Document:

Document

Exhibit 10.34

SEPARATION AGREEMENT
 
THIS SEPARATION AGREEMENT (this “Agreement”) is dated and made as of December 21, 2017, between GP Strategies Corporation, a Delaware corporation (the “Company”), and Sharon Esposito-Mayer (“Employee”).

BACKGROUND

Employee serves as Executive Vice President and Chief Financial Officer of the Company.

Employee and the Company (formerly known as General Physics Corporation) are parties to the Employment Agreement dated as of September 28, 2007 (together with any amendments, the “Employment Agreement”).

Employee and the Company desire to enter into this Agreement to set forth the parties' agreement as to Employee's entitlements and continuing obligations in connection with her termination of employment with the Company and as a consultant.

AGREEMENT
 
The Company and the Employee hereby agree as follows:
 
		
	1.
	Separation.

 
a.The Employment Agreement will expire at 11:59 p.m. on December 31, 2017 (the “Termination Date”), except for those provisions of the Employment Agreement that this Agreement specifies will survive. 
 
b.From November 21, 2017 , Employee will no longer be responsible for the duties of Chief Financial Officer. Until the Termination Date, Employee shall undertake such activities requested by the Company to transfer responsibilities to other Company officers or employees as directed, and to provide reasonable assistance to ensure orderly transition, including assistance required by the Company to address issues arising relating to the Employee’s decisions and responsibilities as Chief Financial Officer, the Company’s financial statements, Securities and Exchange Commission filings or other regulatory requirements and any other issue that may arise or become known during the transition of responsibilities.

c.From the Termination date until the end of the Severance Period (as defined below), the Company may request that the Employee consult or cooperate with the Company on the transition of her responsibilities and certain other matters and resolution of any issues, including any matters relating to the financial statements of the Company during the period in which Employee was Chief Financial Officer. Employee shall make herself reasonably available to perform such duties and provide such cooperation in connection with matters in which Employee was involved or has knowledge as a result of her employment with the Company, including but not limited to testifying in any legal proceedings. The Company shall pay Employee’s reasonable out-of-pocket expenses for her assistance in connection with such matters. 

d.After the Termination Date, Employee shall not be, nor represent to anyone that she is, an officer or agent of the Company, unless expressly authorized in writing to do so by an authorized officer of the Company. 

e.Employee hereby resigns effective as of the Termination Date from all positions she held as an officer or director of the Company or any of its subsidiaries. 

		
	2.
	Payments by the Company. Subject to execution, delivery and effectiveness of the release attached as Exhibit A to this Agreement (the “Release”) and Employee’s continued compliance with this Agreement:

a.Through the Termination Date, the Company shall continue paying Employee her current salary and providing all benefits provided as of the date of this Agreement.

b.From the Termination Date through December 31, 2019 (the “Severance Period”), the Company shall pay Employee at her base annual salary rate in effect on the date of this Agreement, payable at such intervals as salaries are paid generally to employees of the Company. 

1

 
		
	3.
	Other Obligations of the Company. Subject to execution, delivery and effectiveness of the Release and Employee’s continued compliance with this Agreement:

a.Vesting of Grants. Any stock option or restricted stock grants with time-based vesting (but not performance-based vesting) that the Company has issued to the Employee will continue to vest in accordance with their existing terms through the end of the Severance Period.  Any stock options or restricted stock grants that are unvested at the end of the Severance Period will terminate at the end of the Severance Period.

b.Car. The Company shall make any remaining lease payments with respect to the car leased for Employee’s use and either (i) purchase the car and transfer title to it to Employee at the end of the lease or (ii) pay to Employee the amount that it would have paid to purchase the car, less any turn-in charges. The Company may purchase the car before the end of the lease and transfer title to Employee sooner if it elects to.

c.Benefits Continuation. From the Termination Date until Employee has accepted another position which is eligible to receive benefits, Employee shall continue to be eligible to receive such benefits as Employee was participating in as of the date of this Agreement subject to continued payment of any employee contributions, except that after the Termination Date the Company will not provide salary continuation, short-term disability, long-term disability or executive life insurance coverage but the Company will pay Employee $229.46 per month, which represents the approximate amount of the Company’s contribution to the cost of such benefits when it provides them to employees. (Such amount will be adjusted if the Company changes its payroll frequency so that the Employee receives the same amount through the end of the Severance Period.) After the Termination Date Employee will not be eligible for 401(k) or Health Savings Account matching contributions, but the Company will pay Employee $600.00 per month as an agreed estimate of lost employer 401(k) matching contributions.

d.Outplacement Assistance.  The Company shall purchase executive outplacement assistance for the use and benefit of Employee.

