Document:

EXHIBIT 10.104

 Exhibit 10.104 
  

					
	STATE OF MARYLAND	 	

	 	 Department of Assessments and Taxation
 CHARTER DIVISION

	WILLIAM DONALD SCHAEFER Governor	 	 	 Room 809
 301
West Presion Street
 Baltimore. Maryland 21201

	 LLOYD W. JONES
 Director
	 	 	
	  
 PAUL B. ANDERSON
 Administrator
	 	 	

  

					
	DOCUMENT CODE 13D	 	BUSINESS CODE                     	 	COUNTY 74

 # D0383075             ̈    P.A.         ̈     Reliqious         ̈    
Close         ̈        
Stock         ̈    Nonstock 
  

							
	 Merging
	 		 	 Surviving
	  	
	 (Transferor)
	 	 _________________________________
	 	 (Transferee)
	  	_________________________________
		
	 ___________________________________________
	 	 ___________________________________________

		
	 ___________________________________________
	 	 ___________________________________________

		
	 ___________________________________________
	 	 ___________________________________________

  

							
	 CODE
	 	 AMOUNT
	 	 FEE REMITTED
	 	  
	10	 	70	 	Expedited Fee	 	 Name Change

	20	 	5620	 	Organ. & Capitalization	 	(New Name) __________________________________
	61	 	_____	 	Rec. Fee (Arts. of Inc.)	 	____________________________________________
	62	 	20	 	Rec. Fee (Amendment)	 	  
 ____________________________________________

	63	 	_____	 	Rec. Fee (Merger or Consolidation)	 
	64	 	_____	 	Rec. Fee (Transfer)	 	         ̈     Change of
Name
	65	 	_____	 	Rec. Fee (Dissolution)	 	         ̈    Change of
Principal Office
	66	 	_____	 	Rec. Fee (Revival)	 	         ̈    Change of
Resident Agent
	52	 	_____	 	Foreign Qualification	 	         ̈    Change of
Resident Agent Address
	50	 	_____	 	Cert. of Qual. or Reg.	 	         ̈    Resignation of
Resident Agent
	51	 	_____	 	Foreign Name Registration	 	          ̈                Designation of Resident Agent and Resident Agent’s Address

	13	 	327	 	2 Certified Copy 320	 	         ̈    Other
Change__________________
	56	 	_____	 	Penalty	 	                ____________________________________
	54	 	_____	 	For. Supplemental Cert.	 	
	53	 	_____	 	Foreign Resolution	 	
	73	 	_____	 	Certificate of Conveyance	 	
		 		 	  	 	
		 		 	  	 	
	76	 	_____	 	Certificate of Merger/Transfer	 	
		 		 	  	 	
		 		 	  	 	        Code 063
	75	 	_____	 	Special Fee	 	
	80	 	_____	 	For. Limited Partnership	 	
	83	 	_____	 	Cert. Limited Partnership	 	        ATTENTION:_______________________________
	84	 	_____	 	Amendment to Limited Partnership	 	        /s/Illegible                           
                                        
   
	85	 	_____	 	Termination of Limited Partnership	 	
	21	 	_____	 	Recordation Tax	 	
	22	 	_____	 	State Transfer Tax	 	
	23	 	_____	 	Local Transfer Tax	 	
	31	 	_____	 	         Corp. Good Standing	 	
	N/A	 	_____	 	Foreign Corp. Registration	 	        MAIL TO ADDRESS: _______________________
	87	 	_____	 	             Limited Part. Good Standing	 	
	71	 	_____	 	Financial	 	        ________________________________________
	600	 	_____	 	                                      
                       Personal Property Reports and
                                     late filing
penalties	 	
	70	 	_____	 	Change of P.O., R.A. or R.A.A.	 	        ________________________________________
	91	 	_____	 	Amend/Cancellation, For. Limited Part.	 	
	___	 	_____	 	Other _______________________________	 	        ________________________________________
		 	_____	 	Other _______________________________	 	
		 		 		 	        ________________________________________
	TOTAL FEES	 	6037	 		 	

                                        
      ̈    Check                     ̈    Cash                                NOTE:

                 1    Documents
on    2    checks 
                         APPROVED BY:    A 

 TELOS CORPORATION 
 CERTIFICATE OF RESOLUTION 
 The undersigned, Andrea L. Ayoub, hereby certifies that she is the Secretary of Telos
Corporation, a Maryland corporation (“the Corporation”), and that at a special telephonic meeting of the Board of Directors held on March 8, 2000, the following resolutions were adopted and remain in full force and effect without
modification. 
  

			
	 RESOLVED:
	  	That Article V “Officers” of the bylaws of the Corporation by and hereby is amended to read as follows:
		
		  	Section 7a. Executive Chairman of the Board. The Board of Directors may designate an executive chairman of the board in addition to the chairman of the Board of Directors. The
executive chairman shall be an officer of the corporation. The chief executive officer or, in the absence of a designation of chief executive officer, the president shall report to the executive chairman of the Board of Directors. In the absence of
the chairman of the Board of Directors, the executive chairman of the Board of Directors shall preside over the meetings of the Board of Directors and of stockholders at which he shall be present.

