savings
	  	16
	4.8	  	 Effect of Termination of Plan or Discontinuance of After-tax Contributions
	  	16
		
	ARTICLE V.	  	 
	SECTION 401(k) CONTRIBUTIONS	  	17
			
	5.1	  	 Designation of Flexible Compensation
	  	17
	5.2	  	 Section 401(k) Contributions
	  	17
	5.3	  	 Election Rules
	  	17
	 	  	 (a)
	  	 Method of Election
	  	17
	 	  	 (b)
	  	 Effective Date of Election
	  	17
	 	  	 (c)
	  	 Revocation or Amendment
	  	17
	5.4	  	 Compensation Reduction
	  	17
	5.5	  	 Limitations on Section 401(k) Contributions
	  	18
	5.6	  	 Actual Deferral Percentage Tests
	  	18
	5.7	  	 Recharacterization of Certain Section 401(k) Contributions
	  	18
	5.8	  	 Coordination of After-tax Savings and Section 401(k) Contributions
	  	18
	5.9	  	 Payment to Trustees
	  	19
	5.10	  	 Distribution of Section 401(k) Contributions
	  	19
	 	  	 (a)
	  	 Restrictions on Distributions
	  	19
	 	  	 (b)
	  	 In-Service Withdrawal of Section 401(k) Contributions
	  	19
	5.11	  	 Effect of Termination of Plan or Discontinuance of Section 401(k) Contributions
	  	19
	5.12	  	 Catch-up Contributions
	  	19

  

 iii 

							
	5.13	  	 Contribution Limitation
	  	20
		
	ARTICLE VI.	  	 
	ALLOCATION OF CONTRIBUTIONS AND NET INCOME AMONG PARTICIPANTS	  	21
			
	6.1	  	 Maintenance of Separate Accounts
	  	21
	6.2	  	 Allocation to After-tax Savings Accounts
	  	21
	6.3	  	 Allocation of 401(k) Contribution
	  	21
	6.4	  	 Allocation of Company Contribution
	  	21
	6.5(a)	  	 Limitation on After-tax Savings and Company Contributions
	  	22
	 	  	 (b)
	  	 Multiple Use of the Alternative Limitation
	  	22
	6.6	  	 Correcting Excess Aggregate Contributions
	  	23
	6.7	  	 Special Provision for Allocating Company Contributions
	  	23
	6.8	  	 Allocation of Net Income
	  	24
	6.9	  	 Use of Forfeitures
	  	24
	6.10	  	 Use of Unclaimed Benefits
	  	24
	 	  	 (a)
	  	 Method of Allocation
	  	24
	 	  	 (b)
	  	 Reduction in Forfeitures
	  	24
	6.11	  	 Allocation Limitations
	  	24
	 	  	 (a)
	  	 Maximum Additions
	  	24
	 	  	 (b)
	  	 Correction of Excess
	  	24
	 	  	 (c)
	  	 Further Limitations on Additions
	  	25
	6.12	  	 Transfers From Other Qualified Plans
	  	25
	 	  	 (a)
	  	 Manner of Rollover or Direct Transfer
	  	25
	 	  	 (b)
	  	 Governing Provisions
	  	25
		
	ARTICLE VII.	  	 
	VESTING	  	26
			
	7.1	  	 Vesting of After-tax Savings Account
	  	26
	7.2	  	 Vesting of Section 401(k) Contribution Account
	  	26
	7.3	  	 Vesting of Company Contribution Account
	  	26
	 	  	 (a)
	  	 Vesting Schedule
	  	26
	 	  	 (b)
	  	 Service to be Credited Upon Resumption of Employment
	  	26
	 	  	 (c)
	  	 Definition of “Service”
	  	26
	 	  	 (d)
	  	 Automatic 100% Vesting
	  	27
		
	ARTICLE VIII.	  	 
	TERMINATION AND DISTRIBUTION UPON RETIREMENT DEATH OR DISABILITY	  	28
			
	8.1	  	 Retirement
	  	28
	8.2	  	 Death
	  	28
	8.3	  	 Disability
	  	28
	8.4	  	 Valuation of Account Balance
	  	28
	8.5	  	 Available Payment Options
	  	28

  

 iv 

							
	8.6	  	 Spousal Consent Rules
	  	29
	 	  	 (a)
	  	 Revocation of an Annuity
	  	29
	 	  	 (b)
	  	 Waiver of Life Annuity or Qualified Joint and Survivor Annuity
	  	29
	 	  	 (c)
	  	 Written Explanation
	  	30
	 	  	 (d)
	  	 Result of Effective Waiver
	  	30
	 	  	 (e)
	  	 Spousal Consent
	  	30
	8.7	  	 Distributions Upon Married Participant’s Death
	  	30
	8.8	  	 General Distribution Requirements
	  	30
	 	  	 (a)
	  	 Distributions to Participants and Beneficiaries
	  	30
	 	  	 (b)
	  	 Commencement of Distribution
	  	32
	8.9	  	 Form of Payment
	  	32
	8.10	  	 Mandatory Cash-Out of Small Accounts
	  	32
	8.11	  	 Account Balance
	  	32
	8.12	  	 Special Rule for Rollovers Out of the Plan
	  	32
		
	ARTICLE IX.	  	 
	TERMINATION AND DISTRIBUTION UPON TERMINATION OF EMPLOYMENT OTHER THAN FOR
RETIREMENT DEATH OR DISABILITY	  	33
			
	9.1	  	 Terminated Participant
	  	33
	9.2	  	 Distribution of After-tax Savings and Section 401(k) Contributions
	  	33
	9.3	  	 Distribution of Vested Company Contribution Account
	  	33
	9.4	  	 Mandatory Cash-Out of Small Accounts
	  	33
	9.5	  	 Unvested Company Contributions
	  	34
	 	  	 (a)
	  	 Forfeiture
	  	34
	 	  	 (b)
	  	 Restoration of Forfeiture
	  	34
	 	  	 (c)
	  	 Distribution Prior to Reemployment
	  	34
	9.6	  	 Account Balance
	  	34
	9.7	  	 Special Rule for Rollovers Out of the Plan
	  	34
		
	ARTICLE X.	  	 
	DISTRIBUTION DURING CONTINUED EMPLOYMENT	  	35
			
	10.1	  	 Withdrawal of After-tax Savings
	  	35
	 	  	 (a)
	  	 Withdrawal of Additional After-tax Savings
	  	35
	 	  	 (b)
	  	 Withdrawal of Basic After-tax Savings
	  	35
	 	  	 (c)
	  	 Valuation of After-tax Savings Account
	  	35
	 	  	 (d)
	  	 Form of Payment
	  	35
	 	  	 (e)
	  	 Taxation of Withdrawal
	  	35
	10.2	  	 Withdrawal of Section 401(k) Contribution
	  	35
	10.3	  	 Withdrawal of Vested Company Contribution Account
	  	35
	10.4	  	 Readmission of Former Participant to Plan
	  	35
	10.5	  	 Distributions Upon Attainment of Age 59-1/2
	  	35
	10.6	  	 Account Balance
	  	36
	10.7	  	 Hardship Withdrawals
	  	36
	 	  	 (a)
	  	 Terms of Hardship Withdrawals
	  	36
	 	  	 (b)
	  	 Restrictions
	  	36

  

 v 

							
	 	  	 (c)
	  	 Committee Guidelines and Determination
	  	36
	10.8	  	 Special Rule for Rollovers Out of the Plan
	  	36
		
	ARTICLE XI.	  	 
	LOANS TO PARTICIPANTS	  	37
			
	11.1	  	 General Provisions
	  	37
	11.2	  	 Maximum Loan Amount
	  	37
	11.3	  	 Minimum Loan Amount
	  	37
	11.4	  	 Repayment Period
	  	37
	11.5	  	 Terms and Conditions
	  	37
	11.6	  	 Nondiscrimination
	  	38
	11.7	  	 Offset of Account Balance
	  	38
	11.8	  	 Default
	  	38
		
	ARTICLE XII.	  	 
	BENEFICIARIES	  	40
			
	12.1	  	 Designation of Beneficiary
	  	40
	12.2	  	 Manner of Designation
	  	40
	12.3	  	 Absence of Valid Designation of Beneficiary
	  	40
	12.4	  	 Beneficiary Bound by Plan Provisions
	  	40
		
	ARTICLE XIII.	  	 
	QUALIFIED DOMESTIC RELATIONS ORDERS	  	41
			
	13.1	  	 Governing Provisions
	  	41
		
	ARTICLE XIV.	  	 
	PARTICIPANT’S DIRECTED INVESTMENTS	  	42
			
	14.1	  	 Election by Participants
	  	42
	14.2	  	 Election Rules
	  	42
	 	  	 (a)
	  	 Election to be in Writing
	  	42
	 	  	 (b)
	  	 Effective Date of Election
	  	42
	 	  	 (c)
	  	 Revocation of Election
	  	42
	 	  	 (d)
	  	 Change in Election
	  	42
	 	  	 (e)
	  	 Default Election
	  	42
	14.3	  	 Transfer Date
	  	43
	14.4	  	 Confirmation
	  	43
	14.5	  	 Subdivision of Accounts
	  	43
	 	  	 (a)
	  	 Establishment of Subaccounts
	  	43
	 	  	 (b)
	  	Allocation of After-tax Savings, Section 401(k) Contributions, Company Contributions and Forfeitures Among Subaccounts	  	43
	14.6	  	 Investment Funds
	  	43
	 	  	 (a)
	  	 Committee’s Responsibility for Funds
	  	43
	 	  	 (b)
	  	 Investment Policy of Funds
	  	43
	 	  	 (c)
	  	 Funds
	  	44

  

 vi 

							
	14.7	  	 Voting Rights
	  	44
	14.8	  	 Allocation of Income of Funds
	  	44
	14.9	  	 Investment Authority of Former Employees
	  	45
	14.10	  	 Investment for the Benefit of Incompetents
	  	45
	14.11	  	 Rules of Committee
	  	45
		
	ARTICLE XV.	  	 
	PLAN FIDUCIARIES	  	46
			
	15.1	  	 Plan Fiduciaries
	  	46
	 	  	 (a)
	  	 Named Fiduciary
	  	46
	 	  	 (b)
	  	 Investment Committee
	  	46
	 	  	 (c)
	  	 Trustees
	  	46
	15.2	  	 Fiduciary Duty
	  	46
	15.3	  	 Agents and Advisors
	  	46
	 	  	 (a)
	  	 Employment of Agents
	  	46
	 	  	 (b)
	  	 Delegation to Agents and Plan Administrator
	  	47
	 	  	 (c)
	  	 Appointment of Investment Manager
	  	47
	15.4	  	 Administrative Action
	  	47
	 	  	 (a)
	  	 Action by Majority
	  	47
	 	  	 (b)
	  	 Right to Vote
	  	47
	 	  	 (c)
	  	 Authority to Execute Documents
	  	47
	15.5	  	 Liabilities and Indemnifications
	  	47
	 	  	 (a)
	  	 Liability of Fiduciaries
	  	47
	 	  	 (b)
	  	 Indemnity by Company
	  	48
	15.6	  	 Plan Expenses and Taxes
	  	48
	 	  	 (a)
	  	 Plan Expenses
	  	48
	 	  	 (b)
	  	 Taxes
	  	48
	15.7	  	 Records and Financial Reporting
	  	48
	 	  	 (a)
	  	 Book of Account
	  	48
	 	  	 (b)
	  	 Financial Reporting Under ERISA
	  	48
	15.8	  	 Compliance with ERISA and Code
	  	48
	15.9	  	 Prohibited Transactions
	  	49
	15.10	  	 Foreign Assets
	  	49
	15.11	  	 Exclusive Benefit of Trust Fund
	  	49
	15.12	  	 Board of Directors Resolution
	  	49
		
	ARTICLE XVI.	  	 
	PLAN ADMINISTRATION	  	50
			
	16.1	  	 Administration of the Plan
	  	50
	 	  	 (a)
	  	 Authority to Administer
	  	50
	 	  	 (b)
	  	 Delegation of Authority to Plan Administrator
	  	50
	 	  	 (c)
	  	 Finality of Decision
	  	50
	16.2	  	 Claims
	  	50
	 	  	 (a)
	  	 Claims for Benefits
	  	50
	 	  	 (b)
	  	 Notice of Claim Denied
	  	50

  

 vii 

							
	ARTICLE XVII.	  	 
	PARTICIPATING COMPANY WITHDRAWAL FROM PLAN; TERMINATION OR MERGER OF THE PLAN	  	51
			
	17.1	  	 Voluntary Withdrawal from Plan
	  	51
	 	  	 (a)
	  	 Withdrawal By Participating Company
	  	51
	 	  	 (b)
	  	 Segregation of Trust Assets Upon Withdrawal
	  	51
	 	  	 (c)
	  	 Exclusive Benefit of Participants
	  	51
	 	  	 (d)
	  	 Applicability of Withdrawal Provisions
	  	51
	17.2	  	 Amendment of Plan
	  	51
	17.3	  	 Voluntary Termination of Plan
	  	52
	 	  	 (a)
	  	 Right to Terminate Plan
	  	52
	 	  	 (b)
	  	 Merger or Consolidation of Plan and Trust
	  	52
	 	  	 (c)
	  	 Termination of Plan and Trust Fund
	  	52
	17.4	  	 Discontinuance of Contributions
	  	53
	17.5	  	 Rights to Benefits Upon Termination of Plan or Complete Discontinuance of Contributions
	  	53
		
	ARTICLE XVIII.	  	 
	ELECTION TO PARTICIPATE BY SUBSIDIARIES	  	54
			
	18.1	  	 Consent Required for Subsidiaries to Join Plan
	  	54
		
	ARTICLE XIX.	  	 
	MISCELLANEOUS PROVISIONS	  	55
			
	19.1	  	 Status of Employment
	  	55
	19.2	  	 Liability of Company
	  	55
	19.3	  	 Information
	  	55
	 	  	 (a)
	  	 Supplied by Named Fiduciary, the Committee or Trustees
	  	55
	 	  	 (b)
	  	 Supplied by Company
	  	55
	19.4	  	 Provisions of Plan to Control
	  	55
	19.5	  	 Payment for Benefit of Incompetent
	  	55
	19.6	  	 Account to be Charged Upon Payment
	  	55
	19.7	  	 Tax Qualification of Plan
	  	56
	19.8	  	 Deductibility of Company Contributions
	  	56
	19.9	  	 Restriction on Alienation or Assignment
	  	56
	19.10	  	 Unclaimed Benefits
	  	56
	19.11	  	 Recovery of Plan Benefits Payment Made by Mistake
	  	56
	19.12	  	 Bonding
	  	56
	19.13	  	 Titles and Captions
	  	57
	19.14	  	 Execution of Counterparts
	  	57
	19.15	  	 Governing Law
	  	57
	19.16	  	 Separability
	  	57
	19.17	  	 Supplements and Appendices
	  	57
	19.18	  	 Military Service
	  	57
	19.19	  	 Employer Securities
	  	57

  

 viii 

							
	ARTICLE XX.	  	 
	TOP HEAVY PROVISIONS	  	58
			
	20.1	  	 Determination of Top Heavy Status
	  	58
	20.2	  	 Definitions
	  	58
	 	  	 (a)
	  	 “Aggregation Group”
	  	58
	 	  	 (b)
	  	 “Determination Date”
	  	58
	 	  	 (c)
	  	 “Section 401 Plan”
	  	58
	 	  	 (d)
	  	 “Top Heavy Group”
	  	58
	 	  	 (e)
	  	 “Valuation Date”
	  	58
	20.3	  	 Requirements if Plan is a Top Heavy Plan
	  	59
	20.4	  	 Applicability of Top-Heavy Rules
	  	59

  

 ix 

 ARTICLE I. 
 DEFINITIONS 
  
 When used
in this instrument, the following words and phrases have the indicated meanings except where the contrary is expressly stated: 
  
 1.1 “Account” shall have the meaning set forth in Section 6.1. 
  
 1.2 “Actual Contribution Percentage” means, for a given Plan Year, the average of the ratios,
calculated separately for each Participant in a group, of (a) the sum of After-tax Savings credited to the Participant’s After-tax Savings Account and Company contributions and forfeitures allocable to the Participant’s Company
Contribution Account for the Plan Year to (b) the Participant’s Compensation for such Plan Year. 
  
 1.3 “Actual Deferral Percentage” means, for a given Plan Year, the average of the ratios, calculated separately for each
Participant in a group, of (a) the Section 401(k) Contributions made on behalf of such Participant by the Company for the Plan Year to (b) the Participant’s Compensation for such Plan Year. 
  
 1.4 “Additional After-tax Savings” means After-tax
Savings not included in Combined Basic Savings for a payroll period. 
  
 1.5 “Additions” means, with respect to each Participant for any Fiscal Year, the total of (a) the Company contributions and forfeitures allocated for the Fiscal Year to the Participant’s Company Contribution
Account, plus (b) Section 401(k) Contributions allocated for the Fiscal Year to the Participant’s Section 401(k) Contributions Account, plus (c) the After-tax Savings allocated for the Fiscal Year to the Participant’s After-tax Savings
Account. 
  
 1.6 “Administrative Expenses”
means the administrative expenses described in Section 15.6(a). 
  
 1.7 “Affiliated Company” means a “Subsidiary”, as defined in Section 1.69. 
  
 1.8 “After-tax Savings” means the After-tax savings deposited into the Trust Fund by a Participant in accordance with Article IV.

  
 1.9 “After-tax Savings Account” shall
have the meaning set forth in Section 6.1(a). 
  
 1.10
“Allocable Portion” means, for purposes of Section 11.2, the lesser of: (a) fifty percent (50%) of the Participant’s vested Account balance; or (b) $50,000, reduced by the excess of (1) the highest outstanding balance of
any previous loan from the Plan and any other plans of the Company or a Subsidiary during the one-year period ending on the day before the date on which the current loan is made over (2) the outstanding balance of any previous loan from the Plan and
any other plans of the Company or a Subsidiary on the date on which the current loan is made. 
  

 A-1 

 1.11 “Allocation Agreement” means the Employee Benefits & Other Employment
Matters Allocation Agreement entered into by and between Host Marriott Corporation, Host Marriott, L.P. and Crestline Capital Corporation. 
  
 1.12 “Alternate Payee” means any Spouse, former Spouse, child or other dependent of a Participant who is entitled under a
Qualified Domestic Relations Order to receive all, or part of, the benefits payable to that Participant under the Plan. 
  
 1.13 “Annuity Starting Date” means the first day of the first period for which an amount is received as an annuity by reason of
retirement or disability. 
  
 1.14 “Authorized Leave of
Absence” means any absence authorized by the Company under the Company’s standard personnel practices provided that the Employee or Participant returns within the period of authorized absence. An absence due to service in the
Armed Forces of the United States shall be considered an Authorized Leave of Absence provided that the absence is caused by war or other emergency, or provided that the Employee or Participant is required to serve under the laws of conscription in
time of peace, and further provided that the Employee or Participant returns to employment with the Company within the period provided by law. Except for service in the Armed Forces of the United States in accordance with the preceding sentence, an
Authorized Leave of Absence may not extend beyond two (2) years. 
  
 1.15 “Basic After-tax Savings” means After-tax Savings included in Combined Basic Savings for a payroll period. 
  
 1.16 “Beneficiary” means the person or persons designated as a beneficiary pursuant to Article XII. 
  
 1.17 “Board of Directors” means the Board of
Directors of Host Marriott Corporation, a Delaware corporation and the General Partner of Host Marriott, L.P. 
  
 1.18 “Code” means the Internal Revenue Code of 1986, as amended, or any successor statute, including the regulations issued
thereunder. 
  
 1.19 “Combined Basic
Savings” means the sum of a Participant’s After-tax Savings and Section 401(k) Contributions for each payroll period, provided that such sum shall include only an amount up to six percent (6%) of Compensation for each payroll
period. If the sum of a Participant’s After-tax Savings and Section 401(k) contributions for a payroll period exceed six percent (6%), the Participant’s 401(k) contributions shall be included in Combined Basic Savings before After-tax
Savings. 
  
 1.20 “Committee” means the
Investment Committee appointed by the Company pursuant to Section 15.1(b). 
  
 1.21 “Company” means Host Marriott, L.P. and any affiliate or Subsidiary that elects to join the Plan with the consent of the Board of Directors. 
  
 1.22 “Company Contribution Account” shall have the
meaning set forth in Section 6.1 (c). 
  

 A-2 

 1.23 “Compensation” means: 
  
 (a) Except as hereinafter specified, (1) earned income,
wages, salary, overtime, cash bonus, commissions, annual leave, sick leave and holiday pay, paid by the Company to an Employee, and (2) gratuities reported by the Employee to the Company and the Internal Revenue Service, all without regard for any
election under Article V or any elections made by the Participant under any plan maintained by the Company pursuant to Section 125 of the Code, but excluding any and all other forms of compensation. Notwithstanding the foregoing, Compensation taken
into account for each Employee for a Plan Year shall not exceed Two Hundred Thousand Dollars ($200,000) or such other amount as the United States Secretary of Treasury may designate under Section 401(a)(17) of the Code. 
  
 (b) For purposes of the limitation on contributions and
benefits under Section 415 of the Code as set forth in Section 6.11, a Participant’s wages, salaries, and fees for professional services, and other amounts received for personal services actually rendered in the course of employment with the
Company to the extent that the amounts are includable in gross income (including, but not limited to, commissions, gratuities reported by the Employee to the Company and the Internal Revenue Service, bonuses, fringe benefits, reimbursements or other
expenses allowable under a non-accountable plan (as described in Section 1.62-2(c) of the Treasury Regulations) annual leave, sick leave and holiday pay) and including amounts contributed by the Company pursuant to a salary reduction agreement and
which are not includable in the gross income of the Participant under Sections 125, 132 (f)(4), 401(k), 402(g)(3), 402(h)(1)(B), 403(b) or 457 of the Code, and excluding the following: 
  
 (1) Company contributions to a plan of deferred compensation which (except as provided above with respect to
Sections 125, 402(g)(3) and 402(h)(1)(B) of the Code) are not included in the Employee’s gross income for the taxable year in which contributed, or any distribution from a plan of deferred compensation; 
  
 (2) Amounts realized from the exercise of a nonqualified
stock option, or when restricted stock (or property) held by the Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture; and 
  
 (3) Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock
option. 
  
 1.24 “Default” includes: (a) a
failure to pay any principal or interest when due on a loan provided pursuant to Section 11.1 that continues beyond the end of the calendar quarter following the calendar quarter in which the payment of principal and interest was due shall
constitute a default of such loan; (b) a failure by a terminated Participant to repay the entire outstanding balance of a loan prior to the end of the calendar quarter following the calendar quarter in which the Participant terminated employment
with the Company, or (c) any other uniform and nondiscriminatory written standards adopted by the Committee as to what constitutes default. 
  
 1.25 “Distributee” means a Participant, Former Participant, Retired Participant, Disabled Participant, the Surviving Spouse of a
Deceased Participant, and an Alternate Payee. 
  

 A-3 

 1.26 “Effective Date” means January 1, 2004. 
  
 1.27 “Eligible Rollover Distribution” means any
distribution of all or a portion of the Distributee’s Account balance, except that an Eligible Rollover Distribution does not include (a) any distribution that is one of a series of substantially equal periodic payments (not less frequently
than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee’s designated Beneficiary, or for a specified period of ten (10) years or more, (b)
any distribution to the extent such distribution is required under Section 401(a)(9) of the Code, and (c) the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to Company securities). This definition shall not apply to amounts distributed due to hardships as provided in Section 10.7 of the Plan. For purposes of the direct rollover provisions in Sections 6.12 and 8.12 of the Plan,
a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of After-tax employee contributions, which are not includable in gross income. However, such portion may be transferred only to an
individual retirement account or annuity described in section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in section 401(a) or 403(a) of the Code that agrees to separately account for amounts so transferred,
including separately accounting for the portion of such distribution which is includable in gross income and the portion of such distribution which is not so includable. 
  
 1.28 “Eligible Retirement Plan” means an individual retirement account (described in Section 408(a)
of the Code), an individual retirement annuity (described in Section 408(b) of the Code), an annuity plan (described in Section 403(a) of the Code), a qualified trust (described in Section 401(a) of the Code), that accepts the Distributee’s
Eligible Rollover Distribution, an annuity contract described in Section 403(b) of the Code and an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a
state, and which agrees to separately account for amounts transferred into such a plan from this plan. In the case of an Eligible Rollover Distribution to the Spouse, this definition of “Eligible Retirement Plan” shall apply. 

 
 1.29 “Employee” means any person classified by a
Participating Company as an “employee” and employed by a Participating Company other than: (a) a person who is covered by a collective bargaining agreement, if there is evidence to show that retirement benefits were the subject of good
faith bargaining between a Participating Company and the employee representatives with whom such agreement was entered; (b) a nonresident alien who receives no earned income (within the meaning of Section 911(d)(2) of the Code) from a Participating
Company which constitutes income from sources within the United States (within the meaning of Section 861(a)(3) of the Code); (c) a participant in a profit sharing plan, pension plan or other retirement plan (other than the Plan, the Host Marriott,
L.P. Executive Deferred Compensation Plan or the Host Marriott Corporation and Host Marriott, L.P. Comprehensive Stock and Cash Incentive Plan or the Host Marriott Corporation Non-Employee Directors’ Deferred Stock Compensation Plan) maintained
by Host Marriott Corporation or Host Marriott, L.P. or an affiliate, whether or not the plan or the trust of such plan is intended to qualify under Section 401 of the Code; (d) a leased employee (within the meaning of Section 414(n) of the Code);
(e) an independent contractor; or (f) any other individual who is not classified by the Participating 

  

 A-4 

 
Company as an employee, regardless of whether such leased employee, independent contractor or other individual is later determined to be common law employee.

  
 1.30 “Entry Date” means the first day
of the four week accounting period of the Company immediately following receipt by the Plan Administrator of an application for admission to the Plan in writing, or in such other form authorized by the Plan Administrator; provided, however, that
Employees who were employed by Host Marriott Corporation on the day immediately prior to the Effective Date shall be eligible to participate in the Plan on the Effective Date. The Board of Directors may, with respect to persons who become Employees
by virtue of having been employed by any business entity the stock or substantially all of the assets of which are acquired by Host Marriott, L.P. or any affiliate or Subsidiary or the management of which is assumed by the Company, establish by
written resolution as a special Entry Date, solely for such Employees, the date of such acquisition or assumption of management. 
  
 1.31 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 1.32 “Fiduciary” means any person who (a) exercises
any discretionary authority or discretionary control respecting management of the Plan or exercises any authority or control respecting management or disposition of the Plan’s assets; (b) renders investment advice for a fee or other
compensation, direct or indirect, with respect to any monies or other property of the Plan, or has any authority or responsibility to do so; or (c) has any discretionary authority or discretionary responsibility in the administration of the Plan.
The term “Fiduciary” includes the Named Fiduciary, the Trustees and any person to whom fiduciary responsibilities have been delegated pursuant to Section 15.3. 
  
 1.33 “Fiscal Year” means the calendar year. The Fiscal Year shall be the “limitation year”
of the Plan for purposes of the limitation on contributions and benefits under Section 415 of the Code, or any successor provision thereto. 
  
 1.34 “Flexible Compensation” shall have the meaning set forth in Section 5.1. 
  
 1.35 “FLSA” means the Fair Labor Standards Act, as
amended from time to time. 
  
 1.36 “Fund”
means any of the separate funds in which Participants’ Accounts may be placed and which are allocated and invested in accordance with Article XIV. 
  
 1.37 “Hardship” means the existence of an immediate and heavy financial need of the Participant. A need exists if it is necessary for the
following: 
  
 (a) expenses for medical care
previously incurred by the Participant, his spouse or any of his dependents or necessary for these persons to obtain medical care within the limits of Section 213(d) of the Code; 
  
 (b) purchase (excluding mortgage payments) of a principal residence for the Participant; 
  

 A-5 

 (c) Payment of tuition, related education fees and room and board for the next 12 months
of post-secondary education for the Participant, his spouse, children or dependents; 
  
 (d) Payment to prevent the eviction of the Participant from his principal residence or foreclosure on the mortgage of the
Participant’s principal residence; and 
  
 (e) Any other event determined by the Commissioner of Internal Revenue. 
  
 1.38 “Highly Compensated Employee” means any Employee or former Employee who performs service for a Participating Company during the Plan Year and who (i) for the prior Plan Year received
Compensation from the Participating Company as determined for purposes of Section 415 of the Code in excess of $85,000 and was in the “top-paid group,” as defined in Section 414(q) of the Code (as adjusted pursuant to Code Section 415(d));
or (ii) during the Plan Year or the prior Plan Year was a 5% owner (as defined in Code Section 416(I)(1)). 
  
 1.39 “Hire Date” means, for any Employee, the date on which he first becomes entitled to credit for an hour for which he is
directly or indirectly paid or entitled to be paid by the Company or a Subsidiary for the performance of employment services. 
  
 1.40 “Host Marriott L.P.” means Host Marriott, L.P., a Delaware limited partnership, or any successor thereto by merger,
consolidation or the acquisition of substantially all of the assets and business thereof. 
  
 1.41 “Investment Expenses” means all expenses which under generally accepted accounting principles would be classified as investment expenses, including, without limitation, investment
manager’s or advisor’s fees and expenses, custodial fees, fees of broker-dealers for effecting investment transactions or rendering investment advice, expenses relating to the making of investments and expenses relating to the recovery of
any investment in a bankrupt or insolvent entity. 
  
 1.42
“Maximum Permissible Amounts” means the lesser of: 
  
 (a) $40,000, or such higher amount to which such amount may be adjusted or, pursuant to Section 415(f) of the Code, to implement special rules applicable to combining more than one defined contribution plan as a
single plan; or 
  
 (b) Twenty-five percent (25%)
of the Participant’s Compensation as provided in Section 1.23(b). 
  
 1.43 “Month” means any calendar month. 
  
 1.44 “Month of Credit” means any Month during the entire period of which an Employee is employed by the Company. For purposes of the foregoing, a Month of Credit shall be deemed to commence on the day of hire and end
on the close of business on the day preceding the next month’s anniversary thereof. Months of Credit are cumulative and need not be successive. Notwithstanding any other provision to the contrary, a Participant’s Months of Credit under the
Plan shall include Months of Credit, if any, credited to such Participant under the Prior Plan immediately before the Effective Date. 
  

 A-6 

 1.45 “Named Fiduciary” means the Committee in its role as named fiduciary of the
Plan as set forth in Section 15.1(a). 
  
 1.46
“Participant” means an Employee of the Company who has been admitted to participation in this Plan in accordance with Article II. As appropriate to the context a “Participant” may include one or more of the
following sub-definitions. 
  
 (a)
“Former Participant” means any present Employee of the Company who, after having been a Participant, ceases to participate in the Plan. 
  
 (b) “Terminated Participant” means any prior Employee of the Company who, after having been a Participant, terminated his
employment other than by retirement, death or Permanent Disability, and has any vested balance in the Plan. 
  
 (c) “Retired Participant” means any Participant who retires from employment in accordance with Section 8.1 and who has
any vested balance in the Plan. 
  