		
	4.
	Continuing Provisions of the Employment Agreement. Sections 7, 8 and 20 of the Employment Agreement will continue in effect after the Termination Date.

 
		
	5.
	Company Property. Before the Termination Date, Employee shall return to the Company all Company, client and vendor property in Employee’s possession. This includes, but is not limited to, any computer equipment, mobile phones, computer programs and electronic files, any storage media, security cards and keys, and any items developed by Employee and/or obtained by Employee or on Employee’s behalf, directly or indirectly, in connection with Employee’s employment with the Company. However, after removal of any Company information and software, the Company shall transfer ownership to the Employee of the laptop computer, iPhone and cellular telephone number issued to her by the Company. 

		
	6.
	Non-Compete. Through June 30, 2018, Employee shall not compete with or Participate In any other business or organization which competes with the Company with respect to any product or service sold by the Company within the 24 months preceding the Termination Date. The term “Participate In” shall mean:  “directly or indirectly, for her own benefit or for, with, or through any other person, firm, or corporation, own (other than the ownership of not more than 1% of the outstanding common stock of a corporation, if, at the time of its acquisition, such stock is listed on a national securities exchange, is reported on NASDAQ, or is regularly traded in the over-the-counter market by a member of a national securities exchange), manage, operate, control, loan money to, or participate in the ownership, management, operation, or control of, or be connected as a director, officer, employee, partner, consultant, agent, independent contractor, or otherwise with, or acquiesce in the use of her name in.”

		
	7.
	Non-Solicitation. Through December 31, 2018, Employee shall not directly or indirectly solicit or interfere with, encourage to leave the Company, or attempt to entice away from the Company any of its suppliers, customers, or employees or directly or indirectly employ any person who, at any time within 90 days prior to such action, was an employee of the Company. 

		
	8.
	Obligations Regarding Section 16 Reporting. Employee will have all responsibility for Section 16 compliance under the Securities Exchange Act of 1934 until the expiration of her obligations thereunder. The Company will not have any responsibility or liability with respect to any failure to file (or delinquent filing of) a Form 4 or 5, any violation of Section 16(a) of the Securities Exchange Act of 1934 or any short swing profits” under Section 16(b) of that Act. Until 

2

the expiration of Employee’s filing obligations under Section 16 of the Securities Exchange Act, Employee shall comply with the Company’s Insider Trading Policy, including pre-approval requirements.

		
	9.
	General Release of Claims. The Company’s obligations under Section 2 and Section 3 are conditional on Employee’s delivery of a signed copy of the Release no later than December 31, 2017.

		
	10.
	No Disparagement or Encouragement of Claims. Employee shall not, nor will she cause anyone else to, make any statement or issue any communication that disparages, criticizes or otherwise reflects adversely on or encourages any adverse action against the Company or any other Releasee (as defined in the Release). The Company shall not, nor will it cause anyone else to, make any statement or issue any communication that disparages, criticizes or otherwise reflects adversely on or encourages any adverse action against the Employee. The parties do not intend for this section to prevent any person from testifying truthfully under oath pursuant to lawful court order or subpoena or otherwise responding to or providing disclosures required by law. 

		
	11.
	CEO Recommendation. The Company’s CEO will provide a letter of recommendation for Employee that is reasonably satisfactory to the Company and Employee.  A draft of the letter will be provided for the Employee’s review on or before January 31, 2018.