 Executed this 8th day of March, 2000. 
  

	
	
	 /s/ Andrea L. Ayoub

	 Andrea L. Ayoub

 TELOS CORPORATION 
 (a Maryland corporation) 
 Resolution Amending Bylaws 
  

			
	 RESOLVED:
	  	That Article IV, Section 1 of the Bylaws of the Corporation be and is hereby amended to read as follows:
		
		  	NUMBER, TENURE AND QUALIFICATIONS. The Board of Directors may appoint from among its members an Executive Committee, an Audit Committee, a Compensation Committee and other committees,
composed of one or more members, to serve at the pleasure of the Board of Directors.

 TELOS CORPORATION 
 AMENDED AND RESTATED BYLAWS 
 ARTICLE I 
 OFFICES 
 Section 1. PRINCIPAL OFFICE. The principal office of the
Corporation shall be located at such place or places as the Board of Directors may designate. 
 Section 2. ADDITIONAL OFFICES.
The Corporation may have additional offices at such places as the Board of Directors may from time to time determine or the business of the Corporation may require. 
 ARTICLE II 
 MEETINGS OF STOCKHOLDERS 
 Section 1. PLACE. All meetings of stockholders shall be held at the principal office of the Corporation or at such other place within the
United States as shall be stated in the notice of the meeting. 
 Section 2. ANNUAL MEETING. An annual meeting of the
stockholders for the election of directors and the transaction of any business within the powers of the Corporation shall be held on a date and at the time set by the Board of Directors during the month of May in each year. 
 Section 3. SPECIAL MEETINGS. The president, chief executive officer or Board of Directors may call special meetings of the stockholders.
Special meetings of stockholders shall also be called by the secretary of the Corporation upon the written request of the holders of shares entitled to cast not less than 25% of all the votes entitled to be cast at such meeting. Such request shall
state the purpose of such meeting and the matters proposed to be acted on at such meeting. The secretary shall inform such stockholders of the reasonably estimated cost of preparing and mailing notice of the meeting and, upon payment to the
Corporation by such stockholders of such costs, the secretary shall give notice to each stockholder entitled to notice of the meeting. Unless requested by the stockholders entitled to cast a majority of all the votes entitled to be cast at such
meeting, a special meeting need not be called to consider any matter which is substantially the same as a matter voted on at any special meeting of the stockholders held during the preceding twelve months. 

 Section 4. NOTICE. Not less than ten nor more than 90 days before each meeting of
stockholders, the secretary shall give to each stockholder entitled to vote at such meeting written or printed notice stating the time and place of the meeting and, in the case of a special meeting or as otherwise may be required by any statute, the
purpose for which the meeting is called, either by mail or by presenting it to such stockholder personally or by leaving it at his residence or usual place of business. If mailed, such notice shall be deemed to be given when deposited in the United
States mail addressed to the stockholder at his post office address as it appears on the records of the Corporation, with postage thereon prepaid. 
 Section 5. SCOPE OF NOTICE. Any business of the Corporation may be transacted at an annual meeting of stockholders without being specifically designated in the notice, except such business as is required by any statute to be
stated in such notice. No business shall be transacted at a special meeting of stockholders except as specifically designated in the notice. 
 Section 6. ORGANIZATION. At every meeting of stockholders, the chairman of the board, if there be one, shall conduct the meeting or, in the case of vacancy in office or absence of the chairman of the board, one of the following
officers present shall conduct the meeting in the order stated: the president, the vice presidents in their order of rank and seniority, or a chairman chosen by the stockholders entitled to cast a majority of the votes which all stockholders present
in person or by proxy are entitled to cast, shall act as chairman, and the secretary, or, in his absence, an assistant secretary, or in the absence of both the secretary and assistant secretaries, a person appointed by the chairman shall act as
secretary. 
 Section 7. QUORUM. At any meeting of stockholders, the presence in person or by proxy of stockholders entitled to
cast a majority of all the votes entitled to be cast at such meeting shall constitute a quorum; but this section shall not affect any requirement under any statute or the charter of the Corporation for the vote necessary for the adoption of any
measure. If, however, such quorum shall not be present at any meeting of the stockholders, the stockholders entitled to vote at such meeting, present in person or by proxy, shall have the power to adjourn the meeting from time to time to a date not
more than 120 days after the original record date without notice other than announcement at the meeting. At such adjourned meeting at which a quorum shall be present, any business may be transacted which might have been transacted at the meeting as
originally notified. 
 Section 8. VOTING. A plurality of all the votes cast at a meeting of stockholders duly called and at
which a quorum is present shall be sufficient to elect a director. Each share may be voted for as many individuals as there are directors to be elected and for whose 

  

