Document:

EX-10.1

 Exhibit 10.1 

MID-AMERICA APARTMENT COMMUNITIES, INC. 
 2013 STOCK INCENTIVE PLAN 
 SECTION 1.    GENERAL PURPOSE OF THE
PLAN; DEFINITIONS 
 The name of the plan is the Mid-America Apartment Communities, Inc. 2013 Stock Incentive Plan (the
“Plan”). The purpose of the Plan is to encourage and enable the officers, employees, Independent Directors and other key persons of Mid-America Apartment Communities, Inc. (the “Company”), and the employees and
other key persons of Mid-America Apartments, L.P. (the “Operating Partnership”) and the Company’s other Subsidiaries, upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its
business to acquire a proprietary interest in the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company, thereby
stimulating their efforts on the Company’s behalf and strengthening their desire to remain with the Company. 
 The
following terms shall be defined as set forth below: 
 “Act” means the Securities Exchange Act of 1934, as
amended from time to time. 
 “Administrator” is defined in Section 2(a). 

“Award” or “Awards,” except where referring to a particular category of grant under the Plan, shall
include Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Restricted Stock Units, Unrestricted Stock Awards, Performance Share Awards, Dividend Equivalent Rights, Cash-Based Awards and Other Stock-Based Awards.

 “Board” means the Board of Directors of the Company as constituted from time to time. 

“Cash-Based Award” means an Award entitling the recipient to receive a cash-denominated payment. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor Code, and related rules,
regulations and interpretations. 
 “Committee” means the Compensation Committee of the Board. 

“Company” means Mid-America Apartment Communities, Inc., a Tennessee corporation, and any successor thereto. 

“Covered Employee” means an employee who is a “covered employee” within the meaning of
Section 162(m) of the Code and the regulations promulgated thereunder. 
 “Dividend Equivalent Right”
means Awards granted pursuant to Section 13. 
 “Effective Date” means the date on which the Plan was
initially approved by shareholders as set forth in Section 21. 
 “Fair Market Value” on any given date
means the last reported sale price of the Stock on such date or, if no Stock is traded on such date, the next preceding date on which Stock was traded, as reflected on the New York Stock Exchange or, if applicable, any other national stock exchange
on which the Stock is traded or admitted to trading or, if none of the foregoing is applicable, then the Fair Market Value of the Stock as determined in good faith by the Committee. 

  
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 “Incentive Stock Option” means any Stock Option that qualifies as and is
designated in writing in the related Option agreement as constituting an “incentive stock option” as defined in Section 422 of the Code. 
 “Independent Director” means a member of the Board who is not also an employee of the Company or any Subsidiary. 
 “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 
 “Operating Partnership” means Mid-America Apartments, L.P., a Tennessee limited partnership, and any successor thereto. 

“Option” or “Stock Option” means any option to purchase shares of Stock granted pursuant to
Section 5. 
 “Other Stock-Based Award” means Awards granted pursuant to Section 10. 

“Performance-Based Award” means any Restricted Stock Award, Restricted Stock Unit, Performance Share Award or Other
Stock-Based Award granted to an employee that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations promulgated thereunder. 

“Performance Criteria” means the criteria that the Administrator selects for purposes of establishing the Performance
Goal or Performance Goals for an individual for a Performance Cycle. The Performance Criteria which shall be applicable to the organizational level specified by the Administrator, including, but not limited to, the Company or a unit, division,
group, region, or Subsidiary of the Company, that will be used to establish Performance Goals are limited to the following: funds from operations, funds from operations per share, adjusted funds from operations, adjusted funds from operations per
share, net operating income, gross operating income, total shareholder return, earnings per share, stock price, acquisitions, dispositions, strategic transactions, portfolio or regional occupancy rates, portfolio or regional rent rates, portfolio or
regional revenue rates, return on capital, assets, equity, development, or investment, any of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of one or more peer groups. 

“Performance Cycle” means one or more periods of time, which may be of varying and overlapping durations, as the
Administrator may select, over which the attainment of one or more Performance Criteria will be measured for the purpose of determining a participant’s right to and the payment of a Restricted Stock Award, Restricted Stock Unit, Performance
Share Award or Other Stock-Based Award, the vesting and/or payment of which is subject to the attainment of one or more Performance Goals. Each such period shall not be less than 12 months. 

“Performance Goals” means, for a Performance Cycle, the specific goals established in writing by the Administrator for a
Performance Cycle based upon the Performance Criteria. 
 “Performance Share Award” means Awards granted
pursuant to Section 9. 
 “Restricted Stock Award” means Awards granted pursuant to Section 6.

 “Restricted Stock Unit” means Awards granted pursuant to Section 7. 

“Sale Event” means (i) the sale of all or substantially all of the assets of the Company on a consolidated basis to
an unrelated person or entity, (ii) a merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting power and outstanding stock immediately prior to such transaction do not own a majority of the
outstanding voting power and outstanding stock or other equity interests of the resulting or successor entity (or its ultimate parent, if applicable) immediately upon completion of such transaction, (iii) the sale of all of the Stock of the
Company to an unrelated person, entity or group thereof acting in concert, or 

  
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(iv) any other transaction in which the owners of the Company’s outstanding voting power immediately prior to such transaction do not own at least a majority of the outstanding voting
power of the Company or any successor entity immediately upon completion of the transaction other than as a result of the acquisition of securities directly from the Company. 
 “Stock” means the Common Stock, par value $.01 per share, of the Company, subject to adjustments pursuant to Section 3. 

“Subsidiary” means any corporation or other entity (other than the Company) in any unbroken chain of corporations or
other entities beginning with the Company if each of the corporations or entities (other than the last corporation or entity in the unbroken chain) owns stock or other interests possessing 50 percent or more of the economic interest or the total
combined voting power of all classes of stock or other interests in one of the other corporations or entities in the chain. 

“Unrestricted Stock Award” means any Award granted pursuant to Section 8. 

 

	SECTION 2.	ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT PARTICIPANTS AND DETERMINE AWARDS 

(a) Committee. The Plan shall be administered by either the Board or the Committee (in either case, the
“Administrator”). Each member of the Committee shall be a “non-employee director” within the meaning of Rule 16b-3(b)(3)(i) promulgated under the Act, or any successor definition under said rule. Each member of the
Committee shall also be an “outside director” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder. 
 (b) Powers of Administrator. The Administrator shall have the power and authority to grant Awards consistent with the terms of the Plan, including the power and authority: 

(i) to select the individuals to whom Awards may from time to time be granted; 

(ii) to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Restricted
Stock Awards, Restricted Stock Units, Unrestricted Stock Awards, Performance Share Awards, Dividend Equivalent Rights and Other Stock-Based Awards, or any combination of the foregoing, granted to any one or more participants; 

(iii) to determine the number of shares of Stock to be covered by any Award; 

(iv) to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the
Plan, of any Award, which terms and conditions may differ among individual Awards and participants, and to approve the form of written instruments evidencing the Awards; provided, however, that except as otherwise provided in Section 3(b) or
3(c), the Administrator is not permitted to reduce the exercise price of Stock Options or effect repricing of Stock Options through cancellation and re-grants or cancellation in exchange for cash; 

(v) to accelerate at any time the exercisability or vesting of all or any portion of any Award in circumstances involving a Change in
Control or the death, disability or termination of employment of a Plan participant; 
 (vi) subject to the provisions of
Section 5(c), to extend at any time the post-termination period in which Stock Options may be exercised; 
 (vii) to
determine at any time whether, to what extent, and under what circumstances Stock and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the participant and whether and to what extent the
Company shall pay or credit amounts constituting deemed interest (at rates determined by the Administrator) or dividends or deemed dividends on such deferrals; and 

  
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 (viii) at any time to adopt, alter and repeal such rules, guidelines and practices for
administration of the Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for
the administration of the Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 
 All decisions and interpretations of the Administrator shall be made in the Administrator’s sole and absolute discretion and shall be final and binding on all persons, including the Company and Plan
participants. 
 (c) Delegation of Authority to Grant Awards. The Administrator, in its discretion, may delegate to the
Chief Executive Officer of the Company all or part of the Administrator’s authority and duties with respect to Awards, including the granting thereof, to individuals who are not subject to the reporting and other provisions of Section 16
of the Act or “covered employees” within the meaning of Section 162(m) of the Code. Any such delegation by the Administrator shall include a limitation as to the amount of Awards that may be awarded during the period of the
delegation and shall contain guidelines as to the determination of the exercise price of any Option, the conversion ratio or price of other Awards and the vesting criteria. The Administrator may revoke or amend the terms of a delegation at any time
but such action shall not invalidate any prior actions of the Administrator’s delegate or delegates that were consistent with the terms of the Plan. 
  