		
	12.
	Remedies and Enforcement. The Employee acknowledges that a breach on her part of the terms of Section 4, 6 or 7 of this Agreement could cause irreparable damage to the Company and that monetary damages will not provide an adequate remedy to the Company. The Company will be entitled to enforce the terms herein in court and seek any and all remedies available to it in equity and law, including, but not limited to, injunctive relief, without the posting of any bond or other security. The parties agree that the prevailing party in any action related to enforcement of such provisions will be entitled to reimbursement from the non-prevailing party for attorneys’ fees and costs incurred related to such action. It is the intent of the parties that if any of these provisions, or any part thereof, is construed to be illegal, invalid or unenforceable, the same shall not affect the remainder of such covenant or any other covenants. Employee and the Company desire and authorize a court of competent jurisdiction to modify any of these provisions to the extent necessary to make it legal, valid, and enforceable.

		
	13.
	Tax Matters. Notwithstanding any other provision of this Agreement, the Company may withhold from amounts payable under this Agreement all amounts that are required or authorized to be withheld, including, but not limited to, federal, state, local and foreign taxes required to be withheld by applicable laws or regulations.

		
	14.
	Miscellaneous.

 
a.The laws of the State of Maryland will govern the construction, interpretation and enforcement of this Agreement.

b.This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof, supersedes all existing agreements between them concerning such subject matter, and may be modified only by a written instrument duly executed by each party.

c.This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. A facsimile or other electronic transmission of this Agreement shall be deemed an original.
  

3

IN WITNESS WHEREOF, the Company and the Employee have duly executed this Agreement as of the date first written above.
  
GP STRATEGIES CORPORATION
  	
				
	By:
	 /s/ Scott Greenberg
	 
	 /s/ Sharon Esposito-Mayer

	 
	Scott Greenberg
	 
	Sharon Esposito-Mayer

	 
	Chief Executive Officer
	 
	 

4

EXHIBIT A

FORM OF RELEASE

GENERAL RELEASE

This General Release (this “Release”) is entered into by GP Strategies Corporation (the “Company”) and Sharon Esposito-Mayer (“Employee”).

Under the Separation Agreement, dated December 21, between the Company and Employee (the “Separation Agreement”), certain of the Company’s obligations are conditioned on execution, delivery and effectiveness of this Release.

In consideration of the parties’ continuing obligations under the Separation Agreement and under this Release, the parties agree as follows:

		
	1.
	Employee hereby releases the Company from any and all known or unknown claims, causes of action, liability, and/or damages arising out of or relating to her employment with the Company and/or the termination of that employment, to the greatest extent permitted under applicable law. By signing this Release, Employee is waiving any such claims that she has or may have against the Company, its directors, officers, employees, agents, successors and assigns, and all other related or affiliated persons, companies or entities (“Releasees”). This includes all claims, rights, and/or obligations arising under any federal, state or local laws pertaining to employment, including but not limited to all employment discrimination laws, such as the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the National Labor Relations Act, and any and all other federal, state and local statutes, cases, authorities or laws (including common law) providing a cause of action that may be the subject of a release under applicable law, including but not limited to claims of wrongful termination, retaliation, harassment, discrimination, defamation, intentional infliction of emotional distress, breach of contract, fraud, negligence, and any other contract or tort claims. THIS IS A GENERAL RELEASE OF CLAIMS. Nothing in this Release shall be construed to waive any claims or rights that may not be waived as a matter of law.  

		
	2.
	Employee and the Company agree that this Release shall not affect the rights and responsibilities of the United States Equal Employment Opportunity Commission (hereinafter “EEOC”) to enforce the ADEA and other laws.  In addition, the parties agree that this Release shall not be used to justify interfering with Employee’s right to file a charge or participate in an investigation or proceeding conducted by the EEOC or any other Fair Employment Practices agency.  Employee further agrees that she knowingly and voluntarily waives all rights or claims that arose prior to Employee’s execution of this Release, as well as any right Employee may have to receive any benefit or remedial relief (including, but not limited to, reinstatement, back pay, front pay, damages, attorneys’ fees, experts’ fees) as a consequence of any investigation or proceeding conducted by the EEOC or any other Fair Employment Practices agency.  This Release does not waive any rights or claims that may arise after the date the waiver is executed. Furthermore, nothing in this Release will affect the ability of either party to enforce rights or entitlements specifically provided for under this Release.