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election the share is entitled to be voted. A majority of the votes cast at a meeting of stockholders duly called and at which a quorum is present shall be
sufficient to approve any other matter which may properly come before the meeting, unless more than a majority of the votes cast is required by statute or by the charter of the Corporation. Unless otherwise provided in the charter, each outstanding
share, regardless of class, shall be entitled to one vote on each matter submitted to a vote at a meeting of stockholders. 
 Section 9.
PROXIES. A stockholder may vote the stock owned of record by him, either in person or by proxy executed in writing by the stockholder or by his duly authorized attorney in fact. Such proxy shall be filed with the secretary of the Corporation
before or at the time of the meeting. No proxy shall be valid after eleven months from the date of its execution, unless otherwise provided in the proxy. 
 Section 10. VOTING OF STOCK BY CERTAIN HOLDERS. Stock of the Corporation registered in the name of a corporation, partnership, trust or other entity, if entitled to be voted, may be voted by the president
or a vice president, a general partner or trustee thereof, as the case may be, or a proxy appointed by any of the foregoing individuals, unless some other person who has been appointed to vote such stock pursuant to a bylaw or a resolution of the
governing body of such corporation or other entity or agreement of the partners of a partnership presents a certified copy of such bylaw, resolution or agreement, in which case such person may vote such stock. Any director or other fiduciary may
vote stock registered in his name as such fiduciary, either in person or by proxy. 
 Shares of stock of the Corporation
directly or indirectly owned by it shall not be voted at any meeting and shall not be counted in determining the total number of outstanding shares entitled to be voted at any given time, unless they are held by it in a fiduciary capacity, in which
case they may be voted and shall be counted in determining the total number of outstanding shares at any given time. 
 The
Board of Directors may adopt by resolution a procedure by which a stockholder may certify in writing to the Corporation that any shares of stock registered in the name of the stockholder are held for the account of a specified person other than the
stockholder. The resolution shall set forth the class of stockholders who may make the certification, the purpose for which the certification may be made, the form of certification and the information to be contained in it; if the certification is
with respect to a record date or closing of the stock transfer books, the time after the record date or closing of the stock transfer books within which the certification must be received by the Corporation; and any other provisions with respect to
the procedure which the Board of Directors considers necessary or desirable. On receipt of such 

  

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certification, the person specified in the certification shall be regarded as, for the purposes set forth in the certification, the stockholder of record of
the specified stock in place of the stockholder who makes the certification. 
 Title 3, Subtitle 7 of the Corporations and
Associations Article of the Annotated Code of Maryland, entitled “Voting Rights of Certain Control Shares” (or any successor statute), shall not apply to the shares of the Corporation’s common stock acquired by C3 Acquisition Corp. or
any other affiliate of Knoll Capital Management L.P. if such shares are acquired pursuant to the “Revised Offer” as such term is defined in that certain Agreement and Plan of Merger among Knoll Capital Management L.P., C3 Acquisition Corp.
and C3, Inc., dated as of May 4, 1989. 
 Title 3, Subtitle 7 of the Corporations and Associations Article of the
Annotated Code of Maryland or any successor statute does not apply to the voting rights of any shares of stock of the Corporation acquired by any person after the adoption of this Section on January 13, 1992 and prior to the amendment of this
Section on March 13, 1995. All shares issued on January 13, 1992 shall be deemed to have been issued after the adoption of this Section. 
 Section 11. INSPECTORS. At any meeting of stockholders, the chairman of the meeting may, or upon the request of any stockholder shall, appoint one or more persons as inspectors for such meeting. Such inspectors shall ascertain
and report the number of shares represented at the meeting based upon their determination of the validity and effect of proxies, count all votes, report the results and perform such other acts as are proper to conduct the election and voting with
impartiality and fairness to all the stockholders. 
 Each report of an inspector shall be in writing and signed by him or by
a majority of them if there is more than one inspector acting at such meeting. If there is more than one inspector, the report of a majority shall be the report of the inspectors. The report of the inspector or inspectors on the number of shares
represented at the meeting and the results of the voting shall be prima facie evidence thereof. 
 Section 12.
NOMINATIONS AND STOCKHOLDER BUSINESS 
 (a) Annual Meetings of Stockholders. (1) Nominations of persons for election to
the Board of Directors and the proposal of business to be considered by the stockholders may be made at an annual meeting of stockholders (i) pursuant to the Corporation’s notice of meeting, (ii) by or at the direction of the Board of
Directors or (iii) by any stockholder of the Corporation who was a stockholder of record at the time of giving of notice provided for in this 

  

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Section 12(a), who is entitled to vote at the meeting and who complied with the notice procedures set forth in this Section 12(a). 
 (2) For nominations or other business to be properly brought before an annual meeting by a stockholder pursuant to clause (iii) of
paragraph (a)(1) of this Section 12, the stockholder must have given timely notice thereof in writing to the secretary of the Corporation. To be timely, a stockholder’s notice shall be delivered to the secretary at the principal executive
offices of the Corporation not less than 60 days nor more than 90 days prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is advanced by more than 30
days or delayed by more than 60 days from such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the 90th day prior to such annual meeting and not later than the close of business on the later of the 60th
day prior to such annual meeting or the tenth day following the day on which public announcement of the date of such meeting is first made. Such stockholder’s notice shall set forth (i) as to each person whom the stockholder proposes to
nominate for election or reelection as a director all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected); (ii) as to any other
business that the stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting and any material interest in such business of
such stockholder and of the beneficial owner, if any, on whose behalf the proposal is made; and (iii) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made, (x) the
name and address of such stockholder, as they appear on the Corporation’s books, and of such beneficial owner and (y) the number of shares of each class of stock of the Corporation which are owned beneficially and of record by such
stockholder and such beneficial owner. 
 (3) Notwithstanding anything in the second sentence of paragraph (a)(2) of this
Section 12 to the contrary, in the event that the number of directors to be elected to the Board of Directors is increased and there is no public announcement naming all of the nominees for director or specifying the size of the increased Board
of Directors made by the Corporation at least 70 days prior to the first anniversary of the preceding year’s annual meeting, a stockholder’s notice required by this Section 12(a) shall also be considered timely, but only with
respect to nominees for any new positions created by such increase, if it shall be delivered to the secretary at the principal executive offices of the Corporation not later than the 