 (d)
“Disabled Participant” means any Participant who terminates from employment as a result of a Permanent Disability and who has any vested balance in the Plan. 
  
 (e) “Deceased Participant” means any Participant who terminates employment by reason of
death and who leaves any vested balance in the Plan. 
  
 1.47
“Participating Company” means Host Marriott, L.P. or any affiliate or Subsidiary that has elected to join the Plan with the consent of the Host Marriott Corporation’s Board of Directors. All of the Participating
Companies constitute the “Company”, as defined in Section 1.21. 
  
 1.48 “Permanent Disability” means that the Participant, as a result of a disability, will be prevented on a permanent basis from engaging in any occupation for which he is reasonably qualified
by education, training or experience as certified by a competent medical authority designated by the Named Fiduciary to make such determination. The foregoing disability shall be attributable to the permanent loss or loss of use of a member or
function of the body, or to the permanent disfigurement of the Participant. 
  
 The determination of the existence of a Permanent Disability shall be made by the Plan Administrator and shall be final and binding upon the Participant and all other parties. 
  
 1.49 “Period of Severance” means the period of time
commencing on the Separation Date and ending on the Participant’s Reemployment Date. 
  
 1.50 “Plan” means the Host Marriott, L.P. Retirement and Savings Plan, including any amendments thereto. 
  

1.51 “Plan Administrator” means the person to whom the duties of Plan Administrator are delegated pursuant to Section 15.3(b).

  

 A-7 

 1.52 “Plan Year” shall mean, for Plan Years beginning after the Effective Date,
the same meaning as “Fiscal Year” in Section 1.33; for the Plan Year in which the Effective Date occurs, the Plan Year shall mean January 4, 1998 through December 31, 1998; for other Plan Years beginning before the Effective Date, Plan
Year shall mean the Fiscal Year of Host Marriott Corporation. 
  
 1.53 “Predecessor Company” means Host Marriott Corporation. 
  
 1.54 “Prior Plan” means the Host Marriott Corporation (HMC) Retirement and Savings Plan and Trust, as in effect prior to the Effective Date. 
  
 1.55 “Pro Rata Share of Administrative Expenses”
means the amount determined by multiplying the Administrative Expenses of the Plan by a fraction, the numerator of which is the total value of each Fund and the denominator of which is the total aggregate value of all such Funds. 
  
 1.56 “Qualified Domestic Relations Order” or
“QDRO” shall have the same meaning as “qualified domestic relations order” under Section 414(p) of the Code and the Treasury Regulations thereunder. 
  
 1.57 “Qualified Joint and Survivor Annuity” or “QJSA” means an annuity purchased
from a commercial insurance company with the Participant’s Account that pays a benefit for the life of the Participant with a survivor annuity for the life of the Participant’s Surviving Spouse in an amount elected by the Participant of
either fifty percent (50%) or one hundred percent (100%) of the amount being paid to the Participant during his lifetime. 
  
 1.58 “Qualifying Employer Real Property” means parcels of real property (and related personal property) which are leased to the
Company or an Affiliated Company (a) if a substantial number of the parcels are dispersed geographically; and (b) if each parcel and the improvements thereon are suitable (or adaptable without excessive cost) for more than one use. 
  
 1.59 “Qualifying Employer Securities” means (a) any
stocks or other equity securities issued by the Company or an Affiliated Company; or (b) any bonds, debentures, notes or certificates or other evidences of indebtedness of the Company or an Affiliated Company which are described in Section 503(e) of
the Code and Section 407(e) of ERISA. 
  
 1.60
“Reemployment Date” means, for any Employee, the first date following the Employee’s Separation Date on which he first becomes entitled to credit for an hour for which he is directly or indirectly paid or entitled to be
paid by the Company or a Subsidiary for the performance of employment duties. 
  
 1.61 “Required Beginning Date” means April 1 of the calendar year following the calendar year in which the Participant attains age 70-1/2 or, if later, the calendar year in which the Participant
retires from the Company; provided, however, that in the case of a Participant who is a 5% owner (as defined in Code section 416), Required Beginning Date means April 1 of the calendar year following the calendar year in which the Participant
attains age 70-1/2; and provided, further, that in the case of a Participant who attained age 70-1/2 before January 1, 1988, Required Beginning Date means the April 1 following the later of the calendar year in 

  

 A-8 

 
which he (a) attained age 70-1/2; or (b) the sixtieth (60th) day following the close of the Plan Year in which the Participant terminates employment with the
Company, provided such date is not later than April 1 of the calendar year following the calendar year during which such termination occurs, unless he was a five percent (5%) owner (as defined in Section 416 of the Code) of the Company with respect
to the Plan Year ending in the calendar year in which he attains age 70-1/2, in which case, clause (b) shall not apply. 
  
 1.62 “Section 401(k) Contribution” shall have the meaning set forth in Section 5.2. 
  
 1.63 “Section 401(k) Contribution Account” shall have
the meaning set forth in Section 6.1(b). 
  
 1.64
“Separation Date” means the earlier of: 
  
 (a) Any date on which an Employee’s employment with the Company terminates by reason of voluntary termination, discharge, retirement or death; or 
  
 (b) The first anniversary of the first date of a period in which the Employee remains absent from active
employment with the Company for some reason other than voluntary termination, discharge, retirement, death, approved leave of absence, or military service. 
  
 Provided, however, that, solely for the purpose of determining whether a Period of Severance has occurred, if an Employee is absent from service beyond
the first anniversary of the first date of absence by reason of a “maternity or paternity leave”, then the Separation Date of such Employee shall be the second anniversary of the first date of such absence. For purposes of this Section,
“maternity or paternity leave” means termination of employment or absence from work due to: (i) the pregnancy of the Participant, (ii) the birth of a child of the Participant, (iii) the placement of a child in connection with the adoption
of the child by a Participant, or (iv) the caring for a Participant’s child during the period immediately following the child’s birth or placement for adoption. The Plan Administrator shall determine, under rules of uniform application and
based on information provided to the Plan Administrator by the Participant, whether or not the Participant’s termination of employment or absence from work is due to “maternity or paternity leave”. 
  
 1.65 “Service” means an Employee’s or a
Participant’s period of employment with the Company; the Predecessor Company prior to the Effective Date; as a leased employee (within the meaning of Section 414(n) of the Code) unless the leased employee is covered by a safe harbor plan
described in Section 414(n)(5) of the Code; any other employer that is required to be aggregated with the Company under Section 414 of the Code, as determined in accordance with Article VII or any employer that maintains a plan from which assets are
transferred to this Plan on behalf of the Employee or Participant in a transaction subject to Section 414(1) of the Code. An Employee’s Service shall include any period of employment with Crestline Capital Corporation if the Employee was
employed by the Company immediately after becoming employed by Crestline Capital Corporation. Employment of an Employee or a Participant by any of the following employers shall be treated as Service: 
  
 (a) A Subsidiary, both prior to and after becoming a
Subsidiary, if such Subsidiary has elected to join the Plan. 
  

 A-9 

 (b) A Subsidiary, after becoming a Subsidiary, if such Subsidiary has not elected to join
the Plan. 
  
 In addition, the Board of Directors shall have the
authority by adopting written resolutions to recognize employment of an Employee or a Participant by any of the following employers as Service: 
  
 (a) A Subsidiary, prior to becoming a Subsidiary, if such Subsidiary has not elected to join the Plan. 
  
 (b) Any business entity substantially all of the assets of
which are acquired by Host Marriott, L.P. or any affiliate or Subsidiary or whose management is assumed by the Company; provided that such recognition shall apply uniformly to all employees of any such employer. 
  
 1.66 “Spousal Consent” means a Spouse’s written
consent which acknowledges the effect of the Participant’s election and is witnessed by a Plan representative or notary public. Spousal Consent may be in the form of a specific consent, general consent or limited general consent, as provided in
Section 8.6(e). 
  
 1.67 “Spouse” or
“Surviving Spouse” means the spouse or surviving spouse of the Participant, provided that a former spouse will be treated as the spouse or surviving spouse and a current spouse will not be treated as the spouse or surviving
spouse to the extent provided in a Qualified Domestic Relations Order. 
  
 1.68 “Subaccount” means the portion of a Participant’s Account placed in each Fund pursuant to Article XIV. 
  
 1.69 “Subsidiary” or “Affiliated Company” means (a) a member of a controlled group of corporations of which Host
Marriott, L.P. is a member as determined in accordance with Section 414(b) of the Code; or (b) an unincorporated trade or business which is under common control by or with Host Marriott, L.P., as determined in accordance with Section 414(c) of the
Code. For purposes hereof, a “controlled group of corporations” shall mean a controlled group of corporations as defined in Section 1563(a) of the Code, determined without regard to Sections 1563(a)(4) and 1563(e)(3)(C) of the Code, except
that, with respect to the limitation on Annual Additions set forth in Section 6.11, instead of eighty percent (80%), the applicable percentage shall be fifty percent (50%) wherever such percentage appears in Section 1563(a)(1) of the Code.

  
 1.70 “Trustees” means the corporate
trustee or persons appointed as Trustee of the Trust Fund and any successors. 
  
 1.71 “Trust Agreement” means the Agreement providing for the terms and conditions under which the Trustee will hold and invest the Trust Fund. 
  
 1.72 “Trust Fund” means the assets of the Plan and
Trust as the same shall exist from time to time. 
  

 A-10 

 1.73 “Valuation Date” means the last day of the Plan Year and such other dates as
of which the Plan Administrator values the interest of Participants in the assets of the Trust Fund, such valuations being made in accordance with the provisions of Section 6.8. 
  

 A-11 

 ARTICLE II. 
 ELIGIBILITY AND PARTICIPATION 
  
 2.1 Eligibility and Participation. 
  
 (a) Eligibility. Any Employee shall be eligible to participate in the Plan immediately on the Employee’s Hire Date. 
  

(b) Commencement of Participation. Any Employee may commence participation in the Plan on any Entry Date after the
Employee’s Hire Date and shall be admitted to the Plan on any such Entry Date if the Plan Administrator receives the Employee’s written application for admission to the Plan. 
  
 (c) Continued Participation. Notwithstanding subsection (a), any person who was a Participant or
Former Participant in the Prior Plan on the day before the Effective Date shall automatically become a Participant under this Plan on the Effective Date, provided that such person is an Employee on the Effective Date. 
  
 (d) Participation Voluntary. Participation in the
Plan shall be entirely voluntary. 
  
 2.2 Reemployment of
Employee. An Employee who terminates employment with the Company and subsequently resumes employment with the Company shall become eligible to participate in the Plan immediately upon again becoming an Employee and may be admitted to the
Plan on any Entry Date thereafter upon written application in accordance with Section 2.1(b). 
  
 2.3 Termination of Plan Participation. A Participant may cease to participate in the Plan during the Participant’s continued employment at any time by giving written notice thereof to the Plan
Administrator. Such notice shall be effective to terminate participation upon its receipt by the Plan Administrator and such Employee shall thereupon become a Former Participant. 
  
 2.4 Readmission of Former Participant. Any Former Participant may be readmitted to the Plan as a Participant
on any Entry Date upon written application in accordance with Section 2.1(b); provided, however, that if any Former Participant withdraws any portion of his Basic After-tax Savings pursuant to Section 10.1, he shall not be eligible for readmission
to the Plan until six (6) months have elapsed from the date on which he became a Former Participant. 
  
 2.5 Participation During Authorized Leave of Absence or During Employment by Subsidiary That Has Not Joined Plan. Participation in the Plan
may continue during periods of Authorized Leave of Absence, and periods during which a Participant is employed by a Subsidiary, which has not elected to join the Plan. However, the Participant may neither deposit savings in the Trust Fund nor share
in the allocation of the Company contribution during such periods. A Participant on Authorized Leave of Absence who does not return to active employment with the Company by the expiration of such Authorized Leave of Absence shall be treated for the
purposes of the Plan as having terminated employment pursuant to Section 9.1. 
  

 A-12 

 2.6 Treatment of Participants Who Cease Being Employees Pursuant to Section 1.29.
Notwithstanding the provisions of Section 2.5, any Participant who ceases to be an Employee by reason of Section 1.29(a), (b), (d) or (e), or by becoming employed by a Subsidiary which has not elected to join the Plan, or by becoming a participant
in a plan described in Section 1.29(c), shall be treated thereupon as a Former Participant in accordance with the provisions of this Plan. 
  

 A-13 

 ARTICLE III. 
 COMPANY CONTRIBUTION 
  
 3.1 Amount of Contribution. For each Fiscal Year or portion thereof, each Participating Company shall make the following contributions to the Trust Fund: 
  
 (a) Section 401(k) Contributions, as provided by Article V; 
  
 (b) Effective May 20, 2004, a matching contribution on
behalf of each Participant in the amount of fifty percent (50%) of the Participant’s Combined Basic Savings for each payroll period, but only if such Participant is an employee on the last day of the quarter or such lesser period as determined
by the Committee or Plan Administrator; and 
  
 (c) Any additional contribution, if any, as determined in the absolute and sole discretion of the Host Marriott Corporation Board of Directors or the Committee. 
  
 Notwithstanding anything to the contrary, in no event shall the amount contributed by any Participating Company include an
amount, if any, equal to the amount of any “excess aggregate contributions” (as defined in Section 401(m)(6)(B) of the Code) for such year that would otherwise be allocable to Participants who are Highly Compensated Employees, if such
amounts were contributed to the Plan. 
  
 In no event shall the
amount of the contribution exceed the maximum amount deductible by a Participating Company for the Fiscal Year with respect to which the contribution is made under Section 404(a) of the Code or the corresponding provision of any subsequent tax law.

  
 Effective January 1, 2004, if as a result of Code Section
402(g) dollar limitation on the amount of the annual Section 401(k) Contributions or the Code Section 401(a)(17) dollar limitation on Compensation, the Participant does not receive a total matching contribution pursuant to Section 3.1(b) under the
payroll matching procedure, an additional matching contribution shall be made on the Participant’s behalf so that the Participant’s total matching contribution is equal to 100% of the Participant’s Combined Basic Savings which does
not exceed 6% of the Participant’s Compensation for that Plan Year. 
  
 3.2 Time of Payment of Contributions. A Participating Company may pay its contributions at such time or times and in such amount or amounts as it may deem appropriate during the Fiscal Year for which
each such contribution becomes due and for such period thereafter during which payment thereof may be permitted as a deduction for the previous Fiscal Year under the Code. 
  
 3.3 Form of Payment of Contributions. All payments of contributions shall be made directly to the Trustees.
Payments may be in cash, Qualifying Employer Securities (including treasury stock or previously unissued stock of Host Marriott Corporation), Qualifying Employer Real Property or in such other property of any kind as the Named Fiduciary may
authorize the Trustees to accept, to the extent permitted by law. The value of any property other than cash, which may be paid to the Trustees shall be its fair market value as of the date of such payment, as determined by the Named Fiduciary, based
on the report of an independent appraiser. 
  

 A-14 

 3.4 Return of Contributions to Company. Notwithstanding any other provisions of this Plan,
any contributions made by a Participating Company pursuant to Section 3.1 shall, to the extent permitted by Section 403(c) of ERISA, be returned to a Participating Company if: 
  
 (a) The contributions are made as the result of a mistake of fact; 
  
 (b) A tax deduction claimed for the contributions pursuant
to Section 404 of the Code is denied to the Company by the Internal Revenue Service; or 
  
 (c) The IRS determines that the Plan is not tax-qualified under Section 401 of the Code. 
  
 Notwithstanding the foregoing, however, no contributions may be returned to a
Participating Company under the above provisions later than one (1) year from the date a mistaken contribution is made, a tax deduction for a contribution is denied, or the IRS determines that the Plan is not tax-qualified, as the case may be.
Further, except as otherwise provided in this paragraph, the assets of the Plan shall not inure to the benefit of the Company, and shall be held for the exclusive purposes of providing benefits to Participants and Beneficiaries and defraying
reasonable expenses of administering the Plan. 
  

 A-15 

 ARTICLE IV. 
 PARTICIPANTS’ AFTER-TAX SAVINGS 
  
 4.1 Participant After-tax Savings. Subject to the provisions of Section 4.2, each Participant may deposit After-tax Savings into the Trust Fund. 
  
 4.2 Amount of After-tax Savings. Subject to the limitation
provisions of Section 6.5, a Participant may deposit in the Trust Fund, specified in multiples of one percent (1%), an amount, which is at least one percent (1%), but not more than twenty percent (20%), of his Compensation paid for each payroll
period. The maximum amount of After-tax Savings is reduced by the amount of the Participant’s 401(k) Contributions as provided in Section 5.8. 
  
 4.3 Payroll Deduction. Each Participant’s After-tax Savings shall be withheld by the Company from Compensation paid such Participant
for each payroll period. 
  
 4.4 Change in Rate of After-tax
Savings. A Participant may change the rate of his After-tax Savings to any other rate authorized by Section 4.2 at any time by giving written notice to the Plan Administrator. Such notice shall be effective as specified by the Committee. In
addition, a Participant may discontinue his After-tax Savings at any time by giving written notice to the Plan Administrator. Such notice of discontinuation shall be effective as specified in Section 2.3, unless the Participant has made an election
pursuant to Section 5.2. 
  
 4.5 Payment to
Trustees. The Participants’ After-tax Savings withheld shall be paid to the Trustees by the Company on the earliest date on which such After-tax Savings can reasonably be segregated from the Company’s general assets. A statement
showing the amount representing the After-tax Savings of each Participant shall accompany each such payment. 
  
 4.6 Investment of Participants’ After-tax Savings. Subject to the Participant’s right to direct investments, the
Participant’s After-tax Savings shall be commingled with other assets in the Trust Fund for investment purposes. 
  
 4.7 In-Service Withdrawal of After-tax Savings. A Participant may withdraw After-tax Savings from his After-tax Savings Account as provided
in Sections 10.1 and 10.5. 
  
 4.8 Effect of Termination of
Plan or Discontinuance of After-tax Contributions. In the event (a) the Plan is terminated or partially terminated with respect to a Participating Company or particular group or class of Participants, or (b) the Company or any Participating
Company discontinues the making of After-tax Contributions, the election made by any affected Participant under the provisions of this Article IV shall be immediately null and void and of no further effect, and no additional amounts of After-tax
Savings shall be contributed to the Trust Fund by the Company or the Participating Company. 
  

 A-16 

 ARTICLE V. 
 SECTION 401(K) CONTRIBUTIONS 
  
 5.1 Designation of Flexible Compensation. The books and records of the Company shall designate twenty percent (20%) of each Participant’s Compensation for each payroll period as “Flexible Compensation.” Flexible
Compensation shall for all purposes, tax or otherwise, be treated as part of a Participant’s Compensation and the designation of such amount shall be relevant only for purposes of this Article V. 
  
 5.2 Section 401(k) Contributions. Subject to the terms and
conditions of this Article V, any Participant may, at any time and from time to time, elect to have contributed to the Trust Fund out of his Flexible Compensation, specified in multiples of one percent (1%), an amount which shall be designated a
Section 401(k) Contribution and shall constitute a contribution to the Trust Fund by the Company on behalf of the Participant under the provisions of Section 401(k) of the Code. 
  
 5.3 Election Rules. 
  

(a) Method of Election. The Committee shall determine the method by which an election may be made pursuant to this Article V.
Any such election method must be consistent with the provisions of Section 401(k)(2) of the Code and (assuming such consistency) may include either an affirmative election procedure whereby Participants shall only be treated as having made an
election upon written direction of the Participants or a negative election procedure whereby Participants shall be deemed to have made an election until and unless a Participant files a written direction negating the election. Regardless of the
method of election determined by the Committee, Participants shall be given prompt and adequate notice thereof and thus be afforded an appropriate opportunity to exercise their rights under this Article V. 
  
 (b) Effective Date of Election. An election shall
become effective (unless previously revoked) upon the first day of the payroll period of the Company immediately following receipt by the Plan Administrator of the election. 
  
 (c) Revocation or Amendment. An election may be made to change a Participant’s rate of Section
401(k) Contributions to any other rate authorized under Section 5.2 at any time. Such election shall be made in the manner, and shall be effective, as specified by the Committee. In addition, an election may be made to discontinue future Section
401(k) Contributions at any time. Such election to discontinue future contributions shall be effective as specified in Section 2.3, unless the Participant is depositing After-tax Savings into the Trust Fund pursuant to Section 4.2. Finally, the Plan
Administrator shall have the right and obligation to reduce a Participant’s rate of Section 401(k) Contribution to any rate as necessary, from time to time, in order to assure compliance by this Plan with the standards of Section 401(k)(3) of
the Code. 
  
 5.4 Compensation Reduction. For each
payroll period, a Participant’s Compensation shall be reduced by the portion of a Participant’s Flexible Compensation, which such Participant has elected to have contributed by the Company to the Trust Fund as a Section 401(k) Contribution
(or such lesser amount determined by the Plan Administrator pursuant to Section 5.3(c)). 

  

 A-17 

 
A Participant’s Flexible Compensation for the payroll period in excess of such amount shall be paid to the Participant as cash compensation for the
period. 
  
 5.5 Limitations on Section 401(k)
Contributions. Except as permitted under Section 5.12 of the Plan and Section 414(v) of the Code, if applicable, the annual addition that may be contributed or allocated to a participant’s account under the plan for any limitation year
shall not exceed the lesser of: 
  
 (a) Forty
Thousand Dollars ($40,000) as adjusted for increases in the cost-of-living under Section 415(d) of the Code; 
  
 (b) One Hundred percent (100%) of the participant’s compensation, within the meaning of Section 415(c)(3) of the Code, for the
limitation year. 
  
 (c) Such lesser amount which
may be allowed in order to assure compliance by the Plan with one of the Actual Deferral Percentage Tests set forth in Section 5.6. 
  
 Furthermore, the maximum amount of a Participant’s Section 401(k) Contributions for a calendar year shall not exceed the amount in effect under Section 402(g)(5) for
such calendar year. 
  
 5.6 Actual Deferral Percentage
Tests. The Actual Deferral Percentage Test shall be satisfied for a Plan Year if one of the following two tests is met for such Plan Year: 
  
 (a) The Actual Deferral Percentage for the eligible Highly Compensated Employees is not more than the Actual Deferral Percentage of all
other eligible Employees for the prior Plan Year multiplied by 1.25; or 
  
 (b) The Actual Deferral Percentage for the Highly Compensated Employees is not more than the Actual Deferral Percentage of all other eligible Employees for the prior Plan Year multiplied by 2.0, and the excess of the
Actual Deferral Percentage for the Highly Compensated Employees for the prior Plan Year over all other eligible Employees for the prior Plan Year is not more than two percentage points. 
  
 5.7 Recharacterization of Certain Section 401(k) Contributions. To the extent that contributions made on
behalf of a Participant pursuant to an election under Section 5.2 by a Participant who is a Highly Compensated Employee would otherwise cause the Plan to fail to comply with the Actual Deferral Percentage Test set forth in Section 5.6, such
contributions shall constitute After-tax Savings by the Participant rather than Section 401(k) Contributions. Excess contributions for a Plan Year shall be recharacterized as After-tax Savings on the basis of the amount of contributions by, or on
behalf of, each Highly Compensated Employee starting with the Highly Compensated Employee having the highest dollar amount. 
  
 5.8 Coordination of After-tax Savings and Section 401(k) Contributions. A Section 401(k) Contribution is made in lieu of all or a portion of
such Participant’s After-tax Savings deposits into the Trust Fund under Section 4.2 of the Plan. Thus, the maximum After-tax Savings deposit which may be made by a Participant under Section 4.2 during any Fiscal Year is 

  

 A-18 

 
equal to (a) the amount which may be made under Section 4.2 without regard to this Section 5.8, less (b) the Section 401(k) Contribution made on behalf of
the Participant under Section 5.2. 
  
 5.9 Payment to
Trustees. Section 401(k) Contributions shall be paid to the Trustees by the Company on the earliest date on which such Section 401(k) Contributions can reasonably be segregated from the Company’s general assets. A statement showing the
amount representing the Section 401(k) Contributions of each Participant shall accompany each such payment. 
  
 5.10 Distribution of Section 401(k) Contributions. 
  
 (a) Restrictions on Distributions. Notwithstanding any provision of this Plan to the contrary, a
Participant’s Section 401(k) Contributions (and earnings attributable thereto) shall not be distributable other than upon: 
  
 (1) The Participant’s severance from employment (within the meaning of Section 401(k)(2)(B) of the Code), death or Permanent
Disability; 
  
 (2) The Participant’s
attainment of age 59-1/2, or termination of participation in the Plan after attaining age 59-1/2; 
  
 (3) The Participant’s Hardship; or 
  
 (4) The termination of the Plan by the Company without establishment or maintenance of another defined contribution plan (other than an
employee stock ownership plan as defined in Section 4975(e)(7) of the Code). 
  
 Notwithstanding the foregoing, any distribution made pursuant to subsections (a)(4) of this Section must meet the requirements of Section 410(k)(10) of the Code. 
  
 (b) In-Service Withdrawal of Section 401(k)
Contributions. Any Participant or Former Participant who meets the requirements of subsection (a)(2) or (3) of this Section may withdraw his Section 401(k) Contributions during the Participant’s continued employment, as provided in Section
10.5 or Section 10.7, as applicable. 
  
 5.11 Effect of
Termination of Plan or Discontinuance of Section 401(k) Contributions. In the event (a) the Plan is terminated or partially terminated with respect to a Participating Company or particular group or class of Participants, or (b) the Company
or any Participating Company discontinues the making of Section 401(k) Contributions, the election made by any affected Participant under the provisions of this Article V shall be immediately null and void and of no further effect, and no additional
amounts of such Participant’s Flexible Compensation shall be contributed to the Trust Fund by the Company or the Participating Company. 
  
 5.12 Catch-up Contributions. All Participants who are eligible to make elective deferrals under the Plan and who have attained age 50 before
the close of the Plan Year shall be eligible to make catch-up contributions in accordance with, and subject to the limitations of, Section 414(v) of the Code. Such catch-up contributions shall not be taken into account for purposes of the provisions
of the Plan implementing the required limitations of sections 402(g) 

  

 A-19 

 
and 415 of the Code. The Plan shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements of section 401(k)(3),
401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by reason of the making of such catch-up contributions. 
  
 5.13 Contribution Limitation. No participant shall be permitted to have elective deferrals made under this Plan, or any other qualified plan
maintained by the employer during any taxable year, in excess of the dollar limitation contained in section 402(g) of the Code in effect for such taxable year, except to the extent permitted under Section 5.12 of the Plan and section 414(v) of the
Code, if applicable. 
  

 A-20 

 ARTICLE VI. 
 ALLOCATION OF CONTRIBUTIONS 
 AND NET INCOME AMONG PARTICIPANTS 
  
 6.1 Maintenance of Separate Accounts. The Plan Administrator
shall maintain the following accounts in the name of each person participating in the Plan: 
  
 (a) After-tax Savings Account (consisting of Participants’ After-tax Savings pursuant to Article IV and any earnings or losses
thereon); 
  
 (b) Section 401(k) Contribution
Account (consisting of Section 401(k) Contributions pursuant to Article V and any earnings or losses thereon); and 
  
 (c) Company Contribution Account (consisting of Company contributions under Section 3.1(b) and (c), forfeitures and any earnings or losses
thereon). 
  
 All of such separate accounts and the separate Fund
Subaccounts, as established pursuant to Section 14.5(a), shall in the aggregate constitute the Participant’s Account. 
  
 6.2 Allocation to After-tax Savings Accounts. The After-tax Savings deposited by a Participant pursuant to Section 4.2 shall be credited, as
made, to the Participant’s After-tax Savings Account. 
  
 6.3
Allocation of 401(k) Contribution. Section 401(k) Contributions made by the Company on behalf of a Participant pursuant to Section V shall be credited, as made, to the Participant’s Section 401(k) Contribution Account. 

 
 6.4 Allocation of Company Contribution. Subject to Section
6.7, Company contributions shall be allocated as follows: 
  
 (a) Effective May 20, 2004, Company contributions pursuant to Section 3.1(b) shall be credited as made pursuant to Section 3.2 to each Participant’s Company Contribution Account if such Participant is an employee
on the last day of the quarter or such earlier date as determined by the Committee or Plan Administrator; and 
  
 (b) Company contributions pursuant to Section 3.1(c) shall be allocated and applied in the following order: 
  
 (1) To the restoration of forfeitures of Terminated
Participants readmitted to the Plan in accordance with Section 9.5(b) and unclaimed benefits previously reallocated in accordance with Section 6.10, to the extent that current forfeitures are insufficient to provide for such restoration, as provided
in Sections 6.9 and 6.10; and 
  
 (2) To the
Company Contribution Accounts of all Participants who are Employees of the Company on the day that the Board approves the Company Contribution made pursuant to Section 3.1(c) and all Participants who become Retired, Disabled or Deceased Participants
during the Fiscal Year, based on the ratio that each such Participant’s Combined Basic Savings for such Fiscal Year bears to the total Combined Basic Savings of all such 

  

 A-21 

	 	 
Participants for such Fiscal Year. The Company Contributions allocated to each Participant’s Account shall be further allocated among such
Participant’s Fund Subaccounts in accordance with the provisions of Article XIV. 

  
 6.5 (a) Limitation on After-tax Savings and Company Contributions. Notwithstanding any provisions of the Plan to the contrary, the
Participant’s After-tax Savings and Company contributions (including forfeitures used to reduce contributions under Section 3.1(b) or (c) for a Plan Year must satisfy the Actual Contribution Percentage Tests for such Plan Year. The Actual
Contribution Percentage Test shall be satisfied for a Plan Year if one of the following two tests is met for such Plan Year: 
  
 (1) The Actual Contribution Percentage for the eligible Highly Compensated Employees is not more than the Actual Contribution Percentage
for the prior Plan Year of all other eligible Employees multiplied by 1.25; or 
  
 (2) The Actual Contribution Percentage for the Highly Compensated Employees is not more than the Actual Contribution Percentage for the
prior Plan Year of all other eligible Employees multiplied by 2.0, and the excess of the Actual Contribution Percentage for the Highly Compensated Employees over all other eligible Employees for the prior Plan Year is not more than two percentage
points. 
  
 (b) Multiple Use of the
Alternative Limitation. Notwithstanding the above, if both Section 5.6(a) and subsection (a)(1) of this Section are not satisfied for a Plan Year and one Highly Compensated Employee of the Company is eligible to have Section 401(k) Contributions
made on his behalf, and to make deposits of After-tax Savings to his After-tax Savings Account or have Company contributions allocated to his Company Contribution Account during such Plan Year, then the sum of the Actual Deferral Percentage and the
Actual Contribution Percentage for eligible Highly Compensated Employees shall not exceed the greater of: 
  
 (1) The sum of: 
  
 (a) 1.25 multiplied by the greater of: 
  
 (i) The Actual Deferral Percentage for eligible Employees for the prior Plan Year who are not Highly Compensated Employees, or

  
 (ii) The Actual Contribution Percentage for
eligible Employees who are not Highly Compensated Employees for the prior Plan Year; and 
  
 (b) Two (2) plus the lesser of: 
  
 (i) Subsection (b)(1)(a)(i) of this Section, or 
  

(ii) Subsection (b)(1)(a)(ii) of this Section, which shall in no event exceed twice the lesser of subsection (b)(1)(a)(i) of this
Section or subsection (b)(1)(a)(ii); or 
  

 A-22 

 (2) The sum of: 
  
 (a) 1.25 multiplied by the lesser of: 
  
 (i) Subsection (b)(1)(a)(i) of this Section, or 
  
 (ii) Subsection (b)(1)(a)(ii); and 
  
 (b) Two (2) plus the greater of: 
  
 (i) Subsection (b)(1)(a)(i), or 
  
 (ii) Subsection (b)(1)(a)(ii), which shall in no event
exceed twice the greater of subsection (B)(1)(a)(i) or subsection (b)(1)(a)(ii) above. 
  