		
	3.
	By signing this Release, Employee acknowledges and agrees that: (a) except for the payments specifically described in Section 2 of the Separation Agreement, Employee is not entitled to any other or further compensation, wages, bonuses, or payments of any kind from the Company; and (b) other than as described in Section 3 of the Separation Agreement and any rights Employee may have under COBRA, Employee has no further right to participate in any Company benefit plan.  The Company confirms that nothing in this Release shall in any way change or diminish the Employee’s right to indemnification under Section 20 of her employment agreement. 

		
	4.
	Employee represents that Employee (a) has suffered no injuries or occupational diseases arising out of or in connection with Employee’s employment with the Company that have not previously been reported in writing to the Company; (b) has received all leave to which she was entitled, if any, under the Family and Medical Leave Act of 1993 (“FMLA”) and any applicable state or local leave laws; (c) is not aware of any facts or circumstances constituting a violation of the FMLA, and/or the Fair Labor Standards Act or any state or local laws pertaining to the payment of wages; and (d) has not filed any claims, suits, or other actions against the Company prior to the date of Employee’s execution of this Release, and no such actions have been filed on Employee’s behalf.

5

		
	5.
	This Release, its contents, and all information pertaining to any employment termination discussions and the execution of this Release are to remain confidential, and Employee shall not disclose this Release or its contents to any person, other than Employee’s spouse or significant other, and/or Employee’s legal or tax advisor, unless compelled by legal process or permitted by any applicable whistleblower or similar law.

		
	6.
	Employee acknowledges that Employee (a) has been given 21 days from receipt of this Release to consider Employee’s decision to sign it and (b) understands that she has the right to consult with an attorney before signing this Release. Employee represents that she has done so to the extent that she deemed it necessary or appropriate.

		
	7.
	Employee understands that she may revoke this Release for up to and including 5 business days after she signs this Release and this Release shall not become effective until the 5th business day after it has been signed by Employee (the “Effective Date”).  Any revocation must be in writing and delivered to Kenneth L. Crawford, General Counsel, GP Strategies Corporation, 70 Corporate Center, 11000 Broken Land Parkway, Suite 200, Columbia, Maryland 21044. 

The parties have signed this Release on the dates indicated below.
	
			
	 
	 
	/s/ Sharon Esposito-Mayer

	 
	 
	Sharon Esposito-Mayer

	 
	Date:
	December 28, 2017

	 
	 
	 

	 
	 
	GP STRATEGIES CORPORATION

	 
	 
	 

	 
	By:
	/s/ Scott Greenberg

	 
	 
	Scott Greenberg, Chief Executive Officer

	 
	Date: 
	December 21, 2017

6EX-10.1

 Exhibit 10.1 

AMENDED & RESTATED 

EXTENDED STAY AMERICA, INC. 

LONG-TERM INCENTIVE PLAN 

2018 RESTRICTED STOCK UNIT AGREEMENT 

(Time-Vesting & TSR Performance-Vesting) 

THIS AWARD AGREEMENT (the “Agreement”) is made effective as of
[            ], 2018, between Extended Stay America, Inc. (the “Company”), a Delaware corporation, and
                     (the “Grantee”). Capitalized terms used but not defined in this Agreement shall have the meaning attributed to
such terms under the Plan. 
 WHEREAS, the Company desires to grant the restricted stock units (the “RSUs”) (the
“Award”) provided for herein to the Grantee pursuant to the Amended and Restated Extended Stay America, Inc. Long-Term Incentive Plan (the “Plan”) and the terms and conditions set forth herein. 

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows: 

 

	1.	Grant of Award. 

 The Company hereby grants to the Grantee, an aggregate of
                     RSUs, consisting of Time Vesting RSUs and TSR Performance RSUs (in each case, as defined below). The number of TSR Performance
RSUs set forth in Section 1(b) below is the number of RSUs that may be deemed to vest assuming performance at target levels. The number of TSR Performance RSUs that actually vest may be higher or lower than the number of TSR Performance RSUs
set forth in Section 1(b) based on actual performance. Subject to the provisions of this Agreement and the Plan, each vested RSU represents the right to receive one (1) Paired Share. 