  

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close of business on the tenth day following the day on which such public announcement is first made by the Corporation. 
 (b) Special Meetings of Stockholders. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before
the meeting pursuant to the Corporation’s notice of meeting. Nominations of persons for election to the Board of Directors may be made at a special meeting of stockholders at which directors are to be elected (i) pursuant to the
Corporation’s notice of meeting, (ii) by or at the direction of the Board of Directors or (iii) provided that the Board of Directors has determined that directors shall be elected at such special meeting, by any stockholder of the
Corporation who is a stockholder of record at the time of giving of notice provided for in this Section 12(b), who is entitled to vote at the meeting and who complied with the notice procedures set forth in this Section 12(b). In the event
the Corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the Board of Directors, any such stockholder may nominate a person or persons (as the case may be) for election to such position as
specified in the Corporation’s notice of meeting, if the stockholder’s notice containing the information required by paragraph (a)(2) of this Section 12 shall be delivered to the secretary at the principal executive offices of
the Corporation not earlier than the 90th day prior to such special meeting and not later than the close of business on the later of the 60th day prior to such special meeting or the tenth day following the day on which public announcement is first
made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. 
 (c)
General. (1) Only such persons who are nominated in accordance with the procedures set forth in this Section 12 shall be eligible to serve as directors and only such business shall be conducted at a meeting of stockholders as shall
have been brought before the meeting in accordance with the procedures set forth in this Section 12. The presiding officer of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought
before the meeting was made in accordance with the procedures set forth in this Section 12 and, if any proposed nomination or business is not in compliance with this Section 12, to declare that such defective nomination or proposal be
disregarded. 
 (2) For purposes of this Section 12, “public announcement” shall mean disclosure in a press release
reported by the Dow Jones News Service, Associated Press or comparable news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act.

 (3) Notwithstanding the foregoing provisions of this Section 12, a stockholder shall also comply with all applicable
requirements of state law and of the Exchange Act and the rules and 

  

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regulations thereunder with respect to the matters set forth in this Section 12. Nothing in this Section 12 shall be deemed to affect any rights of
stockholders to request inclusion of proposals in the Corporation’s proxy statement pursuant to Rule 14a-8 under the Exchange Act. 
 Section 13. VOTING BY BALLOT. Voting on any question or in any election may be viva voce unless the presiding officer shall order or any stockholder shall demand that voting be by ballot. 
 ARTICLE III 
 DIRECTORS 
 Section 1. GENERAL POWERS. The business and affairs of the Corporation shall be managed under the direction of its Board of Directors.

 Section 2. NUMBER, TENURE AND QUALIFICATIONS. At any regular meeting or at any special meeting called for that purpose, a
majority of the entire Board of Directors may establish, increase or decrease the number of directors, provided that the number thereof shall never be less than the minimum number required by the Maryland General Corporation Law, nor more than 15,
and further provided that the tenure of office of a director shall not be affected by any decrease in the number of directors. 
 Section 3. ANNUAL AND REGULAR MEETINGS. An annual meeting of the Board of Directors shall be held immediately after and at the same place as the annual meeting of stockholders, no notice other than this Bylaw being necessary.
The Board of Directors may provide, by resolution, the time and place, either within or without the State of Maryland, for the holding of regular meetings of the Board of Directors without other notice than such resolution. 
 Section 4. SPECIAL MEETINGS. Special meetings of the Board of Directors may be called by or at the request of the chairman of the board,
president or by a majority of the directors then in office. The person or persons authorized to call special meetings of the Board of Directors may fix any place, either within or without the State of Maryland, as the place for holding any special
meeting of the Board of Directors called by them. 
 Section 5. NOTICE. Notice of any special meeting of the Board of Directors
shall be delivered personally or by telephone, facsimile transmission, United states mail or courier to each director at his business or residence address. Notice by personal delivery, by telephone or a facsimile transmission shall be given at least
two days prior to the meeting. Notice by mail shall be given at least five days prior to the meeting and shall be deemed to be given when 

  