	SECTION 3.	STOCK ISSUABLE UNDER THE PLAN; RECAPITALIZATIONS; MERGERS; SUBSTITUTE AWARDS 

(a) Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be the sum of
(i) 225,000 shares plus (ii) the shares underlying awards under the Company’s 2004 Stock Plan (the “2004 Plan”) which are forfeited, cancelled or otherwise terminated after the Effective Date, subject to adjustment as
provided in this Section 3. For purposes of this limitation, the shares of Stock underlying any Awards that are forfeited, canceled, held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding,
reacquired by the Company prior to vesting, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan. With respect to grants made or
compensation earned under the Plan, Stock Options with respect to no more than 100,000 shares of Stock may be granted to any one individual participant during any one calendar year period. The shares available for issuance under the Plan may be
authorized but unissued shares of Stock or shares of Stock reacquired by the Company. 
 (b) Changes in Stock. Subject to
Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares of Stock are
increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with
respect to such shares of Stock or other securities, the Committee shall make equitable or proportionate adjustments in (i) the maximum number of shares reserved for issuance under the Plan, (ii) the number of Stock Options that can be
granted to any one individual participant and the maximum number of shares that may be granted under a Performance-Based Award, (iii) the number and kind of shares or other securities subject to any then outstanding Awards under the Plan,
(iv) the repurchase price, if any, per share subject to each outstanding Restricted Stock Award, and/or (v) the price for each share subject to any then outstanding Stock Options under the Plan, without reducing the aggregate exercise
price (i.e., the exercise price multiplied by the number of Stock Options). The Committee shall also make equitable or proportionate adjustments in the number of shares subject to outstanding Awards and the exercise price and/or the terms of
outstanding Awards to take into account cash dividends declared and paid other than in the ordinary course or any other extraordinary corporate event, other than those contemplated by Section 3(c) hereof, to the

  
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extent determined to be necessary by the Committee to avoid distortion in the value of the Awards. Notwithstanding anything to the contrary set forth in this Section 3(b), no adjustment
shall be required pursuant to this Section 3(b) if the Committee determines that such action could cause an Award to fail to satisfy the conditions of any applicable exception from the requirements of Section 409A of the Code or otherwise
could subject a participant to the additional tax imposed under Section 409A of the Code in respect of an outstanding Award. All adjustments made by the Committee shall be final, binding and conclusive. No fractional shares of Stock shall be
issued under the Plan resulting from any such adjustment, but the Committee in its discretion may make a cash payment in lieu of fractional shares. 
 (c) Mergers. In contemplation of and subject to the consummation of a Sale Event, the Board, or the board of directors of any corporation assuming the obligations of the Company, may, in its
discretion, take any one or more of the following actions, as to outstanding Awards: (i) provide that such Awards shall be assumed or equivalent awards shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof),
and/or (ii) upon written notice to the participants, provide that all Awards will terminate immediately prior to the consummation of the Sale Event. In the event that, pursuant to clause (ii) above, Awards will terminate immediately prior
to the consummation of the Sale Event, all vested Awards, other than Options, shall be fully settled in cash or in kind at such appropriate consideration as determined by the Administrator in its sole discretion after taking into account the
consideration payable per share of Stock pursuant to the business combination (the “Merger Price”) and all Stock Options shall be fully settled, in cash or in kind, in an amount equal to the difference between (A) the Merger
Price times the number of shares of Stock subject to such outstanding Stock Options (to the extent then exercisable at prices not in excess of the Merger Price) and (B) the aggregate exercise price of all such outstanding Stock Options;
provided, however, that each participant may be permitted, within a specified period determined by the Administrator prior to the consummation of the Sale Event, to exercise all outstanding Stock Options, including those that are not then
exercisable, subject to the consummation of the Sale Event. 
 (d) Substitute Awards. The Administrator may grant Awards
under the Plan in substitution for stock and stock based awards held by employees of another corporation who become employees of the Company or a Subsidiary as the result of a merger or consolidation of the employing corporation with the Company or
a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of the employing corporation. The Administrator may direct that the substitute awards be granted on such terms and conditions as the Administrator considers
appropriate in the circumstances. Awards granted pursuant to this Section 3(d) shall not reduce the number of shares of Stock otherwise available for issuance pursuant to the Plan under Section 3(a). 

(e) Outside Director Limitation. Notwithstanding any other provision of the Plan to the contrary, the aggregate grant date fair
value (computed as of the date of grant in accordance with applicable financial accounting rules) of all awards granted to any Independent Director during any single calendar year shall not exceed $200,000. 

 

	SECTION 4.	ELIGIBILITY 

Participants in the Plan will be such full or part-time officers and other employees, Independent Directors and key persons of the
Company, the Operating Partnership and the Company’s other Subsidiaries who are responsible for or contribute to the management, growth or profitability of the Company, the Operating Partnership and the Company’s other Subsidiaries as are
selected from time to time by the Administrator in its sole discretion. 
  

	SECTION 5.	STOCK OPTIONS 

 (a)
Form of Stock Options. Any Stock Option granted under the Plan shall be in such form as the Administrator may from time to time approve. 

  
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 Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of
the Code. To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option. No Incentive Stock Option shall be granted under the Plan after June 16, 2023. 

Stock Options granted pursuant to this Section 5 shall be subject to the following terms and conditions and shall contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable. 
 (b)
Exercise Price. The exercise price per share for the Stock covered by a Stock Option granted pursuant to this Section 5 shall be determined by the Administrator at the time of grant but shall not be less than 100 percent of the Fair
Market Value on the date of grant. If an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent
or subsidiary corporation and an Incentive Stock Option is granted to such employee, the option price of such Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date. 

(c) Option Term. The term of each Stock Option shall be fixed by the Administrator, but no Option shall be exercisable more than
ten years after the date the option is granted. If an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company
or any parent or subsidiary corporation and an Incentive Stock Option is granted to such employee, the term of such option shall be no more than five years from the date of grant. 

(d) Exercisability; Rights of a Shareholder. Stock Options shall become exercisable at such time or times, whether or not in
installments, as shall be determined by the Administrator at or after the grant date. The Administrator may at any time accelerate the exercisability of all or any portion of any Stock Option. An optionee shall have the rights of a shareholder only
as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. In the event that on the last business day of the term of a Stock Option, other than an Incentive Stock Option (i) the exercise of the Stock
Option is prohibited by applicable law or (ii) Stock may not be purchased or sold by certain employees or directors of the Company due to the “black-out period” of a Company policy or a “lock-up” agreement undertaken in
connection with an issuance of securities by the Company, the term of the Stock Option shall be extended for a period of thirty (30) days following the expiration of the legal prohibition, black-out period or lock-up agreement. 

(e) Method of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company,
specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods to the extent provided in the Option Award agreement: 

(i) In cash, by certified or bank check or other instrument acceptable to the Administrator; 

(ii) Through the delivery (or attestation to the ownership) of shares of Stock that are not then subject to restrictions
under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date; 

(iii) By the optionee delivering to the Company a properly executed exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the purchase price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and
the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; or 

  
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 (iv) With respect to Stock Options that are not Incentive Stock Options, by
a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price.

 Payment instruments will be received subject to collection. The delivery of certificates representing the shares of Stock to
be purchased pursuant to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance with the provisions of the Stock Option) by the Company of the full purchase price for such
shares and the fulfillment of any other requirements contained in the Stock Option or applicable provisions of laws. In the event an optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the
number of shares of Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the attested shares. In the event that the Company establishes, for itself or using the services of a third party, an automated system for
the exercise of Stock Options, such as a system using an internet website or interactive voice response, then the paperless exercise of Stock Options may be permitted through the use of such an automated system. 

(f) Annual Limit on Incentive Stock Options. To the extent required for “incentive stock option” treatment under
Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and
subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option. 

 

	SECTION 6.	RESTRICTED STOCK AWARDS 

(a) Nature of Restricted Stock Awards. A Restricted Stock Award is an Award entitling the recipient to acquire, at par value or
such other higher purchase price determined by the Administrator, shares of Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant (“Restricted Stock”). Conditions may be based on
continuing employment (or other business relationship) and/or achievement of pre-established performance goals and objectives. The grant of a Restricted Stock Award is contingent on the participant executing the Restricted Stock Award agreement. The
terms and conditions of each such agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and participants. 
 (b) Rights as a Shareholder. Upon the grant of the Restricted Stock Award and payment of any applicable purchase price, a participant shall have the rights of a shareholder with respect to the
voting of the Restricted Stock and receipt of dividends. Notwithstanding the foregoing, cash dividends on shares covered by the Restricted Stock Award that remain subject to risk of forfeiture due to failure to meet performance-based conditions must
be retained by or repaid by the participant to the Company; provided that, to the extent provided for in the Restricted Stock Award certificate, an amount equal to such cash dividends retained or repaid by the participant may be paid to the
participant upon the lapsing of the performance-based conditions with respect to such Restricted Stock Award. Unless the Administrator shall otherwise determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the
records of the Company or the transfer agent to the effect that they are subject to forfeiture until such Restricted Stock is vested as provided in Section 6(d) below, and (ii) certificated Restricted Stock shall remain in the possession
of the Company until such Restricted Stock is vested as provided in Section 6(d) below, and the participant shall be required, as a condition of the grant, to deliver to the Company such instruments of transfer as the Administrator may
prescribe. 
 (c) Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered
or disposed of except as specifically provided herein or in the Restricted Stock Award agreement. If a participant’s employment (or other business relationship) with the Company and its Subsidiaries terminates for any reason, the Company shall
have the right to repurchase Restricted Stock that has not vested at the time of termination at its original purchase price, from the participant or the participant’s legal representative. 

  
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 (d) Vesting of Restricted Stock. The Administrator at the time of grant shall specify
the date or dates and/or the attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company’s right of repurchase or forfeiture shall lapse. Subsequent
to such date or dates and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares on which all restrictions have lapsed shall no longer be Restricted Stock and shall be deemed “vested.”
Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to Section 17 below, in writing after the Award agreement is issued, a participant’s rights in any shares of Restricted Stock that have not
vested shall automatically terminate upon the participant’s termination of employment (or other business relationship) with the Company and its Subsidiaries and such shares shall be subject to the Company’s right of repurchase as provided
in Section 6(c) above. 
  