(a)                 RSUs shall be subject to
time vesting (the “Time Vesting RSUs”) in accordance with the schedule set forth in Section 2(a). 

(b)                 RSUs shall be subject to
performance vesting based on the attainment of the TSR goals as set forth in Section 2(b) (the “TSR Performance RSUs”). 
  

	2.	Vesting. 

 Subject to the terms and conditions hereof and the Grantee’s continued employment with
the Company or any of its Subsidiaries on each applicable Vesting Date (as defined below), the Grantee shall vest in the RSUs as set forth below. The RSUs shall apply only with respect to a whole number of Paired Shares. 

(a)    Time-Vesting RSUs. On each of the first, second and third anniversaries of [●] (the
“Vesting Commencement Date”) (each date, a “Time Vesting Date”) and subject to the Grantee’s continued employment with the Company or any of its Subsidiaries through the applicable Time Vesting Date, a portion
of the Time-Based RSUs shall vest and no longer be subject to cancellation pursuant to Section 3 as follows: 
  

			
	
Anniversary of Vesting Commencement Date
	  	
Percent of Time Vesting RSUs 
Vesting

	 First
	  	33 1/3%
	 Second
	  	33 1/3%
	 Third
	  	33 1/3%

  
 1 

 (b)    TSR Performance RSUs. On [●] (the
“TSR Vesting Date”, together with the Time Vesting Dates, each a “Vesting Date”), subject to the Grantee’s continued employment with the Company or any of its Subsidiaries through such date, a percentage of the TSR
Performance RSUs shall vest and no longer be subject to cancellation pursuant to Section 3 based on the extent to which the TSR target for the period beginning on [●] through [●] (the “Performance Period”) is
attained, as set forth on Appendix A (the cumulative target, the “Three-Year TSR Target”). For performance that falls between any of the stated percentiles set forth on Appendix A, the percentage of TSR Performance RSUs that vest
following the end of the Performance Period shall be determined by linear interpolation. Notwithstanding the targets set forth on Appendix A, in the event that absolute TSR is negative, the maximum Percentage of TSR Performance RSUs that may be
earned is 100%. The vesting of the TSR Performance RSUs shall be subject to certification by the Committee of the extent to which the Three-Year TSR Target has been achieved. 
  

	3.	Effect of Termination of Service. 

 (a)    Except as
otherwise provided in this Agreement or as otherwise determined by the Committee, if the Grantee’s employment with the Company and its Subsidiaries and Affiliates Terminates for any reason, all RSUs that are not vested as of the date of such
Termination (and the right to any payment in respect of dividends or distributions pursuant to Section 7 with respect to such RSUs) shall be forfeited for no consideration and the Grantee shall have no further rights with respect to such RSUs.
Notwithstanding the foregoing: with respect to TSR Performance RSUs, if the Grantee is Terminated following the TSR Vesting Date, but before the level of achievement of the Three-Year TSR Target has been certified by the Committee, the Grantee shall
continue to be entitled to receive any portion of the TSR Performance RSUs that vested as of the TSR Vesting Date based on the Committee’s determination of the achievement of the Three-Year TSR Target, and such vested TSR Performance RSUs shall
be settled in accordance with Section 4. 
 (b)    Change in Control. 

(i)    Notwithstanding Sections 2(a) and 2(b) and Section 3(a), in the event the Grantee is Terminated without Cause,
the Grantee’s then outstanding RSUs shall remain outstanding until the earlier of (A) the date that is six months following such Termination and (B) March 15th of the calendar year following
the calendar year in which such Termination occurs (the “Pre-CIC Vesting Period”) and shall remain subject to vesting solely upon a Change in Control that occurs during the Pre-CIC Vesting Period. In the event a Change in Control occurs during the Pre-CIC Vesting Period, all of the Grantee’s outstanding Time Vesting RSUs and TSR Performance
RSUs shall become fully (100%) vested as of the date of the Change in Control. For the avoidance of doubt, any TSR Performance RSUs that become vested in accordance with the foregoing sentence shall become vested as to 100% at the target performance
level (i.e., as to the number of RSUs as set forth in Section 1(b)). If a Change in Control does not occur during the Pre-CIC Vesting Period, all of the Grantee’s RSUs shall be forfeited for no
consideration as of the day following the end of the Pre-CIC Vesting Period. 