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deposited in the United States mail properly addressed, with postage thereon prepaid. Telephone notice shall be deemed to be given when the director is
personally given such notice in a telephone call to which he is a party. Facsimile transmission notice shall be deemed to be given upon completion of the transmission of the message to the number given to the Corporation by the director and receipt
of a completed answer-back indicating receipt. Neither the business to be transacted at, nor the purpose of, any annual, regular or special meeting of the Board of Directors need be stated in the notice, unless specifically required by statute or
these Bylaws. 
 Section 6. QUORUM. A majority of the directors shall constitute a quorum for transaction of business at any
meeting of the Board of Directors, provided that, if less than a majority of such directors are present at said meeting, a majority of the directors present may adjourn the meeting from time to time without further notice, and provided further that
if, pursuant to the charter of the Corporation or these Bylaws, the vote of a majority of a particular group of directors is required for action, a quorum must also include a majority of such group. 
 The Board of Directors present at a meeting which has been duly called and convened may continue to transact business until adjournment,
notwithstanding the withdrawal of enough directors to leave less than a quorum. 
 Section 7. VOTING. The action of the majority
of the directors present at a meeting at which a quorum is present shall be the action of the Board of Directors, unless the concurrence of a greater proportion is required for such action by applicable statute. 
 Section 8. TELEPHONE MEETINGS. Directors may participate in a meeting by means of a conference telephone or similar communications equipment
if all persons participating in the meeting can hear each other at the same time. Participation in a meeting by these means shall constitute presence in person at the meeting. 
 Section 9. INFORMAL ACTION BY DIRECTORS. Any action required or permitted to be taken at any meeting of the Board of Directors may be taken
without a meeting, if a consent in writing to such action is signed by each director and such written consent is filed with the minutes of proceedings of the Board of Directors. 
 Section 10. VACANCIES. If for any reason any or all the directors cease to be directors, such event shall not terminate the Corporation or
affect these Bylaws or the powers of the remaining directors hereunder (even if fewer than three directors remain). Any vacancy on the Board of Directors for any cause other than an increase in the number of directors shall be filled by a majority
of the remaining directors, although such majority is less than a quorum. Any vacancy in the number of directors created by an increase in the 

  

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number of directors may be filled by a majority vote of the entire Board of Directors. Any individual so elected as director shall hold office until the next
annual meeting of stockholders and until his successor is elected and qualifies. 
 Section 11. COMPENSATION. Directors shall not
receive any stated salary for their services as directors but, by resolution of the Audit Committee, may receive fixed sums per year and/or per meeting and/or per visit to real property or other facilities owned or leased by the Corporation and for
any service or activity they performed or engaged in as directors. Directors may be reimbursed for expenses of attendance, if any, at each annual, regular or special meeting of the Board of Directors or of any committee thereof and for their
expenses, if any, in connection with each property visit and any other service or activity they performed or engaged in as directors; but nothing herein contained shall be construed to preclude any directors from serving the Corporation in any other
capacity and receiving compensation therefor. 
 Section 12. LOSS OF DEPOSITS. No director shall be liable for any loss which may
occur by reason of the failure of the bank, trust company, savings and loan association, or other institution with whom moneys or stock have been deposited. 
 Section 13. SURETY BONDS. Unless required by law, no director shall be obligated to give any bond or surety or other security for the performance of any of his duties. 
 Section 14. RELIANCE. Each director, officer, employee and agent of the Corporation shall, in the performance of his duties with respect to
the Corporation, be fully justified and protected with regard to any act or failure to act in reliance in good faith upon the books of account or other records of the Corporation, upon an opinion of counsel or upon reports made to the Corporation by
any of its officers or employees or by the adviser, accountants, appraisers or other experts or consultants selected by the Board of Directors or officers of the Corporation, regardless of whether such counsel or expert may also be a director.

 Section 15. REMOVAL. A director may be removed in the manner set forth in the law or in the charter of the Corporation.

 Section 16. CERTAIN RIGHTS OF DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS. The directors shall have no responsibility to devote
their full time to the affairs of the Corporation. Any director of the Corporation, in his personal capacity or in a capacity as an affiliate, employee, or agent of any other person, or otherwise, may have business interests and engage in business
activities similar to or in addition to or in competition with those of or relating to the Corporation after disclosure to the Corporation and approval by the Board of Directors. 
  

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 ARTICLE IV 
 COMMITTEES 
 Section 1. NUMBER, TENURE AND QUALIFICATIONS. The Board of Directors may appoint
from among its members an Executive Committee, an Audit Committee, a Compensation Committee and other committees, composed of two or more directors, to serve at the pleasure of the Board of Directors. 
 Section 2. POWERS. The Board of Directors may delegate to committees appointed under Section 1 of this Article any of the powers of the
Board of Directors, except as prohibited by law. 
 Section 3. MEETINGS. Notice of committee meetings shall be given in the same
manner as notice for special meetings of the Board of Directors. A majority of the members of the committee shall constitute a quorum for the transaction of business at any meeting of the committee. The act of a majority of the committee members
present at a meeting shall be the act of such committee. The Board of Directors may designate a chairman of any committee, and such chairman or any two members of any committee may fix the time and place of its meeting unless the Board shall
otherwise provide. In the absence of any member of any such committee, the members thereof present at any meeting, whether or not they constitute a quorum, may appoint another director to act in the place of such absent member. Each committee shall
keep minutes of its proceedings. 
 Section 4. TELEPHONE MEETINGS. Members of a committee of the Board of Directors may
participate in a meeting by means of a conference telephone or similar communications equipment if all persons participating in the meeting can hear each other at the same time. Participation in a meeting by these means shall constitute presence in
person at the meeting. 
 Section 5. INFORMAL ACTION BY COMMITTEES. Any action required or permitted to be taken at any meeting
of a committee of the Board of Directors may be taken without a meeting, if a consent in writing to such action is signed by each member of the committee and such written consent is filed with the minutes of proceedings of such committee.