 In the event that the limitation of this subsection (b) is exceeded, the Actual Contribution Percentage shall be reduced in accordance with the manner described in Section 6.6. 
  
 6.6 Correcting Excess Aggregate Contributions. In the event
that the limitation imposed by Section 6.5 is not satisfied for any Plan Year, Participant After-tax Savings (including recharacterized Section 401(k) Contributions) credited to a Participant’s Account shall, to the extent such credited amounts
constitute “excess aggregate contributions” (within the meaning of Section 401(m)(6)(B) of the Code, and after taking into account the last subsection of Section 3.1(c) and Section 6.7), be distributed to affected Participants on or before
the date which is two and one-half (2-1/2) months after the end of the Plan Year to which such credited amounts relate. The excess aggregate contributions for a Plan Year shall be allocated to each Highly Compensated Employee in an amount equal to
the amount by which the Highly Compensated Employees’ After-tax Savings (including recharacterized Section 401(k) contributions) are reduced in accordance with the following procedure. The dollar amount of After-tax Savings (including
recharachterized Section 401(k) Contributions) for the Plan Year made on behalf of the Highly Compensated Employee with the highest dollar amount of After-tax Savings (including recharacterized Section 401(k) contributions) for the Plan Year is
reduced to the extent required to (1) reduce the Plan’s excess aggregate contributions to zero, or (2) cause such Highly Compensated Employee’s dollar amount of After-tax Savings (including recharacterized Section 401(k) contributions) for
the Plan Year to equal the After-tax Savings (including recharacterized Section 401(k) contributions) of the Highly Compensated Employee with the next highest dollar amount of After-tax Savings (including recharacterized Section 401(k)
contributions) for the Plan Year. This process is repeated until the Plan’s excess aggregate contributions are reduced to zero. Each Highly Compensated Employee’s After-tax Savings (including recharacterized Section 401(k) contributions
that are treated as excess aggregate contributions) shall consist first of unmatched After-tax Savings (including recharacterized Section 401(k) contributions), and then to the extent necessary, matched Employee After-tax Savings (including
recharacterized Section 401(k) contributions). Distribution of credited amounts shall include any income attributable thereto, and shall be determined in accordance with regulations promulgated by the United States Secretary of the Treasury under
Section 401(m) of the Code. 
  
 6.7 Special Provision for
Allocating Company Contributions. Notwithstanding any other provision of this Plan, Company contributions pursuant to Sections 3.1(b) and 3.1(c) shall be allocated and applied to the accounts of Participants who are not Highly Compensated

  

 A-23 

 
Employees as if the reduction of contributions provided in the last subsection of Section 3.1(c) had not taken place. Company contributions shall be
allocated and applied to the accounts of Highly Compensated Employees after taking into account the reduction of contributions provided in the next to last paragraph of Section 3.1 so that no amounts constituting “excess aggregate
contributions” (within the meaning of Section 401(m)(6)(B) of the Code) are allocated to the Company Contribution Account of any Participant under this Article VI. 
  
 6.8 Allocation of Net Income. As of each Valuation Date, each Fund shall be charged or credited with the net
earnings, gains, losses, Investment Expenses and the Pro Rata Share of Administrative Expenses as well as any appreciation or depreciation in the market value using publicly issued fair market values when available or appropriate. To the extent that
a Participant’s Subaccounts are invested in Funds that are accounted for as pooled assets or investments, the allocation of earnings, gains and losses of each Participant’s accounts shall be based upon the total amount of funds so
invested, in a manner proportionate to the Participant’s share of such pooled investment. To the extent that a Participant’s Subaccounts are invested in Funds that are accounted for as segregated assets, the allocation of earnings, gains
and losses from such assets shall be made on a separate and distinct basis. 
  
 6.9 Use of Forfeitures. Forfeitures, as described in Section 9.5(a), shall be applied in the following order: (a) first to restore forfeitures of Terminated Participants readmitted to the Plan in
accordance with Section 9.5(b) and unclaimed benefits previously reallocated in accordance with Section 9.6, (b) second to pay Plan expenses, and (c) third, to reduce the Company Contributions. 
  
 6.10 Use of Unclaimed Benefits. 
  
 (a) Method of Allocation. Unclaimed benefits, as
described in Section 19.10, shall be reallocated in the same manner as forfeitures as provided in Section 6.9. 
  
 (b) Reduction in Forfeitures. If the Plan Administrator pays any unclaimed benefits, which had previously been reallocated
hereunder, the amount of such benefits shall reduce the amount of forfeitures otherwise reallocated pursuant to Section 6.9. In the event that forfeitures for the Fiscal Year in question are not sufficient to pay any unclaimed benefits, the Company
contribution for such Fiscal Year shall first be applied for such payment. 
  
 6.11 Allocation Limitations. 
  
 (a) Maximum Additions. Notwithstanding anything to the contrary contained in the Plan, the sum of: (1) the total Additions made to
the Account of a Participant under this Plan for any Fiscal Year; and (2) the “annual additions” (as defined in Section 415 of the Code) made to the account of a Participant under any other qualified defined contribution plan maintained by
the Company or any Affiliated Company, shall not exceed the Maximum Permissible Amount. 
  
 (b) Correction of Excess. If the Maximum Permissible Amount is exceeded in any Plan Year for any Participant, the Plan shall
distribute to the Participant any After-tax Savings or Section 401(k) Contributions made by the Participant to the Plan for the Plan Year to the extent such distribution would cause the excess to be reduced. If, after returning such 

  

 A-24 

 
After-tax Savings or Section 401(k) Contributions to the Participant an excess still exists, such excess shall be corrected in accordance with the provisions
of Treasury Regulation Section 415-6(b)(6) or such other rules or procedures as the Internal Revenue Service shall allow. 
  
 (c) Further Limitations on Additions. Notwithstanding the foregoing provisions of this Section 6.11, the otherwise permissible
annual additions for any Participant under this Plan shall be further reduced to the extent necessary, as determined by the Committee to prevent disqualification of the Plan under Section 415 of the Code, which imposes additional limitations on the
benefits payable to Participants who also may be participating in another tax-qualified pension, profit sharing, savings or stock bonus plan of the Company or any Affiliated Company. The Committee shall advise affected Participants of any additional
limitation of their annual Additions required by the preceding sentence. 
  
 6.12 Transfers From Other Qualified Plans. 
  
 (a) Manner of Rollover or Direct Transfer. An Employee (including an Employee who is not a Participant) may rollover or transfer to
this Plan amounts received from a retirement plan which are eligible to be rolled over or transferred to this Plan pursuant to the provisions of Section 402 of the Code, including a direct transfer of an eligible rollover distribution pursuant to
the provisions of Sections 401(a) and 403(a) of the Code, an annuity that meets the requirements of Section 403(b) of the Code, or from an eligible plan under Section 457(b) of the Code. Such rollover or transfer must comply with the requirement of
Section 402 of the Code. 
  
 (b) Governing
Provisions. The assets so rolled over or transferred shall be solely in cash. The Committee shall develop such procedures, and may require such information from the Employee desiring to make such a rollover or transfer, as it deems necessary to
determine that the proposed rollover or transfer will meet the requirements of this Section and will not jeopardize the tax qualified status of the Plan. All amounts rolled over or transferred pursuant to this Section shall be deposited in the Trust
Fund and shall be credited to a rollover account. The rollover account shall be one hundred percent (100%) vested in the Participant, shall share in income allocations in accordance with Section 6.8 (but shall not share in Company contributions) and
shall be invested in accordance with the provisions of Article XIV. Distributions of amounts so transferred shall be subject to the same restrictions as those stated in Section 5.10. 
  

 A-25 

 ARTICLE VII. 
 VESTING 
  
 7.1
Vesting of After-tax Savings Account. The interest of each Participant in his After-tax Savings Account shall vest to the extent of one hundred percent (100%) as soon as such After-tax Savings are withheld from his Compensation
pursuant to Article IV and as soon as the earnings on such After-tax Savings are credited pursuant to Article VI. 
  
 7.2 Vesting of Section 401(k) Contribution Account. The interest of each Participant in his Section 401(k) Contribution Account shall vest
to the extent of one hundred percent (100%) as soon as such Section 401(k) Contributions are made on his behalf by the Company pursuant to Article V and as soon as the earnings thereon are credited pursuant to Article VI. 
  
 7.3 Vesting of Company Contribution Account. 
  
 (a) Vesting Schedule. The interest of each
Participant in his Company Contribution Account shall vest as follows: 
  

				
	 Period of Service

	  	Vested Percentage

	 
	 Less than 2 years
	  	0	%
	 At least 2 years but less than 3 years
	  	25	%
	 At least 3 years but less than 4 years
	  	50	%
	 At least 4 years but less than 5 years
	  	75	%
	 5 years or more
	  	100	%

  
 (b)
Service to be Credited Upon Resumption of Employment. If an Employee terminates employment and is reemployed by the Company, upon the Employee’s reemployment, all Service with the Company (including Service before and after such
reemployment) shall be counted for purposes of determining his vested interest in his Company Contribution Account, if any. 
  
 (c) Definition of “Service”. For purposes of determining a Participant’s vested interest in his Company Contribution
Account, “Service” means the period of time commencing on the Participant’s Hire Date and ending on the Participant’s Separation Date and, if applicable, the period of time commencing on the Participant’s Reemployment Date
and ending on the Participant’s subsequent Separation Date. In addition, such Service shall include the period following a Separation Date described in Section 1.64(a) if a Participant’s or Former Participant’s Reemployment Date
occurs within the 12-consecutive month period following such Separation Date; provided, however, that if a Participant or Former Participant is otherwise absent from employment, the period following such Separation Date shall be counted as Service
only if the Participant’s or Former Participant’s Reemployment Date occurs within the 12-consecutive month period following the commencement of such other absence from employment. “Service” shall also include any periods of
absence from active employment followed by a Separation Date, and periods of approved Leaves of Absence granted in accordance with a nondiscriminatory leave policy; provided, however, that if the Participant or Former Participant does not resume
status as an employee of the Company at the time agreed 

  

 A-26 

 
upon by the Company and the Participant, the Participant shall be deemed to be discharged at such time. Service includes periods of employment described in
Section 1.65. 
  
 (d) Automatic 100%
Vesting. Notwithstanding subsection (a) of this Section, the Participant’s interest in his Company Contribution Account shall vest to the extent of one hundred percent (100%) upon the earlier of the following while employed by the Company
or an Affiliate: 
  
 (1) Death; 
  
 (2) Permanent Disability; or 
  
 (3) Attainment of age 59 1/2. 
  
 Such vesting in the event of Permanent Disability is intended to provide
“accident or health insurance” as described in Section 105(a) of the Code, in providing benefits for the permanent loss or loss of use of a member or function of the body, or the permanent disfigurement of Participants, to the extent that
Permanent Disability results. 
  

 A-27 

 ARTICLE VIII. 
 TERMINATION AND DISTRIBUTION UPON 
 RETIREMENT DEATH OR DISABILITY 
  
 8.1 Retirement. Upon retirement, a Participant shall be
eligible to receive the balance in his Account. Retirement for purposes of this Plan may be elected by any Participant upon attaining age 59 1⁄2. 
  
 8.2 Death. The death of any Participant or Former Participant shall be reported promptly to the Plan Administrator by the Company. The death
of a Terminated Participant or a Retired Participant shall be reported to the Plan Administrator by dependents or beneficiaries who are directly concerned. Upon the Participant’s death, the Participant’s Beneficiary shall be entitled to
payment of the balance of the Participant’s vested Account in the manner provided by the Plan. 
  
 8.3 Disability. The termination of a Participant’s employment with the Company by reason of Permanent Disability shall be promptly
certified to the Plan Administrator by the Company. Upon such termination of employment, the Participant shall be eligible to receive the balance in his Account. 
  
 8.4 Valuation of Account Balance. The Account balance of a Retired, Deceased or Disabled Participant shall be
valued as of the Valuation Date coinciding with or immediately preceding the date distribution is made to such Participant or Beneficiary, as applicable (and shall include such Participant’s pro rata share of the Company contribution under
Section 3.1(c), as determined under Section 6.4(b), if any, for the year in which such Participant terminated employment). 
  
 8.5 Available Payment Options. Subject to the mandatory cash-out of small amounts provided in Section 8.10, a Retired, Deceased or Disabled
Participant’s Account balance shall be distributed by the Trustees under such of the following payment options as the Participant (or, if a Deceased Participant shall have failed to select a payment option, as his Beneficiary) shall determine:

  
 (a) Lump sum payment; 
  
 (b) Deferred payments in installments in any amount from
time to time or over a period of time specified by the Participant, including installment payments in substantially equal amounts; 
  
 (c) Purchase of a term annuity contract from a commercial insurance company with payments for a term certain in regular installments; or

  
 (d) Purchase of a single-life or Qualified
Joint and Survivor Annuity contract from a commercial insurance company with payments for the life of the Participant or the life of the Participant and his or her Surviving Spouse. Election of a single life annuity by a married Participant and
revocation of Qualified Joint and Survivor Annuity are subject to the Spousal Consent Rules of Section 8.6. 
  

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 8.6 Spousal Consent Rules. 
  
 (a) Revocation of an Annuity. A married Participant who has selected a Term Annuity pursuant to
Section 8.5(c) or a single life annuity or Qualified Joint and Survivor Annuity (hereinafter “QJSA”), pursuant to Section 8.5(d), may revoke such election and elect instead to receive his or her benefits as follows: 
  
 (1) If the Participant elected a term certain annuity form
of payment and the commercial annuity contract has not yet been purchased by the Plan, the Participant (or the Surviving Spouse, if the Participant has died) may elect to receive any other form of benefit available for the Plan; 
  
 (2) If the Participant elected a life annuity or a Qualified
Joint and Survivor Annuity form of payment and the commercial annuity contract has not yet been purchased by the Plan, the Participant (or his Surviving Spouse, if the Participant has died) may elect to receive any other form of benefit available
from the Plan, provided that the Participant and his Spouse (or the Surviving Spouse, if the Participant has died) consent in writing to the distribution revocation of such election in accordance with Section 8.6(b). 
  
 (b) Waiver of Life Annuity or Qualified Joint and
Survivor Annuity. A Participant who is married on the Annuity Starting Date may elect a single life annuity pursuant to Section 8.5(d) only if the Participant’s Spouse provides a waiver of a Qualified Joint and Survivor Annuity. A married
Participant who has selected a QJSA, pursuant to Section 8.5(d), may if permitted under Section 8.6(a) elect to revoke such election and waive the QJSA payment option. Such waivers must be made within the ninety (90) day period ending on the
Participant’s Annuity Starting Date with respect to such benefit. Subject to Section 8.6(a), a Participant may subsequently revoke the election to waive the QJSA and elect again to waive the QJSA at any time and any number of times prior to
such Annuity Starting Date. All such elections and revocations shall be in writing. Any election to waive the QJSA must: 
  
 (1) Specify the alternate payment option elected; 
  
 (2) Be accompanied by the designation of a specific non-spouse Beneficiary (including any class of
beneficiaries or any contingent beneficiaries) who will receive the benefit upon the Participant’s death, if applicable; and 
  
 (3) Be accompanied by Spousal Consent. 
  
 Notwithstanding the above, no consent under this subsection (b) shall be valid unless, within thirty (30) days and no more than ninety (90) days before
the Annuity Starting Date, the Plan Administrator has provided the Participant with the written explanation described in subsection (c) of this Section. A Participant may elect to receive distribution prior to the expiration of such thirty (30) day
period if distribution commences more than seven (7) days after the written explanation described in the previous sentence was provided. 
  
 A Participant who is not married on the Annuity Starting Date may, subject to Section 8.6(a), revoke an election to receive a single life annuity. The
election must comply with this 

  

 A-29 

 
Section and Section 8.6(c) as if it were an election to waive the Qualified Joint and Survivor Annuity by a married participant, but without the Spousal
Consent requirement. 
  
 (c) Written
Explanation. The written explanation shall contain the following: 
  
 (1) The terms and conditions of the QJSA; 
  
 (2) The Participant’s right to make, and the effect of, an election to waive the QJSA payment option; 
  
 (3) The rights of the Participant’s Spouse; and 
  
 (4) The right to make, and the effect of, a revocation of a previous election to waive the QJSA. 

 
 (d) Result of Effective Waiver. In the event of an
effective waiver of the QJSA payment option, in accordance with the terms of subsection (b) of this Section, the amount payable to the married Retired or Disabled Participant (or to the Beneficiary of a Deceased Participant) shall be distributed by
the Trustees or their delegate under such of the alternate payment options set forth in Section 8.5 as the Participant or his legal representative may select. 
  

(e) Spousal Consent. A Spousal Consent shall specify the non-spouse Beneficiary. Once made, a consent shall be irrevocable
unless the Participant changes his Beneficiary designation or revokes his election to waive the Qualified Joint and Survivor Annuity; upon such event, the consent shall be deemed to be revoked. Notwithstanding the foregoing, Spousal Consent is not
required if the Participant establishes to the satisfaction of the Plan Administrator that such written consent cannot be obtained because there is no Spouse or that the Spouse cannot be located. In addition, no Spousal Consent is necessary if the
Participant has been legally separated or abandoned within the meaning of local law and the Participant provides the Plan Administrator with a court order to that effect, so long as such court order does not conflict with a Qualified Domestic
Relations Order. If the Spouse is legally incompetent to consent, the Spouse’s legal guardian may consent on his behalf, even if the legal guardian is a Participant. 
  
 8.7 Distributions Upon Married Participant’s Death. If a Participant is married on the date of his death,
the full amount of the Participant’s Account balance shall be payable on the death of the Participant to the Participant’s Surviving Spouse, unless the Participant’s Surviving Spouse has given Spousal Consent to the designation of a
specific non-spouse Beneficiary (including any class of beneficiaries or any contingent beneficiaries) who will receive the Account balance upon the Participant’s death. 
  
 8.8 General Distribution Requirements. Notwithstanding any provision to the contrary, all Plan distributions
to Participants and Beneficiaries shall comply with the requirements of Section 401(a)(9) of the Code and the regulations thereunder. 
  
 (a) Distributions to Participants. For distributions commencing on or after January 1, 2003, distribution of a Participant’s
Account balance shall be made or commence as provided in Appendix A to the Plan. For distributions commencing prior to January 1, 2003, the 

  

 A-30 

 
Participant’s Account balance shall be distributed or begin to be distributed no later than the Participant’s Required Beginning Date and may only
be distributed over: 
  
 (1) A period of years
not to exceed the life-expectancy of the Participant, or the joint life expectancy of the Participant and the Participant’s designated Beneficiary; or 
  
 (2) The life of the Participant, or the lives of the Participant and the Participant’s designated Beneficiary. 
  
 Life expectancy shall be recalculated annually. 
  
 (b) Distributions to Beneficiary. For distributions
commencing on or after January 1, 2003, distribution of a Participant’s Account balance to a Participant’s Beneficiary shall be made or commence as provided in Appendix A to the Plan. Notwithstanding any other provision of this Article
VIII, any distribution, commencing prior to January 1, 2003, to a Participant’s Beneficiary must comply with the following requirements: 
  
 (1) If the Participant dies after distribution of his Account balance has begun, then the remaining portion of such Account balance shall
be distributed at least as rapidly as under the method of distribution being used prior to the Participant’s death. 
  
 (2) If the Participant dies before receiving any portion of his Account balance then distribution of the Participant’s entire Account
balance shall be completed by December 31 of the calendar year containing the fifth (5th) anniversary of the Participant’s death unless: 
  
 (a) The Beneficiary elects to receive payments over his life (or over a period not extending beyond his life expectancy) in which case
the first installment must be made by December 31 of the calendar year immediately following the calendar year in which the Participant died; or 
  
 (b) In the case of a Beneficiary who is a Surviving Spouse, the Surviving Spouse elects to receive installment payments as set forth in
subsection (b)(2)(i) of this Section, in which case the first installment may be deferred until the later of: December 31 of the calendar year immediately following the calendar year in which the Participant died or December 31 of the calendar year
in which the Participant would have attained age 70-1/2. 
  
 Such an election shall be made by the earlier of: the date the distribution is required to be made under subsection (b)(2) of this Section or December 31 of the calendar year which contains the fifth (5th) anniversary
of the Participant’s death. If the Participant has no Beneficiary or if the Beneficiary does not elect a method of distribution, distribution of the entire Account balance shall be completed by December 31 of the calendar year containing the
fifth (5th) anniversary of the Participant’s death. 
  

 A-31 

 If the Surviving Spouse dies after the Participant but before payments to such Surviving
Spouse begin, then the provisions of subsection (b)(2) of this Section with the exception of subsection (b)(2)(ii) of this Section shall be applied as if the Spouse were the Participant. 
  
 Distribution of a Participant’s Account balance shall be made or commence as provided in Appendix A to the Plan.

  
 (c) Commencement of Distribution.
Distribution of a Participant’s Account balance shall be made or commence no later than 60 days after the close of the Plan Year in which occurs the latest of: 
  
 (1) The date on which the Participant attains age 62; 
  
 (2) The tenth anniversary of the year in which the
Participant commenced participation in the Plan; or 
  
 (3) The date on which the Participant terminates employment with the Company. 
  
 Notwithstanding the preceding sentence no payment will be made under the Plan until the Participant files a written claim for such payment unless otherwise required by the Plan.” 
  
 8.9 Form of Payment. Distribution may be in cash or employer
securities, except that any distribution of employer securities shall be limited to the amount of such securities credited to the Participant’s account under the Host Marriott Corporation Stock Fund. 
  
 8.10 Mandatory Cash-Out of Small Accounts. Notwithstanding any
other provision of this Article VIII, if the total vested value of the Participant’s Account does not (and did not, at the time of commencement of the distribution) exceed Five Thousand Dollars ($5,000), the Plan Administrator shall direct the
Trustee to distribute as soon as practicable the full amount thereof to the Participant, his legal representative or Beneficiary to the extent permitted by Section 411(a)(II) of the Code and Section 203(e) of ERISA. 
  
 8.11 Account Balance. For purposes of this Article VIII,
Account balance shall include any rollover account balance. 
  
 8.12 Special Rule for Rollovers Out of the Plan. Notwithstanding any provision of the Plan to the contrary that would otherwise limit the election of a Distributee under this Article VIII, a Distributee may elect, at the time
and in the manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a direct rollover. This right shall also apply in the case
of Eligible Rollover Distributions to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a Qualified Domestic Relations Order as defined in Section 414(p) of the Code. Any portion of an Eligible Rollover
Distribution that is not paid directly to an Eligible Retirement Plan shall be subject to applicable income tax withholding. For purposes of this Section 8.12, a “direct rollover” is a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee. 
  

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 ARTICLE IX. 
 TERMINATION AND DISTRIBUTION UPON 
 TERMINATION OF EMPLOYMENT OTHER THAN 
 FOR RETIREMENT DEATH OR DISABILITY 
  
 9.1 Terminated Participant. Upon a Participant’s or Former Participant’s termination of employment with the Company for any reason
other than retirement, death or Permanent Disability, the Company shall promptly notify the Plan Administrator in writing of such fact and such Participant shall become (a) a Terminated Participant if such Participant has not attained retirement age
(as provided in Section 8.1), or (b) a Retired Participant if such Participant has attained retirement age (as provided in Section 8.1). In the event a Terminated Participant has attained retirement age, the provisions of Article VIII shall
thereafter apply to such Participant. 
  
 9.2 Distribution
of After-tax Savings and Section 401(k) Contributions. The balance of a Terminated Participant’s After-tax Savings Account and Section 401(k) Contribution Account (as determined in accordance with Articles IV and V) shall be valued as
of the Valuation Date coinciding with or immediately preceding the date distribution is made to the Participant, and shall be subject to distribution in the same manner as provided in Sections 8.5 and 8.10 (and in the same forms as provided in
Section 8.9) without discrimination in favor of or against any class. 
  
 9.3 Distribution of Vested Company Contribution Account. The vested interest of the Terminated Participant in the Terminated Participant’s Company Contribution Account (as determined in accordance with Article VII) shall
be valued as of the Valuation Date coinciding with or immediately preceding the date distribution is made to the Participant, and shall be subject to distribution in the same manner as provided in Section 8.5 and 8.10 (and in the same forms as
provided in Section 8.9) without discrimination in favor of or against any class. A Terminated Participant may elect to defer distribution of his vested interest until the earliest of the date such Terminated Participant attains age 62, dies, or
suffers a Permanent Disability; provided, however, that the Terminated Participant may elect to commence distribution in any of the forms of payment available under Section 8.5 as of any earlier date after the date on which he becomes a Terminated
Participant. There will be no pro rata credit of the Company Contribution for the partial Plan Year in valuing a Terminated Participant’s Company Contribution Account. 
  
 9.4 Mandatory Cash-Out of Small Accounts. Notwithstanding any other provision in this Article IX, if the total
value of the Terminated Participant’s vested Account does not (and did not, at the time of any prior distribution or withdrawal) exceed Five Thousand Dollars ($5,000), the Plan Administrator shall direct the Trustee to distribute as soon as
practicable the full amount thereof to the Terminated Participant or his legal representative or Beneficiary to the extent permitted by Section 411(a)(11) of the Code and Section 203(e) of ERISA, and subject to Section 5.10. 
  

 A-33 

 9.5 Unvested Company Contributions. 
  
 (a) Forfeiture. Any portion of a Terminated
Participant’s Company Contribution Account, which has not vested at the time the Participant’s employment is terminated will be forfeited upon the Participant’s incurring a one year Period of Severance. 
  
 (b) Restoration of Forfeiture. Subject to the
requirements of subsection (c) of this Section, a Terminated Participant (described in subsection (a) of this Section) who resumes status as an Employee of the Company before incurring five (5) consecutive Periods of Severance and who is readmitted
to the Plan in accordance with Section 2.2 shall have his forfeited amounts restored and added to his new Company Contribution Account (where it will vest in accordance with Article VII). 
  
 (c) Distribution Prior to Reemployment. A Terminated
Participant described in subsection (b) of this Section who previously received a distribution will have his forfeitures restored only if he repays, at any time prior to the end of five (5) consecutive Periods of Severance commencing on the date
such distribution is made: 
  
 (1) The entire
amount of distribution, if any, previously received from the Terminated Participant’s After-tax Savings Account under Section 9.2; 
  
 (2) The entire amount of distribution, if any, previously received from the Terminated Participant’s Section 401(k) Contribution
Account under Section 9.2; and 
  
 (3) The entire
amount of distribution, if any, previously received from the Terminated Participant’s Vested Company Contribution Account under Section 9.3. 
  
 Any repayment made by a Participant pursuant to this subsection (c) shall be made by means of a single lump sum cash payment. 
  
 9.6 Account Balance. For purposes of this Article IX, Account
balance shall include any rollover account balance. 
  
 9.7
Special Rule for Rollovers Out of the Plan. The special rule provided in Section 8.12 shall apply to distributions under this Article IX. 
  

 A-34 

 ARTICLE X. 
 DISTRIBUTION DURING CONTINUED EMPLOYMENT 
  
 10.1 Withdrawal of After-tax Savings. 
  
 (a) Withdrawal of Additional After-tax Savings. A Participant or Former Participant may withdraw his Additional After-tax Savings
at any time and continue to participate in the Plan after such withdrawal. 
  
 (b) Withdrawal of Basic After-tax Savings. A Participant or Former Participant may withdraw his Basic After-tax Savings at any time. However, upon withdrawing such Basic After-tax Savings, the Participant shall
cease to participate in the Plan and shall in all respects become a Former Participant, except as otherwise provided in Section 10.5 and subject to the provisions of Section 2.4. 
  
 (c) Valuation of After-tax Savings Account. The After-tax Savings Account of the Participant or
Former Participant shall be valued as of the Valuation Date coinciding with or immediately preceding the date distribution is made to the Participant or Former Participant. 
  
 (d) Form of Payment. Withdrawals of After-tax Savings under this Section 10.1 (including the
withdrawal of any earnings thereon) shall be distributed in whole or in part as a single lump sum payment and may be in cash or employer securities, except that any withdrawal of employer securities shall be limited to the amount of such securities
credited to the Participant’s or Former Participant’s account under the Host Marriott Corporation Stock Fund. 
  
 (e) Taxation of Withdrawal. After-tax Savings (including earnings) shall be treated as a “separate contract” from all
other contributions for purposes of determining the tax consequences of withdrawals. 
  
 10.2 Withdrawal of Section 401(k) Contribution. Distribution of a Participant’s or Former Participant’s Section 401(k) Contribution Account (and the earnings thereon) is subject to Section 5.10
and the limitations of Section 401(k) of the Code. 
  
 10.3
Withdrawal of Vested Company Contribution Account. A Participant or Former Participant may not withdraw his vested Company contributions (or any earnings thereon) prior to his Separation Date, except as provided in Section 10.5.

  
 10.4 Readmission of Former Participant to Plan.
A Former Participant who terminates participation in the Plan during continued employment shall be entitled to readmission thereto as provided in Section 2.4. 
  

10.5 Distributions Upon Attainment of Age 59-1/2. Upon attainment of age 59-1/2, a Participant or Former Participant may elect to
withdraw the entire balance of his After-tax Savings Account, Section 401(k) Contribution Account and vested Company Contribution Account and continue participation in the Plan. Application for withdrawal under this Section 10.5 by Participants or
Former Participants shall be made in writing and shall be made in accordance with the distribution requirements set forth in Article VIII. 
  

 A-35 

 10.6 Account Balance. For purposes of this Article X, Account balance shall include any
rollover account balance. 
  
 10.7 Hardship
Withdrawals. 
  
 (a) Terms of Hardship
Withdrawals. Any Participant who sustains a Hardship may submit a request to the Plan Administrator for a distribution from the Plan as may be necessary to meet such Hardship. The Plan Administrator shall have the power in its sole discretion to
approve or disapprove (in whole or in part) any such request, based on the standards set forth in this Section 10. 7. Any distribution to a Participant pursuant to this Section 10.7 shall not exceed the amount required to meet the Hardship, and
distribution shall be made only if participant represents in writing that such amount is not reasonably available from other resources of the Participant as described in Treas. Reg. Section 1.401(k)-I(d)(2)(ii)(B). Such distributions shall be
limited to the sum of (1) amounts in the Participant’s Section 401(k) Contribution Account attributable to amounts transferred from the Prior Plan that had accrued on or before December 31, 1988 (along with earnings attributable thereto), plus
(2) amounts in the Participant’s Section 401(k) Contribution Account accrued under the Prior Plan and this Plan after December 31, 1988 (exclusive of any earnings), plus (3) amounts in the Participant’s Rollover Account. 
  