(ii)    Notwithstanding Sections 2(a) and 2(b) and Section 3(a), in the event the Grantee is Terminated without Cause
during the period beginning on the date of a Change in Control and ending on the date that is twenty-four months following the date of the Change in Control, all of the Grantee’s outstanding Time Vesting RSUs and TSR

  
 2 

 
Performance RSUs shall become fully (100%) vested as of the date of Termination. For the avoidance of doubt, any TSR Performance RSUs that become vested in accordance with the foregoing sentence
shall become vested as to 100% at the target performance level (i.e., as to the number of RSUs as set forth in Section 1(b)). 
  

	4.	Settlement. 

 Upon the 15th day of
March in the calendar year (or, in any year when the 15th of March falls on a non-business day, the business day immediately prior to such date) next
following the applicable Vesting Date, each RSU which has vested as of such Vesting Date shall be settled, and in settlement thereof, (i) the Company shall issue to the Grantee one share of common stock of the Company (a “Company Common
Share”) and (ii) ESH REIT shall issue to the Grantee one share of Class B stock of ESH Hospitality, Inc. ( “ESH REIT”) (a “Class B REIT Share”), which Company Common Share and
Class B REIT Share shall be stapled together as a Paired Share, as described in the Plan. 
  

	5.	Restrictions on Transfer. 

 (a)    The RSUs subject
to this Award may not be sold, transferred, assigned or otherwise disposed of, and may not be pledged or otherwise hypothecated (other than pursuant to a definitive agreement executed by the Company in connection with a Corporate Transaction). 

(b)    Any Paired Shares received in settlement of the RSUs pursuant to Section 4 shall be subject to
(i) any transfer or other restrictions set forth in any agreement with the Company or ESH REIT to which the Grantee is party and (ii) the share ownership guidelines of the Company and ESH REIT. 

 

	6.	Rights as Stockholder. 

 A RSU is not a Paired Share, and thus, the Grantee will have no
rights as a stockholder with respect to the RSUs. 
  

	7.	Dividend Equivalent Rights. 

 In the event of a dividend or other distribution made in
respect of Paired Shares, a Grantee will be entitled to receive, in respect of each RSU underlying the Award, the per Paired Share amount received by other stockholders in respect of a Paired Share in connection with such dividend, provided,
however, that any entitlement to or payment of dividends or distributions declared or paid on the Paired Shares shall be owing and paid to the Grantee only at the same time as the RSUs in respect of which such dividends or distributed are
settled pursuant to this Agreement. 
  

	8.	No Right to Continued Employee Status. 

 Nothing contained in this Agreement shall confer
upon the Grantee the right to the continuation of his or her Employee status or to interfere with the right of the Company or any of its Subsidiaries or other Affiliates to terminate the Grantee’s employment. 

 

	9.	Taxation. 

 The Grantee understands that when the RSUs are settled in accordance with
Section 4, the Grantee will be obligated to recognize income, for Federal, state and local income tax purposes, as applicable, in an amount equal to the Fair Market Value of the Paired Shares as of such date, and the Grantee is responsible for
all tax obligations that arise in connection with the RSUs. 

  
 3 

 The issuance of any Company Common Shares or Class B REIT Shares shall be subject to the
Grantee’s satisfaction of all applicable tax withholding obligations in cash or in such other manner as may be approved by the Committee. The Grantee may elect to have the Company and ESH REIT withhold a number of Company Common Shares and
Class B REIT Shares, as applicable, together having an aggregate equal to the tax withholding amounts due with respect to settlement of the RSUs. The Company shall have the right to require that the Grantee furnish information deemed necessary
by the Company to meet any tax reporting obligation as a condition to issuing and releasing any Paired Shares pursuant to the Award. 