 Section 6. VACANCIES. Subject to the provisions hereof, the Board of Directors shall have the power at any time to change the
membership of any committee, to fill all vacancies, to designate alternate members to replace any absent or disqualified member or to dissolve any such committee. 
  

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 ARTICLE V 
 OFFICERS 
 Section 1. GENERAL PROVISIONS. The officers of the Corporation shall include a chief
executive officer, a president, a secretary and a treasurer and may include one or more vice presidents, a chief operating officer, a chief financial officer, one or more assistant secretaries and one or more assistant treasurers. In addition, the
Board of Directors may from time to time appoint such other officers with such powers and duties as they shall deem necessary or desirable. The chairman of the board shall not be an officer of the Corporation. The officers of the Corporation shall
be elected annually by the Board of Directors at the first meeting of the Board of Directors held after each annual meeting of stockholders, except that the chief executive officer may appoint one or more vice presidents, assistant secretaries and
assistant treasurers. If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as may be convenient. Each officer shall hold office until his successor is elected and qualifies or until his death,
resignation or removal in the manner hereinafter provided. Any two or more offices except president and vice president may be held by the same person. In its discretion, the Board of Directors may leave unfilled any office except that of president,
treasurer and secretary. Election of an officer or agent shall not of itself create contract rights between the Corporation and such officer or agent. 
 Section 2. REMOVAL AND RESIGNATION. Any officer or agent of the Corporation may be removed by the Board of Directors if in its judgment the best interests of the Corporation would be served thereby, but
such removal shall be without prejudice to the contract rights, if any, of the person so removed. Any officer of the Corporation may resign at any time by giving written notice of his resignation to the Board of Directors, the president or the
secretary. Any resignation shall take effect at any time subsequent to the time specified therein or, if the time when it shall become effective is not specified therein, immediately upon its receipt. The acceptance of a resignation shall not be
necessary to make it effective unless otherwise stated in the resignation. Such resignation shall be without prejudice to the contract rights, if any, of the Corporation. 
 Section 3. VACANCIES. A vacancy in any office may be filled by the Board of Directors for the balance of the term. 
 Section 4. CHIEF EXECUTIVE OFFICER. The Board of Directors may designate a chief executive officer. In the absence of such designation, the president shall be the chief executive officer of the
Corporation. The chief executive officer shall have general responsibility for implementation of the policies of the Corporation, 

  

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as determined by the Board of Directors, and for the management of the business and affairs of the Corporation. 
 Section 5. CHIEF OPERATING OFFICER. The Board of Directors may designate a chief operating officer. The chief operating officer shall have
the responsibilities and duties as set forth by the Board of Directors or the chief executive officer. 
 Section 6. CHIEF FINANCIAL
OFFICER. The Board of Directors may designate a chief financial officer. The chief financial officer shall have the responsibilities and duties as set forth by the Board of Directors or the chief executive officer. 
 Section 7. CHAIRMAN OF THE BOARD. The Board of Directors shall designate a chairman of the board. The chairman of the board shall preside
over the meetings of the Board of Directors and of the stockholders at which he shall be present. 
 Section 8. PRESIDENT. The
president or chief executive officer, as the case may be, shall in general supervise and control all of the business and affairs of the Corporation. In the absence of a designation of a chief operating officer by the Board of Directors, the
president shall be the chief operating officer. He may execute any deed, mortgage, bond, contract or other instrument, except in cases where the execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some
other officer or agent of the Corporation or shall be required by law to be otherwise executed; and in general shall perform all duties incident to the office of president and such other duties as may be prescribed by the Board of Directors from
time to time. 
 Section 9. VICE PRESIDENTS. In the absence of the president or in the event of a vacancy in such office, the
vice president (or in the event there be more than one vice president, the vice presidents in the order designated at the time of their election or, in the absence of any designation, then in the order of their election) shall perform the duties of
the president and when so acting shall have all the powers of and be subject to all the restrictions upon the president; and shall perform such other duties as from time to time may be assigned to him by the president or by the Board of Directors.
The Board of Directors may designate one or more vice presidents as executive vice president or as vice president for particular areas of responsibility. 
 Section 10. SECRETARY. The secretary shall (a) keep the minutes of the proceedings of the stockholders, the Board of Directors and committees of the Board of Directors in one or more books provided
for that purpose; (b) see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law; (c) be custodian of the corporate records and of the seal of the Corporation; (d) keep a register of
the post office address of each 

  