	SECTION 7.	RESTRICTED STOCK UNITS 

(a) Nature of Restricted Stock Units. An Award of Restricted Stock Units is an Award of phantom stock units to a participant,
subject to restrictions and conditions as the Administrator may determine at the time of grant. Conditions may be based on continuing employment (or other business relationship) and/or achievement of pre-established performance goals and objectives.
The grant of a Restricted Stock Unit is contingent on the participant executing the Award agreement. The terms and conditions of each such Award agreement shall be determined by the Administrator, and such terms and conditions may differ among
individual Awards and participants. Except in the case of Restricted Stock Units with a deferred settlement date that satisfies Section 409A of the Code, at the end of the vesting period, the Restricted Stock Unit, to the extent vested, shall
be settled in the form of shares of Stock. Any payment of shares of Stock under an Award of Restricted Stock Units subject to Section 409A of the Code to a participant on account of the participant’s separation of service may not be made
before the date that is six months after the date of separation from service if the participant is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code. 

(b) Election to Receive Restricted Stock Units in Lieu of Compensation. The Administrator may, in its sole discretion, permit a
participant to elect to receive a portion of the cash compensation or Restricted Stock Award otherwise due to such participant in the form of Restricted Stock Units. Any such election shall be made in writing and shall be delivered to the Company no
later than the date specified by the Administrator and in accordance with rules and procedures established by the Administrator. The Administrator shall have the sole right to determine whether and under what circumstances to permit such elections
and to impose such limitations and other terms and conditions thereon as the Administrator deems appropriate. 
 (c) Rights
as a Shareholder. A participant shall have the rights as a shareholder only as to shares of Stock acquired by the participant upon settlement of Restricted Stock Units; provided, however, that the participant may be credited with Dividend
Equivalent Rights with respect to the Restricted Stock Units, subject to the provisions of Section 13(a) and such terms and conditions as the Administrator may determine. 
 (d) Restrictions. A Restricted Stock Unit may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of during the deferral period. 

(e) Termination. Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to
Section 17 below, in writing after the Award agreement is issued, a participant’s right in all Restricted Stock Units that have not vested shall automatically terminate upon the participant’s termination of employment (or cessation of
business relationship) with the Company and its Subsidiaries for any reason. 
  

	SECTION 8.	UNRESTRICTED STOCK AWARDS 

Grant or Sale of Unrestricted Stock. The Administrator may, in its sole discretion, grant (or sell at par value or such other
higher purchase price determined by the Administrator) an Unrestricted Stock Award to any participant pursuant to which such participant may receive shares of Stock free of any restrictions (“Unrestricted Stock”) under the
Plan. Unrestricted Stock Awards may be granted or sold as described in the preceding sentence in respect of past services or other valid consideration, or in lieu of any cash compensation due to such participant. 

  
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	SECTION 9.	PERFORMANCE SHARE AWARDS 

(a) Nature of Performance Share Awards. A Performance Share Award is an Award entitling the recipient to acquire shares of Stock
upon the attainment of specified performance goals. The Administrator may make Performance Share Awards independent of or in connection with the granting of any other Award under the Plan. The Administrator in its sole discretion shall determine
whether and to whom Performance Share Awards shall be made, the performance goals applicable under each such Award, the periods during which performance is to be measured, and all other limitations and conditions applicable to the awarded
Performance Shares; provided, however, that the Administrator may rely on the performance goals and other standards applicable to other performance unit plans of the Company in setting the standards for Performance Share Awards under the Plan.

 (b) Rights as a Shareholder. A participant receiving a Performance Share Award shall have the rights of a shareholder
only as to shares of Stock actually received by the participant under the Plan and not with respect to shares subject to the Award but not actually received by the participant. A participant shall be entitled to receive shares of Stock under a
Performance Share Award only upon satisfaction of all conditions specified in the written instrument evidencing the Performance Share Award (or in a performance plan adopted by the Administrator). 

(c) Termination. Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to
Section 17 below, in writing after the Award agreement is issued, a participant’s rights in all Performance Share Awards shall automatically terminate upon the participant’s termination of employment (or cessation of business
relationship) with the Company and its Subsidiaries for any reason. 
 (d) Acceleration, Waiver, Etc. At any time prior
to the participant’s termination of employment (or other business relationship) by the Company and its Subsidiaries, the Administrator may in its sole discretion accelerate, waive or, subject to Section 17, amend any or all of the goals,
restrictions or conditions imposed under any Performance Share Award. 
  

	SECTION 10.	OTHER STOCK-BASED AWARDS 

(a) Nature of Other Stock-Based Awards. An Other Stock-Based Award includes other Awards of Stock and other Awards that are valued
in whole or in part by reference to, or are otherwise based on, Stock, including without limitation, convertible preferred stock, convertible debentures, exchangeable securities and Awards valued by reference to book value or subsidiary performance.
An Other Stock-Based Award may be granted to any participant either along side or in addition to or in tandem with Stock Options, Restricted Stock or Deferred Stock granted under the Plan and/or cash awards made outside of the Plan. Stock (including
securities convertible into Stock) issued on a bonus basis under this Section 10 may be issued for no cash consideration. Stock (including securities convertible into Stock) purchased with a purchase right awarded under this Section 10
shall be priced at least 25 percent of the Fair Market Value of the Stock on the date of grant. The grant of an Other Stock-Based Award may be subject to restrictions and conditions as the Administrator may determine at the time of grant, including
conditions based on continuing employment (or other business relationship) and/or achievement of pre-established performance goals and objectives. The grant of an Other Stock-Based Award is contingent on the participant executing the Award
agreement. The terms and conditions of each such agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and participants. 

(b) Rights as a Shareholder. Until such time as an Other Stock-Based Award is actually paid out in shares of Stock, a participant
shall have no rights as a holder of Stock. 

  
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 (c) Restrictions. An Other Stock-Based Award may not be sold, assigned, transferred,
pledged or otherwise encumbered or disposed of except as specifically provided herein or in the Award agreement. 
 (d)
Termination. Except as may otherwise be provided by the Administrator in the Award agreement or, subject to Section 17 below, in writing after the Award agreement is issued, a participant’s right in his Other Stock-Based Awards that
have not vested shall automatically terminate upon the participant’s termination of employment (or cessation of business relationship) with the Company and its Subsidiaries for any reason. 

 

	SECTION 11.	CASH-BASED AWARDS 

Grant of Cash-Based Awards. The Administrator may, in its sole discretion, grant Cash-Based Awards to any grantee in such number
or amount and upon such terms, and subject to such conditions, as the Administrator shall determine at the time of grant. The Administrator shall determine the maximum duration of the Cash-Based Award, the amount of cash to which the Cash-Based
Award pertains, the conditions upon which the Cash-Based Award shall become vested or payable, and such other provisions as the Administrator shall determine. Each Cash-Based Award shall specify a cash-denominated payment amount, formula or payment
ranges as determined by the Administrator. Payment, if any, with respect to a Cash-Based Award shall be made in accordance with the terms of the Award and may be made in cash or in shares of Stock, as the Administrator determines. 

 

	SECTION 12.	PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES 

 (a) Performance-Based Awards. Any employee or other key person providing services to the Company and who is selected by the Administrator may be granted one or more Performance-Based Awards in the
form of a Restricted Stock Award, Restricted Stock Unit, Performance Share Award, Other Stock-Based Award or Cash-Based Award payable upon the attainment of Performance Goals that are established by the Administrator and relate to one or more of the
Performance Criteria, in each case on a specified date or dates or over any period or periods determined by the Administrator. The Administrator shall define in an objective fashion the manner of calculating the Performance Criteria it selects to
use for any Performance Period. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a region, division, business unit,
or an individual. The Administrator, in its discretion, may adjust or modify the calculation of Performance Goals for such Performance Period in order to prevent the dilution or enlargement of the rights of an individual (i) in the event of, or
in anticipation of, any unusual or extraordinary corporate item, transaction, event or development, (ii) in recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company or the financial statements of the
Company, or (iii) in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles or business conditions; provided, however, that the Administrator may not exercise such discretion in a manner that would
increase the Performance-Based Award granted to a Covered Employee. Each Performance-Based Award shall comply with the provisions set forth below. 
 (b) Grant of Performance-Based Awards. With respect to each Performance-Based Award granted to a Covered Employee, the Administrator shall select, within the first 90 days of a Performance Cycle
(or, if shorter, within the maximum period allowed under Section 162(m) of the Code) the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion (including a threshold level of performance below
which no amount will become payable with respect to such Award). Each Performance-Based Award will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various applicable performance targets. The
Performance Criteria established by the Administrator may be (but need not be) different for each Performance Cycle and different Performance Goals may be applicable to Performance-Based Awards to different Covered Employees. 

(c) Payment of Performance-Based Awards. Following the completion of a Performance Cycle, the Administrator shall meet to review
and certify in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and, if so, to also calculate and certify in writing the amount of the 

  
 10 

 
Performance-Based Awards earned for the Performance Cycle. The Administrator shall then determine the actual size of each Covered Employee’s Performance-Based Award, and, in doing so, may
reduce or eliminate the amount of the Performance-Based Award for a Covered Employee if, in its sole judgment, such reduction or elimination is appropriate. 
 (d) Maximum Award Payable. The maximum Performance-Based Award payable to any one Covered Employee under the Plan for a Performance Cycle is 50,000 shares (subject to adjustment as provided in
Section 3(b) hereof) or $2,500,000 in the case of a Performance-Based Award that is a Cash-Based Award. 
  