 (b) Restrictions. Participants receiving Hardship
distribution under this Section 10.7 shall be subject to the following restrictions: 
  
 (1) The Participant’s limit under Section 402(g) of the Code on Section 401(k) Contributions for the Fiscal Year immediately
following the Fiscal Year in which a distribution is made to the Participant shall be reduced by the amount of Section 401(k) Contributions for the Fiscal Year in which such distribution was made; and 
  
 (2) The Participant shall be prohibited for six (6) months
from the date of a distribution under this Section 10.7 from electing any Section 401(k) Contributions under Article V or making contributions of Basic or Additional After-tax Savings under Article IV of this Plan. The Participant shall likewise be
prohibited for the same six (6) month period from making employee contributions under any deferred compensation plan of the Company, in accordance with written guidelines set forth by the Committee. 
  
 (c) Committee Guidelines and Determination. The
Committee shall set forth written guidelines for the Administrator to make its determination under this Section 10.7 in accordance with the above standards (and the definition of Hardship) in a uniform and nondiscriminatory manner. The Committee
shall make its determination under this Section 10.7 in accordance with the above standards (and the definition of Hardship) and in a uniform and nondiscriminatory manner. 
  
 10.8 Special Rule for Rollovers Out of the Plan. Unless otherwise provided by a provision of the Code, the
rule provided in Section 8.12 shall apply to distributions under this Article X. 
  

 A-36 

 ARTICLE XI. 
 LOANS TO PARTICIPANTS 
  
 11.1 General Provisions. The Committee shall direct the Trustees to make a loan to Participants who are “parties in interest” (as defined in Section 3(14) of ERISA) (and to beneficiaries of such Participants as
designated in written rules set forth by the Committee) as provided in this Section 11.1. Such loan shall be in an amount that does not exceed the amount set forth in Section 11.2. Loans shall be made on written application to the Plan Administrator
and on such terms and conditions as set forth in this Article XI, and in accordance with the rules and procedures established by the Committee in a written resolution. All such rules and procedures shall be uniform and nondiscriminatory and shall
relate to such matters as: 
  
 (a) Procedures for
applying for loans; 
  
 (b) The basis on which
loans will be approved or denied; 
  
 (c)
Limitations on the types of loans offered; 
  
 (d) The procedure for determining a reasonable rate of interest; 
  
 (e) The types of collateral which may secure a loan; 
  
 (f) The events constituting default; 
  
 (g) Minimum loan amounts; 
  
 (h) Frequency of loans; and 
  
 (i) Any other appropriate matters consistent with this Article XI. 
  
 11.2 Maximum Loan Amount. A loan to a Participant (when added to the outstanding balance of all other loans
made to the Participant under this Plan) shall not be in an amount that exceeds the Allocable Portion of the total balance in the Participant’s After-tax Savings Account and Section 401(k) Contribution Account (valued as of the Valuation Date
coinciding with or immediately preceding the date of such loan). The Allocable Portion shall be adjusted accordingly in the event the maximum permissible loan amount under Section 72(p) of the Code (or any successor provision) is decreased.

  
 11.3 Minimum Loan Amount. The minimum loan
amount for each loan shall be One Thousand Dollars ($1,000). 
  
 11.4 Repayment Period. The term of a loan made under this Article XI shall be fixed by the Committee, but in no event shall such term exceed (a) one hundred twenty (120) months in the case of a loan for the purchase of a
principal residence, or (b) sixty (60) months in the case of a loan for any other purpose. 
  
 11.5 Terms and Conditions. Loans made to Participants shall be made in accordance with the following terms and conditions: 
  
 (a) The loans shall be secured by the Participant’s interest in the Plan, plus by the
Participant’s promissory note for the amount of the loan (including interest) payable to the order of the Trustees. The Plan Administrator may also require such other collateral which in a normal commercial setting would be considered adequate
for the full protection of the Trust Fund. 
  

 A-37 

 (b) The interest rate for the loan shall be the Federal prime rate as of the last day of
the quarter immediately preceding or ending on the date the loan is made. 
  
 (c) Payment of principal and interest shall be made through appropriate payroll deductions from the Compensation otherwise payable to the Participant while the Participant is an Employee. Such payroll deductions shall
continue until the full outstanding balance of any loans is repaid, regardless of whether the borrower remains a Participant in the Plan. Payment of principal by an individual who is no longer an Employee shall be made through such other means (not
less frequently than quarterly) as the Committee deems appropriate. 
  
 (d) The loan shall be made to the Participant from his Account and shall be treated as an investment of assets of such Account. All interest and all losses attributable to loans shall be charged to the borrowing
Participant’s Account, and all loan payments shall be credited to the Participant’s Account. 
  
 (e) The loan shall not be used as a means of distributing benefits before they otherwise become due. 
  
 (f) Any loan made under the Plan shall be subject to such
other terms and conditions as the Committee shall determine are necessary or appropriate, including the condition that the Participant pay (through payroll withholding) the reasonable expenses determined by the Committee incurred by the Plan to make
and service the loan. 
  
 (g) Loan repayments
will be suspended during a period of Qualified Military Service as defined in Section 414(u) of the Code. 
  
 (h) A married Participant who has elected payment in the form of a life annuity or a QJSA, pursuant to Section 8.5(d), must obtain Spousal
Consent to obtain a loan. 
  
 11.6
Nondiscrimination. In making loans under this Article XI, the Committee shall not discriminate in favor of or against any Participant or group of Participant. Accordingly, loans shall be available to all Participants on a reasonably
equivalent basis and shall not be made to Highly-Compensated Employees of the Company in an amount greater than the amount made available to other Participants. 
  

11.7 Offset of Account Balance. Notwithstanding anything to the contrary contained elsewhere in the Plan, in determining the amount of
any distribution made in accordance with Article VIII or Article IX, the amount of any security interest held by the Plan by reason of any loan made against the Participant’s Account under this Article XI, including accrued interest, shall be
collected by the Plan Administrator from any amounts standing to the credit of the Participant in the Plan in satisfaction of the loan before making any payments to the Participant or to the Participant’s Beneficiary. 
  
 11.8 Default. In the event a Participant defaults on the
repayment of a loan (under uniform and nondiscriminatory written standards adopted by the Committee as to what constitutes default), the Trustees may treat the loan as a distribution and pay the principal and 

  

 A-38 

 
interest owing under the loan from the Participant’s After-tax Savings Account in the following order of priority: 
  
 (a) Current year After-tax Savings; 
  
 (b) Prior years’ After-tax Savings; 
  
 (c) Earnings on prior years’ After-tax Savings; and

  
 (d) Earnings on current year After-tax
Savings. 
  
 In the event the Participant’s After-tax Savings
Account is insufficient to repay the full amount of principal and interest owing, the Plan Administrator, in its sole discretion, may treat the unpaid balance as a distribution from the vested portion of the Participant’s Company Contribution
Account. 
  
 In the event the Participant’s After-tax Savings
Account and the vested portion of the Participant’s Company Contribution Account are insufficient to repay the full amount of principal and interest owing, a determination shall be made whether the Participant qualifies for a Hardship
withdrawal under the provisions of Section 10.7, and, if so, a distribution shall be made in accordance therewith. If the Participant fails to qualify for a Hardship distribution, the Plan Administrator shall take such other collection action as it
deems fit, in accordance with written standards adopted by the Committee; provided, however, that the Plan Administrator shall defer making any distribution from the Participant’s Section 401(k) Contribution Account to repay any unpaid loan
balance until such time as the Participant has incurred a Separation Date or has attained age 59 1⁄2, or until an event described in Section 401(k)(10) of the Code has occurred or as defined in Section 1.24. 
  

 A-39 

 ARTICLE XII. 
 BENEFICIARIES 
  
 12.1
Designation of Beneficiary. Each Participant or Alternate Payee may designate, on the forms provided by the Plan Administrator, one or more Beneficiaries and contingent Beneficiaries to receive the Plan benefits in the event of the
Participant’s or Alternate Payee’s death. Notwithstanding the preceding sentence, if the Participant is married at the time of his death and has not elected a Qualified Joint and Survivor Annuity, his Account balance shall be payable in
full to his Surviving Spouse, unless he has designated a different beneficiary with the consent of his Spouse, if any, in accordance with Sections 1.66 and 8.6(c). 
  
 12.2 Manner of Designation. Such designation may be delivered, on forms provided by the Plan Administrator, at
the time such Participant commences participation in the Plan, or thereafter. A beneficiary designation completed by an Alternate Payee may be delivered at the time the Administrator notifies the Alternate Payee that he is entitled to Plan benefits
under a Qualified Domestic Relations Order, or thereafter. A Participant or Alternate Payee may designate different Beneficiaries at any time by delivering a new written designation to the Plan Administrator. Any such designation shall become
effective only upon its receipt by the Plan Administrator. The last effective designation received by the Plan Administrator shall supersede all prior designations. A designation of a Beneficiary shall be effective only if the designated Beneficiary
survives the Participant or Alternate Payee. All designations must be signed by either the Participant or Alternate Payee, as appropriate. 
  
 12.3 Absence of Valid Designation of Beneficiary. Except as provided in section 8.7, if a Participant or Alternate Payee fails to designate
a Beneficiary, if no designated Beneficiary survives the Participant or Alternate Payee, or if such designation is for any reason illegal or ineffective, distribution of benefits otherwise payable under this Plan shall be made to the
Participant’s or Alternate Payee’s estate. 
  
 12.4
Beneficiary Bound by Plan Provisions. Whenever the rights of a Participant or Alternate Payee are stated or limited in the Plan, the Participant’s or Alternate Payee’s Beneficiaries shall be bound thereby. 
  

 A-40 

 ARTICLE XIII. 
 QUALIFIED DOMESTIC RELATIONS ORDERS 
  
 13.1 Governing Provisions. Notwithstanding any other provisions of this Plan, a Participant’s Account may be assigned in whole or in part pursuant to the provisions of a Qualified Domestic Relations
Order (hereinafter “QDRO”). In such case, the following rules shall apply: 
  
 (a) A separate account shall be established for any Alternate Payee who has been awarded Plan assets, unless a QDRO obligates the Plan to
distribute, as soon as administratively practicable, all or part of a Participant’s Account to the Alternate Payee. In such cases, a pro rata portion of the amount payable to the Alternate Payee shall be withdrawn from each Fund in which the
Participant, pursuant to Section 14.1, has invested. This pro rata withdrawal from each Fund shall be calculated according to the percentage of the Participant’s total Account, which the Participant has placed in each Fund. Thus, for example,
if a Participant with an Account of $200,000 has invested fifty percent (50%) in the Balanced Fund and fifty percent (50%) in the Bond Fund, and a QDRO awards $100,000 to an Alternate Payee, fifty percent (50%) of the Alternate Payee’s award
shall be deducted from the Bond Fund and fifty percent (50%) from the Balanced Fund. 
  
 (b) All such payments pursuant to a QDRO shall be subject to reasonable rules and regulations promulgated by the Committee respecting the
time of payment pursuant to such order and the valuation of the Participant’s Account from which payment is made, provided that all such payments are made in accordance with such order and Section 414(p) of the Code. 
  
 (c) The balance of a Participant’s Account subject to
any QDRO shall be reduced by the amount of any payment made pursuant to such order. 
  
 An Alternate Payee for whom a separate Account is established pursuant to this Article XIII shall be entitled to file an election with regard to investment of that Account in the manner specified by Article XIV and subject to the terms of
the QDRO. All such elections shall be subject to the same terms and conditions as Article XIV imposes upon Participant elections, and all such elections shall be carried out by the Administrator in accordance with Article XIV. 
  
 Upon the death of an Alternate Payee, the Alternate Payee’s Beneficiaries shall be
entitled to payment of benefits in an amount and in the manner provided by the Plan. 
  

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 ARTICLE XIV. 
 PARTICIPANT’S DIRECTED INVESTMENTS 
  
 14.1 Election by Participants. Subject to the terms and conditions of this Article XIV, each Participant shall have the right to direct that his (a) Account balance, (b) share of future allocations of
Company contributions, (c) share of future forfeitures, and (d) future After-tax Savings and Section 401(k) Contributions, be invested, in specified multiples of one percent (1%), in any of the Funds maintained under the Plan, provided the
Participant elects to do so. The Plan Administrator shall carry out the election in accordance with the provisions of this Article XIV. For the purposes of making elections under this Article XIV, the term “Participant” shall include a
Beneficiary, and an Alternate Payee for whom a separate account has been established in accordance with Article XIII. 
  
 14.2 Election Rules. 
  
 (a) Election to be in Writing. A Participant’s election to direct investments shall be in writing, on a form furnished by the
Plan Administrator, or shall be made under such other procedures as specified by the Plan Administrator. The election shall state the percentage to be transferred to or from a Fund. 
  
 (b) Effective Date of Election. An election shall become effective upon the next subsequent Transfer
Date (as described in Section 14.3) occurring within a reasonable time (as determined under procedures specified by the Plan Administrator) after the receipt of the Participant’s valid election by the Plan Administrator, unless such election is
revoked before such Transfer Date. 
  
 (c)
Revocation of Election. A Participant may revoke an election, in whole or in part, any time prior to the Transfer Date. Thereafter, a revocation shall become effective as of the next ensuing Transfer Date occurring within a reasonable time
(as determined under procedures specified by the Plan Administrator) after the Plan Administrator’s receipt of such revocation. 
  
 (d) Change in Election. Each Participant may elect to change the Funds (and/or the percentage to be allocated thereto) in which his
(1) Account balance, (2) share of future allocations of Company contributions, (3) share of future forfeitures, and (4) future After-tax Savings and Section 401(k) Contributions, are to be invested. Upon the receipt by the Plan Administrator of a
Participant’s request for a change in writing or in some other form authorized by the Plan Administrator, the election shall be effective as provided in paragraph (b) of this Section. 
  
 (e) Default Election. In the event that a Participant
does not make an initial election to direct investments, his (1) Account balance, (2) share of future allocations of Company contributions (3) share of future forfeitures, and (4) future After-tax Savings and Section 401(k) Contributions, shall be
invested in the Fund(s) determined in the sole discretion of the Committee until an election is made pursuant to this Article. 
  

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 14.3 Transfer Date. The Committee on behalf of the Named Fiduciary shall establish one or
more Transfer Dates in each Fiscal Year; provided, however, that such Transfer Dates shall occur no less frequently than quarter-annually. 
  
 14.4 Confirmation. The Plan Administrator shall provide written confirmation to a Participant within a reasonable time after an election or
change of election is made by such Participant. 
  
 14.5
Subdivision of Accounts. 
  
 (a)
Establishment of Subaccounts. The Account of a Participant who has made an election pursuant to this Article shall be subdivided as of the Transfer Date into a Subaccount corresponding to each of the Funds maintained under the Plan into which
the Participant has made an election to have his Account invested. Such Participant’s Fund Subaccounts shall each have a balance as of the Transfer Date giving effect to the percentages indicated by the Participant’s election. If a
Participant has not made an election as to any Fund, such Participant’s Account shall be placed into the Fund(s) determined under Section 14.2(e) and the Participant’s Fund Subaccount(s) shall have an aggregate value equal to the
Participant’s entire Account balance. 
  
 (b) Allocation of After-tax Savings, Section 401(k) Contributions, Company Contributions and Forfeitures Among Subaccounts. The following amounts shall be further allocated among such Participant’s Fund Subaccounts in the
appropriate percentages in accordance with the Participant’s election: (1) that portion of any Company contribution which is allocated pursuant to Section 6.4 to the Company Contribution Account of a Participant who has made an election; (2)
the Participant’s After-tax Savings; (3) the Participant’s Section 401(k) Contributions; and (4) forfeitures allocated under Section 6.9 to the Company Contribution Account of a Participant. 
  
 14.6 Investment Funds. 
  
 (a) Committee’s Responsibility for Funds. The
Committee shall be responsible for designating Funds in the Trust Fund into which Participants may elect to invest their Accounts as provided in this Article. The Plan Administrator shall provide sufficient information to Participants concerning the
Funds to permit them to make informed investment decisions, or, if appropriate, provide Participants with directions as to how such information may be obtained. 
  
 (b) Investment Policy of Funds. The Committee shall determine the Funds to be made available under
the Plan; provided however, that at all times that in addition to the Host Marriott Corporation Stock Fund, three (3) or more Funds shall be maintained which (1) shall not invest in Qualifying Employer Securities or Qualifying Employer Real
Property; (2) shall be designed to enable Participants, by choosing among them, to minimize the risk of large losses in their Accounts; (3) shall be designed to enable Participants, by combining them, to achieve general risk and return
characteristics in their Accounts as desired by Participants; (4) shall be designed to limit a Participant’s investment in Company stock or Qualifying Employer Securities to no more than twenty percent (20%) of the Participant’s Account;
and (5) shall be designed to 

  

 A-43 

 
permit Participants to generally minimize the risk to their Accounts at any level of expected return. 
  
 The Named Fiduciary, acting by and through the Committee, shall establish an
investment policy and method consistent with the objectives of the Plan and the requirements of Title I of ERISA. Such objectives shall include, those set forth in Article XIV with respect to the Funds. The Committee acting on behalf of the Named
Fiduciary shall at least annually review such investment policy and method. In establishing and reviewing such investment policy and method, the Named Fiduciary shall endeavor to determine the Plan’s short-term and long-term objectives and
financial needs, taking into account the need for liquidity to pay benefits and the need for investment growth. All actions of the Committee acting on behalf of the Named Fiduciary taken pursuant to this subsection (b) and the reasons therefore
shall be recorded and shall be communicated to the Trustees and to the Board of Directors. 
  
 (c) Funds. The Committee shall make available to the Participants the Funds described in the Investment Policy or such other Funds
as the Committee shall determine from time to time. 
  
 14.7
Voting Rights. 
  
 (a) Generally,
all shares (including fractional shares) held in a Participant’s Host Marriott Corporation Stock Fund Subaccount shall be voted in accordance with the written direction of the Participant. 
  
 (1) The Committee shall notify the Participants in writing
of each occasion for the exercise of voting rights as soon as practicable, and generally not less than thirty (30) days, before such rights are to be exercised. Such notification shall include all the information that the Corporation distributes to
shareholders regarding the exercise of such rights. 
  
 (2) Each Participant shall be entitled to direct the exercise of rights other than voting rights (such as, for example, a conversion privilege) with respect to all shares held in the Participant’s Host Marriott Corporation Stock Fund
Subaccount in the same manner as prescribed in this Section 14.7, to the extent required by the provisions of the Plan and applicable laws. 
  
 (3) Notwithstanding the above, in the event of a tender offer for Host Marriott Corporation common stock with time limits that do not
permit voting rights with respect to the offer to be passed through to Participants, the Committee shall instruct the Trustee regarding the exercise of rights with respect to the tender offer. 
  
 (b) The Trustee shall exercise voting rights with respect to
all investments other than Qualifying Employer Securities held in the Host Marriott Corporation Stock Fund. 
  
 14.8 Allocation of Income of Funds. The net income of each Fund shall be allocated among the Fund Subaccounts as provided in Section 6.8.

  

 A-44 

 14.9 Investment Authority of Former Employees. Any Participant who ceases to be an Employee
shall continue to have the authority to direct the investment of his Account in accordance with the provisions of this Article. 
  
 14.10 Investment for the Benefit of Incompetents. If the Plan Administrator receives notice that any person entitled to direct investments
hereunder has been determined to be legally incompetent, his Account shall be placed in a Fund(s) determined under Section 14.2(e) until such time as the person’s legal representative files an election in the manner specified in this Article.

  
 14.11 Rules of Committee. The Committee may
establish such rules as it deems necessary to carry out the provisions of this Article and to comply with the requirements of ERISA. 
  

 A-45 

 ARTICLE XV. 
 PLAN FIDUCIARIES 
  
 15.1
Plan Fiduciaries. 
  
 (a) Named
Fiduciary. The Committee is hereby named as the fiduciary of the Plan to have authority to control and manage the operation and administration of the Plan. As such, the Committee may hereinafter be referred to as the “Named Fiduciary”.
The Named Fiduciary shall have all of the legal liabilities and obligations set forth in ERISA with respect to employee benefit plan fiduciaries. 
  
 (b) Investment Committee. The function of the Committee shall be to advise and assist the Plan Administrator in the day-to-day
discharge of its duties hereunder. The Committee shall consist of at least five (5), but no more than ten (10), persons appointed by the Board of Directors. The Plan Administrator shall attend all meetings of the Committee. A representative of the
Office of the General Counsel shall attend all meetings of the Committee and shall act as the secretary of the Committee ex officio to record minutes of all action taken at any such meeting. Each member of the Committee shall sit at the pleasure of
the Board of Directors and may be removed at any time with or without cause. 
  
 (c) Trustees. The Named Fiduciary shall appoint one or more trustees (“Trustees”) under the terms of the Trust Agreement. 
  
 15.2 Fiduciary Duty. Subject to Section 403(c) of ERISA, the Named Fiduciary and each other Fiduciary shall discharge
its duties with respect to the Plan solely in the interest of the Participants and their Beneficiaries and: 
  
 (a) For the exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable expenses of
administering the Plan; 
  
 (b) With the care,
skill, prudence, and diligence under the circumstances then prevailing, that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; 
  
 (c) By diversifying the investments of the Plan so as to
minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and 
  
 (d) In accordance with the provisions of this Plan insofar as they are consistent with the provisions of ERISA. The diversification
requirement of subsection (c) of this Section and the prudence requirement (only to the extent that it requires diversification) of subsection (b) of this Section shall not be violated by acquisition or holding of Qualifying Employer Real Property
or by acquisition or holding of Qualifying Employer Securities. 
  
 15.3 Agents and Advisors. 
  
 (a) Employment of Agents. The Named Fiduciary and the Committee shall have the power to employ suitable agents and advisors for themselves including but not limited to auditors, accountants, investment advisers
and custodians and legal and other counsel, and to 

  

 A-46 

 
pay reasonable compensation for their services. Such agents may be persons acting in a similar capacity for the Company, or may be employees of the Company.
The opinion of any such agent shall be complete authority and protection for any action taken or omitted by the Named Fiduciary and the Committee acting in good faith and in accordance with such opinion. 
  
 (b) Delegation to Agents and Plan Administrator. The
Named Fiduciary acting by and through the Committee may employ agents and delegate to them ministerial duties. The Named Fiduciary may also designate persons, including a Plan Administrator and the Committee, to carry out both ministerial and
fiduciary responsibilities; provided, however, that the Trustees’ responsibility to manage or control the assets of the Plan may not be so delegated except to an investment manager or managers pursuant to subsection (c) of this Section.

  
 (c) Appointment of Investment Manager.
The Named Fiduciary shall have the power as provided in the Trust Agreement to appoint an investment manager or managers with the power to manage, acquire or dispose of any assets of the Plan so long as each such investment manager (1)(i) is
registered as an investment advisor under the Investment Advisors Act of 1940; (ii) is a bank, as defined in that Act; or (iii) is an insurance company qualified to manage, acquire, or dispose of assets of employee pension benefit plans under the
laws of more than one State; and (2) has acknowledged in writing to the Named Fiduciary that he or she or it is a fiduciary with respect to the Plan. 
  
 15.4 Administrative Action. 
  
 (a) Action by Majority. The action of a majority of the Board of Directors or the Committee at the time acting hereunder, and any
instrument executed by a majority of such Directors or Committee members shall be considered the action or instrument of the Board of Directors or the Committee as the case may be. Action may be taken by the Board of Directors or the Committee at a
meeting or in writing without a meeting. 
  
 (b)
Right to Vote. No Director or Committee member or Plan Administrator shall have the right to vote or decide upon any matter relating solely to himself or solely to any of his rights or benefits under the Plan. 
  
 (c) Authority to Execute Documents. The Named
Fiduciary or the Committee may authorize in writing any one or more of their number to execute any document or documents on their behalf, and anyone dealing with the Named Fiduciary, Committee or Trustees may accept and rely upon any document
executed by such member or members as representing action by the Named Fiduciary, Committee or Trustees, as the case may be. 
  
 15.5 Liabilities and Indemnifications. 
  
 (a) Liability of Fiduciaries. The Named Fiduciary and their assistants and representatives including members of the Committee and
the Plan Administrator (other than any Investment Manager) shall be free from all liability for their acts and conduct in the administration of the Plan except for acts of willful misconduct; provided, however, that the foregoing shall not relieve
any of them from any responsibility or liability for any responsibility, obligation or duty that they may have pursuant to ERISA. 
  

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 (b) Indemnity by Company. In the event, and to the extent not insured against by
any insurance company pursuant to provisions of any applicable insurance policy, the Company shall indemnify and hold harmless the Named Fiduciary and their assistants and representatives including members of the Committee and the Plan Administrator
from any and all claims, demands, suits or proceedings in connection with the Plan that may be brought by the Company’s (or Affiliated Company’s) employees, Participants or their Beneficiaries or legal representatives, or by any other
person, corporation, entity, government or agency thereof; provided, however, that such indemnification shall not apply to any such person for such person’s acts of willful misconduct in connection with the Plan. 
  
 15.6 Plan Expenses and Taxes. 
  
 (a) Plan Expenses. The administrative expenses (and
the Investment Expenses) incurred by the Named Fiduciary, the Committee and Trustees in the performance of their duties, including recordkeeping fees and fees for legal services rendered to the Named Fiduciary and Trustees, such compensation to the
Named Fiduciary and Trustees as may be agreed upon in writing from time to time between themselves and the Board of Directors, and all other proper charges and disbursements of the Named Fiduciary, the Committee and Trustees, shall be paid by the
Trust Fund to the extent not paid from forfeitures as provided in Section 6.9 or by the Company. 
  
 (b) Taxes. All taxes of any and all kinds whatsoever that may be levied or assessed under existing or future laws upon or with
respect to the Trust Fund or the income thereof shall be paid from the Trust Fund, subject to the making of appropriate charges. 
  
 15.7 Records and Financial Reporting. 
  
 (a) Book of Account. The Named Fiduciary acting by and through the Committee and the Trustees shall keep accurate and detailed
accounts of all investments, receipts, disbursements and other transactions hereunder. Within ninety (90) days following the close of each Fiscal Year and at the request of the Company ninety (90) days after the removal or resignation of any Trustee
as provided in Section 15.1(c), the Trustees shall file with the Company a written account setting forth all investments, receipts, disbursements, allocations and other transactions effected by the Trustees during such Fiscal Year or during the
period from the close of the last Fiscal Year to the date of such removal or resignation. 
  
 (b) Financial Reporting Under ERISA. The Named Fiduciary shall if required by ERISA cause the Plan to engage, on behalf of the
Participants, an independent qualified public accountant, who shall conduct such examinations and give such opinions as are required in connection with the Plan’s reporting and filing requirements under ERISA. The Named Fiduciary shall make
available or cause to be made available to each Participant and each beneficiary who is receiving benefits under this Plan, such information, financial and otherwise, and in such manner and at such times as is required under ERISA. 
  
 15.8 Compliance with ERISA and Code. The Named Fiduciary shall
cause the Plan to comply with all filing requirements as provided in ERISA and in the Code and all regulations promulgated thereunder. All authority granted to the Named Fiduciary, the Committee and the 

  

 A-48 

 
Trustees hereunder is subject to their compliance with Sections 15.2, 15.9 and 15.10 and with ERISA. 
  
 15.9 Prohibited Transactions. A Fiduciary shall not engage in
any prohibited transaction within the meaning of Sections 406 and 407 of ERISA, or Section 4975(c) of the Code, unless such transaction is exempt under Section 408 or Section 414(c) of ERISA or Section 4975(d) of the Code, or acquire or hold any
Company securities or real property except to the extent permitted under Section 407 of ERISA. 
  
 15.10 Foreign Assets. No Fiduciary may maintain the indicia of ownership of any assets of the Plan outside the jurisdiction of the district courts of the United States, except as may be authorized by the
Secretary of Labor by regulation. 
  
 15.11 Exclusive
Benefit of Trust Fund. The assets of the Trust Fund shall never inure to the benefit of the Company and shall be held for the exclusive purposes of providing benefits to Participants and their Beneficiaries and defraying reasonable expenses
of administering the Plan. 
  
 15.12 Board of Directors
Resolution. Any action by the Company pursuant to any of the provisions hereof shall be evidenced by a resolution of its Board of Directors certified to the Committee or the Trustees over the signature of its secretary or of any assistant
secretary. The Committee and the Trustees shall be fully protected in acting in accordance with such certified resolution. 
  

 A-49 

 ARTICLE XVI. 
 PLAN ADMINISTRATION 
  
 16.1 Administration of the Plan. 
  
 (a) Authority to Administer. On behalf of the Named Fiduciary, the Committee shall administer the Plan in accordance with its terms and shall have all powers and discretionary authority necessary to carry out
the provisions of the Plan, including but not limited to, the power to: (1) interpret and construe the provisions of the Plan, including making factual determinations; (2) prepare any rules and regulations which may become necessary or desirable in
the operation of the Plan, including but not limited to specifying procedures to be followed by eligible Employees in electing to participate in the Plan and in revoking such participation; (3) determine eligibility for benefits and determine the
amounts and manner of payment thereof under the provisions of the Plan; (4) keep individual accounts; (5) establish investment policies to be followed by the Trustees; and (6) perform such other duties as may be required for the proper
administration of the Plan. The Committee shall have absolute discretion in interpreting the provisions of the Plan and administering the Plan in accordance with such provisions, including by way of illustration and not of limitation, the making of
determinations of eligibility to participate and the calculation of benefits accruing or payable under this Plan. 
  
 (b) Delegation of Authority to Plan Administrator. In accordance with Section 15.3(b), the duties described in subsection (a) of
this Section shall be exercised by the Plan Administrator acting on behalf of the Committee, subject to review by the Committee under Section 16.2(c) of a denial of a claim for benefits. 
  
 (c) Finality of Decision. Any decision of the Named Fiduciary or of the Committee on its behalf, in
matters within its jurisdiction shall be final, binding and conclusive upon the Company and upon all persons who have participated or have any interest or concern, whatsoever, in the Plan. 
  
 16.2 Claims. 
  
 (a) Claims for Benefits. Any claim for benefits under
the Plan shall be made in writing to the Plan Administrator. Except as to his own account, no claimant shall have any legal right to inquire as to any payment under the Plan having been made or as to determining the amount of such payment.

  
 (b) Notice of Claim Denied. If a claim
for benefits is denied, in whole or in part, the claims procedure set forth in Appendix B shall apply. 
  

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 ARTICLE XVII. 
 PARTICIPATING COMPANY WITHDRAWAL FROM PLAN; 
 TERMINATION OR MERGER OF THE PLAN 
  
 17.1 Voluntary Withdrawal from Plan. 
  
 (a) Withdrawal By Participating Company. Any
Participating Company may at any time withdraw from the Plan upon giving the Named Fiduciary at least thirty (30) days notice in writing of its intention to withdraw, unless the Named Fiduciary shall waive such thirty (30) days notice. The
withdrawal of such Participating Company shall be effective on the last day of the Month in which the foregoing thirty (30) day period ends. 
  