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stockholder which shall be furnished to the secretary by such stockholder; (e) have general charge of the share transfer books of the Corporation; and
(f) in general perform such other duties as from time to time may be assigned to him by the chief executive officer, the president or by the Board of Directors. 
 Section 11. TREASURER. The treasurer shall have the custody of the funds and securities of the Corporation and shall keep full and accurate accounts of receipts and disbursements in books belonging to the
Corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the Corporation in such depositories as may be designated by the Board of Directors. In the absence of a designation of a chief financial officer by
the Board of Directors, the treasurer shall be the chief financial officer of the Corporation. 
 The treasurer shall disburse
the funds of the Corporation as may be ordered by the Board of Directors, taking proper vouchers for such disbursements, and shall render to the president and Board of Directors, at the regular meetings of the Board of Directors or whenever it may
so require, an account of all his transactions as treasurer and of the financial condition of the Corporation. 
 If required
by the Board of Directors, the treasurer shall give the Corporation a bond in such sum and with such surety or sureties as shall be satisfactory to the Board of Directors for the faithful performance of the duties of his office and for the
restoration to the Corporation, in case of his death, resignation, retirement or removal from office, of all books, papers, vouchers, moneys and other property of whatever kind in his possession or under his control belonging to the Corporation.

 Section 12. ASSISTANT SECRETARIES AND ASSISTANT TREASURERS. The assistant secretaries and assistant treasurers, in general,
shall perform such duties as shall be assigned to them by the secretary or treasurer, respectively, or by the president or the Board of Directors. The assistant treasurers shall, if required by the Board of Directors, give bonds for the faithful
performance of their duties in such sums and with such surety or sureties as shall be satisfactory to the Board of Directors. 
 Section 13. SALARIES. The salaries and other compensation of the officers shall be fixed from time to time by the Board of Directors and no officer shall be prevented from receiving such salary or other compensation by reason of
the fact that he is also a director. 
  

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 ARTICLE VI 
 CONTRACTS, LOANS, CHECKS AND DEPOSITS 
 Section 1. CONTRACTS. The Board of Directors may
authorize any officer or agent to enter into any contract or to execute and deliver any instrument in the name of and on behalf of the Corporation and such authority may be general or confined to specific instances. Any agreement, deed, mortgage,
lease or other document executed by one or more of the directors or by an authorized person shall be valid and binding upon the Board of Directors and upon the Corporation when authorized or ratified by action of the Board of Directors. 

Section 2. CHECKS AND DRAFTS. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued
in the name of the Corporation shall be signed by such officer or agent of the Corporation in such manner as shall from time to time be determined by the Board of Directors. 
 Section 3. DEPOSITS. All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the
Corporation in such banks, trust companies or other depositories as the Board of Directors may designate. 
 ARTICLE VII 
 STOCK 
 Section 1. CERTIFICATES.
Each stockholder shall be entitled to a certificate or certificates which shall represent and certify the number of shares of each class of stock held by him in the Corporation. Each certificate shall be signed by the chief executive officer, the
president or a vice president and countersigned by the secretary or an assistant secretary or the treasurer or an assistant treasurer and may be sealed with the seal, if any, of the Corporation. The signatures may be either manual or facsimile.
Certificates shall be consecutively numbered; and if the Corporation shall, from time to time, issue several classes of stock, each class may have its own number series. A certificate is valid and may be issued whether or not an officer who signed
it is still an officer when it is issued. Each certificate representing shares which are restricted as to their transferability or voting powers, which are preferred or limited as to their dividends or as to their allocable portion of the assets
upon liquidation or which are redeemable at the option of the Corporation, shall have a statement of such restriction, limitation, preference or redemption provision, or a summary thereof, plainly stated on the certificate. If the Corporation has
authority to issue stock of more than one class, the certificate shall contain on the face or back a full statement or summary of the designations and any preferences, 

  

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conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of
redemption of each class of stock and, if the Corporation is authorized to issue any preferred or special class in series, the differences in the relative rights and preferences between the shares of each series to the extent they have been set and
the authority of the Board of Directors to set the relative rights and preferences of subsequent series. In lieu of such statement or summary, the certificate may state that the Corporation will furnish a full statement of such information to any
stockholder upon request and without charge. If any class of stock is restricted by the Corporation as to transferability, the certificate shall contain a full statement of the restriction or state that the Corporation will furnish information about
the restrictions to the stockholder on request and without charge. 
 Section 2. TRANSFERS. Upon surrender to the Corporation or
the transfer agent of the Corporation of a stock certificate duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer, the Corporation shall issue a new certificate to the person entitled thereto, cancel the
old certificate and record the transaction upon its books. 
 The Corporation shall be entitled to treat the holder of record
of any share of stock as the holder in fact thereof and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such share or on the part of any other person, whether or not it shall have express or other notice
thereof, except as otherwise provided by the laws of the State of Maryland. 
 Notwithstanding the foregoing, transfers of
shares of any class of stock will be subject in all respects to the charter of the Corporation and all of the terms and conditions contained therein. 
 Section 3. REPLACEMENT CERTIFICATE. Any officer designated by the Board of Directors may direct a new certificate to be issued in place of any certificate previously issued by the Corporation alleged to
have been lost, stolen or destroyed upon the making of an affidavit of that fact by the person claiming the certificate to be lost, stolen or destroyed. When authorizing the issuance of a new certificate, an officer designated by the Board of
Directors may, in his discretion and as a condition precedent to the issuance thereof, require the owner of such lost, stolen or destroyed certificate or the owner’s legal representative to advertise the same in such manner as he shall require
and/or to give bond, with sufficient surety, to the Corporation to indemnify it against any loss or claim which may arise as a result of the issuance of a new certificate. 
  