	SECTION 13.	DIVIDEND EQUIVALENT RIGHTS 

 (a) Dividend Equivalent Rights. A Dividend Equivalent Right is an Award entitling the recipient to receive credits based on cash dividends that would have been paid on the shares of Stock specified
in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the recipient. A Dividend Equivalent Right may be granted hereunder to any participant as a component of an Award or as a
freestanding award. The terms and conditions of Dividend Equivalent Rights shall be specified in the grant. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in
additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment. Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination
thereof, in a single installment or installments. A Dividend Equivalent Right granted as a component of an award of Restricted Stock Units or Other Stock-Based Award with performance-based vesting or Performance Share Award shall provide that such
Dividend Equivalent Right may not be exercisable or payable unless and until the performance-based conditions have been met. 

(b) Interest Equivalents. Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide in
the grant for interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions as may be specified by the grant. 

(c) Termination. Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to
Section 17 below, in writing after the Award agreement is issued, a participant’s rights in all Dividend Equivalent Rights or interest equivalents shall automatically terminate upon the participant’s termination of employment (or
cessation of business relationship) with the Company and its Subsidiaries for any reason. 
  

	SECTION 14.	TAX WITHHOLDING 

 (a)
Payment by Participant. Each participant shall, no later than the date as of which the value of an Award or of any Stock or other amounts received thereunder first becomes includable in the gross income of the participant for Federal income
tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld with respect to such income. The Company and its
Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant. The Company’s obligation to deliver stock certificates to any participant is subject to
and conditioned on tax obligations being satisfied by the participant. 
 (b) Payment in Stock. Subject to approval by
the Administrator, a participant may elect to have the minimum tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued pursuant to any Award a number of shares with an
aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the minimum withholding amount due. 

  
 11 

	SECTION 15.	TRANSFERABILITY OF AWARDS 

(a) Transferability. Except as provided in Section 15(b) below, during a participant’s lifetime, his or her Awards shall
be exercisable only by the participant, or by the participant’s legal representative or guardian in the event of the participant’s incapacity. No Awards shall be sold, assigned, transferred or otherwise encumbered or disposed of by a
participant other than by will or by the laws of descent and distribution or pursuant to a domestic relations order. No Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind, and any purported transfer in
violation hereof shall be null and void. 
 (b) Administrator Action. Notwithstanding Section 15(a), the
Administrator, in its discretion, may provide either in the Award Certificate regarding a given Award or by subsequent written approval that the participant (who is an employee or director) may transfer his or her Non-Qualified Options to his or her
immediate Family Members for no value or consideration, provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Award. In no event may an Award be transferred by
a participant for value. 
 (c) Family Member. For purposes of Section 15(b), “Family Member” shall mean a
participant’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the participant’s household (other than a tenant of the participant), a trust in which these persons (or the participant) have more than 50 percent of the beneficial interest, a foundation in which these
persons (or the participant) control the management of assets, and any other entity in which these persons (or the participant) own more than 50 percent of the voting interests. 

(d) Designation of Beneficiary. Each participant to whom an Award has been made under the Plan may designate a beneficiary or
beneficiaries to exercise any Award or receive any payment under any Award payable on or after the participant’s death. Any such designation shall be on a form provided for that purpose by the Administrator and shall not be effective until
received by the Administrator. If no beneficiary has been designated by a deceased participant, or if the designated beneficiaries have predeceased the participant, the beneficiary shall be the participant’s estate. 

 

	SECTION 16.	TRANSFER, LEAVE OF ABSENCE, ETC. 

 For purposes of the Plan, the following events shall not be deemed a termination of employment: 
 (a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another Subsidiary; or 

(b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the
employee’s right to re-employment is guaranteed either by a statute or by contract or under the written policy pursuant to which the leave of absence was granted or if the Administrator otherwise so provides in writing. 

 

	SECTION 17.	AMENDMENTS AND TERMINATION 

 Unless sooner terminated as herein provided, the Plan shall terminate on the tenth anniversary of the date the Plan is approved by the Administrator and no Award shall be granted under the Plan on and
after such date. The termination of the Plan shall not adversely affect the rights under any outstanding Award without the holder’s written consent. The Administrator may, at any time, amend or discontinue the Plan and the Administrator may, at
any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s written consent.
Except as provided in Section 3(b) or 3(c), in no event may the 

  
 12 

 
Administrator exercise its discretion to reduce the exercise price of outstanding Stock Options or effect repricing of Stock Options through cancellation and re-grants or cancellation in exchange
for cash. Any material Plan amendments (other than amendments that curtail the scope of the Plan), including any Plan amendments that (i) increase the number of shares reserved for issuance under the Plan, (ii) expand the type of Awards
available under, materially expand the eligibility to participate in, or materially extend the term of, the Plan, or (iii) materially change the method of determining Fair Market Value, shall be subject to approval by the Company shareholders
entitled to vote at a meeting of shareholders. In addition, to the extent determined by the Administrator to be required by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code or to
ensure that compensation earned under Awards qualifies as performance-based compensation under Section 162(m) of the Code, Plan amendments shall be subject to approval by the Company shareholders entitled to vote at a meeting of shareholders.
Nothing in this Section 17 shall limit the Board’s authority to take any action permitted pursuant to Section 3(c). 
  

	SECTION 18.	STATUS OF PLAN 

 Unless
the Administrator shall otherwise expressly determine in writing, with respect to the portion of any Award which has not been exercised and any payments in cash, Stock or other consideration not received by a participant, a participant shall have no
rights greater than those of a general creditor of the Company. In its sole discretion, the Administrator may authorize the creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with
respect to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the foregoing sentence. 
  

	SECTION 19.	SECTION 409A AWARDS 

To the extent that any Award is determined to constitute “nonqualified deferred compensation” within the meaning of
Section 409A (a “409A Award”), the Award shall be subject to such additional rules and requirements as specified by the Administrator from time to time in order to comply with Section 409A. In this regard, if any amount
under a 409A Award is payable upon a “separation from service” (within the meaning of Section 409A) to a participant who is then considered a “specified employee” (within the meaning of Section 409A), then
no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the participant’s separation from service, or (ii) the participant’s death, but only to the extent such delay is necessary to
prevent such payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A. Further, the settlement of any such Award may not be accelerated except to the extent permitted by Section 409A.

  

	SECTION 20.	GENERAL PROVISIONS 

 (a)
No Distribution; Compliance with Legal Requirements. The Administrator may require each person acquiring Stock pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the shares without a view
to distribution thereof. 
 No shares of Stock shall be issued pursuant to an Award until all applicable securities law and
other legal and stock exchange or similar requirements have been satisfied. The Administrator may require the placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it deems appropriate. 

(b) Delivery of Stock Certificates. Stock certificates to be delivered to participants under this Plan shall be deemed delivered
for all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the participant, at the participant’s last known address on file with the Company.
Uncertificated Stock shall be deemed delivered for all purposes when the Company or a Stock transfer agent of the Company shall have given to the participant by electronic mail (with proof of receipt) or by United States mail, addressed to the
participant, at the participant’s last known address on file with the Company, notice of issuance and recorded the issuance in its records (which may include electronic “book entry”

  
 13 

 
records). Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Stock pursuant to the exercise of any Award,
unless and until the Board has determined, with advice of counsel (to the extent the Board deems such advice necessary or advisable), that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of
governmental authorities and, if applicable, the requirements of any exchange on which the shares of Stock are listed, quoted or traded. All Stock certificates delivered pursuant to the Plan shall be subject to any stop-transfer orders and other
restrictions as the Administrator deems necessary or advisable to comply with federal, state or foreign jurisdiction, securities or other laws, rules and quotation system on which the Stock is listed, quoted or traded. The Administrator may place
legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the terms and conditions provided herein, the Board may require that an individual make such reasonable covenants, agreements, and representations as
the Board, in its discretion, deems necessary or advisable in order to comply with any such laws, regulations, or requirements. The Administrator shall have the right to require any individual to comply with any timing or other restrictions with
respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Administrator. 
 (c) Shareholder Rights. Until Stock is deemed delivered in accordance with Section 20(b), no right to vote or receive dividends or any other rights of a shareholder will exist with respect to
shares of Stock to be issued in connection with an Award, notwithstanding the exercise of a Stock Option or any other action by the participant with respect to an Award. 
 (d) Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and
such arrangements may be either generally applicable or applicable only in specific cases. The adoption of this Plan and the grant of Awards shall not confer upon any employee any right to continued employment with the Company or any Subsidiary and
shall not interfere in any way with the right of the Company or any Subsidiary to terminate the employment of any of its employees at any time. 
 (e) Trading Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to such Company insider-trading-policy-related restrictions, terms and conditions as may be
established by the Administrator, or in accordance with policies set by the Administrator, from time to time. 
 (f)
Forfeiture of Awards under Sarbanes-Oxley Act. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the
securities laws, then any participant who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 shall reimburse the Company for the amount of any Award received by such individual under
the Plan during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission, as the case may be, of the financial document embodying such financial reporting requirement. 

 

	SECTION 21.	EFFECTIVE DATE OF PLAN 

This Plan shall become effective upon shareholder approval in accordance with Tennessee law, the Company’s amended and restated
charter and bylaws and applicable stock exchange rules. No grants of Awards may be made hereunder after the tenth anniversary of the Effective Date. 
  