10.    Delivery of Shares and Restrictive Legend. 

(a)    Certificates or evidence of book-entry shares representing the Paired Shares issued upon settlement
of RSUs pursuant to Section 4 of this Agreement will be delivered to or otherwise made available to the Grantee (or, at the discretion of the Grantee, joint in the names of the Grantee and the Grantee’s spouse) or to the Grantee’s
nominee at such person’s request. 
 (b)    The certificates representing the Paired Shares issued
upon settlement of RSUs pursuant to Section 4 shall be subject to such stop transfer orders and other restrictions as set forth in the Company’s certificate of incorporation and ESH REIT’s certificate of incorporation, and as the
Committee may deem advisable under the Plan or under applicable state and Federal securities or other laws, or under any ruling or regulation of any governmental body or national securities exchange unless an exemption to such registration or
qualification is available and satisfied. The Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
  

	11.	Securities Laws. 

 The obligation of the Company and ESH REIT, as applicable, to issue
and deliver the RSUs and any Paired Shares hereunder shall be subject to all applicable laws, rule and regulations, and such approvals by governmental agencies as may be required. The Grantee hereby agrees not to offer, sell or otherwise attempt to
dispose of any Paired Shares issued to the Grantee pursuant to this Agreement in any way which would: (x) require the Company or ESH REIT to file any registration statement with the Securities and Exchange Commission (or any similar filing
under state law or the laws of any other county) or to amend or supplement any such filing or (y) violate or cause the Company or ESH REIT to violate the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the
rules and regulations promulgated thereunder, or any other Federal, state or local law, or the laws of any other country. 
  

	12.	Modification of the Agreement. 

 This Agreement may not be modified, amended, terminated
and no provision hereof may be waived in whole or in part except by a written agreement signed by the Company, ESH REIT and the Grantee and no modification shall, without the consent of the Grantee, alter to the Grantee’s detriment or impair
any rights of the Grantee under this Agreement except to the extent permitted under the Plan. 

  
 4 

	13.	Notices. 

 Unless otherwise provided herein, any notices or other communication given or
made pursuant to this Agreement or the Plan shall be in writing and shall be deemed to have been duly given (i) as of the date delivered, if personally delivered (including receipted courier service) or overnight delivery service, with
confirmation of receipt; (ii) on the date the delivering party receives confirmation, if delivered by facsimile to the number indicated or by email to the address indicated or through an electronic administrative system designated by the
Company; (iii) one (1) business day after being sent by reputable commercial overnight delivery service courier, with confirmation of receipt; or (iv) three (3) business days after being mailed by registered or certified mail,
return receipt requested, postage prepaid and addressed to the intended recipient as set forth below: 
  

			
	If to the Company:	  	11525 N. Community House Road, Suite 100
		  	Charlotte, North Carolina 28277
		  	Facsimile: 980.335.3233
		  	Attn: John R. Dent
		
	If to ESH REIT:	  	11525 N. Community House Road, Suite 100
		  	Charlotte, North Carolina 28277
		  	Facsimile: 980.335.3233
		  	Attn: John R. Dent

 If to the Grantee, at the most recent address, facsimile number or email contained in the Company’s
records. 
  

	14.	Agreement Subject to Plan and Applicable Law. 

 This Award is made pursuant to the Plan
and shall be interpreted to comply therewith. A copy of the Plan is attached hereto. Any provision of this Award inconsistent with the Plan shall be considered void and replaced with the applicable provision of the Plan. The Plan shall control in
the event there shall be any conflict between the Plan and this Agreement, and it shall control as to any matters not contained in this Agreement. The Committee shall have authority to make constructions of this Agreement, and to correct any defect
or supply any omission or reconcile any inconsistency in this Agreement, and to prescribe rules and regulations relating to the administration of this Award and other Awards granted under the Plan. 

This Award shall be governed by the laws of the State of Delaware, without regard to the conflicts of law principles thereof, and subject to
the exclusive jurisdiction of the courts therein. 
  

	15.	Headings. 

 Headings are for convenience only and are not deemed to be part of this
Agreement. Unless otherwise indicated, any reference to a Section herein is a reference to a Section of this Agreement. 
  