 (b) Segregation of Trust Assets Upon Withdrawal. Upon the withdrawal of a Participating Company pursuant to subsection (a) of this
Section, the Plan Administrator shall segregate the share of the assets in the Trust Fund, the value of which, determined on the day the withdrawal of such Participating Company shall be effective, shall equal the total credited to the accounts of
Participants of the withdrawing Participating Company. The determination of which assets are to be so segregated shall be made by the Committee acting on behalf of the Named Fiduciary in its sole discretion. 
  
 (c) Exclusive Benefit of Participants. Neither the
segregation and transfer of the Trust assets upon the withdrawal of a Participating Company nor the execution of a new agreement and declaration of trust by such withdrawing Participating Company shall operate to permit any part of the Trust Fund to
be used for or diverted to purposes other than for the exclusive benefit of the Participants. 
  
 (d) Applicability of Withdrawal Provisions. The withdrawal provisions contained in this Section 17.1 shall be applicable only if
the withdrawing Participating Company continues to cover its Participants and eligible employees in another profit-sharing plan or pension plan and trust qualified under Sections 401 and 501 of the Code. Otherwise, the termination provisions of
Section 17.3 shall apply. 
  
 17.2 Amendment of
Plan. The Board of Directors may amend the Plan with respect to all Participating Companies or with respect to a particular Participating Company at any time, and from time to time, pursuant to written resolutions adopted by the Board of
Directors (and all Employees and persons claiming any interest hereunder shall be bound thereby); provided, however, that no such amendment shall: 
  
 (a) Alter the rights, duties or responsibilities of the Named Fiduciary or Trustees without their written consent; 
  
 (b) Permit any portion of the Trust Fund to inure to the
benefit of the Company or permit any portion of the Trust Fund to be held or used other than for the exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable costs of administering the Plan; or

  
 (c) Have the effect of decreasing the
“accrued benefit” of any Participant as proscribed in Section 411(d)(6) of the Code; 
  

 A-51 

 (d) Have the effect of reducing any then vested percentage of benefits of any Participant
as computed in accordance with the vesting schedule under Article VII of the Plan. 
  
 If the vesting schedule under Article VII of the Plan shall be amended and such an amendment would, at any time, decrease the percentage
of vested benefits which any Participant would have been entitled to receive had the vesting schedule not been so amended, then each Participant who is an Employee on the date such amendment is adopted, or the date such amendment is effective,
whichever is later, and who has three (3) or more Periods of Service as of the end of the period within which such Participant may make the election provided for herein, shall be permitted, beginning on the date such amendment is adopted, to
irrevocably elect to have the Participant’s vested interest computed without regard to such amendment. Written notice of such amendment and the availability of such election must be given to each such Participant, and each such Participant
shall be granted a period of sixty (60) days after the later of: 
  
 (1) The Participant’s receipt of such notice; or 
  
 (2) The effective date of such amendment within which to make such election. 
  
 Such election shall be exercised by the Participant by delivering or sending written notice thereof to the Named Fiduciary
prior to the expiration of such sixty (60) day period. 
  
 17.3
Voluntary Termination of Plan. 
  
 (a) Right to Terminate Plan. Each Participating Company contemplates that the Plan shall be permanent and that it shall be able to make contributions to the Plan. Nevertheless, in recognition of the fact that future conditions and
circumstances cannot now be entirely foreseen, each Participating Company reserves the right to terminate (as to such Participating Company) either the Plan (exclusive of the Trust Fund) or both the Plan and the Trust Fund, at any time, by
resolution of the board of directors of the Participating Company. 
  
 (b) Merger or Consolidation of Plan and Trust. Neither the Plan nor the Trust Fund may be merged or consolidated with, nor may its assets or liabilities be transferred to, any other plan or trust, unless each
Participant would (if the Plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit the Participant would have been entitled to receive immediately before the
merger, consolidation, or transfer (if the Plan had then terminated). 
  
 (c) Termination of Plan and Trust Fund. If the board of directors of a Participating Company determines to terminate (as to such Participating Company) the Plan and Trust Fund completely, the Plan and Trust
Fund shall be terminated insofar as they are applicable to such Participating Company as of the date specified in certified copies of resolutions of such board of directors delivered to the Named Fiduciary, the Committee and the Trustees. Upon such
termination of the Plan and Trust Fund, after payment of all expenses and proportional adjustment of accounts of Participants employed by such Participating Company to reflect such expenses, Trust Fund earnings or losses, and allocations of any
previously unallocated funds to the date of termination, such Participating Company’s Participants shall be entitled to receive the 

  

 A-52 

 
amount then credited to their respective accounts in the Trust Fund. The Named Fiduciary, in its sole discretion, may make payment of such amount in cash, in
assets of the Trust Fund, or in the form of immediate or deferred payment term annuity contracts for such Participants. 
  
 17.4 Discontinuance of Contributions. Whenever a Participating Company determines that it is impossible or inadvisable for it to make
further contributions as provided in the Plan, the board of directors of such Participating Company may, without terminating the Trust Fund, adopt an appropriate resolution permanently discontinuing all further contributions by such Participating
Company. A certified copy of such resolution shall be delivered to the Named Fiduciary, the Committee and the Trustees. Thereafter, the Named Fiduciary, the Committee and the Trustees shall continue to administer all the provisions of the Plan,
which are necessary and remain in force, other than the provisions relating to contributions by such Participating Company. However, the Trust Fund shall remain in existence with respect to such Participating Company and all of the provisions of the
Plan relating to the Trust Fund shall remain in force. 
  
 17.5
Rights to Benefits Upon Termination of Plan or Complete Discontinuance of Contributions. Upon the termination or partial termination of the Plan or the complete discontinuance of contributions by a Participating Company, the rights of
each of such Participating Company’s Participants affected by such termination or partial termination to the amount credited to such Participant’s Account at such time shall be nonforfeitable without reference to any formal action on the
part of such Participating Company, the Named Fiduciary, the Committee or the Trustees. 
  

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 ARTICLE XVIII. 
 ELECTION TO PARTICIPATE BY SUBSIDIARIES 
  
 18.1 Consent Required for Subsidiaries to Join Plan. The Plan Administrator, upon receiving a written resolution of the board of directors of a Subsidiary electing to become a Participating Company, may
approve or disapprove such election acting as the delegate of the Board of Directors. The Board of Directors shall retain the final authority to override such action and approve or disapprove the Subsidiary’s request. 
  

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 ARTICLE XIX. 
 MISCELLANEOUS PROVISIONS 
  
 19.1 Status of Employment. The adoption and maintenance of the Plan shall not be deemed to constitute a contract of employment between the Company and any Employee or Participant, or to be a consideration for, or an inducement
or condition of, any employment. Nothing contained herein shall be deemed to give any Employee the right to be retained in the service of the Company or to interfere with the right of the Company to discharge any Employee or Participant at any time.

  
 19.2 Liability of Company. Except as may be
determined by the Board of Directors, in its sole discretion from time to time, all benefits payable under this Plan shall be paid or provided solely from the Trust Fund and the Company (other than Host Marriott, L.P. in its role as Named Fiduciary)
assumes no liability or responsibility therefore; its obligation which is expressly stated to be non-contractual is limited solely to the making of contributions to the Trust Fund as provided in this Plan. 
  
 19.3 Information. 
  
 (a) Supplied by Named Fiduciary, the Committee or
Trustees. A certification in writing to the Named Fiduciary, Plan Administrator, the Committee or the Trustees, executed in accordance with the provisions of this Plan, certifying to the existence, occurrence or happening of any event, shall
constitute evidence of such existence, occurrence or happening; and the Named Fiduciary, Plan Administrator, the Committee, the Trustees and the Company shall be fully protected in accepting and relying upon such certification and shall incur no
liability or responsibility for so doing. 
  
 (b)
Supplied by Company. At the request of the Named Fiduciary, the Committee or the Trustees, the Company shall furnish in writing to the Named Fiduciary, the Committee or the Trustees such information as may be necessary or desirable in order
that the Named Fiduciary, the Committee or the Trustees may be able to carry out their respective duties hereunder. The Named Fiduciary, the Committee and the Trustees shall be entitled to rely upon such information as being correct. 
  
 19.4 Provisions of Plan to Control. In the event of any
conflict between the terms of the Plan as set forth in this instrument and in any description of the Plan which may be furnished to Participants or others, the Plan set forth herein shall control. 
  
 19.5 Payment for Benefit of Incompetent. The Trustees may make
payment to any incompetent who is entitled to receive payments hereunder by making the same to the legal representative of such incompetent or to his parent or Spouse or may apply them for the incompetent benefit. 
  
 19.6 Account to be Charged Upon Payment. When any distribution
or other payment is made to or for the benefit or on behalf of any party entitled to receive payments hereunder, the account held for the benefit of such party shall be charged accordingly. 
  

 A-55 

 19.7 Tax Qualification of Plan. The Plan is intended to qualify as a tax exempt profit
sharing plan pursuant to the provisions of Section 401, the cash or deferred arrangement provisions of the Plan set forth in Article V and elsewhere are intended to satisfy the requirements of Sections 401(k) and 401(m), and the Trust created
hereunder is intended to qualify as a tax exempt trust under the provisions of Section 501(a) of the Code together with any amendments thereto and all provisions of the Plan shall be construed to obtain those results. 
  
 19.8 Deductibility of Company Contributions. The Contributions
made by the Company under this Plan are intended to be deductible as business expenses, under the provisions of Section 404 of the Code, together with any amendments thereto, and all provisions of the Plan shall be construed accordingly. 

 
 19.9 Restriction on Alienation or Assignment. Benefits
provided under the Plan may not be assigned or alienated, except as permitted by Article XIII and the following: 
  
 (a) A loan made by the Plan to a Participant in accordance with Article XI shall be secured by the Participant’s After-tax Savings
Account and Company Contribution Account as provided in Article XI. 
  
 (b) If a Participant is indebted to the Company or to the Marriott Employees Federal Credit Union at the time any payments are to be made to such Participant or to the Participant’s Beneficiary hereunder and if
the Participant, prior to September 2, 1974 has executed in favor of such creditor an irrevocable security assignment of the Participant’s account balances in the Plan, the Trustees are authorized to pay to such creditor all or such portion of
said payments as may be required to discharge such indebtedness. 
  
 (c) An offset to a Participant’s benefit against an amount the Participant is required to pay the Plan with respect to a judgment, order, decree or settlement entered into or against a Participant on or after
August 5, 1997 shall be permitted in accordance with Code section 401(a)(13)(C). 
  
 19.10 Unclaimed Benefits. In the event that benefit payments owing to a Participant have not been claimed by the Participant within three (3) years of the date on which such benefits first became
payable, the Plan Administrator shall, at the end of the Fiscal Year during which such three (3) year anniversary occurs reallocate such benefits to the remaining Participants in the manner provided in Section 6.10(a). If subsequent to such
reallocation, the Participant entitled to such benefits makes claim therefor, the Plan Administrator shall promptly pay such forfeited benefit. Funds with which to pay any such benefits shall be provided as set forth in Section 6.10(b ). 

 
 19.11 Recovery of Plan Benefits Payment Made by Mistake. A
Participant or Beneficiary shall be required to return to the Plan any payments made under the Plan made by a mistake of fact or law. 
  
 19.12 Bonding. Every Fiduciary of the Plan and every person who handles funds or other property of the Plan shall be bonded if and to the
extent required by Section 412 of ERISA. 
  

 A-56 

 19.13 Titles and Captions. The titles and captions to the Articles, Sections and
subsections in the Plan are placed herein for convenience of reference only, and in case of any conflict the text of this instrument, rather than such titles, shall control. 
  
 19.14 Execution of Counterparts. This instrument may be executed in any number of counterparts, each of which
shall be deemed to be an original. 
  
 19.15 Governing
Law. The Plan shall be governed, construed, administered and regulated in all respects by and under the laws of the State of Maryland. 
  
 19.16 Separability. If any provisions of the Plan shall for any reason be invalid or unenforceable, the remaining provisions shall
nevertheless remain in full force and effect. 
  
 19.17
Supplements and Appendices. Supplements and Appendices to the Plan or the Trust may be adopted, attached to and incorporated in the Plan or the Trust at any time. The provisions of any such Supplements or Appendices shall have the same
effect that such provisions would have if they were included within the basic text of the Plan or the Trust. Supplements and Appendices shall be adopted by the Board pursuant to the amendment authority set forth in Section 17.2 of the Plan and shall
specify the persons affected. 
  
 19.18 Military
Service. Notwithstanding any other provision of the Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with section 414(u) of the Internal Revenue Code.

  
 19.19 Employer Securities. Notwithstanding any
provision of the Plan or Trust to the contrary, the Plan may invest in Qualifying Employer Securities and Qualifying Employer Real Property up to 100% of the Plan’s assets or otherwise the maximum permitted by ERISA. 
  

 A-57 

 ARTICLE XX. 
 TOP HEAVY PROVISIONS 
  
 20.1 Determination of Top Heavy Status. For purposes of this Article, the Plan shall be a Top Heavy Plan if, as of the Determination Date, either: 
  
 (a) The sum of the aggregated accounts of Participants who are “key employees” (as defined in
Section 416(i) of the Code) exceeds sixty percent (60%) of the sum of the aggregated accounts of all Plan Participants; or 
  
 (b) The Plan is included in a Top Heavy Group. 
  
 If a Participant has received no compensation from the Company during the five (5) year period preceding the Determination Date, his account balance may be disregarded
for purposes of determining whether the Plan is top-heavy. Solely for purposes of determining which Participants are “key employees,” the term “compensation” (as used in Section 416(1) of the Code) shall mean the compensation
stated on an Employee’s Form W-2 for the calendar year that ends with or within the Plan Year. 
  
 20.2 Definitions. For purposes of this Article, the following terms shall have the meanings set forth herein: 
  
 (a) “Aggregation Group” means: 

 
 (1) Each Section 401 Plan of the Company in which a
“key employee” (as defined in Section 416(i) of the Code) is a participant; and 
  
 (2) Each Section 401 Plan of the Company which enables any plan described in subsection (a)(i) of this Section to meet the requirements of
Section 401(a)(4) or 410 of the Code. 
  
 (3) To
the extent elected by the Committee, any other Section 401 Plan of the Company that when aggregated with any plans described in Subsections (a)(1) and (2) of this Section meets the requirements of Sections 401(a)(4) and 410 of the Code. 

 
 (b) “Determination Date” means, with
respect to any Plan Year, the last day of the preceding Plan Year. In the case of the Plan Year which includes the Effective Date of the Plan, the last day of such Plan Year. 
  
 (c) “Section 401 Plan” means any stock bonus, pension, or profit sharing plan subject to
the qualification requirements of Section 401 of the Code. 
  
 (d) “Top Heavy Group” means any Aggregation Group determined to be a Top Heavy Group in accordance with the test set forth in Code Section 416(g)(2)(B). 
  
 (e) “Valuation Date” shall have the same
meaning as set forth in Section 1.72. 
  

 A-58 

 20.3 Requirements if Plan is a Top Heavy Plan. Notwithstanding any other provision of this
Plan, for any Plan Year for which the Plan is a Top Heavy Plan, a minimum allocation shall be made on behalf of each Participant who is not a “key employee” (as defined in Section 416(i) of the Code) and who is employed on the last day of
such Plan Year in an amount equal to the lesser of (a) three percent (3%) of such Participant’s Compensation or (b) the largest percentage of Compensation allocated to any key employee during such Plan Year. 401(k) elective deferrals made by a
non-key employee under this Plan or any other plan of the Company or a Subsidiary pursuant to a cash or deferred arrangement shall not be credited toward the minimum allocation described in the preceding sentence. The minimum allocation shall not
apply to any non-key employee who receives a minimum contribution or a minimum benefit under any other plan of the Company or a Subsidiary. Notwithstanding the above, if a non-key employee participates in this Plan and a defined benefit plan that is
included in an Aggregation Group, the non-key employee shall receive a minimum benefit under the defined benefit plan rather than a minimum allocation under this Plan, provided that if the defined benefit plan does not provide for a minimum benefit,
the non-key employee shall receive a minimum allocation under this Plan of five percent (5%) of Compensation. 
  
 20.4 Applicability of Top-Heavy Rules. The top-heavy requirements of Section 416 of the Code and Article 20 of the Plan shall not apply in
any year beginning after December 31, 2001, in which the plan consists solely of a cash or deferred arrangement which meets the requirements of Section 401(k)(12) of the Code and matching contributions with respect to which the requirements of the
Section 401(m)(11) of the Code are met. 
  

 A-59 

 Appendix A 
  

MINIMUM DISTRIBUTION REQUIREMENTS 
  
 Section A-1. General Rules 
  
 A-1.1. Effective Date. The provisions of this Appendix will apply for purposes of determining required minimum distributions for calendar years beginning with the
2003 calendar year. 
  
 A-1.2. Precedence. The requirements of this
Appendix will take precedence over any inconsistent provisions of the Plan. 
  
 A-1.3. Requirements of Treasury Regulations Incorporated. All distributions required under this Appendix will be determined and made in accordance with the Treasury regulations under Code Section 401(a)(9). 
  
 A-1.4. TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this
Appendix, distributions may be made under a designation made before January 1, 1984, in accordance with section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to section 242(b)(2) of
TEFRA. 
  
 Section A-2. Time and Manner of Distribution. 
  
 A-2.1. Required Beginning Date. The Participant’s entire interest will be
distributed, or begin to be distributed, to the Participant no later than the Participant’s Required Beginning Date. 
  
 A-2.2. Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant’s entire interest will be
distributed, or begin to be distributed, no later than as follows: 
  
 (a) If the Participant’s surviving spouse is the Participant’s sole designated beneficiary, then distributions to the surviving spouse will begin by the later of December 31 of the calendar year immediately following the calendar
year in which the Participant died or by December 31 of the calendar year in which the Participant would have attained age 701⁄2. 
  
 (b) If the Participant’s surviving spouse is not the Participant’s sole designated beneficiary, then, distributions to the designated
beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. 
  
 (c) If there is no designated beneficiary as of September 30 of the year following the year of the Participant’s death, the Participant’s entire
interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 
  
 (d) If the Participant’s surviving spouse is the Participant’s sole designated beneficiary and the surviving spouse dies after the Participant
but before distributions to the surviving spouse 

  

 A-60 

 
begin, this section A-2.2, other than section A-2.2(a), will apply as if the surviving spouse were the Participant. 
  
 For purposes of this section A-2.2 and section A-4, unless section A-2.2(d) applies,
distributions are considered to begin on the Participant’s Required Beginning Date. If section A-2.2(d) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under section
A-2.2(a). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant’s Required Beginning Date (or to the Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse under section A-2.2(a)), the date distributions are considered to begin is the date distributions actually commence. 
  
 A-2.3. Forms of Distribution. Unless the Participant’s interest is distributed in a single sum on or before the Required
Beginning Date, as of the first distribution calendar year distributions will be made in accordance with sections A-3 and A-4 of this Appendix. If the Participant’s interest is distributed in the form of an annuity purchased from an insurance
company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury regulations. 
  
 Section A-3. Required Minimum Distributions During Participant’s Lifetime. 
  
 A-3.1. Amount of Required Minimum Distribution For Each Distribution Calendar Year. During the Participant’s lifetime, the
minimum amount that will be distributed for each distribution calendar year is the lesser of: 
  
 (a) the quotient obtained by dividing the Participant’s account balance by the distribution period in the Uniform Lifetime Table set forth in Treas. Reg. Sec. 1.401(a)(9)-9, using the Participant’s age as of
the Participant’s birthday in the distribution calendar year; or 
  
 (b) if the Participant’s sole designated beneficiary for the distribution calendar year is the Participant’s spouse, the quotient obtained by dividing the Participant’s account balance by the number in the Joint and Last
Survivor Table set forth in Treas. Reg. Sec. 1.401(a)(9)-9, using the Participant’s and spouse’s attained ages as of the Participant’s and spouse’s birthdays in the distribution calendar year. 
  
 A-3.2. Lifetime Required Minimum Distributions Continue Through Year of Participant’s
Death. Required minimum distributions will be determined under this section A-3 beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant’s date of death.

  
 Section A-4. Required Minimum Distributions After Participant’s Death.

  
 A-4.1. Death On or After Date Distributions Begin. 
  
 (a) Participant Survived by Designated Beneficiary. If the Participant
dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing
the Participant’s account balance by the longer of the remaining 

  

 A-61 

 
life expectancy of the Participant or the remaining life expectancy of the Participant’s designated beneficiary, determined as follows: 
  
 (1) The Participant’s remaining life expectancy is
calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. 
  
 (2) If the Participant’s surviving spouse is the Participant’s sole designated beneficiary, the remaining life expectancy of the
surviving spouse is calculated for each distribution calendar year after the year of the Participant’s death using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of
the surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each
subsequent calendar year. 
  
 (3) If the
Participant’s surviving spouse is not the Participant’s sole designated beneficiary, the designated beneficiary’s remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the
Participant’s death, reduced by one for each subsequent year. 
  
 (b) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year after the year of the Participant’s death, the minimum amount
that will be distributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s account balance by the Participant’s remaining life expectancy calculated
using the age of the Participant in the year of death, reduced by one for each subsequent year. 
  
 A-4.2. Death Before Date Distributions Begin 
  
 (a) Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s account balance by the remaining life expectancy of the Participant’s designated beneficiary, determined as
provided in section A-4.1. 
  
 (b) No Designated
Beneficiary. If the Participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire
interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 
  
 (c) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions
begin, the Participant’s surviving spouse is the Participant’s sole designated beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under section A-2.2(a), this section A-4.2 will
apply as if the surviving spouse were the Participant. 
  

 A-62 

 Section A-5. Definitions. 
  
 A-5.1. Designated beneficiary. The individual who is designated as the beneficiary under Section 1.16 of the Plan and is the
designated beneficiary under Code Section 401(a)(9). Treas. Reg. Sec. 1.401(a)(9)-1, Q&A-4. 
  
 A-5.2. Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the Participant’s death, the first distribution calendar year is the
calendar year immediately preceding the calendar year which contains the Participant’s Required Beginning Date. For distributions beginning after the Participant’s death, the first distribution calendar year is the calendar year in which
distributions are required to begin under section A-2.2. The required minimum distribution for the Participant’s first distribution calendar year will be made on or before the Participant’s Required Beginning Date. The required minimum
distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant’s Required Beginning Date occurs, will be made on or before December 31 of that
distribution calendar year. 
  
 A-5.3. Life expectancy. Life expectancy as
computed by use of the Single Life Table in Treas. Reg. Sec. 1.401(a)(9)-9. 
  
 A-5.4. Participant’s account balance. The account balance as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any
contributions made and allocated or forfeitures allocated to the account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The
account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year.

  
 A-5.5. Required Beginning Date. The date specified in Section 1.61 of
the Plan. 
  
 The Sections marked below shall apply for purposes
of this Appendix. 
  
 Section A-6. Election to Apply 5-Year Rule to
Distributions to Designated Beneficiaries. 
  
 For all distributions, if the
Participant dies before distributions begin and there is a designated beneficiary, distribution to the designated beneficiary is not required to begin by the date specified in section A- 2.2 of this Appendix, but the Participant’s entire
interest will be distributed to the designated beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary and the surviving spouse dies after the Participant but before distributions to either the Participant or the surviving spouse begin, this election will apply as if the surviving spouse were the Participant. 
  

 A-63 

 Section A-7. Election to Allow Participants or Beneficiaries to Elect 5-Year Rule. 
  
 Participants or Beneficiaries may elect on an individual basis whether the 5-year rule or
the life expectancy rule in sections A-2.2 and A-4.2 of this Appendix applies to distributions after the death of a Participant who has a designated beneficiary. The election must be made no later than the earlier of September 30 of the calendar
year in which distribution would be required to begin under section A-2.2 of this Appendix, or by September 30 of the calendar year which contains the fifth anniversary of the Participant’s (or, if applicable, surviving spouse’s) death. If
neither the Participant nor Beneficiary makes an election under this paragraph, distributions will be made in accordance with sections A-2.2 and A-4.2 of this Appendix and, if applicable, the elections in section A-6 above. 
  

 A-64 

 Appendix B 
  

Claims Procedure 
  
 CLAIMS FOR BENEFITS 
  
 The Plan
Administrator shall determine the Participants’, alternate payees’ and Beneficiaries’ rights to benefits under the Plan. Except as to their own Accounts, claimants shall not have any legal right to inquire as to any payment under this
Plan having been made or as to determining the amount of such payment. 
  
 REQUIREMENTS FOR NOTICE OF DENIAL 
  
 If a claim is wholly or
partially denied, the Administrator shall provide the claimant with a notice of denial written in a manner calculated to be understood by the claimant, setting forth: 
  

	 	1.	The specific reason for such denial; 

  

	 	2.	Specific references to the pertinent Plan provisions on which the denial is based; 

  

	 	3.	A description of any additional material or information necessary for the claimant to perfect the claim with an explanation of why such material or information is necessary; and

  

	 	4.	Appropriate information as to the steps (including time limits applicable to such steps) to be taken if the claimant wishes to submit his or her claim for review and a statement of
the claimant’s rights to bring a civil action under Section 502(a) of ERISA. 

  
 TIMING OF NOTIFICATION OF DENIAL 
  
 The
notice of denial shall be given within a reasonable time period but no later than 60 days after the claim is filed, unless special circumstances require an extension of time for processing the claim. If such extension is required, written notice
shall be furnished to the claimant within 90 days of the date the claim was filed stating the special circumstances requiring an extension of time and the date by which a decision on the claim can be expected, which shall be no more than 180 days
from the date the claim was filed. If no notice of denial is provided as herein described, the claimant may appeal the claim as though the claim had been denied. 
  
 CLAIM FOR APPEAL MUST BE SUBMITTED WITHIN 60 DAYS 
  
 In the event of a dispute over benefits, a Participant, alternate payee, or Beneficiary may file a written claim for benefits with the
Administrator, provided such claim is filed within 60 days of the date the Participant, Beneficiary, or alternate payee receives notification of the Administrative decision. In connection with the claimant’s appeal of the denial of the claim
for 

  

 B-1 

 
benefits, the claimant (or his authorized representative) may review permanent documents and may submit issues and comments regarding the claim in writing.

  
 TIME LIMIT ON REVIEW OF DENIED CLAIM 
  
 Upon receipt of a request for review, the Administrator shall provide written notification
of its decision to the claimant stating the specific reasons and referencing specific plan provisions on which its decision is based, within a reasonable time period but not later than 60 days after receiving the request, unless special
circumstances require an extension for processing the review. If such an extension is required, the Administrator shall notify the claimant in writing of such special circumstances and of the date, no later than 120 days after the original date the
review was requested, on which the Administrator will notify the claimant of its decision. 
  
 CLAIMANT’S RIGHTS DURING APPEAL 
  
 Claimant will have a reasonable opportunity for a full and fair review of a claim and adverse benefit determination, including the following: 
  

	 	1.	Claimant has the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits; 

  

	 	2.	Claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim
for benefits. A document is “relevant” if such document (A) was relied upon in making the benefit determination; (B) was submitted, considered, or generated in the course of making the benefit determination, without regard to whether such
document, record, or other information was relied upon in making the benefit determination; (C) demonstrates compliance with the administrative processes and safeguards designed to ensure and to verify that benefit claim determinations are made in
accordance with governing plan documents and that, where appropriate, the Plan provisions have been applied consistently with respect to similarly situated claimants; or (D) constitutes a statement of policy or guidance with respect to the plan
concerning the denied treatment option or benefit for the claimant’s diagnosis, without regard to whether such advice or statement was relied upon in making the benefit determination; and 

  

	 	3.	The claims procedure shall provide for a review that takes into account all comments, documents, records, and other information submitted by the claimant relating to the claim,
without regard to whether such information was submitted or considered in the initial benefit determination. 

  
 If a claim is wholly or partially denied, the Administrator shall provide the claimant with a notice of denial written in a manner calculated to be
understood by the claimant, setting forth: 
  

	 	1.	The specific reason for such denial; 

  

 B-2 

	 	2.	Specific references to the pertinent Plan provisions on which the denial is based; 

  

	 	3.	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to
the claimant’s claim for benefits. A document, record, or other information is relevant to a claim for benefits if such document, record, or other information: (A) was relied upon in making the benefit determination; (B) was submitted,
considered, or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon in making the benefit determination; (C) demonstrates compliance with the
administrative processes and safeguards designed to ensure and to verify that benefit claim determinations are made in accordance with governing Plan documents and that, where appropriate, the Plan provisions have been applied consistently with
respect to similarly situated claimants; or (D) constitutes a statement of policy or guidance with respect to the Plan concerning the denied treatment option or benefit for the claimant’s diagnosis, without regard to whether such advice or
statement was relied upon in making the benefit determination; and 

  

	 	4.	Appropriate information as to the steps (including time limits applicable to such steps) to be taken if the claimant wishes to submit his or her claim for review and a statement of
the claimant’s rights to bring a civil action under Section 502(a) of ERISA. 

  
 REQUIREMENTS FOR DISABILITY BENEFITS 
  

	 	1.	Timing of Notification of Denial. Notwithstanding the foregoing, a notice of denial of disability benefits shall be given within a reasonable time period but no later than 45
days after the claim is filed. This period may be extended by 30 days provided that special circumstances require an extension of time for processing the claim due to matters beyond the control of the Plan. If prior to the end of the first 30 day
extension, the Administrator determines that, due to matters beyond the control of the Plan, a decision cannot be rendered within the initial 30 day extension period, the period for making the determination may be extended an additional 30 days. If
such second 30 day extension is required, written notice shall be furnished to the claimant within 75 days of the date the claim was filed stating the special circumstances requiring an extension of time and the date by which a decision on the claim
can be expected, which shall be no more than 105 days from the date the claim was filed. If an initial or secondary 30 day extension is required, written notice shall be furnished to the claimant within 45 days or 75 days of the date the claim was
filed, as applicable, stating: (A) the special circumstances requiring an extension of time; (B) the date by which a decision on the claim can be expected, which shall be no more than 75 days or 105 days from the date the claim was filed; (C) the
standards on which entitlement to a benefit is based; (D) the unresolved issues that prevent a decision on the claim; (E) any additional information needed to resolve those issues; and (F) the time period during which the claimant must provide any
additional information, which shall be no less than 45 days. 

  

 B-3 

	 	2.	Requirements for Notification of Denial. If a claim is wholly or partially denied, the Administrator shall provide the claimant with a notice of denial written in a manner
calculated to be understood by the claimant, setting forth: 

  

	 	a.	The specific reason for such denial; 

  

	 	b.	Specific references to the pertinent Plan provisions on which the denial is based; 

  

	 	c.	A description of any additional material or information necessary for the claimant to perfect the claim with an explanation of why such material or information is necessary;

  

	 	d.	Appropriate information as to the steps (including time limits applicable to such steps) to be taken if the claimant wishes to submit his or her claim for review and a statement of
the claimant’s rights to bring a civil action under Section 502(a) of ERISA; 

  

	 	e.	If an internal rule, guideline, protocol or other similar criterion was relied upon in making the denial of a claim for disability benefits, either (i) the specific rule, guideline,
protocol or other similar criterion will be provided or (ii) a statement that a specific rule, guideline, protocol or other similar criterion was relied upon and that a copy of such specific rule, guideline, protocol or other similar criterion will
be provided free of charge to the claimant upon request; and 

  

	 	f.	If the denial of a claim for disability benefits is based on a medical necessity, experimental treatment or similar exclusion or limit, either (i) an explanation of the scientific
or clinical judgment for the determination as applied to the claimant’s specific circumstances or (ii) a statement that such explanation will be provided free of charge upon request. 