	SECTION 22.	GOVERNING LAW 

 This Plan
and all Awards and actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State of Tennessee, applied without regard to conflict of law principles. 
 DATE OF APPROVAL OF PLAN BY BOARD: JUNE 17, 2013 
 DATE OF APPROVAL BY SHAREHOLDERS: SEPTEMBER 27,
2013 

  
 14EX-4.2

 Exhibit 4.2 

 
  

 
 STOCKHOLDERS’ AGREEMENT

 by and among 
 EXTENDED STAY AMERICA, INC., ESH HOSPITALITY, INC. 
 and 

SUCH PERSONS LISTED FROM TIME TO TIME AS SIGNATORIES HERETO AS “SPONSOR SHAREHOLDERS” 

Dated as of [—](1), 2013 
  

 
  

 
  
  

 
  
  

 
  
  

	1.	NOTE: Agreement will be dated and in place prior to the effective date of the ESA/ESH Form 8-A. 

 TABLE OF CONTENTS 

 

							
	ARTICLE I Definitions and Rules of Construction	  	 	1	  
	 1.1.
	 	 Definitions.
	  	 	1	  
	 1.2.
	 	 Rules of Construction.
	  	 	5	  
	ARTICLE II Board of Directors; Consent Rights	  	 	6	  
	 2.1.
	 	 Board of Directors.
	  	 	6	  
	 2.2.
	 	 Consent Rights.
	  	 	9	  
	ARTICLE III Information	  	 	10	  
	 3.1.
	 	 Books and Records.
	  	 	10	  
	 3.2.
	 	 Sharing of Information.
	  	 	10	  
	 3.3.
	 	 Outside Activities; Corporate Opportunities.
	  	 	11	  
	ARTICLE IV General Provisions	  	 	12	  
	 4.1.
	 	 Termination.
	  	 	12	  
	 4.2.
	 	 Notices.
	  	 	12	  
	 4.3.
	 	 Amendment; Waiver.
	  	 	14	  
	 4.4.
	 	 Further Assurances.
	  	 	14	  
	 4.5.
	 	 Assignment.
	  	 	14	  
	 4.6.
	 	 Third Parties.
	  	 	15	  
	 4.7.
	 	 Entire Agreement.
	  	 	15	  
	 4.8.
	 	 Severability.
	  	 	15	  
	 4.9.
	 	 Governing Law.
	  	 	15	  
	 4.10.
	 	 Jurisdiction; Waiver of Trial.
	  	 	15	  
	 4.11.
	 	 Specific Performance.
	  	 	16	  
	 4.12.
	 	 Table of Contents, Headings and Captions.
	  	 	16	  
	 4.13.
	 	 Counterparts.
	  	 	16	  
	 4.14.
	 	 No Recourse.
	  	 	16	  

 STOCKHOLDERS’ AGREEMENT 

This STOCKHOLDERS’ AGREEMENT, is entered into as of
[—](1), 2013,
 by and among Extended Stay America, Inc. (the “Company”), ESH Hospitality, Inc. (“ESH REIT”, and together with the Company, the “ESH Companies”), and each of the other parties identified on the
signature pages hereto (all of such other parties, in their respective capacities as shareholders of the Company or ESH REIT at the time of determination, and their respective successors and permitted assigns, collectively, the “Sponsor
Shareholders”, and the Sponsor Shareholders together with the ESH Companies, the “Parties”). 

RECITALS 

WHEREAS, the ESH Companies are currently contemplating an underwritten public offering (the “IPO”) of the Extended Stay
Common Stock (defined below); 
 WHEREAS, Sponsor Shareholders or their Affiliates and certain other shareholders of the ESH
Companies are party to a certain Stockholders’ Agreement of the ESH Companies (as amended, the “Pre-IPO Stockholders’ Agreement”), which sets forth certain rights of the Sponsor Shareholders or their Affiliates in respect
of corporate governance and other matters, and which Pre-IPO Stockholders’ Agreement is to be terminated in connection with the IPO; 
 WHEREAS, on the date of completion of the IPO (the “Closing Date”), the Sponsor Shareholders will collectively own a majority of the outstanding shares of paired common stock units, each
comprised of one share of common stock of the Company, par value $0.01 per share (the “Company Common Stock”), and one share of Class B common stock of ESH REIT, par value $0.01 per share (the “Class B Common
Stock”, and the Company Common Stock and the Class B Common Stock, as attached and traded together as paired shares, the “Extended Stay Common Stock”); and 

WHEREAS, as of the Closing Date, in respect of the ESH Companies as of the Closing Date, the Parties wish to provide for certain
corporate governance and other matters previously provided for in the Pre-IPO Stockholders’ Agreement. 
 NOW THEREFORE, in
consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties to this Agreement hereby agree as follows: 

ARTICLE I 

Definitions and Rules of Construction 
  

	 	1.1.	Definitions. 

 As used in
this Agreement, the following terms shall have the meanings set forth below: 
 “Affiliate” means, as to any
Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of 
  

 
  
  

 

	1.	NOTE: Agreement will be dated and in place prior to the effective date of the ESA/ESH Form 8-A. 

 
this definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the securities having ordinary voting power for the election of
directors of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise. 
 “Aggregate Continuing Ownership Test” shall have the meaning set forth in Section 2.1(c)(ii). 
 “Aggregate Minimum Consent Threshold” shall have the meaning set forth in Section 2.2(a). 
 “Agreement” means this Stockholders’ Agreement, as it may be amended from time to time. 
 “beneficially own” or “beneficial ownership” shall have the meaning ascribed to such terms in Rule 13d–3 under the Exchange Act. 

“Blackstone Shareholders” means the entities listed on the signature pages hereto under the heading “Blackstone
Shareholders”, in addition to their respective successors and permitted assigns. 
 “Bylaws” means the
bylaws of Extended Stay America, Inc., as they may be amended or restated from time to time, and the bylaws of ESH Hospitality, Inc., as they may be amended or restated from time to time. 

“Cause” means, with respect to a Director, conviction of a felony. 

“Centerbridge Shareholders” means the entities listed on the signature pages hereto under the heading “Centerbridge
Shareholders”, in addition to their respective successors and permitted assigns. 
 “Charter” means, in
respect of the Company, the certificate of incorporation of Extended Stay America, Inc., as it may be amended or restated from time to time, and in respect of ESH REIT, the certificate of incorporation of ESH Hospitality, Inc., as it may be amended
or restated from time to time. “Charters” means the Charter of the Company and the Charter of ESH REIT. 

“Claim” means any claim, action, hearing, audit, litigation or suit, commenced, brought, conducted, or heard by or
before, or otherwise involving, any Person. 
 “Class A Common Stock” means the Class A common stock of
ESH REIT, par value $0.01 per share. 
 “Class B Common Stock” shall have the meaning set forth in the
Recitals. 
 “Closing Date” shall have the meaning set forth in the Recitals. 

  
 - 2 -

 “Company” shall have the meaning set forth in the Preamble. 

“Company Board” means the board of directors of the Company or such other equivalent governing body of the Company.

 “Company Common Stock” shall have the meaning set forth in the Recitals. 

“Continuing Ownership Test” shall have the meaning set forth in Section 2.1(c)(i). 

“Control” (including its correlative meanings, “Controlled by” and “under common Control
with”) means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise) of a
Person. 
 “Covered Opportunity” shall have the meaning set forth in Section 3.3(c). 

“Director” means, in respect of the Company Board or the ESH REIT Board, a Person designated or appointed as a member
thereof in accordance with Section 2.1. 
 “ESH Companies” shall have the meaning set forth in the
Preamble. 
 “ESH REIT” shall have the meaning set forth in the Preamble. 

“ESH REIT Board” means the board of directors of ESH REIT, or such other equivalent governing body of ESH REIT.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and
regulations promulgated pursuant thereto. 
 “Extended Stay Common Stock” shall have the meaning set forth in
the Recitals. 
 “Governmental Authority” means any: (i) nation, state, commonwealth, province, territory,
county, municipality, district or other jurisdiction of any nature; (ii) U.S. and other federal, state, local, municipal, foreign or other government; or (iii) governmental or quasi–governmental authority of any nature (including any
governmental division, department, agency, commission, instrumentality, official, organization, unit, body or entity and any court or other tribunal). 
 “Independent Director” means a director that satisfies (a) the requirements to qualify as an “independent director” under the rules of the New York Stock Exchange, and
(b) the independence requirements of Rule 10A-3 of the Exchange Act. 
 “Information” shall have the
meaning set forth in Section 3.1(a). 
 “Initial REIT Board Period” shall have the meaning set forth in
Section 2.1(b). 

  
 - 3 -

 “IPO” shall have the meaning set forth in the Recitals. 

“Law” means any applicable constitutional provision, statute, act, code, law, regulation, rule, ordinance, order,
decree, ruling, proclamation, resolution, judgment, decision, declaration, or interpretative or advisory opinion or letter of a Governmental Authority and shall include, for the avoidance of any doubt, the Delaware General Corporation Law, the
listing or other standards of any applicable stock exchange, the Securities Act, and the Exchange Act. 
 “Outside
Activities” shall have the meaning set forth in Section 3.3(a). 
 “Parties” shall have the
meaning set forth in the Preamble. 
 “Paulson Shareholders” means the entities listed on the signature pages
hereto under the heading “Paulson Shareholders”, in addition to their respective successors and permitted assigns. 

“Person” means any natural person, corporation, limited partnership, general partnership, limited liability company,
joint stock company, joint venture, association, company, estate, trust, bank trust company, land trust, business trust, or other organization, whether or not a legal entity, custodian, trustee–executor, administrator, nominee or entity in a
representative capacity and any government or agency or political subdivision thereof. 
 “Pre-IPO Stockholders’
Agreement” shall have the meaning set forth in the Recitals. 
 “Requisite Consent” shall have the
meaning set forth in Section 2.2(a). 
 “Securities Act” means the Securities Act of 1933, as amended from
time to time, and the rules and regulations promulgated pursuant thereto. 
 “Sponsor Shareholder Group” means,
as applicable, in respect of: (i) the Centerbridge Shareholders, such shareholders as a collective; (ii) the Blackstone Shareholders, such shareholders as a collective; and (iii) the Paulson Shareholders, such shareholders as a
collective. 
 “Sponsor Shareholders” shall have the meaning set forth in the Preamble. 