	16.	Severability and Reformation. 

 If any provision of this Agreement shall be determined by
a court of law to be unenforceable for any reason, such unenforceability shall not affect the enforceability of any of the remaining provisions hereof; and this Agreement, to the fullest extent lawful, shall be reformed and construed as if such
unenforceable provision, or part thereof, had never been contained herein, and such provision or part thereof shall be reformed or construed so that it would be enforceable to the maximum extent legally possible. 

  
 5 

	17.	Clawback. 

 If the Grantee is an officer of the Company subject to Section 16 of the
Exchange Act, in the case of (i) fraud or other intentional misconduct on the part of any Grantee that necessitates a restatement of the Company’s or any Subsidiary’s financial results (including, without limitation, any accounting
restatement due to the material noncompliance with any financial reporting requirement) or (ii) any other event or circumstance set forth in any clawback policy implemented by the Company or any Subsidiary, including, without limitation, any
clawback policy adopted to comply with the requirements of applicable law, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder (including, without
limitation, any listing rules or standards resulting therefrom), Grantee will be required to reimburse the Company or a Subsidiary for any Paired Shares issued to Grantee pursuant to the Award in excess of the amount that would have been issued to
Grantee based on the restated financial results (or, if such Paired Shares have been sold, any proceeds received upon the sale of such Paired Shares), as determined by the Company or any Subsidiary pursuant to any applicable clawback policy or
otherwise.  
  

	18.	Binding Effect. 

 This Agreement shall be binding upon the parties hereto, together with
their personal executors, administrator, successors, personal representatives, heirs and permitted assigns. 
  

	19.	Entire Agreement. 

 This Agreement supersedes all prior written and oral agreements and
understandings among the parties as to its subject matter and constitutes the entire agreement of the parties with respect to the subject matter hereof, except to the extent that the Plan may be considered to address the subject matter hereof. If
there is any conflict between this Agreement and the Plan, then the applicable terms of the Plan shall govern. 
  

	20.	Waiver. 

 Waiver by any party of any breach of this Agreement or failure to exercise any
right hereunder shall not be deemed to be a waiver of any other breach or right whether or not of the same or a similar nature. The failure of any party to take action by reason of such breach or to exercise any such right shall not deprive the
party of the right to take action at any time while or after such breach or condition giving rise to such rights continues. 
 [Signature
Page Follows] 

  
 6 

 IN WITNESS WHEREOF, the parties hereto have executed this Award as of the date first above
written. 
  

			
	EXTENDED STAY AMERICA, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	GRANTEE
	
	  

	Name:	 	

  
  

			
	 The terms of this Award and the issuance of the

Class B REIT Shares covered by the Award have

been approved pursuant to the Amended & Restated

ESH Hospitality, Inc. Long-Term Incentive Plan.

			
	
	ESH HOSPITALITY, INC.

			
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 7 

 Appendix A 

The peer group companies (“Peer Group Companies”) for the Performance Period are listed below. The list of Peer Group Companies shall
automatically be updated to remove any entity which is no longer a publicly traded company, or any entity which has voluntarily or involuntarily filed for bankruptcy. 

Peer Group Companies 

[                ] 

 

					
	 	  	TSR Performance
Ranking (as compared to TSR of Peer Group Companies)	 	Percentage of TSR
Performance RSUs Earned
	Maximum	  	75th Percentile	 	150%
	Target	  	       Median	 	100%
	Threshold	  	35th Percentile	 	50%
		  	Below 35th Percentile	 	0%

 For the purpose of this agreement, “TSR” means the percentage return realized by the owner of a Paired Share for the
3 year period from [    ] – [    ]. The percentage return is equal to the appreciation or depreciation in value of a Paired Share (which is equal to the average of the daily opening and closing value of a
Paired Share over the last thirty trading days of the relevant third year minus the average of the daily opening and closing value of the stock over the last thirty trading days of the initial plan year) plus the dividends paid on such Paired Shares
during the performance period, divided by the average of the daily opening and closing value of the Paired Share over the last thirty trading days of the initial plan year. 

  
 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}]]