  

	 	3.	Claim for Appeal Must be Submitted within 60 Days. The claimant and/or his representative may appeal the denied claim, free of charge, provided that such appeal is made
within 180 days of the date the claimant receives a notification of the denied disability claim. The decision of the claimant as to whether or not to submit a benefit dispute to this voluntary level of appeal will have no effect on the
claimant’s rights to any other benefits under the Plan. The Committee’s review shall take into account all comments, documents, records and other information submitted by the claimant relating to the claim, regardless of whether such
information was submitted and/or considered in the initial determination. In the review of a claim for disability benefits, the following shall apply: 

  

	 	a.	 A review shall not afford deference to the initial denial and shall be conducted by a named fiduciary of the Plan who is neither the individual who made the adverse

  

 B-4 

	 	 
benefit determination that is the subject of the appeal, nor a subordinate or such individual; 

  

	 	b.	The named fiduciary who is reviewing the appeal and making a determination based, in whole or in part, on medical judgment shall consult with a health care professional who (i) has
appropriate training and experience in the field of medicine involved in the medical judgment, (ii) did not consult with respect to the initial adverse benefit determination that is the subject of the appeal, and (iii) is not a subordinate of an
individual who consulted with respect to the initial adverse benefit determination that is the subject of the appeal; and 

  
 The Plan shall provide the identification of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the denial of the claim for
disability benefits. 
  

 B-5First Amended and Restated Loan Agreement

 Exhibit 10(c) 1 
  
 FIRST AMENDED AND RESTATED LOAN AGREEMENT 
 [GOLDEN CORRAL] 
  
 THIS
FIRST AMENDED AND RESTATED LOAN AGREEMENT [GOLDEN CORRAL] (this “Agreement”) is made and entered into as of the 15th day of October, 2004 by and between (i) FRISCH’S RESTAURANTS, INC., an Ohio corporation (the
“Borrower” ), and (ii) U.S. BANK NATIONAL ASSOCIATION, a national banking association formerly known as Firstar Bank, N.A. and Star Bank, National Association (the “Bank”), and amends and restates the Loan Agreement
made and entered into as of October 9, 1998 by and between the Borrower and the Bank, as amended (the “Prior Loan Agreement”). 
  
 1. Representations and Warranties. To induce the Bank to enter into this Agreement and to agree to make and/or to continue the Loans described in
Section 4 hereof, the Borrower makes the following representations and warranties: 
  
 (a) Existence. The Borrower is duly organized, validly existing and in good standing as a corporation under the laws of the State of Ohio, and each Subsidiary (as hereinafter defined) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization. The Borrower and each Subsidiary is duly qualified as a foreign corporation and in good standing under the laws of each jurisdiction in which the failure to be so
qualified by the Borrower or the Subsidiary would have a material adverse effect on its business, prospects or financial condition. “Subsidiary” for purposes hereof means any corporation or other entity the majority of the voting
stock of which is owned, directly or indirectly, beneficially or of record, by the Borrower or any Subsidiary, or which is otherwise controlled, directly or indirectly, by the Borrower or any Subsidiary. 
  
 (b) Authority. The Borrower and each Subsidiary has full power and
authority to own its properties and to conduct its business as such business is now being conducted, and the Borrower has full power and authority to execute, deliver and perform under this Agreement, the Notes (as hereinafter described) and all
other documents and instruments executed in connection with or otherwise relating to this Agreement or the Loans (as hereinafter defined) (collectively, the “Loan Documents”). 
  
 (c) Borrowing Authorization. The execution, delivery and performance
by the Borrower of this Agreement and the other Loan Documents: (i) have been duly authorized by all requisite corporate action; (ii) do not and will not violate (A) any provision of any law, statute, rule or regulation, (B) any order, judgment or
decree of any court, arbitrator or other agency of government, (C) the Articles of Incorporation or Code of Regulations or other organizational or governing documents of the Borrower, or (D) any provision of any agreement (including, without
limitation, any agreement with stockholders) to which the Borrower or any Subsidiary is a party or subject, or by which it or any of its properties or assets are bound; (iii) do not and will not result in the creation or imposition of any lien,
charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Borrower or any Subsidiary; and (iv) do not and will not require any consent, approval or other action by or any notice to or filing with any court or
administrative or governmental body. This Agreement and the other Loan Documents have been duly executed and delivered on behalf of the Borrower and constitute the legal, valid and binding obligations of the Borrower, enforceable against the
Borrower in accordance with their respective terms. 

 Exhibit 10(c) 1 
  

 (d) Financial Information and Reports. Exhibit A to this Agreement is a complete list
of the financial statements and projected financial statements furnished by the Borrower to the Bank in connection with the borrowings to be made hereunder. Each such historical financial statement fairly presents in accordance with generally
accepted accounting principles the financial condition of the Borrower and its Subsidiaries and the results of their operations as of the date (or with respect to the period) noted in such financial statements. Other than any liability incident to
any actions described in Exhibit B to this Agreement, neither the Borrower nor any Subsidiary has any material contingent liabilities required to be disclosed under generally accepted accounting principles which are not provided for or
disclosed in such financial statements. Each such statement (including any related schedule and/or notes) is true, correct and complete in all material respects (subject, as to interim statements, to changes resulting from audits and year-end
adjustments) and has been prepared in accordance with generally accepted accounting principles consistently followed throughout the periods involved. No such statement omits to state a material fact necessary to make such statement not misleading in
light of the circumstances under which it was made. There has been no material adverse change in the business, operations or condition (financial or otherwise) of the Borrower or any Subsidiary since the date of such financial statements.

  
 (e) Indebtedness. Neither the Borrower nor any
Subsidiary has any Indebtedness (as hereinafter defined) other than Permitted Indebtedness (as hereinafter defined), or has guaranteed the obligations of any other person (except by endorsement of negotiable instruments payable on sight for deposit
or collection or similar banking transactions in the usual course of business), and to the best of the Borrower’s knowledge after diligent investigation, there exists no default under the provisions of any instrument evidencing any Indebtedness
of the Borrower or any Subsidiary or of any agreement relating thereto. “Indebtedness” as used herein means all indebtedness for borrowed money which in accordance with generally accepted accounting principles would be considered as
a liability, all rental obligations under leases required to be capitalized under generally accepted accounting principles, all guarantees and other contingent obligations in respect of, or obligations to purchase or otherwise acquire, Indebtedness
of others, and Indebtedness of others secured by any lien on property owned by the Borrower or any Subsidiary, whether or not the Borrower or such Subsidiary has assumed such Indebtedness. 
  
 (f) Actions. There is no action, suit, investigation or proceeding
pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any Subsidiary before any court, arbitrator or administrative or governmental agency except for those described in Exhibit B to this Agreement, none
of which might result in any material adverse change in the business, operations or condition (financial or otherwise) of the Borrower or any Subsidiary, nor, to the best of the Borrower’s knowledge after diligent investigation, is there any
basis for any such action which might result in such a material adverse change. 
  
 (g) Title to Property. The Borrower and each Subsidiary has good and marketable title to its real properties (other than properties which it leases as lessee) and good title to all of its other properties and
assets, including the properties and assets reflected in the most recent balance sheet described in Exhibit A hereto (other than properties and assets disposed of in the ordinary course of business since the date thereof), free and clear of
all liens, mortgages, pledges, 
  

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 Exhibit 10(c) 1 
  

 security interests, encumbrances or charges of any kind, including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement or any lease in the nature thereof (each, a “Lien”), other than the following (each, a “Permitted Lien”): (i) Liens described on Exhibit C hereto, (ii)
leases required under generally accepted accounting principles to be capitalized on the Borrower’s or such Subsidiary’s books (“Capitalized Leases”) so long as there is no violation of any of the Financial Covenants set
forth on Exhibit D hereto, and (iii) Liens in favor of the Bank. The Borrower and each Subsidiary is in undisturbed possession under all leases necessary in any material respect for the operation of its business, and no such leases contain
any unusual or burdensome provisions which might materially affect or impair the Borrower’s or the Subsidiary’s operations thereunder. All such leases are valid and in full force and effect. 
  
 (h) Employee Benefit Plans. To the best of the Borrower’s
knowledge after diligent investigation, no “reportable event” or “prohibited transaction,” as defined by the Employee Retirement Income Security Act of 1974 (“ERISA”) has occurred or is continuing, as to any plan
of the Borrower or any of its affiliates which poses a threat of taxes or penalties against or termination of such plans (or trusts related thereto). Neither the Borrower nor any of its affiliates has violated in any material respect the
requirements of any “qualified pension benefit plan,” as defined by ERISA and the Internal Revenue Code of 1986, or done anything to create any material liability under the Multi-Employee Pension Plan Amendment Act. Neither the Borrower
nor any of its affiliates has incurred any material liability to the Pension Benefit Guarantee Corporation (the “PBGC”) in connection with such plans, including, but not limited to, any “funding deficiency” (as defined by
ERISA). 
  
 (i) Compliance. The Borrower and each
Subsidiary is in compliance in all material respects with all laws, statutes, ordinances, rules, regulations and orders of any governmental entity (including, but not by way of limitation, any such laws, statutes, ordinances, rules, regulations and
orders related to ecology, human health and the environment) applicable to it. 
  
 (j) Adverse Contracts and Conditions. Neither the Borrower nor any Subsidiary is a party to any contract or agreement, or subject to any charge, restriction, judgment, decree or order, materially and adversely
affecting its business, property, assets, operations or condition, financial or otherwise, nor a party to any labor dispute. There are no restrictions applicable to any Subsidiary which might limit its ability to pay dividends or make loans to the
Borrower. 
  
 (k) Taxes. The Borrower and each Subsidiary
has filed all federal, state and local tax returns and other reports which it is required by law to file, has paid all taxes, assessments and other similar charges that are due and payable, other than taxes, if any, being contested by the Borrower
or a Subsidiary in good faith and as to which adequate reserves have been established in accordance with generally accepted accounting principles, and has withheld all employee and similar taxes which it is required by law to withhold. Federal
income tax returns of the Borrower and each Subsidiary have been examined by the taxing authorities or closed by applicable statutes and satisfied for all fiscal years prior to and including the fiscal year ended May 30, 1998. Federal income tax
returns of the Borrower and its Subsidiaries for the fiscal year ended May 30, 2001 may still be examined by the taxing authorities. 
  

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 Exhibit 10(c) 1 
  

 2. Borrower’s Covenants. The Borrower agrees that, from the date of this Agreement and
until the Loans are paid in full and all obligations under this Agreement are fully performed, and the commitment of the Bank to make Loans hereunder has terminated: 
  
 (a) Purpose of Loans. The Loans shall be used only for the purpose of financing the construction and opening of
Golden Corral Restaurants (collectively, the “Restaurants”). The Loans are not and shall not be secured, directly or indirectly, by any stock or for any purpose which would violate either Regulation U, 12 C.F.R. Part 221, or
Regulation X, 12 C.F.R. Part 224, promulgated by the Board of Governors of the Federal Reserve System. 
  
 (b) Financial Covenants. The Borrower shall comply with each of the financial covenants set forth in Exhibit D to this Agreement
(collectively, the “Financial Covenants”). 
  
 (c) Financial Statements; Periodic Reports. The Borrower shall furnish to the Bank: (i) as soon as practicable and in any event within ninety (90) days after the last day of each fiscal year of the Borrower, a copy of the annual
audit report of the Borrower, prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding fiscal year, and consisting of a consolidated balance sheet as at the end of such fiscal year
and consolidated statements of earnings, stockholders’ equity and cash flows of the Borrower and its Subsidiaries for such fiscal year, setting forth in each case in comparative consolidated form corresponding consolidated figures from the
preceding annual audit, certified by a nationally-recognized firm of independent certified public accountants, whose certificate shall be in scope and substance reasonably satisfactory to the Bank and shall include, without limitation, a
certification that in auditing the Borrower, such accountant has obtained no knowledge of an Event of Default (as hereinafter defined) hereunder, or if any Event of Default exists, specifying the nature and period of existence thereof, and
accompanied by such accountant’s management letter with respect thereto; (ii) as soon as practicable and in any event within forty-five (45) days after the last day of each of the Borrower’s first three fiscal quarters, a copy of the
Borrower’s unaudited financial statements, prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding fiscal quarter, and consisting of a consolidated balance sheet as at the
end of such fiscal quarter and consolidated statements of earnings, stockholders’ equity and cash flows of the Borrower and its Subsidiaries for the period from the beginning of the then-current fiscal year through the end of such fiscal
quarter, setting forth in each case in comparative form figures for the corresponding period in the preceding fiscal year, and certified by an authorized financial officer of the Borrower, subject to changes resulting from year-end adjustments;
(iii) promptly upon transmission thereof, copies of all such financial statements, proxy statements, notices and reports as the Borrower shall send to its stockholders and copies of all registration statements (without exhibits) and all regulatory
and periodic reports which the Borrower files with the Securities and Exchange Commission (the “SEC”) or any governmental body or agency succeeding to the functions of the SEC; and (iv) with reasonable promptness, such other
financial data in such form as the Bank may reasonably request, provided that the Bank shall keep such data confidential to the extent required by applicable securities laws. 
  
 Together with each delivery of financial statements required under clauses (i) and (ii) above, the Borrower shall deliver a
certificate of its Chief Financial Officer (A) setting forth a comparison between actual calculated results and covenanted results for each of the Financial Covenants set forth on Exhibit D hereto and (B) stating that, to the best of such
Chief Financial 
  

 4 

 Exhibit 10(c) 1 
  

 Officer’s knowledge after diligent investigation, no Event of Default hereunder then exists, or if such an Event
of Default hereunder does then exist, specifying the nature thereof, the period of existence thereof, and the action the Borrower proposes to take with respect thereto. The Borrower further agrees that promptly upon the President or Chief Financial
Officer of the Borrower obtaining knowledge of an event that constitutes an Event of Default hereunder, the Borrower shall deliver to the Bank a certificate specifying the nature thereof, the period of existence thereof, and the action the Borrower
proposes to take with respect thereto. The Bank is authorized to deliver a copy of any financial statement or other communication or document delivered to it pursuant to this Section 2(c) to any regulatory body having jurisdiction over it if
such delivery is required by such regulatory body. The Borrower and each Subsidiary shall permit the Bank and its agents and representatives, at the expense of the Bank, to inspect its real and personal property, including without limitation any and
all of the Restaurants, and to verify accounts and inspect and make copies of or extracts from its books, records and files, and to discuss its affairs, finances and accounts with its principal officers, all at such reasonable times and as often as
the Bank may reasonably request. 
  
 In addition to the foregoing,
the Borrower shall furnish to the Bank, as soon as practicable and in any event within forty-five (45) days after the last day of each of the Borrower’s four (4) fiscal quarters, key operating statistics (in form and detail reasonably
satisfactory to the Bank and including, without limitation, key sales, earnings, and EBITA information) for each of the Borrower’s Golden Corral Restaurants. 
  
 (d) Insurance. The Borrower shall, and shall cause each Subsidiary to, maintain with responsible carriers All Risk
coverage for the full replacement value of all of its real and personal property, except that the Borrower and each Subsidiary may self-insure risks to its real and personal property in an amount not to exceed Five Hundred Thousand Dollars
($500,000), and maintain with responsible carriers general public liability insurance coverage including Excess liability coverage in an amount not less than Twenty-Five Million Dollars ($25,000,000), except that the Borrower and each Subsidiary may
self-insure general public liability risks in an amount not to exceed Five Hundred Thousand Dollars ($500,000) per occurrence during the term of this Agreement. The Borrower shall deliver to the Bank, together with delivery of the financial
statements required under Section 2(c)(i) above, a certificate specifying the details of all such insurance in effect. 
  
 (e) Taxes. The Borrower shall, and shall cause each Subsidiary to, file all federal, state and local tax returns and other reports it is required
by law to file, and shall pay when due all taxes, assessments and other liabilities, except that the Borrower and any Subsidiary shall not be obligated to pay any taxes or assessments which it is contesting in good faith, provided that adequate
reserves therefor are established in accordance with generally accepted accounting principles, that such contests will not materially adversely affect the Borrower’s or any Subsidiary’s operations or financial condition, and that such
taxes and assessments are promptly paid when the dispute is finally determined. 
  
 (f) Existence and Status. The Borrower shall, and shall cause each Subsidiary to, maintain its existence in good standing under the laws of each jurisdiction described in Section 1(a) of this Agreement,
provided that the Borrower or any Subsidiary may change its jurisdiction of incorporation if it shall remain in good standing under the laws thereof. 
  

 5 

 Exhibit 10(c) 1 
  

 (g) Maintenance of Property. The Borrower shall, and shall cause each Subsidiary to, maintain
to the extent consistent with good business practices all of its real and personal property in good condition and repair, not commit or permit any waste thereof, and not, except in the ordinary course of business, remove or permit the removal of any
improvement, accession or fixture therefrom that may in any way materially impair the value of said property. 
  
 (h) Compliance with Law. The Borrower shall, and shall cause each Subsidiary to, comply at all times with all laws, statutes, ordinances, rules,
regulations and orders of any governmental entity (including, but not by way of limitation, such laws, statutes, ordinances, rules, regulations and orders relating to ecology, human health and the environment) having jurisdiction over it or any part
of its assets, where such failure to comply would have a material adverse effect on the Borrower’s or any Subsidiary’s operations or financial condition or the ability of the Borrower to perform its obligations hereunder. The Borrower and
each Subsidiary shall obtain and maintain all permits, licenses, approvals and other similar documents required by any such laws, statutes, ordinances, rules, regulations or orders. 
  
 (i) Notice. The Borrower shall notify the Bank in writing, promptly upon the Borrower’s learning thereof, of:
(i) any litigation, suit or administrative proceeding which may materially affect the operations, financial condition or business of the Borrower or any Subsidiary, whether or not the claim is considered by the Borrower to be covered by insurance,
unless the applicable insurer has agreed to defend any such claim and cover the liability therefor; (ii) the occurrence of any material event described in Section 4043 of ERISA or any anticipated termination, partial termination or merger of a
“Plan” (as defined in ERISA) or a transfer of the assets of a Plan; (iii) any labor dispute to which the Borrower or any Subsidiary may become a party; (iv) any default by the Borrower or any Subsidiary under any note, indenture, loan
agreement, mortgage, lease or other similar agreement to which the Borrower or any Subsidiary is a party or by which the Borrower or any Subsidiary or its assets are bound; and (v) any default by any obligor under any material note or other evidence
of debt payable to the Borrower or any Subsidiary. 
  
 (j)
Liens. The Borrower shall not, and shall not permit any Subsidiary to, create, assume or permit to exist any Lien with respect to any of its assets, whether now owned or hereafter acquired, except Permitted Liens. Furthermore, the Borrower
shall not, and shall not permit any Subsidiary to, enter into any agreement with any other person or entity pursuant to which the Borrower or any Subsidiary agrees not to create, assume or permit to exist any Lien with respect to any of its assets,
whether now owned or hereafter acquired. 
  
 (k)
Indebtedness. The Borrower shall not, and shall not permit any Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except the following (each, “Permitted Indebtedness”): (i) Indebtedness incurred under
this Agreement and other Indebtedness to the Bank; (ii) outstanding Indebtedness reflected in the historical financial statements listed in Exhibit A attached hereto (but not any refinancing or refunding of such Indebtedness); (iii)
Indebtedness described in Exhibit E attached hereto; and (iv) Indebtedness incurred in connection with Capitalized Leases so long as there is no violation of any of the Financial Covenants set forth on Exhibit D hereto. 
  
 (l) Loans; Investments. The Borrower shall not, and shall not permit
any Subsidiary to, make or permit to remain outstanding any loan or advance to, or own or acquire any stock, 
  

 6 

 Exhibit 10(c) 1 
  

 obligations or securities of, or any other interest in, or make any capital contribution to, any person or entity,
except that the Borrower or any Subsidiary may: (i) make or permit to remain outstanding loans or advances to any Subsidiary or the Borrower; (ii) own or acquire stock, obligations or securities of a Subsidiary or of a corporation which immediately
after such acquisition will be a Subsidiary; (iii) own or acquire prime commercial paper and certificates of deposit in United States commercial banks having capital resources in excess of Fifty Million Dollars ($50,000,000), in each case due within
one (1) year from the date of purchase and payable in United States Dollars, obligations of the United States Government or any agency thereof, and obligations guaranteed by the United States Government, and repurchase agreements with such banks for
terms of less than (1) one year in respect of the foregoing certificates and obligations; (iv) make travel advances in the ordinary course of business to officers and employees or other advances in the ordinary course of business to officers and
employees (excluding advances to employees for relocation purposes) not to exceed One Hundred Twenty-Five Thousand Dollars ($125,000) in the aggregate at any time outstanding for the Borrower and all Subsidiaries; (v) make advances to employees for
relocation purposes not to exceed One Hundred Fifty Thousand Dollars ($150,000) in the aggregate at any time outstanding for the Borrower and all Subsidiaries; (vi) own or acquire money-market preferred stock in an amount not to exceed Seven Hundred
Fifty Thousand Dollars ($750,000); (vii) make or permit to remain outstanding loans or advances to, or own or acquire stock, obligations or securities of, any other person or entity, provided that the aggregate principal amount of such loans and
advances (excluding loans which are fully secured by real estate consisting of former restaurant locations), plus the aggregate amount of the investment (at original cost) in such stock, obligations and securities, shall not exceed Five
Hundred Thousand Dollars ($500,000) at any time outstanding for the Borrower and all Subsidiaries; and (viii) make investments in the Borrower’s non-qualified executive savings plan. 
  
 (m) Merger and Sale of Assets. Without the prior written consent of the Bank, the Borrower shall not, and shall not
permit any Subsidiary to, merge or consolidate with any other corporation, or sell, lease or transfer or otherwise dispose of any of its assets, including, without limitation, the stock of any Subsidiary, or sell with recourse or discount or
otherwise sell for less than the face value thereof any of its notes or accounts receivable, except that without the prior written consent of the Bank: (i) any Subsidiary may merge or consolidate with the Borrower (provided that the Borrower shall
be the continuing or surviving corporation) or with any one or more other Subsidiaries; (ii) any Subsidiary may sell, lease, transfer or otherwise dispose of any of its assets to the Borrower or another Subsidiary; (iii) the Borrower or any
Subsidiary may otherwise sell, lease, transfer or otherwise dispose of any of its assets having a book value of less than One Hundred Thousand Dollars ($100,000) provided that the aggregate book value of all such assets so sold, leased, transferred
or otherwise disposed of by the Borrower and its Subsidiaries during any fiscal year shall not exceed Five Hundred Thousand Dollars ($500,000); and (iv) the Borrower or any Subsidiary may sell, lease, transfer or otherwise dispose of property (as
hereinafter defined) and equipment in connection with remodelings and equipment replacements in the ordinary course of business. For purposes of this Section 2(m), “property” shall mean those components of the real estate
(such as walls, electrical and plumbing) which are removed during a remodeling. 
  
 (n) Restrictions on Transactions With Stockholders and Other Affiliates. Except as otherwise expressly permitted under this Agreement, the Borrower shall not, and shall not permit any Subsidiary to, enter into
or be a party to any transaction reportable under Item 404(a) of 
  

 7 

 Exhibit 10(c) 1 
  

 Regulation S-K of the SEC, except in the ordinary course of business, pursuant to the reasonable requirements of its
business, and upon fair and reasonable terms which are fully disclosed to the Bank and are no less favorable to the Borrower or such Subsidiary than the Borrower or such Subsidiary could obtain in a comparable arm’s length transaction with an
unrelated third party. 
  
 (o) Books and Records. The
Borrower shall, and shall cause each Subsidiary to, keep and maintain complete books of accounts, records and files with respect to its business in accordance with generally accepted accounting principles consistently applied in accordance with past
practices and shall accurately and completely record all transactions therein. 
  
 (p) Business Activities. The Borrower shall, and shall cause each Subsidiary to, continue to engage in the types of business activities in which it is currently engaged or other activities involving food
service and wholesaling food and related products, and shall not, and shall not permit any Subsidiary to, be engaged in any business activities other than the types in which it is currently engaged or other activities involving food service, lodging
and wholesaling food and related products. 
  
 (q)
Environmental Matters. The Borrower represents, warrants and covenants with the Bank that: (i) neither the Borrower nor any of its Subsidiaries nor, to the best of the Borrower’s knowledge, after due investigation, any other person or
entity, has used or permitted any Hazardous Substances (as hereinafter defined) to be placed, held, stored or disposed of on any of the Designated Properties, in violation of any Environmental Laws (as hereinafter defined); (ii) none of the
Designated Properties now contains any Hazardous Substance in violation of any Environmental Laws; (iii) there have been no complaints, citations, claims, notices, information requests, claims, notices, information requests, orders (including but
not limited to clean-up orders) or directives on environmental grounds made or delivered to, pending or served on, or anticipated by the Borrower or any of its Subsidiaries, or of which the Borrower, after due investigation, including consideration
of the previous uses of the Designated Properties and meeting the standard under 42 U.S.C. Section 9601(35)(B)(1986), is aware or should be aware (A) issued by a governmental department or agency having jurisdiction over any of the Designated
Properties, or (B) issued or claimed by any persons, agencies or organizations or affecting any of the Designated Properties; and (iv) neither the Borrower nor any of its Subsidiaries, so long as any of the Indebtedness under this Agreement remains
unpaid, shall allow any Hazardous Substances to be placed, held, stored or disposed on any of the Designated Properties or incorporated into any improvements on any of the Designated Properties in violation of any Environmental Laws. The term
“Hazardous Substance” shall mean any solid, hazardous, toxic or dangerous waste, substance or material defined as such in or for the purpose of the Comprehensive Environmental Response, Compensation and Liability Act, any so-called
“Superfund” or “Super-Lien” law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree relating to, or imposing liability or standards of conduct concerning, any Hazardous Substance
(the “Environmental Laws”, as now or at any time hereafter in effect). 
  
 The Borrower agrees to indemnify and hold the Bank harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever, paid, incurred or suffered
by, or asserted against the Bank for, with respect to, or as a direct or indirect result of, any of the following: (i) the presence on or under or the escape, seepage, leakage, spillage, discharge, emission, discharging or release from any of the

  

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 Exhibit 10(c) 1 
  

 Designated Properties of any Hazardous Substance (including, without limitation, any losses, liabilities, damages,
injuries, costs, expenses or claims asserted or arising under any of the Environmental Laws); or (ii) any liens against any of the Designated Properties or any interest or estate in any of the Designated Properties, created, permitted or imposed by
the Environmental Laws, or any actual or asserted liability of or obligations of the Borrower or any of its Subsidiaries under the Environmental Laws. 
  
 The Borrower shall immediately notify the Bank should the Borrower become aware of any Hazardous Substance on any of the Designated Properties in
violation of any Environmental Laws or any claim that any of the Designated Properties may be contaminated by any Hazardous Substance in violation of any Environmental Laws. The Borrower shall, at its own cost and expense, be responsible for the
cleanup of any Hazardous Substance caused, or knowingly permitted, by the Borrower or any of its Subsidiaries to be on any of the Designated Properties which is in violation of any Environmental Laws including any removal, containment and remedial
actions in accordance with all applicable Environmental Laws. The Borrower’s obligations hereunder shall not be subject to any limitation of liability provided herein or in any of the other Loan Documents and the Borrower acknowledges that its
obligations hereunder are not conditional and shall continue in effect so long as a valid claim may lawfully be asserted against the Bank or for so long as this Agreement, any of the other Loan Documents or any renewal, amendment, extension or
modification thereto remains in effect, whichever extends for a greater period of time. 
  
 (r) Waiver. Any variance from the covenants of the Borrower pursuant to this Section 2 shall be permitted only with the prior written consent and/or waiver of the Bank. Any such variance by consent
and/or waiver shall relate solely to the variance addressed in such consent and/or waiver, and shall not operate as the Bank’s consent and/or waiver to any other variance of the same covenant or other covenants, nor shall it preclude the
exercise by the Bank of any power or right under this Agreement, other than with respect to such variance. 
  
 3. Closing Conditions. The obligation of the Bank to make the Loans, or any portion thereof, and the effectiveness of this Agreement are, at the
Bank’s option, subject to the satisfaction of each of the following conditions precedent: 
  
 (a) Default. Before and after giving effect to the Loans, or any portion thereof, no Event of Default or any event which, with the passage of time
or the giving of notice, might mature into an Event of Default, shall have occurred and be continuing. 
  
 (b) Warranties. Before and after giving effect to the Loans or any portion thereof, the representations and warranties in Section 1 hereof
shall be true and correct as though made on the date of such Loans or portion thereof. 
  
 (c) Certification. The Borrower shall have delivered to the Bank a certificate of the President or Chief Financial Officer of the Borrower dated as of the date hereof: (i) as to the matters set forth in
Sections 3(a) and 3(b) above; (ii) to the effect that the resolutions described in Section 3(d) below have not been amended or rescinded and remain in full force and effect; (iii) as to the incumbency of the individuals authorized to
sign this Agreement, the Notes (as hereinafter defined) and the other Loan Documents (with specimen signatures attached); and (iv) to the effect that the Articles of Incorporation and Code of Regulations of the Borrower are in full force and effect
in the form delivered to the Bank. 
  

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 Exhibit 10(c) 1 
  

 (d) Resolutions. The Borrower shall have delivered to the Bank copies of the resolutions of
the Borrower’s Board of Directors authorizing the borrowings hereunder and the execution and delivery of this Agreement, the Notes and other Loan Documents. 
  
 (e) Articles and Regulations. The Borrower shall have delivered to the Bank true and correct copies of its Articles
of Incorporation and Code of Regulations. 
  
 (f) Construction
Note. The Borrower shall have delivered the Construction Note (as hereinafter defined) to the Bank with all blanks appropriately completed and duly executed on behalf of the Borrower. 
  
 (g) Opinion. The Borrower shall have delivered to the Bank the opinion of outside counsel acceptable to the Bank,
dated the date of this Agreement, to the effect that: (i) the Borrower is duly organized, validly existing and in good standing as a corporation under the laws of the State of Ohio; (ii) the Borrower has full power and authority to execute and
deliver this Agreement, the Notes and the other Loan Documents and to perform its obligations thereunder; (iii) the execution and delivery by the Borrower of this Agreement, the Notes and the other Loan Documents, and the performance by the Borrower
of its obligations thereunder, have been duly authorized by all necessary corporate action, and are not in conflict with any provision of law or of the Articles of Incorporation or Code of Regulations of the Borrower, nor in conflict with any
agreement, order or decree binding upon the Borrower of which such counsel has knowledge; and (iv) this Agreement, the Notes and the other Loan Documents are the legal, valid and binding obligations of the Borrower, enforceable against the Borrower
in accordance with their respective terms, except as the same may be affected by bankruptcy, insolvency, moratorium or similar laws now or hereafter in effect, or by legal or equitable principles relating to or limiting creditors’ rights
generally, or other rules of law or equity limiting the availability of specific performance or injunctive relief. 
  