“Subsidiary” with respect to any Person, any corporation, limited liability company, partnership, association or other
business entity of which: (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, representatives or trustees thereof is
at the time owned or Controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; or (ii) if a limited liability company, partnership, association or other business entity,
a majority of the total voting power of stock (or equivalent ownership interest) of the limited liability company, partnership, association or other business entity is at the time owned or Controlled, directly or indirectly, by any Person or one or

  
 - 4 -

 
more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company,
partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or Control the managing member,
managing director or other governing body or general partner of such limited liability company, partnership, association or other business entity. 
 “Transfer” (including its correlative meanings, “Transferor”, “Transferee” and “Transferred”) means, with respect to any security,
directly or indirectly, to sell, contract to sell, give, assign, hypothecate, pledge, encumber, grant a security interest in, offer, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant
to purchase, lend or otherwise transfer or dispose of any economic, voting or other rights in or to such security. When used as a noun, “Transfer” shall have such correlative meaning as the context may require. 

 

	 	1.2.	Rules of Construction. 

Unless the context otherwise requires: 
 (a) A capitalized term has the meaning assigned to it; 
 (b) References in the
singular or to “him,” “her,” “it,” “itself,” or other like references, and references in the plural or the feminine or masculine reference, as the case may be, shall also, when the context so requires, be
deemed to include the plural or singular, or the masculine or feminine reference, as the case may be; 
 (c) References to
Articles, Sections and Exhibits shall refer to articles, sections and exhibits of this Agreement, unless otherwise specified; 

(d) The headings in this Agreement are for convenience and identification only and are not intended to describe, interpret, define or
limit the scope, extent or intent of this Agreement or any provision thereof; 
 (e) This Agreement shall be construed without
regard to any presumption or other rule requiring construction against the party that drafted and caused this Agreement to be drafted; and 
 (f) References to “including” in this Agreement shall mean “including, without limitation,” whether or not so specified. 

  
 - 5 -

 ARTICLE II 
 Board of Directors; Consent Rights 
  

	 	2.1.	Board of Directors. 

 (a)
Company. Effective as of the Closing Date, the Company Board shall be comprised of seven (7) Directors, of whom, subject to Section 2.1(c), one (1) shall be a designee of the Centerbridge Shareholders, one (1) shall be a
designee of the Blackstone Shareholders, one (1) shall be a designee of the Paulson Shareholders, one (1) shall be jointly designated by the Sponsor Shareholders, which designee, to the extent not an executive officer of the Company and
otherwise practicable, shall satisfy the requirements to qualify as an Independent Director, and three (3) shall be nominated by the Company Board and shall be Independent Directors to the extent necessary to allow the Company to satisfy all
obligations in respect of legal and regulatory requirements that it have Independent Directors. 
 (b) ESH REIT. The ESH
REIT Board shall be comprised of, (i) effective as of the Closing Date and for up to one (1) year following the Closing Date (such period, the “Initial REIT Board Period”), five (5) Directors, of whom, subject to
Section 2.1(c), one (1) shall be a designee of the Centerbridge Shareholders, one (1) shall be a designee of the Blackstone Shareholders, one (1) shall be a designee of the Paulson Shareholders, one (1) shall be jointly
designated by the Sponsor Shareholders, and one (1) shall be nominated by the ESH REIT Board to satisfy the requirements to qualify as an Independent Director; and (ii) following the end of the Initial REIT Board Period, seven
(7) Directors, of whom, subject to Section 2.1(c), one (1) shall be a designee of the Centerbridge Shareholders, one (1) shall be a designee of the Blackstone Shareholders, one (1) shall be a designee of the Paulson
Shareholders, one (1) shall be jointly designated by the Sponsor Shareholders, which designee, to the extent not an executive officer of ESH REIT and otherwise practicable, shall satisfy the requirements to qualify as an Independent Director,
and three (3) shall be nominated by the ESH REIT Board and shall be Independent Directors to the extent necessary to allow ESH REIT to satisfy all obligations in respect of legal and regulatory requirements that it have independent directors.

 (c) The rights, entitlements and designations set forth in Sections 2.1(a) and (b) shall be subject to the following:

 (i) A Sponsor Shareholder Group shall be entitled to designate Directors to the Company Board or the ESH REIT Board so long
as such Sponsor Shareholder Group beneficially owns, directly or indirectly, in respect of the Company, at least 5% of the outstanding shares of Company Common Stock, and in respect of ESH REIT, at least 5% of the outstanding shares of Class B
Common Stock (such ownership threshold, in each case, the “Continuing Ownership Test”). 
 (ii) The Sponsor
Shareholders shall be entitled to jointly designate Directors as provided in Sections 2.1(a) and (b), so long as, in respect of the Company, the Sponsor Shareholders in the aggregate beneficially own, directly or indirectly, at least 50% of the
outstanding shares of Company Common Stock, and in respect of ESH REIT, the Sponsor Shareholders in the aggregate beneficially own, directly or indirectly, at least 50% of the outstanding shares of Class B Common Stock (such ownership threshold, in
each case, the “Aggregate Continuing Ownership Test”). 

  
 - 6 -

 (iii) A Sponsor Shareholder Group that has designated a Person for nomination and election
to the Company Board or ESH REIT Board, as applicable, in accordance with Section 2.1(c)(i) shall have, for so long as it satisfies the Continuing Ownership Test, and to the fullest extent permitted by applicable law, the right to remove such
Person (with or without Cause), from time to time and at any time, from the Company Board, exercisable upon written notice to the Company, or from the ESH REIT Board, exercisable upon written notice to ESH REIT. Should a Director designated by a
Sponsor Shareholder Group be removed for any reason, whether by the applicable Sponsor Shareholder Group or otherwise in accordance with the Charters or Bylaws of the ESH Companies, the Sponsor Shareholder Group that designated the removed Director
shall be entitled to designate a Person to fill the vacancy created by such removal, so long as such Sponsor Shareholder Group satisfies the Continuing Ownership Test on the date of such replacement designation. 

(iv) The Sponsor Shareholders shall have, for so long as they satisfy the Aggregate Continuing Ownership Test, and to the fullest extent
permitted by applicable law, the right to remove a Person jointly designated by the Sponsor Shareholders in accordance with Section 2.1(c)(ii) (with or without Cause), from time to time and at any time, from the Company Board, exercisable upon
written notice to the Company, or from the ESH REIT Board, exercisable upon written notice to ESH REIT. Should a Director jointly designated by the Sponsor Shareholders be removed for any reason, whether by the Sponsor Shareholders or otherwise in
accordance with the Charters or Bylaws of the ESH Companies, the Sponsor Shareholders shall be entitled to jointly designate a Person to fill the vacancy created by such removal, so long as the Sponsor Shareholders satisfy the Aggregate Continuing
Ownership Test on the date of such replacement designation. 
 (v) In the event that a Sponsor Shareholder Group ceases to have
the right, in accordance with this Section 2.1, to designate a Person for nomination on the Company Board or the ESH REIT Board, as applicable, such Sponsor Shareholder Group’s designee on the Company Board or the ESH REIT Board, as
applicable, may complete his or her term on the Company Board or ESH Board, as applicable, but shall otherwise have no entitlement to be re-nominated to the Company Board or ESH Board, as applicable. 

(vi) In the event that the Sponsor Shareholders cease to have the right, in accordance with this Section 2.1, to jointly designate
a Person for nomination on the Company Board or the ESH REIT Board, as applicable, the Sponsor Shareholders’ joint designee on the Company Board or the ESH REIT Board, as applicable, may complete his or her term on the Company Board or ESH
Board, as applicable, but shall otherwise have no entitlement to be re-nominated to the Company Board or ESH Board, as applicable. 
 (vii) In the event that a vacancy is created on the Company Board or the ESH REIT Board, as applicable, at any time by the (A) death, (B) disability, or (C) retirement or resignation of any
Director (other than a retirement or resignation as a result of (1) in the case of a Director designated by a particular Sponsor Shareholder Group, the failure of the applicable Sponsor Shareholder Group to meet the Continuing Ownership Test or
(2) in the case 

  
 - 7 -

 
of a Director jointly designated by Sponsor Shareholders, the failure of the Sponsor Shareholders to meet the Aggregate Continuing Ownership Test), the Sponsor Shareholder Group who designated
such Director shall cause such vacancy to be filled by a new designee, and the Company or ESH REIT, as applicable, shall take all actions necessary to accomplish the same. 
 (viii) In the event that the size of the Company Board or the ESH REIT Board is reduced or increased for any reason (including without limitation, pursuant to Section 2.2(a)(i)) other than as
provided in this Section 2.1, after giving effect to the designees of each Sponsor Shareholder Group then eligible to designate Persons for nomination, so long as the Sponsor Shareholders satisfy the Aggregate Ownership Test, the Sponsor
Shareholders shall be entitled to jointly designate such number of Persons as is required to result in the majority of nominees for election to the Company Board or ESH REIT Board, as applicable, to be comprised of designees of the eligible Sponsor
Shareholders in the aggregate, on the Company Board or the ESH REIT Board, as applicable. 
 (ix) Subject to and in accordance
with applicable listing requirements and applicable Law, the Sponsor Shareholder Groups shall be entitled to jointly designate the members of any audit committee, nominating and corporate governance committee, or compensation committee (or committee
similar to any of the foregoing) of the Company Board or the ESH REIT Board. 
 (d) Each of the Company and ESH REIT
respectively agree to include the Persons designated pursuant to this Section 2.1 in the slate of nominees for election to the board of directors recommended by the Company Board or the ESH REIT Board, as applicable, and to use its best efforts
to cause, to the fullest extent permitted by applicable law, the election of each such designee. In the event that a Sponsor Shareholder Group wishes, or the Sponsor Shareholders wish, in accordance with Sections 2.1(c)(iii) and (iv), respectively,
to remove a Person designated by such Sponsor Shareholder Group or jointly designated by the Sponsor Shareholders for nomination and election to the Company Board or ESH REIT Board, as applicable, each of the Company and ESH REIT agree to use best
efforts to take, to the fullest extent permitted by applicable law, such actions as may be required to remove any such Person. 

(e) Each Sponsor Shareholder Group hereby agrees, so long as each such Sponsor Shareholder Group satisfies the Continuing Ownership Test,
to vote, in respect of the Company Board, such Sponsor Shareholder Group’s shares of Company Common Stock, and in respect of the ESH REIT Board, such Sponsor Shareholder Group’s shares of Class B Common Stock, for the designees of each
other Sponsor Shareholder Group eligible to make such designations, and for the joint designee of the Sponsor Shareholders, in order to effectuate the purpose and intent of this Section 2.1. The Company hereby agrees to vote the Class A
Common Stock for the designees of each Sponsor Shareholder Group eligible to make such designations and otherwise the slate of nominees recommended by the ESH REIT Board, as applicable, in order to effectuate the purpose and intent of this
Section 2.1. In the event that a Sponsor Shareholder Group wishes, in accordance with Section 2.1(c)(iii) to remove its designee to the Company Board or ESH REIT Board, as applicable, or the Sponsor Shareholders wish, in accordance with
Section 2.1(c)(iv) to remove their joint designee to the Company Board or ESH REIT Board, as applicable, (i) each other Sponsor Shareholder Group hereby agrees, so long as each such other Sponsor Shareholder Group satisfies the Continuing
Ownership Test, to vote, in 

  
 - 8 -

 
respect of the Company Board, its shares of Company Common Stock, and in respect of the ESH REIT Board, its shares of Class B Common Stock, for the removal of any such Person from the Company
Board or the ESH REIT Board, as applicable, and to otherwise use its commercially reasonable efforts to take, to the fullest extent permitted by applicable law, such actions as may be required in order to effectuate the purpose and intent of this
Section 2.1, and (ii) in respect of the ESH REIT Board, the Company hereby agrees to vote the Class A Common Stock for the removal of any such Person and to otherwise use its best efforts to take, to the fullest extent permitted by
applicable law, such actions as may be required in order to effectuate the purpose and intent of this Section 2.1. 
 (f)
Each Sponsor Shareholder Group hereby agrees to use its best efforts to designate Persons for election to the Company Board or the ESH REIT Board, as applicable, or otherwise vote for the election of nominees to the Company Board or the ESH REIT
Board, as applicable, such that after giving effect to such designations and elections, the Company Board and the ESH REIT Board each complies with the restrictions on common directors contained in the Charter of each of the Company and the ESH REIT
Board. 
  

	 	2.2.	Consent Rights 

 (a) For
so long as the Sponsor Shareholders beneficially own directly or indirectly, in the aggregate, 40% or more of the then outstanding shares of Company Common Stock or Class B Common Stock, as applicable (such ownership threshold, in each case, the
“Aggregate Minimum Consent Threshold”), the following actions by the Company or ESH REIT or any of their respective Subsidiaries, as applicable, shall require, except as otherwise indicated, the approval of a majority of the shares
of Extended Stay Common Stock then-held by the Sponsor Shareholders (the “Requisite Consent”), in addition to the approval of the Company Board or the ESH REIT Board (or the approval of the requisite governing body of any Subsidiary
of the Company or ESH REIT), as applicable: 
 (i) Increasing or decreasing the size of the Company Board or ESH REIT Board, as
applicable; 
 (ii) Establishing committees of the Company Board or ESH REIT Board, as applicable; 

(iii) Amendment of the Company’s or ESH REIT’s charter, as applicable, to remove the provision providing that the Company or
ESH REIT, as applicable, will have no expectation or entitlement with regard to corporate opportunities that come to designated directors of the Sponsors Shareholder Groups; 
 (iv) Any determination to unpair the Extended Stay Common Stock; and 
 (v) In
respect of ESH REIT, any decision not to seek to continue to qualify as a REIT. 
 (b) For so long as a Sponsor Shareholder
Group fails to satisfy the Continuing Ownership Test in respect of the Company Common Stock or the Class B Common Stock, as 

  
 - 9 -

 
applicable, such Sponsor Shareholder Group’s shares of Company Common Stock or Class B Common Stock, as applicable, shall not be included in the calculation of the Requisite Consent or the
Aggregate Minimum Consent Threshold. 
 ARTICLE III 
 Information 
  

	 	3.1.	Books and Records. 

 Each
of the ESH Companies shall, and shall cause its respective Subsidiaries to, keep proper books, records and accounts, in which full and correct entries shall be made of all financial transactions and the assets and business of the respective ESH
Companies and each of their respective Subsidiaries in accordance with generally accepted accounting principles. For so long as a Sponsor Shareholder Group meets the Continuing Ownership Test in respect of the Company or ESH REIT, as applicable,
each of the Company or ESH REIT, as applicable, shall, and shall cause its respective Subsidiaries to: 
 (a) Permit such
Sponsor Shareholder Group and its designated representatives, at reasonable times and upon reasonable prior notice to the Company or ESH REIT, as applicable, to review the books and records of the Company or ESH REIT as applicable or any of their
respective Subsidiaries and to discuss the affairs, finances and condition of the Company or ESH REIT, as applicable, or any of their respective Subsidiaries with the officers of the Company or ESH REIT, as applicable, any of their respective
Subsidiaries (all such information so furnished pursuant to this Section 3.1(a), the “Information”). 

(b) The Company and ESH REIT agree to consider, in good faith, the recommendations of the Sponsor Shareholder Groups meeting the
Continuing Ownership Test, in connection with the matters on which the Company or ESH REIT is consulted as described above. Subject to Section 3.2, any such Sponsor Shareholder Group (and any party receiving Information from such Sponsor
Shareholder Group) who shall receive Information shall maintain the confidentiality of such Information, and the Company or ESH REIT, as applicable, shall not be required to disclose any privileged Information of the Company or ESH REIT, as
applicable, so long as the Company or ESH REIT, as applicable, has used its commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to such Sponsor Shareholder Group without the loss of any such
privilege. 
  

	 	3.2.	Sharing of Information. 

Individuals associated with a Sponsor Shareholder Group may from time to time serve on the boards of directors of the Company or ESH REIT,
as applicable, and/or their respective Subsidiaries. The Company and ESH REIT, each on its behalf and on behalf of its respective Subsidiaries, recognize that such individuals (i) will from time to time receive non-public information concerning
the Company or ESH REIT, as applicable, and/or any of their respective Subsidiaries, and (ii) may (subject to the obligation to maintain the confidentiality of such information in accordance with Section 3.1) share such information with
other individuals associated with such Sponsor Shareholder Group. Such sharing will be for the dual purpose of 

  
 - 10 -

 
facilitating support to such individuals in their capacity as directors and enabling the applicable Sponsor Shareholders, in their capacity as equityholders, to better evaluate the Company’s
or ESH REIT’s performance and prospects. The Company and ESH REIT, each on behalf of itself and its respective Subsidiaries, hereby irrevocably consents to such sharing. 

 

	 	3.3.	Outside Activities; Corporate Opportunities. 

 (a) Subject to applicable Law, any of the Sponsor Shareholders, Directors designated or appointed by a Sponsor Shareholder Group or Affiliates of any of the foregoing, other than any employee of the
Company or ESH REIT, as applicable, or any of their respective Subsidiaries, may engage in or possess any interest in other investments, business ventures or Persons of any nature or description, independently or with others, similar or dissimilar
to, or that competes with, the investments or business of the Company or ESH REIT or their respective Subsidiaries, and may provide advice and other assistance to any such investment, business venture or Person (collectively, “Outside
Activities”). 
 (b) The Company, ESH REIT and their respective shareholders (other than the shareholders engaging in
the applicable Outside Activities) shall have no rights by virtue of this Agreement in and to Outside Activities or the income or profits derived therefrom, and the pursuit of any such Outside Activities, even if competitive with the business of the
Company or ESH REIT or any of their respective Subsidiaries, shall not be deemed wrongful or improper or give rise to any claim, cause of action or liability of any Sponsor Shareholder or any past, present, or future officer, director, shareholder
or Affiliate of any such Sponsor Shareholder, or any past, present, or future officer, director or shareholder of the Affiliate of any such Sponsor Shareholder. 
 (c) No Sponsor Shareholder, Director designated by a Sponsor Shareholder Group or Affiliate of any of the foregoing, other than any employee of the Company or ESH REIT or any of their respective
Subsidiaries, as applicable, shall be obligated to present any particular investment or business opportunity to the Company or ESH REIT or any of their respective Subsidiaries, as applicable, even if such opportunity is of a character that, if
presented to the Company, ESH REIT, or any of their respective Subsidiaries, as applicable, could be pursued by the Company, ESH REIT, or any of their respective Subsidiaries, as applicable, and any Sponsor Shareholder, Director designated by a
Sponsor Shareholder Group or Affiliate of any of the foregoing, other than any employee of the Company or ESH REIT or their Subsidiaries, shall have the right to pursue for its own account (individually or as a partner or a fiduciary) or to
recommend to any other Person any such investment opportunity. Each Director designated by a Sponsor Shareholder Group who is an employee of the Company or ESH REIT or any of their respective Subsidiaries, as applicable, shall, promptly after
becoming aware of any investment or business opportunity or venture such Person reasonably believes may be within the scope of the business objectives of the Company or ESH REIT or any of their respective Subsidiaries, as applicable, or otherwise
competitive with the business of the Company or ESH REIT or any of their respective Subsidiaries, as applicable (any such opportunity or venture a “Covered Opportunity”), present such Covered Opportunity to the Company or ESH REIT
as applicable, and assist the Company or ESH REIT and their respective Subsidiaries, as applicable, in the event they elect to pursue such Covered Opportunity. No Director appointed by a Sponsor Shareholder Group who is an employee of the