 (h) Amendment Fee. The Borrower shall have paid to the Bank an amendment fee in the amount of $10,000.00. 
  
 (i) Revolving/Bullet Loan Agreement. The Borrower shall have delivered
the Revolving/Bullet Loan Agreement (as hereinafter defined) and all related documents and instruments to the Bank with all blanks appropriately completed and duly executed on behalf of the Borrower. 
  
 4. Loans. 
  
 (a) Loans. Subject to the terms and conditions of this Agreement, and
subject to there being no Event of Default (or event which might, with the giving of notice or the passage of time, mature into an Event of Default) by the Borrower hereunder, the Bank agrees to make loans to the Borrower in an aggregate amount not
to exceed the lesser of (i) Forty-Four Million Dollars ($44,000,000) (the “Total Commitment Amount”) or (ii) the amount necessary to construct and open the Restaurants (collectively, the “Loans”); provided, however,
that at no 
  

 10 

 Exhibit 10(c) 1 
  

 time shall the ratio of (A) the sum of the outstanding principal balance of the Loans plus all other Senior Bank Debt
(as defined in Exhibit D attached hereto) to (B) Borrower’s EBITDA (as defined in Exhibit D attached hereto) exceed 2.00 to 1.0. In the event that any of the upper limits described in the immediately preceding sentence shall at
any time be exceeded, the Borrower shall immediately, without notice or demand, prepay the outstanding principal balance of the Loans such that the upper limits set forth in the immediately preceding sentence are not exceeded. 
  
 The Borrower shall provide the Bank notice of the Borrower’s desire to
obtain Loan proceeds for the purpose of constructing and opening any particular Restaurant, which notice shall state the amount of the Loan requested and the location of the particular Restaurant. The term “Business Day” as used
herein shall mean any day other than a Saturday, Sunday or holiday on which banks in Cincinnati, Ohio are required or authorized by law to close. The Loans shall be effectuated by the Bank crediting an account maintained by the Borrower at the Bank.
No repayment or prepayment of the Loans shall be reason for any relending or additional lending of proceeds of the Loans to the Borrower, and no Loan proceeds shall be disbursed after August 31, 2006. The outstanding principal balance of each Loan
which has not been converted into a Term Loan (as hereinafter defined) in accordance with the next paragraph hereof (such Loans which have not been so converted being collectively referred to herein as “Construction Loans”) shall
mature and be payable in full on September 1, 2006 (the “Construction Loan Maturity Date”), unless the maturity thereof is accelerated as described herein. As of October 15, 2004, as a result of the prior draws by the Borrower under
the Loans and conversions to Term Loans,
                                        
             Dollars ($                    ) remains available to be drawn by
the Borrower under the Loans. The Construction Loans shall be evidenced by a Promissory Note in substantially the form of Exhibit F attached hereto, as the same may be amended and/or restated from time to time (the “Construction
Note”). 
  
 Upon the substantial completion of
construction of each Restaurant the construction or opening of which has been financed with Loan proceeds, the Borrower shall promptly notify the Bank in writing of the date thereof (each such date being referred to herein as a “Completion
Date”). Within six (6) months after the Completion Date of each such Restaurant, the Borrower shall elect to convert the outstanding principal balance of all Loans obtained for the purpose of constructing or opening of such Restaurant to a
term loan with a maturity date that is not greater than seven (7) years after the Conversion Date (each such Loan being referred to herein as a “Term Loan”), by providing ten (10) Business Days prior written notice to the Bank of
(i) the date on which the Borrower desires such conversion to be effective (the “Conversion Date”), which date must be the first day of a calendar month and not later than the date which is six (6) months after the Completion Date,
(ii) the maturity date elected by the Borrower for such Term Loan (each, a “Term Loan Maturity Date”; the Term Loan Maturity Dates and the Construction Loan Maturity Date are each sometimes referred to herein as a “Maturity
Date”), which Maturity Date shall not be later than the date which is seven (7) years after the Conversion Date, and (iii) if the Borrower desires that such Term Loan bear interest at the Cost of Funds-Based Rate (as hereinafter defined),
the irrevocable commitment by the Borrower to accept and be bound by its election of such Cost of Funds-Based Rate until the Maturity Date of such Term Loan. 
  
 Each Term Loan which bears interest at the Cost of Funds-Based Rate shall be evidenced by a Promissory Note in substantially the form of Exhibit
G-1 attached hereto with all blanks appropriately completed and each Term Loan which does not bear interest at the Cost of Funds-Based 
  

 11 

 Exhibit 10(c) 1 
  

 Rate shall be evidenced by a Promissory Note in substantially the form of Exhibit G-2 attached hereto with all
blanks appropriately completed (each, a “Term Note”; the Term Notes and the Construction Note are sometimes collectively referred to herein as the “Notes”). 
  
 (b) Interest. “Prime Rate” means the prime rate
announced by the Bank from time to time, as and when such rate changes. Interest on each advance of the Construction Loans hereunder (prior to conversion to a Term Loan) shall accrue at one of the following per annum rates selected by the Borrower:
(i) upon notice to the Bank, the then applicable Prime Margin (as hereinafter defined) plus the Prime Rate (a “Prime Rate Loan”); (ii) upon a minimum of two New York Banking Days prior notice, the then applicable LIBOR/Money Market
Margin (as hereinafter defined) plus the 1, 2, or 3 month LIBOR rate quoted by the Bank from Telerate Page 3750 or any successor thereto (which shall be the LIBOR rate in effect two New York Banking Days prior to commencement of the advance),
adjusted for any reserve requirement and any subsequent costs arising from a change in government regulation (a “LIBOR Rate Loan”); or (iii) upon notice to the Bank, the then applicable LIBOR/Money Market Margin plus the rate,
determined solely by the Bank, at which the Bank would be able to borrow funds of comparable amounts in the Money Markets for a 1, 2, or 3 month period, adjusted for any reserve requirement and any subsequent costs arising from a change in
government regulation (a “Money Market Rate Loan”). 
  
 The term “New York Banking Day” means any day (other than a Saturday or Sunday) on which commercial banks are open for business in New York, New York. 
  
 The term “Money Markets” refers to one or more wholesale funding markets available to and selected by the
Bank, including negotiable certificates of deposit, commercial paper, eurodollar deposits, bank notes, federal funds, interest rate swaps, or others. 
  
 In the event the Borrower does not timely select another interest rate option at least two New York Banking Days before the end of the Loan Period for a
LIBOR Rate Loan or Money Market Rate Loan, the Bank may at any time after the end of the Loan Period convert the LIBOR Rate Loan or Money Market Rate Loan to a Prime Rate Loan, but until such conversion, the funds advanced under the LIBOR Rate Loan
or Money Market Rate Loan shall continue to accrue interest at the same rate as the interest rate in effect for such LIBOR Rate Loan or Money Market Rate Loan prior to the end of the Loan Period. 
  
 The term “Loan Period” means the period commencing on the
advance date of the applicable LIBOR Rate Loan or Money Market Rate Loan and ending on the numerically corresponding day 1, 2, or 3 months thereafter matching the interest rate term selected by the Borrower; provided, however, (y) if any Loan Period
would otherwise end on a day which is not a New York Banking Day, then the Loan Period shall end on the next succeeding New York Banking Day unless the next succeeding New York Banking Day falls in another calendar month, in which case the Loan
Period shall end on the immediately preceding New York Banking Day; or (z) if any Loan Period begins on the last New York Banking Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the
end of the Loan Period), then the Loan Period shall end on the last New York Banking Day of the calendar month at the end of such Loan Period. 
  

 12 

 Exhibit 10(c) 1 
  

 No LIBOR Rate Loan or Money Market Rate Loan may extend beyond the Construction Loan Maturity Date in
the case of the Construction Loans. In any event, if the Loan Period for a LIBOR Rate Loan or Money Market Rate Loan should happen to extend beyond the Construction Loan Maturity Date in the case of the Construction Loans, such Construction Loans
must be prepaid at the Construction Loan Maturity Date. The Bank’s internal records of applicable interest rates shall be determinative in the absence of manifest error. Each LIBOR Rate Loan and each Money Market Rate Loan shall be in a minimum
principal amount of Five Hundred Thousand Dollars ($500,000) and in increments of Five Hundred Thousand Dollars ($500,000) thereafter. 
  
 If a LIBOR Rate Loan or Money Market Rate Loan is prepaid prior to the end of the Loan Period, as defined above, for such loan, whether voluntarily or
because prepayment is required due to such loan’s maturing or accelerating upon default or otherwise, the Borrower agrees to pay all of the Bank’s costs, expenses, and Interest Differential (as determined by the Bank) incurred as a result
of such prepayment. The term “Interest Differential” shall mean that sum equal to the greater of zero or the financial loss incurred by the Bank resulting from prepayment, calculated as the difference between the amount of interest
the Bank would have earned (from like investments in the Money Markets as of the first day of the LIBOR Rate Loan or Money Market Rate Loan) had prepayment not occurred and the interest the Bank will actually earn (from like investments in the Money
Markets as of the date of prepayment) as a result of the redeployment of funds from the prepayment. Because of the short-term nature of this facility, the Borrower agrees that the Interest Differential shall not be discounted to its present value.
Any prepayment of a LIBOR Rate Loan or Money Market Rate Loan shall be in an amount equal to the remaining entire principal balance of such loan. 
  
 Any portion of the Construction Loans which is not at that time a LIBOR Rate Loan or a Money Market Rate Loan shall be a Prime Rate Loan. 
  
 The “LIBOR/Money Market Margin” is currently one hundred
fifty (150) basis points and shall be subject to adjustment on each March 1 for application to the period commencing on such date in accordance with the Borrower’s ratio of Senior Bank Debt to EBITDA for the period commencing on the first day
of the Borrower’s then-current fiscal year and ending on the last day of the second quarter of such fiscal year and on each September 1 for application to the period commencing on such date in accordance with the Borrower’s ratio of Senior
Bank Debt to EBITA for the period commencing on the first day of the Borrower’s immediately preceding fiscal year and ending on the last day of such fiscal year, as follows: if the Borrower’s ratio of Senior Bank Debt to EBITDA is 1.50 to
1.0 or greater, the LIBOR/Money Market Margin shall be one hundred fifty (150) basis points; if the Borrower’s ratio of Senior Bank Debt to EBITDA is less than 1.50 to 1.0 but equal to or greater than 1.00 to 1.0, the LIBOR/Money Market Margin
shall be one hundred twenty-five (125) basis points; and if the Borrower’s ratio of Senior Bank Debt to EBITDA is less than 1.00 to 1.0, the LIBOR/Money Market Margin shall be one hundred five (105) basis points. Such adjustments shall be based
upon the Borrower’s ratio of Senior Bank Debt to EBITDA as determined from the financial statements delivered to the Bank pursuant to Section 2(c)(i) or (ii) hereof, as applicable. The foregoing provisions are not intended to, and shall
not be construed to, authorize any violation by the Borrower of any Financial Covenant or constitute a waiver thereof or any commitment by the Bank to waive any violation by the Borrower of any Financial Covenant. 
  

 13 

 Exhibit 10(c) 1 
  

 The “Prime Margin” is currently negative fifty (-50) basis points and shall be
subject to adjustment on each March 1 for application to the period commencing on such date in accordance with the Borrower’s ratio of Senior Bank Debt to EBITDA for the period commencing on the first day of the Borrower’s then-current
fiscal year and ending on the last day of the second quarter of such fiscal year and on each September 1 for application to the period commencing on such date in accordance with the Borrower’s ratio of Senior Bank Debt to EBITDA for the period
commencing on the first day of the Borrower’s immediately preceding fiscal year and ending on the last day of such fiscal year, as follows: if the Borrower’s ratio of Senior Bank Debt to EBITDA is 1.50 to 1.0 or greater, the Prime Margin
shall be negative fifty (-50) basis points; if the Borrower’s ratio of Senior Bank Debt to EBITDA is less than 1.50 to 1.0 but equal to or greater than 1.00 to 1.0, the Prime Margin shall be negative seventy-five (-75) basis points; and if the
Borrower’s ratio of Senior Bank Debt to EBITDA is less than 1.00 to 1.0, the Prime Margin shall be negative one hundred (-100) basis points. Such adjustments shall be based upon the Borrower’s ratio of Senior Bank Debt to EBITDA as
determined from the financial statements delivered to the Bank pursuant to Section 2(c)(i) or (ii) hereof, as applicable. The foregoing provisions are not intended to, and shall not be construed to, authorize any violation by the Borrower of
any Financial Covenant or constitute a waiver thereof or any commitment by the Bank to waive any violation by the Borrower of any Financial Covenant. 
  
 Upon conversion of a Construction Loan to a Term Loan, the Borrower shall choose that interest on such Term Loan shall accrue after such Term Loan’s
Conversion Date as provided under either Option A or Option B that follows (with Option B only being available as a choice to the Borrower so long as no Event of Default or event which, with the passage of time or the giving of notice, might mature
into an Event of Default, shall have occurred and be continuing): (A) under Option A (which shall be known as a “Variable Rate Term Loan”), for which Borrower shall execute a Promissory Note in substantially the form of Exhibit
G-2 attached hereto, interest on such Variable Rate Term Loan shall accrue after such Variable Rate Term Loan’s Conversion Date at any of the following per annum rates selected by the Borrower: (x) upon notice to the Bank, as a Prime Rate
Loan at the then applicable Prime Margin plus the Prime Rate; (y) upon a minimum of two New York Banking Days prior notice, as a LIBOR Rate Loan at the then applicable LIBOR/Money Market Margin plus the 1, 2, or 3 month LIBOR rate quoted by the Bank
from Telerate Page 3750 or any successor thereto (which shall be the LIBOR rate in effect two New York Banking Days prior to commencement of the advance), adjusted for any reserve requirement and any subsequent costs arising from a change in
government regulation; or (z) upon notice to the Bank, as a Money Market Rate Loan at the then applicable LIBOR/Money Market Margin plus the rate, determined solely by the Bank, at which the Bank would be able to borrow funds of comparable amounts
in the Money Markets for a 1, 2, or 3 month period, adjusted for any reserve requirement and any subsequent costs arising from a change in government regulation; or (B) under Option B (which shall be known as a “Cost of Funds Rate Term
Loan”), for which Borrower shall execute a Promissory Note in substantially the form of Exhibit G-1 attached hereto, interest on such Cost of Funds Rate Term Loan shall accrue after such Cost of Funds Rate Term Loan’s Conversion
Date at a fixed rate per annum equal to one hundred fifty (150) basis points plus the Bank’s Cost of Funds as of the Conversion Date (the “Cost of Funds-Based Rate”). 
  
 With respect to any Variable Rate Term Loan, in the event the Borrower does
not timely select another interest rate option at least two New York Banking Days before the end of the Loan Period for a LIBOR Rate Loan or Money Market Rate Loan, the Bank may at any time 
  

 14 

 Exhibit 10(c) 1 
  

 after the end of the Loan Period convert the LIBOR Rate Loan or Money Market Rate Loan to a Prime Rate Loan, but
until such conversion, the funds advanced under the LIBOR Rate Loan or Money Market Rate Loan shall continue to accrue interest at the same rate as the interest rate in effect for such LIBOR Rate Loan or Money Market Rate Loan prior to the end of
the Loan Period. No Variable Rate Term Loan that is a LIBOR Rate Loan or Money Market Rate Loan may extend beyond the Term Loan Maturity Date for such Variable Rate Term Loan. In any event, if the Loan Period for a Variable Rate Term Loan that is a
LIBOR Rate Loan or Money Market Rate Loan should happen to extend beyond the Term Loan Maturity Date for such Variable Rate Term Loan, such Variable Rate Term Loan must be prepaid at its Term Loan Maturity Date. The Bank’s internal records of
applicable interest rates shall be determinative in the absence of manifest error. Each Variable Rate Term Loan that is LIBOR Rate Loan or a Money Market Rate Loan shall be in a minimum principal amount of Five Hundred Thousand Dollars ($500,000)
and in increments of Five Hundred Thousand Dollars ($500,000) thereafter. If a Variable Rate Term Loan that is a LIBOR Rate Loan or a Money Market Rate Loan is prepaid prior to the end of the Loan Period for such loan, whether voluntarily or because
prepayment is required due to such loan’s maturing or accelerating upon default or otherwise, the Borrower agrees to pay all of the Bank’s costs, expenses, and Interest Differential (as determined by the Bank) incurred as a result of such
prepayment. Because of the short-term nature of this facility, the Borrower agrees that the Interest Differential shall not be discounted to its present value. Any prepayment of a Variable Rate Term Loan that is a LIBOR Rate Loan or a Money Market
Rate Loan shall be in an amount equal to the remaining entire principal balance of such loan. Any portion of a Variable Rate Term Loan which is not at that time a LIBOR Rate Loan or a Money Market Rate Loan shall be a Prime Rate Loan. 
  
 With respect to any Cost of Funds Rate Term Loan, the term “Cost of
Funds” means the rate at which the Bank would be able to borrow funds of comparable amounts in the Money Markets for a period equal to the remaining term of such Cost of Funds Rate Term Loan, adjusted for any reserve requirement and any
subsequent costs arising from a change in government regulation, with such rate rounded upward to the nearest one-eighth percent, and the term “Money Markets” refers to one or more wholesale funding markets available to and selected
by the Bank, including negotiable certificates of deposit, commercial paper, eurodollar deposits, bank notes, federal funds, interest rate swaps or others. 
  
 Interest on the Loans shall be computed on the basis of a year consisting of three hundred sixty (360) days but applied to the actual number of days
elapsed. 
  
 At the option of the Bank, (a) prior to acceleration
of the Loans, in the event that any interest on or principal of any Loan remains unpaid past thirty (30) days of the date due, and/or (b) upon the occurrence of any other Event of Default hereunder or upon the acceleration of the Loans, interest
(computed and adjusted in the same manner, and with the same effect, as interest on the Loans prior to maturity) on the outstanding balance of the Loans shall be payable on demand at the Prime Rate plus an additional three percent (3%) per
annum up to any maximum rate permitted by law, in all cases until paid and whether before or after the entry of any judgment thereon. In addition, in the event that the Borrower should fail to make any payment hereunder within ten (10) days of the
date due, the Borrower shall pay the Bank a fee in an amount of up to five percent (5%) of the amount of such payment, but in no event less than Fifty Dollars ($50.00), which fee shall be immediately due and payable without notice or demand.

  

 15 

 Exhibit 10(c) 1 
  

 (c) Payments. Interest on any portion of the Loans bearing interest based on the Prime Rate
shall be payable monthly, in arrears, on the last day of each calendar month, and when such Loan is due (whether by reason of acceleration or otherwise). Interest on any portion of the Loans that is a LIBOR Rate Loan or a Money Market Rate Loan
shall be payable, in arrears, on the last day of the Loan Period applicable thereto, and when such Loan is due (whether by reason of acceleration or otherwise). In addition, the Borrower shall pay all accrued but unpaid interest on each Construction
Loan on the Conversion Date of such Construction Loan to a Term Loan. 
  
 The principal of each Construction Loan which has not been converted into a Term Loan shall be due and payable in full on the Construction Loan Maturity Date. 
  
 The principal of each Variable Rate Term Loan shall be payable in equal monthly installments in amounts sufficient to
amortize the principal amount of such Variable Rate Term Loan over the period commencing on the Conversion Date for such Variable Rate Term Loan and ending on its Term Loan Maturity Date, with such payments commencing on the first day of the
calendar month after the calendar month which includes the Conversion Date and continuing on the first day of each calendar month thereafter through and including the applicable Term Loan Maturity Date, at which time the outstanding principal
balance of such Variable Rate Term Loan shall be due and payable in full. 
  
 With respect to each Cost of Funds Rate Term Loan, on the first day of the calendar month after the calendar month which includes the Conversion Date for such Cost of Funds Rate Term Loan and on the first day of each
calendar month thereafter through and including the Term Loan Maturity Date thereof, the Borrower shall make equal payments of principal and interest in amounts sufficient to amortize the principal balance of such Cost of Funds Rate Term Loan as of
the Conversion Date over the period commencing on the Conversion Date and extending until the Term Loan Maturity Date, with each such payment being applied first to accrued interest and then to principal. The outstanding principal balance of and all
interest on each Cost of Funds Rate Term Loan shall be due and payable in full on its Term Loan Maturity Date. 
  
 All payments of principal and interest hereunder shall be made in immediately available funds to the Bank at such place as may be designated by the Bank
to the Borrower in writing. The Bank is authorized by the Borrower to enter from time to time the balance of the Loans and all payments and prepayments thereon on the reverse of the Notes or in the Bank’s regularly maintained data processing
records, and the aggregate unpaid amount of the Loans set forth thereon or therein shall be presumptive evidence of the amount owing to the Bank and unpaid thereon. 
  
 (d) Changes in Laws and Circumstances; Illegality. 
  
 (i) In the event of (A) any change in the reserve requirements and/or the assessment rates of the FDIC which are applicable
to the Bank in making the Loans or any portion thereof as a LIBOR Rate Loan, Money Market Rate Loan, or Cost of Funds Rate Term Loan or (B) any change in circumstances affecting the interbank market, and the result of any such event described in
clause (A) or (B) above is to increase the costs to the Bank of making the Loans, the Borrower shall promptly pay the Bank any additional amounts, upon demand 
  

 16 

 Exhibit 10(c) 1 
  

 accompanied by a reasonably detailed statement as to such additional amounts (which statement shall be conclusive in
the absence of manifest error), which will reasonably compensate the Bank for such costs. 
  
 (ii) If by reason of circumstances affecting the interbank market adequate and reasonable means do not exist in the reasonable judgment of the Bank for ascertaining the rate of interest for a LIBOR Rate Loan, Money
Market Rate Loan, or Cost of Funds Rate Term Loan at any time, the Bank shall forthwith give notice thereof to the Borrower. Unless and until such notice has been withdrawn by the Bank, the Borrower may not thereafter elect to have any portion of
the Loans bear interest at a LIBOR based rate, Money Market based rate, or Cost of Funds-Based Rate, as applicable. 
  
 (iii) If any law, rule, regulation, treaty, guideline, order or directive or any change therein or in the interpretation or application thereof shall make
it unlawful for the Loans to bear interest at a LIBOR based rate, Money Market based rate, or Cost of Funds-Based Rate, the Bank shall notify the Borrower thereof and no portion of the Loans may thereafter bear interest at a LIBOR based rate, Money
Market based rate, or Cost of Funds-Based Rate, as applicable. If required by law, any portion of the Loans then bearing interest at a LIBOR based rate, Money Market based rate, or Cost of Funds-Based Rate, as applicable, shall cease to bear
interest at the LIBOR based rate, Money Market based rate, or Cost of Funds-Based Rate, as applicable, and shall bear interest based on the Prime Rate. 
  
 (e) Prepayments. The Borrower may, at its option, from time to time repay or prepay part or all of the outstanding principal balance of the Loans
bearing interest based on the Prime Rate without premium. 
  
 If
any LIBOR Rate Loan or Money Market Rate Loan is prepaid prior to the end of the Loan Period for such loan, whether voluntarily or because prepayment is required due to such loan’s maturing or accelerating upon default or otherwise, the
Borrower agrees to pay all of the Bank’s costs, expenses, and Interest Differential (as determined by the Bank) incurred as a result of such prepayment. Because of the short-term nature of this facility, the Borrower agrees that the Interest
Differential shall not be discounted to its present value. Any prepayment of a LIBOR Rate Loan or a Money Market Rate Loan shall be in an amount equal to the remaining entire principal balance of such loan. 
  
 There shall be no prepayments of any Cost of Funds Rate Term Loan, provided
that the Bank may consider requests for its consent with respect to prepayment of any Cost of Funds Rate Term Loan, without incurring an obligation to do so, and the Borrower acknowledges that in the event that such consent is granted, the Borrower
shall be required to pay the Bank, upon prepayment of all or part of the principal amount of a Cost of Funds Rate Term Loan before final maturity, a prepayment indemnity (“Prepayment Fee”) equal to the greater of zero, or that
amount, calculated on any date of prepayment (“Prepayment Date”), which is derived by subtracting: (a) the principal amount of such Cost of Funds Rate Term Loan or portion of such Cost of Funds Rate Term Loan to be prepaid from (b)
the Net Present Value of such Cost of Funds Rate Term Loan or portion of such Cost of Funds Rate Term Loan to be prepaid on such Prepayment Date; provided, however, that the Prepayment Fee shall not in any event exceed the maximum prepayment fee
permitted by applicable law. 
  

 17 

 Exhibit 10(c) 1 
  

 “Net Present Value” shall mean the amount which is derived by summing the present
values of each prospective payment of principal and interest which, without such full or partial prepayment, could otherwise have been received by the Bank over the remaining contractual life of such Cost of Funds Rate Term Loan. The individual
discount rate used to present value each prospective payment of interest and/or principal shall be the Money Market Rate at Prepayment for the maturity matching that of each specific payment of principal and/or interest. 
  
 “Money Market Rate At Prepayment” shall mean that
zero-coupon rate, calculated on the Prepayment Date, and determined solely by the Bank, as the rate at which the Bank would be able to borrow funds in Money Markets for the prepayment amount matching the maturity of a specific prospective Cost of
Funds Rate Term Loan payment date, adjusted for any reserve requirement and any subsequent costs arising from a change in government regulation. A separate Money Market Rate at Prepayment will be calculated for each prospective interest and/or
principal payment date. 
  
 In calculating the amount of such
Prepayment Fee, the Bank is hereby authorized by the Borrower to make such assumptions regarding the source of funding, redeployment of funds, and other related matters, as the Bank may deem appropriate. If the Borrower fails to pay any Prepayment
Fee when due, the amount of such Prepayment Fee shall thereafter bear interest until paid at the default rate specified in this Agreement (computed on the basis of a 360-day year, actual days elapsed). Any prepayment of principal shall be
accompanied by a payment of interest accrued to date thereon; and said prepayment shall be applied to the principal installments in the inverse order of their maturities. All prepayments shall be in an amount of at least $100,000 or, if less, the
remaining entire principal balance of the applicable Cost of Funds Rate Term Loan. 
  
 No partial prepayment of any of the Loans shall change any due date or the amount of any regularly-scheduled installment of principal thereof. 
  
 (f) Unused Credit Fee. The Borrower shall pay the Bank an unused credit fee in an amount equal to one quarter of one
percent (.25%) per annum times the daily average of the unused Total Commitment Amount (the “Unused Credit Fee”), which fee shall be payable quarterly, in arrears, having commenced on the first day of December, 1998, and on the
first day of each March, June, September and December thereafter, and when the Loans are due (whether by reason of acceleration or otherwise). The Unused Credit Fee shall be computed on the basis of a year consisting of three hundred sixty (360)
days but applied to the actual number of days elapsed. 
  
 5.
Events of Default. If any of the following events (each, an “Event of Default”) shall occur, then the Bank may, without further notice or demand, accelerate the Loans and declare them to be, and thereupon the Loans shall
become, immediately due and payable (except that the Loans shall become automatically due and payable upon the occurrence of an event described in Sections 5(j), (k) and (l) below), and, to the extent that the Loan proceeds have not yet been
used or fully drawn on by the Borrower, terminate the Bank’s obligation to disburse the balance of same; and the Bank shall have all rights provided herein or in any of the other Loan Documents or otherwise provided by law to realize on any
collateral or security for the Loans: 
  
 (a) The Borrower does
not pay the Bank any interest on the Loans within ten (10) days after the date due, whether by reason of acceleration or otherwise, or does not pay or repay to the Bank any principal of the Loans or any other obligation hereunder when due, whether
by reason of acceleration or otherwise; or 
  

 18 

 Exhibit 10(c) 1 
  

 (b) The Borrower defaults in the performance or observance of any agreement contained in Section
2(c), 2(d), 2(e), 2(f), 2(g), 2(h), 2(i) or 2(o) hereof and such default has not been cured by the Borrower within ten (10) days after the occurrence thereof, or the Borrower defaults in the performance or observance of any other agreement
contained in Section 2 hereof; or 
  
 (c) There shall have
occurred any other violation or breach of any covenant, agreement or condition contained herein or in any other Loan Document which has not been cured by the Borrower within thirty (30) days after the earlier to occur of the date the Borrower has
knowledge thereof and the date the Bank gives the Borrower notice thereof; or 
  
 (d) The Borrower does not pay when due or prior to the expiration of the applicable cure period, if any, any principal or interest on any other Indebtedness in excess of One Hundred Thousand Dollars ($100,000), or the
Borrower defaults in the performance or observance of any other term or condition contained in any agreement or instrument under which such Indebtedness is created, and the holder of such other Indebtedness declares, or may declare, such
Indebtedness due prior to its stated maturity because of the Borrower’s default thereunder; or 
  
 (e) There shall have occurred any violation or breach of any covenant, agreement or condition contained in any other agreement between the Borrower and
the Bank which has not been cured by the Borrower prior to the expiration of the applicable cure period, if any, including without limitation, the Second Amended and Restated Loan Agreement [Revolving and Bullet Loans] between the Borrower and the
Bank dated as of October 15, 2004, as amended from time to time (the “Revolving/Bullet Loan Agreement”); or 
  
 (f) The Borrower does not perform its obligations under any agreement material to its business, and the other party to such agreement declares, or may
declare, such agreement in default; or 
  
 (g) Any representation
or warranty made herein or in any other Loan Document or writing furnished in connection with this Agreement shall be false or misleading in any material respect when made; or 
  
 (h) The Borrower is generally not paying its debts as they become due; or 
  
 (i) With respect to the plans referred to in Section 1(h) above, or
any other similar plan, a “reportable event” or “prohibited transaction” pursuant to ERISA has occurred which results in the imposition of material taxes or penalties against the Borrower or the termination of such plans (or
trusts related thereto), or the Borrower incurs any material liability to the PBGC in connection with such plans; or 
  
 (j) The Borrower makes an assignment of a material part of its assets for the benefit of creditors; or 
  

 19 

 Exhibit 10(c) 1 
  

 (k) The Borrower applies for the appointment of a trustee or receiver for a material part of its
assets or commences any proceedings relating to the Borrower under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or other liquidation law of any jurisdiction; or any such application is filed, or any such
proceedings are commenced, against the Borrower, and the Borrower indicates its approval, consent or acquiescence thereto; or an order is entered appointing such trustee or receiver, or adjudicating the Borrower bankrupt or insolvent, or approving
the petition in any such proceedings, and such order remains in effect for sixty (60) days; or 
  
 (l) Any order is entered in any proceedings against the Borrower decreeing the dissolution of the Borrower; or 
  
 (m) Any material part of the Borrower’s operations shall cease, other than temporary or seasonal cessations which are experienced by other companies
in the same line of business and which would not have a material adverse effect on the Borrower’s operations or financial condition or its ability to perform its obligations hereunder; or 
  
 (n) Any final non-appealable judgment which, together with other outstanding
judgments against the Borrower, causes the aggregate of such judgments in excess of confirmed insurance coverage satisfactory to the Bank to exceed Seven Hundred Fifty Thousand Dollars ($750,000), shall be rendered against the Borrower; or

  
 (o) Jack C. Maier, Blanche F. Maier and Craig F. Maier and
members of their families shall fail to beneficially own, in the aggregate, at least thirty percent (30%) of the outstanding common stock of the Borrower, with full voting rights; or 
  
 (p) Any event of default occurs under any other agreement to which the Borrower and the Bank are parties or under any
document or instrument running to the benefit of the Bank from the Borrower. 
  