  
 - 11 -

 
Company or ESH REIT or their respective Subsidiaries, as applicable, may pursue a Covered Opportunity in his or her personal capacity or in conjunction with or on behalf of any other Person
without the prior written approval of the Company Board or ESH REIT Board, as applicable. 
 ARTICLE IV 

General Provisions 
  

	 	4.1.	Termination. 

 This
Agreement shall terminate upon the earlier to occur of: 
 (a) such time as none of the Sponsor Shareholder Groups satisfies the
Continuing Ownership Test in respect of the Company and ESH REIT and the Sponsor Shareholders do not satisfy the Aggregate Continuing Ownership Test or the Aggregate Minimum Consent Threshold in respect of the Company and ESH REIT; and 

(b) the delivery of written notice to the Company and ESH REIT by all of the Sponsor Shareholders, requesting the termination of this
Agreement. 
 At such time as a particular Sponsor Shareholder Group no longer satisfies the Continuing Ownership Test, all
rights and obligations of such Sponsor Shareholder Group under this Agreement shall terminate. In the event of the foregoing, the rights and obligations of each remaining Sponsor Shareholder Group under this Agreement that satisfies the Continuing
Ownership Test shall remain in full force and effect, and for all purposes, “Sponsor Shareholder Groups” shall mean such Sponsor Shareholder Groups who satisfy the Continuing Ownership Test, and “Sponsor Shareholders” shall mean
such remaining Sponsor Shareholders who are members of Sponsor Shareholder Groups that satisfy the Continuing Ownership Test. 
  

	 	4.2.	Notices. 

 Any notice
provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) or sent by reputable overnight courier service (charges prepaid) to the Company, ESH REIT, or any Sponsor
Shareholder Group at the respective addresses set forth below and to any other recipient at the address indicated on the Company’s records, or at such address or to the attention of such other Person as the recipient party has specified by
prior written notice to the sending party. Notices will be deemed to have been given hereunder when sent by facsimile (receipt confirmed) delivered personally, five (5) calendar days after deposit in the U.S. mail and one (1) calendar day
after deposit with a reputable overnight courier service. 
  

			
	If to the Company:	  	[—]
		  	[—]
		
		  	[—]

  
 - 12 -

 With a copy (which shall not constitute notice) to: 

 

			
		  	 Fried, Frank, Harris, Shriver & Jacobson LLP
 One New York Plaza
 New York, New York 10004

Attn: Stuart Gelfond and John Bibona
 Fax: (212)
859-4000

		
	If to ESH REIT:	  	[—]
		  	[—]
		
		  	[—]

With a copy (which shall not constitute notice) to: 
  

			
		  	 Fried, Frank, Harris, Shriver & Jacobson LLP
 One New York Plaza
 New York, New York 10004

Attn: Stuart Gelfond and John Bibona
 Fax: (212)
859-4000

		
	If to the Centerbridge Shareholders:	  	[—]
		  	[—]
		
		  	[—]

With a copy (which shall not constitute notice) to: 
  

			
		  	[—]
		
	If to the Blackstone Shareholders:	  	[—]
		  	[—]
		
		  	[—]

  
 - 13 -

 With a copy (which shall not constitute notice) to: 

 

			
		  	 Simpson Thacher & Bartlett LLP
 425 Lexington Avenue
 New York, New York 10017

Attn: Gregory Ressa and Peter Martelli
 Fax:
(212) 455-2502

		
	If to the Paulson Shareholders:	  	[—]
		  	[—]
		
		  	[—]

With a copy (which shall not constitute notice) to: 
  

			
		  	[—]
		
		  	[—]

  

	 	4.3.	Amendment; Waiver. 

 This
Agreement may be amended, supplemented or otherwise modified only by a written instrument executed by the Company, ESH REIT and all of the Sponsor Shareholders who are members of Sponsor Shareholder Groups that each satisfies the Continuing
Ownership Test at the effective time of such amendment, supplement or modification. Neither the failure nor delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or
privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have
granted such waiver. 
  

	 	4.4.	Further Assurances. 

 The
Parties hereto will sign such further documents, cause such meetings to be held, resolutions passed, exercise their votes and do and perform and cause to be done such further acts and things necessary, proper or advisable in order to give full
effect to this Agreement and every provision hereof. To the fullest extent permitted by applicable law, neither the Company nor ESH REIT shall directly or indirectly take any action that is intended to, or would reasonably be expected to result in,
any Sponsor Shareholder Group being deprived of the rights to which it is entitled under this Agreement. 
  

	 	4.5.	Assignment. 

 This
Agreement will inure to the benefit of and be binding on the Parties hereto and their respective successors and permitted assigns. This Agreement may not be assigned without the express prior written consent of the other parties hereto, and any
attempted 

  
 - 14 -

 
assignment, without such consents, will be null and void; provided, however, that each Sponsor Shareholder Group shall be entitled to assign, in whole or in part, to any of its
Affiliates without such prior written consent any of its rights hereunder. 
  

	 	4.6.	Third Parties. 

 Except as
may otherwise be expressly provided in this Agreement, this Agreement does not create any rights, claims or benefits inuring to any person that is not a party hereto nor create or establish any third party beneficiary hereto. 

 

	 	4.7.	Entire Agreement. 

 This
Agreement constitutes the entire agreement of the Parties relating to the subject matter hereof and supersedes all prior contracts or agreements, whether oral or written. 

 

	 	4.8.	Severability. 

 If any
term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as
the economic or legal substance of the Agreement is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, or in the event that
the Company or ESH REIT is advised by counsel that any provision of this Agreement or the application thereof may be held invalid or unenforceable or give rise to any Claims against the Company or ESH REIT, as applicable, the Parties shall negotiate
in good faith to modify this Agreement or the application thereof (including without limitation, requiring the resignation of certain designees on the Company Board or ESH REIT Board), so as to effect the original intent of the Parties as closely as
possible in a mutually acceptable manner in order that the Agreement be enforced as originally contemplated to the fullest extent possible. 
  

	 	4.9.	Governing Law. 

 This
Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof. 
  

	 	4.10.	Jurisdiction; Waiver of Trial. 

 In any judicial proceeding involving any dispute, controversy or claim arising out of or relating to this Agreement, each of the Parties unconditionally accepts the jurisdiction and venue of the Delaware
Court of Chancery or, if the Delaware Court of Chancery does not have subject matter jurisdiction over the matter, the Superior Court of the State of Delaware (Complex Commercial Division), or if jurisdiction over the matter is vested exclusively in
federal courts, the United States District Court for the District of Delaware, and the appellate courts to which orders and judgments thereof may be appealed. In any such judicial proceeding, the parties agree that in addition to any method for the
service of process permitted or required by such courts, to the fullest extent permitted by applicable law, service of process may be made by delivery provided pursuant to Section 4.2. EACH OF THE PARTIES HEREBY WAIVES, TO THE FULLEST EXTENT

  
 - 15 -

 
PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 

 

	 	4.11.	Specific Performance. 

Each party hereto acknowledges and agrees that in the event of any breach of this Agreement by any of them, the other parties hereto would
be irreparably harmed and could not be made whole by monetary damages. Each party accordingly agrees to waive the defense in any action for specific performance that a remedy at law would be adequate and that the parties, in addition to any other
remedy to which they may be entitled at law or in equity, shall be entitled to specific performance of this Agreement without the posting of bond. 
  

	 	4.12.	Table of Contents, Headings and Captions. 

 The table of contents, headings, subheadings and captions contained in this Agreement are included for convenience of reference only, and in no way define, limit or describe the scope of this Agreement or
the intent of any provision hereof. 
  

	 	4.13.	Counterparts. 

 This
Agreement and any amendment hereto may be signed in any number of separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one Agreement (or amendment, as applicable). 

 

	 	4.14.	No Recourse. 

 This
Agreement may only be enforced against, and any claims or cause of action that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement may only be made against the entities that are
expressly identified as parties hereto and no past, present or future Affiliate, director, officer, employee, incorporator, member, manager, partner, stockholder, agent, attorney or representative of any party hereto shall have any liability for any
obligations or liabilities of the parties to this Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby. 
 [Remainder of Page Intentionally Left Blank; Signature Pages Follow] 

  
 - 16 -

 IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly executed
and delivered in its name and on its behalf, all as of the day and year first above written. 
  

			
	COMPANY:
	
	EXTENDED STAY AMERICA, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 - 17 -

 IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly executed
and delivered in its name and on its behalf, all as of the day and year first above written. 
  

			
	ESH REIT:
	
	ESH HOSPITALITY, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly executed
and delivered in its name and on its behalf, all as of the day and year first above written. 
  

			
	CENTERBRIDGE SHAREHOLDERS:
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly executed
and delivered in its name and on its behalf, all as of the day and year first above written. 
  

			
	BLACKSTONE SHAREHOLDERS:
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly executed
and delivered in its name and on its behalf, all as of the day and year first above written. 
  

			
	PAULSON SHAREHOLDERS:
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

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