 The above recitation of Events of Default shall be interpreted in all respects in favor of the Bank. To the extent any cure-of-default period is provided above, the Bank may nevertheless, at its option pending
completion of such cure, suspend its obligation to consider further disbursement of the Loans hereunder. 
  
 6. General. 
  
 (a) Reasonable Actions. The Bank agrees that in taking any action which it is permitted or empowered to take under this Agreement, it will act
reasonably under what it believes are the facts and circumstances existing at such time. 
  
 (b) Delay. No delay, omission or forbearance on the part of the Bank in the exercise of any power or right shall operate as a waiver thereof, nor shall any single or partial delay, omission or forbearance in
the exercise of any other power or right. The rights and/or remedies of the Bank herein provided are cumulative, shall be interpreted in all respects in favor of the Bank and are not exclusive of any other rights and/or remedies provided by law.

  

 20 

 Exhibit 10(c) 1 
  

 (c) Notice. Except as otherwise expressly provided in this Agreement, any notice hereunder
shall be in writing and shall be deemed to be given when personally delivered or when sent by certified mail, postage prepaid, and addressed to the parties at their addresses set forth below: 
  

							
	 	 	Bank:	 	U.S. Bank National Association
	 	 	 	 	425 Walnut Street
	 	 	 	 	Cincinnati, Ohio 45202
	 	 	 	 	Attention:	 	Kendra Bach
	 	 	 	 	 	 	Vice President
			
	 	 	With a copy to:	 	Jeffrey S. Schloemer, Esq.
	 	 	 	 	Taft, Stettinius & Hollister LLP
	 	 	 	 	425 Walnut Street, Suite 1800
	 	 	 	 	Cincinnati, Ohio 45202
			
	 	 	Borrower:	 	Frisch’s Restaurants, Inc.
	 	 	 	 	2800 Gilbert Avenue
	 	 	 	 	Cincinnati, Ohio 45206
	 	 	 	 	Attention:	 	Mr. Donald H. Walker
	 	 	 	 	 	 	Vice President-Finance
			
	 	 	With copies to:	 	Craig F. Maier, President
	 	 	 	 	Frisch’s Restaurants, Inc.
	 	 	 	 	2800 Gilbert Avenue
	 	 	 	 	Cincinnati, Ohio 45206
			
	and	 	 	 	 
			
	 	 	 	 	W. Gary King, Esq.
	 	 	 	 	Frisch’s Restaurants, Inc.
	 	 	 	 	2800 Gilbert Avenue
	 	 	 	 	Cincinnati, Ohio 45206

  
 The Borrower or the Bank may, by
written notice to the other as provided herein, designate another address for purposes hereunder. 
  
 (d) Expenses; Indemnity. The Borrower agrees to pay all reasonable out-of-pocket expenses of the Bank and its employees (including attorney’s
fees and legal expenses, but excluding the salaries of the Bank’s own employees) incurred by the Bank in entering into and closing this Agreement and preparing the documentation in connection herewith, administering the obligations of the
Borrower hereunder or under any of the other Loan Documents, and enforcing the obligations of the Borrower hereunder or under any of the other Loan Documents, and the Borrower agrees to pay the Bank upon demand for the same. The Borrower agrees to
defend, indemnify and hold the Bank harmless from any liability, obligation, cost, damage or expense (including reasonable attorney’s fees and legal expenses) for taxes (other than income taxes), fees or third party claims which may arise or be
related to the execution, delivery or performance of this Agreement or any of the other Loan Documents, except in the case of 
  

 21 

 Exhibit 10(c) 1 
  

 negligence or willful misconduct on the part of the Bank. The Borrower further agrees to indemnify and hold harmless
the Bank from any loss or expense which the Bank may sustain or incur as a consequence of default by the Borrower in payment of any principal of or interest on the Loans, including, without limitation, any such loss or expense arising from interest
or fees payable by the Bank to lenders of funds obtained by it in order to maintain interest rates on any of the Loans constituting a LIBOR Rate Loan, a Money Market Rate Loan, or a Cost of Funds Rate Term Loan. 
  
 (e) Survival. All covenants and agreements of the Borrower made herein
or otherwise in connection with the transactions contemplated hereby shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall remain in effect so long as any obligations of the Borrower are outstanding
hereunder or under any of the other Loan Documents. 
  
 (f)
Severability. Any provision of this Agreement or any of the other Loan Documents which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition of enforceability
without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 
  
 (g) Law. IMPORTANT: The Loans shall be deemed made in Ohio and this Agreement and all other Loan Documents, and all of the rights and obligations
of the Borrower and the Bank hereunder and thereunder, shall in all respects be governed by and construed in accordance with the laws of the State of Ohio, including all matters of construction, validity and performance. Without limitation on the
ability of the Bank to initiate and prosecute any action or proceeding in any applicable jurisdiction related to loan repayment, the Borrower and the Bank agree that any action or proceeding commenced by or on behalf of the parties arising out of or
relating to the Loans and/or this Agreement and/or any of the other Loan Documents shall be commenced and maintained exclusively in the District Court of the United States for the Southern District of Ohio, or any other court of applicable
jurisdiction located in Cincinnati, Ohio. The Borrower and the Bank also agree that a summons and complaint commencing an action or proceeding in any such Ohio courts by or on behalf of such parties shall be properly served and shall confer personal
jurisdiction on a party to which said party consents, if (i) served personally or by certified mail to the other party at any of its addresses noted herein, or (ii) as otherwise provided under the laws of the State of Ohio. The interest rates and
all other terms of the Loans negotiated with the Borrower are, in part, related to the aforesaid provisions on jurisdiction, which the Bank deems a vital part of this loan arrangement. 
  
 (h) Successors. This Agreement shall be binding upon and inure to the benefit of the Borrower and the Bank and their
respective successors and assigns. The Borrower shall not assign its rights or delegate its duties hereunder without the prior written consent of the Bank. 
  
 (i) Amendment and Restatement. This Agreement amends and restates the Prior Loan Agreement and amounts outstanding under the Prior Loan Agreement
shall not be deemed cancelled or satisfied, but shall be evidenced by this Agreement instead of by the Prior Loan Agreement. 
  

 22 

 Exhibit 10(c) 1 
  

 (j) Amendment. Except as otherwise expressly provided herein, this Agreement may not be
modified or amended except in writing signed by authorized officers of the Bank and the Borrower. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly effective as of the date
first set forth above. 
  

							
	U.S. BANK NATIONAL ASSOCIATION	 	FRISCH’S RESTAURANTS, INC.
				
	By:	 	 /s/ Kendra Bach

	 	By:	 	 /s/ Donald H. Walker

	 	 	Kendra Bach	 	 	 	Donald H. Walker
	 	 	Vice President	 	 	 	Vice President-Finance

  

 23 

 Exhibit 10(c) 1 
  

 LIST OF EXHIBITS 
  
 A - Financial Information and Reports 
 B -
Actions 
 C - Permitted Liens 
 D - Financial Covenants

 E - Permitted Indebtedness 
 F - Construction Note 

G-1 - Form of Term Note (Cost of Funds Rate Term Loan) 
 G-2 - Form of Term
Note (Variable Rate Term Loan) 
  

 24 

 Exhibit 10(c) 1 
  

 EXHIBIT A 
  
 FINANCIAL INFORMATION AND REPORTS 
  

	1.	Annual Report for the year ended May 30, 2004. 

  

	2.	Projections for the Borrower for the year ending June 1, 2005. 

  

 A-1 

 Exhibit 10(c) 1 
  

 EXHIBIT B 
  
 ACTIONS 
  

	1.	Fortney & Weygandt and LMH&T - #263 G.C Canton – Faulty Design, Engineering and Construction Claims. In July, 2003, the lawsuit against the architect and
engineer was settled for $1,700,000.00. The arbitration of the dispute with the contractor remains open. We are seeking the balance of our claim and the contractor claims that it is owed $293,638.00. 

  

	2.	BVI Double Drive Thru, Inc. – vs Glincher Properties and Frisch’s Restaurants, Inc. #202 Clarksville, IN Big Boy. Rally’s filed suit against the shopping
center owner and Frisch’s, claiming that the placement of our building violates their access easement rights. They are asking for damages in an undetermined amount and attorneys fees. Frost Brown Todd, who represented us in the acquisition of
the property, is handling our defense. Discovery has commenced. 

  

	3.	Christina Barrett, et al vs. Frisch’s, et al - #124 Florence – Sexual Harassment Claims. On October 30, 2003, Christina Barrett and two other female employees filed
suit against Frisch’s and another employee alleging sexual harassment. The case has been dismissed and the claim is being arbitrated. 

  

	4.	Sherri Pennington, et al vs. Frisch’s, et al - #262 G.C. Mason-Montgomery – Wage and Hour Claim. On December 16, 2003, a collective action by current and former
employees alleging violations of the Fair Labor Standards Act was filed in U.S. District Court. A motion has been filed to dismiss and compel arbitration. 

  

	5.	Tammy Carlton vs. Frisch’s Restaurants, Inc., et al. #259 Golden Corral, Preston – Sexual Harassment Claim. The Plaintiff claims sexual harassment by her
supervisor. She agreed to arbitration, which commenced in January, 2004. However, in March, 2004, she filed a complaint in the Jefferson County Circuit Court. We have filed a motion to dismiss or stay the lawsuit pending arbitration.

  

	6.	Jess Hollon vs. Frisch’s Restaurants, Inc., et al. – Area Supervisor – Sexual Harassment and Hostile Work Environment Claim. On March 30, 2004, the Plaintiff
filed suit in Montgomery County Common Pleas Court, alleging, among other things, that he was subjected to reprisal after reporting sexual harassment, disparate treatment and a hostile work environment. A motion has been filed to dismiss and compel
arbitration. 

  

	7.	Lefler, et. al. vs. Frisch’s Restaurants, Inc. This case involves claims of sexual harassment, retaliation, intentional infliction of emotional distress and a violation
of the Ohio Safe Workplace Act. An arbitrator has been selected. 

  

	8.	Hamm vs. Frisch’s Restaurants, Inc. This is an arbitration involving age and/or workers compensation retaliation. Discovery has commenced. 

  

 B-1 

 Exhibit 10(c) 1 
  

	9.	Court proceedings covered by general liability insurance: Lillie Guilfoyle, Betty Hayes, Andrea Kender, Barbara Melzer and Laura Shoulders. 

  

	10.	Workers Compensation proceedings: 

  

	 	a.	before a court: Tina Ferrell, Bonita Fraley and Bruce Schatzman 

  

	 	b.	before Industrial Commission: Latasha Cobb, Delores Foley, Ashley Stephens and Rita Stewart 

  

 B-2 

 Exhibit 10(c) 1 
  

 EXHIBIT C 
  
 PERMITTED LIENS 
  
 NONE 
  

 C-1 

 Exhibit 10(c) 1 
  

 EXHIBIT D 
  
 FINANCIAL COVENANTS 
  
 The Borrower agrees that it shall: 
  
 (a) Tangible Net Worth. Not permit the Borrower’s tangible net worth, on a consolidated basis, to be less than the following amounts (each, a
“Base Tangible Net Worth”) at any time during the following time periods (each, a “TNW Year”): 
  

			
	 TNW Year

	 	 Base Tangible Net Worth

	 the period commencing with June 3, 2003
 and continuing
through the next to last day of
 the fiscal year ending May 30, 2004 (“FY 04”)
	 	$63,000,000
		
	 any period commencing with the last day of a
 fiscal
year, beginning with the period commencing on
 the last day of FY 04, through the next to last day of
 the next fiscal year
	 	 the Base Tangible Net Worth
 for the immediately
preceding
 TNW Year plus $5,000,000

  
 “Tangible net worth”
for purposes hereof shall mean the total of book net worth less any assets, except capitalized leases, considered intangible under generally accepted accounting principles. 
  
 (b) Ratio of Senior Bank Debt to EBITDA. Not permit the ratio of the Borrower’s Senior Bank Debt to EBITDA to
exceed 2.00 to 1.0 at any time. 
  
 “Senior Bank Debt” for
purposes hereof shall mean the sum of all obligations of the Borrower to the Bank, including without limitation all obligations of the Borrower to the Bank incurred in connection with this Agreement and the Revolving/Bullet Loan Agreement, and all
obligations of the Borrower to the Bank incurred in connection with any existing or future lease transactions capitalized or required to be capitalized on the Borrower’s books. 
  
 “EBITDA” for purposes hereof shall mean the Borrower’s consolidated gross (before interest, taxes, depreciation and
amortization) earnings, less cash and non-cash extraordinary gains and non-cash extraordinary losses, calculated in accordance with generally accepted accounting principles consistently applied in accordance with past practices on a rolling four (4)
quarter basis. 
  
 (c) Cash Flow Coverage Ratio. Not permit
the ratio of (i) the Borrower’s EBITDA plus operating lease payments minus Ten Million Dollars ($10,000,000) minus cash dividends to the Borrower’s shareholders, to (ii) the sum of the Borrower’s scheduled principal payments on
long-term debt and capital lease obligations plus interest expense plus operating lease payments (in each case for the same period that the Borrower’s EBITDA is measured), calculated in accordance with generally accepted accounting principles
consistently applied in accordance with past practices on a rolling four (4) quarter basis, to be less than 1.25 to 1.0 at any time. 
  

 D-1 

 Exhibit 10(c) 1 
  

 (d) Interest Coverage Ratio. Not permit the Borrower’s Interest Coverage Ratio to be less
than 2.00 to 1.0 at any time. 
  
 “Interest Coverage Ratio” for
purposes hereof shall mean the Borrower’s ratio, on a consolidated basis, of (i) its earnings before total interest expense (as required to be reflected in audited financial statements prepared in accordance with generally accepted accounting
principles) and current and deferred taxes, less cash and non-cash extraordinary gains and non-cash extraordinary losses, to (ii) its total interest expense (as required to be reflected in audited financial statements prepared in accordance with
generally accepted accounting principles), calculated on a rolling four (4) quarter basis. 
  

 D-2 

 Exhibit 10(c) 1 
  

 EXHIBIT E 
  
 PERMITTED INDEBTEDNESS 
  

										
	 	  	Balance
September 19,
2004

	 Indebtedness to US Bank NA
	  	 	 
	 Bullet Loan
	  	 	10,000,000
	 Revolving Loan (up to $5,000,000 may be borrowed)
	  	 	0
	 Golden Corral Credit Facility
($52,500,000 had cumulatively been borrowed as of 9/19/2004)
	  	 	36,933,921
	 	  	
	

	 	  	$	46,933,921
	 	  	
	

  
 Contingent liability as assignor/guarantor of the following leases: 
  

							
	 Location

	  	 	  	 Assignee

	  	 Remaining
Lease
 Term

	 Blue Ash, OH (HS Blue Ash) (1 five year renewal available to 11/30/10)
	  	$7,800 per year	  	Anz Food Service	  	11/30/2005
				
	 Covington, KY (Riverview Hotel) (renewal options aggregating 50 years)
	  	$48,072 per year	  	Remington Hotel Corporation	  	4/30/2020

  
 Lease liability for closed restaurants & other non-operating property (lease not presently assigned) 
  

					
	 Location

	  	 Remaining
 Lease Term

	  	Rent Per
Month

	 None
	  	 	  	 

  
 Plus indebtedness secured by permitted
liens as described on Exhibit C and indebtedness replacing the indebtedness secured by the permitted liens as described on Exhibit C, provided that no such replacement indebtedness shall exceed the amount being replaced as shown on Exhibit C.

  

 E-1 

 Exhibit 10(c) 1 
  

 EXHIBIT F 
  
 SIXTH AMENDED AND RESTATED PROMISSORY NOTE 
  

			
	 $44,000,000
	  	Cincinnati, Ohio
	 	  	October 15, 2004

  
 FRISCH’S
RESTAURANTS, INC., an Ohio corporation (the “Borrower”), for value received, hereby promises to pay to the order of U.S. BANK NATIONAL ASSOCIATION, a national banking association formerly known as Firstar Bank, N.A. and Star Bank,
National Association (the “Bank”), or it successors or assigns, on or before September 1, 2006, the principal sum of Forty-Four Million Dollars ($44,000,000), or such portion thereof as may be outstanding from time to time, together
with interest thereon as hereinafter provided. 
  
 This is the
Construction Note referred to in, was executed and delivered pursuant to, and evidences indebtedness of the Borrower incurred under, that certain First Amended and Restated Loan Agreement [Golden Corral] dated as of October 15, 2004 between the
Borrower and the Bank, as the same has been and/or may be amended, restated, supplemented, renewed, or otherwise modified and in effect from time to time (the “Loan Agreement”), to which reference is hereby made for a statement of
the terms and conditions under which the Construction Loans evidenced hereby were made and are to be repaid and for a statement of the Bank’s remedies upon the occurrence of an Event of Default. Capitalized terms used herein, but not otherwise
specifically defined, shall have the meanings ascribed to such terms in the Loan Agreement. 
  
 The Borrower further promises to pay interest on the outstanding unpaid principal amount hereof from the date hereof until payment in full at the rate or rates from time to time applicable to the Construction Loans as
determined in accordance with the Loan Agreement; provided, however, that upon the occurrence and during the continuance of an Event of Default, the Borrower shall pay interest on the outstanding principal balance of this Note at the
rate of interest applicable following the occurrence of an Event of Default as determined in accordance with the Loan Agreement. 
  
 Interest on this Note shall be payable, at the times and from the dates specified in the Loan Agreement, on the date of any prepayment hereof, at
maturity, whether due by acceleration or otherwise, and as otherwise provided in the Loan Agreement. From and after the date when the principal balance hereof becomes due and payable, whether by acceleration or otherwise, interest hereon shall be
payable on demand. In no contingency or event whatsoever shall interest charged hereunder, however such interest may be characterized or computed, exceed the highest rate permissible under any law which a court of competent jurisdiction shall, in a
final determination, deem applicable hereto. In the event that such a court determines that the Bank has received interest hereunder in excess of the highest rate applicable hereto, such excess shall be applied in accordance with the terms of the
Loan Agreement. 
  
 The indebtedness evidenced by this Note is
secured pursuant to the terms of the Loan Documents. 
  

 F-1 

 Exhibit 10(c) 1 
  

 The Borrower hereby waives demand, presentment, and protest and notice of demand, presentment,
protest, and nonpayment. 
  
 The Borrower further agrees, subject
only to any limitation imposed by applicable law, to pay all expenses, including attorneys’ fees and legal expenses, incurred by the Bank in endeavoring to collect any amounts payable hereunder which are not paid when due, whether by
acceleration or otherwise. 
  
 IMPORTANT: This Note shall be
deemed made in Ohio and shall in all respects be governed by and construed in accordance with the laws of the State of Ohio, including all matters of construction, validity and performance. Without limitation on the ability of the Bank to initiate
and prosecute any action or proceeding in any applicable jurisdiction related to loan repayment, the Borrower and the Bank agree that any action or proceeding commenced by or on behalf of the parties arising out of or relating to this Note shall be
commenced and maintained exclusively in the District Court of the United States for the Southern District of Ohio, or any other court of applicable jurisdiction located in Cincinnati, Ohio. The Borrower and the Bank also agree that a summons and
complaint commencing an action or proceeding in any such Ohio courts by or on behalf of such parties shall be properly served and shall confer personal jurisdiction on a party to which said party consents, if (a) served personally or by certified
mail to the other party at any of its addresses noted herein, or (b) as otherwise provided under the laws of the State of Ohio. The interest rates and all other terms of this Note negotiated with the Borrower are, in part, related to the aforesaid
provisions on jurisdiction, which the Bank deems a vital part of this loan arrangement. 
  
 This Note amends and restates the Fifth Amended and Restated Promissory Note dated as of September 15, 2003 given by the Borrower to the Bank, and evidences all amounts outstanding as of the date hereof under said
Fifth Amended and Restated Promissory Note. 
  
 Presentment for
payment, notice of dishonor, protest and notice of protest are hereby waived. 
  

			
	 FRISCH’S RESTAURANTS, INC.

		
	 By:
	 	  

	 Title:
	 	  

	 Address:
	 	 2800 Gilbert Avenue

	 	 	 Cincinnati, Ohio 45206

  

 F-2 

 Exhibit 10(c) 1 
  

 EXHIBIT G-1 
  
 COST OF FUNDS RATE TERM LOAN 
  
 PROMISSORY NOTE 
  

			
	 $                    
	 	Cincinnati, Ohio
	 	 	                      1,         

  
 FRISCH’S
RESTAURANTS, INC., an Ohio corporation (the “Borrower”), for value received, hereby promises to pay to the order of U.S. BANK NATIONAL ASSOCIATION, a national banking association formerly known as Firstar Bank, N.A. and Star Bank,
National Association (the “Bank”), or it successors or assigns, on or before                      1,
             (the “Maturity Date”), the principal sum of
                                        
Dollars ($                    ), together with interest thereon as hereinafter provided. 
  
 This Note is a “Term Note” as described in and evidences a
“Cost of Funds Rate Term Loan” made under that certain First Amended and Restated Loan Agreement [Golden Corral] dated as of October 15, 2004 between the Borrower and the Bank, as the same has been and/or may be amended, restated,
supplemented, renewed, or otherwise modified and in effect from time to time (the “Loan Agreement”), and is subject to the terms and conditions thereof, including, without limitation, the terms thereof providing for acceleration of
maturity of such Cost of Funds Rate Term Loan. If any term or condition of this Note conflicts with the express terms or conditions of the Loan Agreement, the terms and conditions of the Loan Agreement shall control. Terms used herein shall have the
same meanings as in the Loan Agreement. 
  
 The outstanding
principal balance of this Note shall bear interest at a per annum rate equal to                      percent
(        %). Interest on this Note shall be computed on the basis of a year consisting of three hundred sixty (360) days but applied to the actual number of days elapsed. 
  
 The Borrower shall make monthly payments of principal and interest on this
Note in the amount of
                                        
Dollars ($                    ), with each such payment being applied first to accrued interest and then to principal, commencing on the first
day of                     ,              and on the first day of each
month thereafter through and including the Maturity Date, at which time the outstanding principal balance of and all interest on this Note shall be due and payable in full. 
  
 At the option of the Bank, (a) prior to acceleration of this Note, in the event that any interest on or principal of this
Note remains unpaid past thirty (30) days of the date due, and/or (b) upon the occurrence of any other Event of Default under the Loan Agreement or upon the acceleration of this Note, interest (computed and adjusted in the same manner, and with the
same effect, as interest on this Note prior to maturity) on the outstanding balance of this Note shall be payable on demand at the Prime Rate (as hereinafter defined) plus an additional three percent (3%) per annum up to any maximum rate
permitted by law, in all cases until paid and whether before or after the entry of any judgment thereon. The “Prime Rate” is that rate 
  

 G-1-1 

 Exhibit 10(c) 1 
  

 announced by the Bank from time to time as its prime rate, which rate is determined solely by the Bank pursuant to
market factors and its own operating needs and is not necessarily the Bank’s best or most favorable rate for commercial or other loans. In addition, in the event that the Borrower should fail to make any payment hereunder within ten (10) days
of the date due, the Borrower shall pay the Bank a fee in an amount of up to five percent (5%) of the amount of such payment, but in no event less than Fifty Dollars ($50.00), which fee shall be immediately due and payable without notice or demand.

  
 All payments of principal and interest hereunder shall be made
in immediately available funds to the Bank at 425 Walnut Street, Location 9150, Cincinnati, Ohio 45202, or at such other place as may be designated by the Bank to the Borrower in writing. The Bank is authorized by the Borrower to enter from time to
time the balance of this Note and all payments and prepayments thereon on the reverse of this Note or in the Bank’s regularly maintained data processing records, and the aggregate unpaid amount set forth thereon or therein shall be presumptive
evidence of the amount owing to the Bank and unpaid on this Note. 
  
 This Note may not be prepaid in whole or in part except upon (i) written notice to the Bank not less than thirty (30) days prior to the date of prepayment (which notice shall specify the date and amount of prepayment), (ii) the Bank
granting its consent to such prepayment, which consent the Bank may grant or withhold in its sole discretion, (iii) payment to the Bank of a “Prepayment Fee” and other amounts as specified in and calculated in accordance with the
terms of the Loan Agreement, and (iv) compliance with the other terms and conditions of the Loan Agreement. 
  
 IMPORTANT: This Note shall be deemed made in Ohio and shall in all respects be governed by and construed in accordance with the laws of the State of Ohio,
including all matters of construction, validity and performance. Without limitation on the ability of the Bank to initiate and prosecute any action or proceeding in any applicable jurisdiction related to loan repayment, the Borrower and the Bank
agree that any action or proceeding commenced by or on behalf of the parties arising out of or relating to this Note shall be commenced and maintained exclusively in the District Court of the United States for the Southern District of Ohio, or any
other court of applicable jurisdiction located in Cincinnati, Ohio. The Borrower and the Bank also agree that a summons and complaint commencing an action or proceeding in any such Ohio courts by or on behalf of such parties shall be properly served
and shall confer personal jurisdiction on a party to which said party consents, if (a) served personally or by certified mail to the other party at any of its addresses noted herein, or (b) as otherwise provided under the laws of the State of Ohio.
The interest rates and all other terms of this Note negotiated with the Borrower are, in part, related to the aforesaid provisions on jurisdiction, which the Bank deems a vital part of this loan arrangement. 
  

 G-1-2 

 Exhibit 10(c) 1 
  

 Presentment for payment, notice of dishonor, protest and notice of protest are hereby waived.

  

			
	 FRISCH’S RESTAURANTS, INC.

		
	 By:
	 	  

	 Title:
	 	  

	 Address:
	 	 2800 Gilbert Avenue

	 	 	 Cincinnati, Ohio 45206

  

 G-1-3 

 Exhibit 10(c) 1 
  

 EXHIBIT G-2 
  
 VARIABLE RATE TERM LOAN 
  
 PROMISSORY NOTE 
  

			
	 $                    
	 	 Cincinnati, Ohio

	 	 	                      1,         

  
 FRISCH’S
RESTAURANTS, INC., an Ohio corporation (the “Borrower”), for value received, hereby promises to pay to the order of U.S. BANK NATIONAL ASSOCIATION, a national banking association formerly known as Firstar Bank, N.A. and Star Bank,
National Association (the “Bank”), or it successors or assigns, on or before                      1,
             (the “Maturity Date”), the principal sum of
                                        
Dollars ($                    ), together with interest thereon as hereinafter provided. 
  
 This is a Term Note referred to in, was executed and delivered pursuant to,
and evidences a Variable Rate Term Loan made under, that certain First Amended and Restated Loan Agreement [Golden Corral] dated as of October 15, 2004 between the Borrower and the Bank, as the same has been and/or may be amended, restated,
supplemented, renewed, or otherwise modified and in effect from time to time (the “Loan Agreement”), to which reference is hereby made for a statement of the terms and conditions under which the Variable Rate Term Loan evidenced
hereby was made and is to be repaid and for a statement of the Bank’s remedies upon the occurrence of an Event of Default. Capitalized terms used herein, but not otherwise specifically defined, shall have the meanings ascribed to such terms in
the Loan Agreement. 
  
 The Borrower further promises to pay
interest on the outstanding unpaid principal amount hereof from the date hereof until payment in full at the rate or rates from time to time applicable to a Variable Rate Term Loan as determined in accordance with the Loan Agreement;
provided, however, that upon the occurrence and during the continuance of an Event of Default, the Borrower shall pay interest on the outstanding principal balance of this Note at the rate of interest applicable following the
occurrence of an Event of Default as determined in accordance with the Loan Agreement. 
  
 Interest on this Note shall be payable, at the times and from the dates specified in the Loan Agreement, on the date of any prepayment hereof, at maturity, whether due by acceleration or otherwise, and as otherwise
provided in the Loan Agreement for a Variable Rate Term Loan. From and after the date when the principal balance hereof becomes due and payable, whether by acceleration or otherwise, interest hereon shall be payable on demand. In no contingency or
event whatsoever shall interest charged hereunder, however such interest may be characterized or computed, exceed the highest rate permissible under any law which a court of competent jurisdiction shall, in a final determination, deem applicable
hereto. In the event that such a court determines that the Bank has received interest hereunder in excess of the highest rate applicable hereto, such excess shall be applied in accordance with the terms of the Loan Agreement. 
  

 G-2-1 

 Exhibit 10(c) 1 
  

 The principal of this Note shall be payable in
                     (            ) installments of
                                        
Dollars ($                    ) each, commencing on the first day of
                    ,              and on the first day of each month
thereafter through and including the Maturity Date, at which time the outstanding principal balance of this Note shall be due and payable in full. 
  
 The indebtedness evidenced by this Note is secured pursuant to the terms of the Loan Documents. 
  
 The Borrower hereby waives demand, presentment, and protest and notice of
demand, presentment, protest, and nonpayment. 
  
 The Borrower
further agrees, subject only to any limitation imposed by applicable law, to pay all expenses, including attorneys’ fees and legal expenses, incurred by the Bank in endeavoring to collect any amounts payable hereunder which are not paid when
due, whether by acceleration or otherwise. 
  
 IMPORTANT: This
Note shall be deemed made in Ohio and shall in all respects be governed by and construed in accordance with the laws of the State of Ohio, including all matters of construction, validity and performance. Without limitation on the ability of the Bank
to initiate and prosecute any action or proceeding in any applicable jurisdiction related to loan repayment, the Borrower and the Bank agree that any action or proceeding commenced by or on behalf of the parties arising out of or relating to this
Note shall be commenced and maintained exclusively in the District Court of the United States for the Southern District of Ohio, or any other court of applicable jurisdiction located in Cincinnati, Ohio. The Borrower and the Bank also agree that a
summons and complaint commencing an action or proceeding in any such Ohio courts by or on behalf of such parties shall be properly served and shall confer personal jurisdiction on a party to which said party consents, if (a) served personally or by
certified mail to the other party at any of its addresses noted herein, or (b) as otherwise provided under the laws of the State of Ohio. The interest rates and all other terms of this Note negotiated with the Borrower are, in part, related to the
aforesaid provisions on jurisdiction, which the Bank deems a vital part of this loan arrangement. 
  
 Presentment for payment, notice of dishonor, protest and notice of protest are hereby waived. 
  

			
	FRISCH’S RESTAURANTS, INC.
		
	By:	 	  

	Title:	 	  

	Address:	 	2800 Gilbert Avenue
	 	 	Cincinnati, Ohio 45206

  

 G-2-2

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