 – 15 – 

 Section 4. CLOSING OF TRANSFER BOOKS OR FIXING OF RECORD DATE. The Board of Directors may
set, in advance, a record date for the purpose of determining stockholders entitled to notice of or to vote at any meeting of stockholders or determining stockholders entitled to receive payment of any dividend or the allotment of any other rights,
or in order to make a determination of stockholders for any other proper purpose. Such date, in any case, shall not be prior to the close of business on the day the record date is fixed and shall be not more than 90 days and, in the case of a
meeting of stockholders, not less than ten days, before the date on which the meeting or particular action requiring such determination of stockholders of record is to be held or taken. 
 In lieu of fixing a record date, the Board of Directors may provide that the stock transfer books shall be closed for a stated period but
not longer than 20 days. If the stock transfer books are closed for the purpose of determining stockholders entitled to notice of or to vote at a meeting of stockholders, such books shall be closed for at least ten days before the date of such
meeting. 
 If no record date is fixed and the stock transfer books are not closed for the determination of stockholders,
(a) the record date for the determination of stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day on which the notice of meeting is mailed or the 30th day before the meeting,
whichever is the closer date to the meeting; and (b) the record date for the determination of stockholders entitled to receive payment of a dividend or an allotment of any other rights shall be the close of business on the day on which the
resolution of the directors, declaring the dividend or allotment of rights, is adopted. 
 When a determination of
stockholders entitled to vote at any meeting of stockholders has been made as provided in this section, such determination shall apply to any adjournment thereof, except when (i) the determination has been made through the closing of the
transfer books and the stated period of closing has expired or (ii) the meeting is adjourned to a date more than 120 days after the record date fixed for the original meeting, in either of which case a new record date shall be determined as set
forth herein. 
 Section 5. STOCK LEDGER. The Corporation shall maintain at its principal office or at the office of its counsel,
accountants or transfer agent, an original or duplicate share ledger containing the name and address of each stockholder and the number of shares of each class held by such stockholder. 
 Section 6. FRACTIONAL STOCK; ISSUANCE OF UNITS. The Board of Directors may issue fractional stock or provide for the issuance of scrip, all
on such terms and under such conditions as they 

  

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may determine. Notwithstanding any other provision of the charter or these Bylaws, the Board of Directors may issue units consisting of different securities
of the Corporation. Any security issued in a unit shall have the same characteristics as any identical securities issued by the Corporation, except that the Board of Directors may provide that for a specified period securities of the Corporation
issued in such unit may be transferred on the books of the Corporation only in such unit. 
 ARTICLE VIII 
 ACCOUNTING YEAR 
 The Board of Directors
shall have the power, from time to time, to fix the fiscal year of the Corporation by a duly adopted resolution. 
 ARTICLE IX 
 DISTRIBUTIONS 
 Section 1.
AUTHORIZATION. Dividends and other distributions upon the stock of the Corporation may be authorized and declared by the Board of Directors, subject to the provisions of law and the charter of the Corporation. Dividends and other
distributions may be paid in cash, property or stock of the Corporation, subject to the provisions of law and the charter. 
 Section 2.
CONTINGENCIES. Before payment of any dividends or other distributions, there may be set aside out of any assets of the Corporation available for dividends or other distributions such sum or sums as the Board of Directors may from time to
time, in its absolute discretion, think proper as a reserve fund for contingencies, for equalizing dividends or other distributions, for repairing or maintaining any property of the Corporation or for such other purpose as the Board of Directors
shall determine to be in the best interest of the Corporation, and the Board of Directors may modify or abolish any such reserve in the manner in which it was created. 
 ARTICLE X 
 INVESTMENT POLICY 
 Subject to the provisions of the charter of the Corporation, the Board of Directors may from time to time adopt, amend, revise or terminate any policy or policies with respect to investments by the Corporation as it
shall deem appropriate in its sole discretion. 
  

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 ARTICLE XI 
 SEAL 
 Section 1. SEAL. The Board of Directors may authorize the adoption of a seal by the
Corporation. The seal shall contain the name of the Corporation and the year of its incorporation and the words “Incorporated Maryland.” The Board of Directors may authorize one or more duplicate seals and provide for the custody thereof.

 Section 2. AFFIXING SEAL. Whenever the Corporation is permitted or required to affix its seal to a document, it shall be
sufficient to meet the requirements of any law, rule or regulation relating to a seal to place the word “(SEAL)” adjacent to the signature of the person authorized to execute the document on behalf of the Corporation. 
 ARTICLE XII 
 INDEMNIFICATION AND ADVANCES FOR
EXPENSES 
 To the maximum extent permitted by Maryland law in effect from time to time, the Corporation, without requiring a preliminary
determination of the ultimate entitlement to indemnification, shall indemnify and shall pay or reimburse reasonable expenses in advance of final disposition of a proceeding to (a) any individual who is a present or former director or officer of
the Corporation and who is made a party to the proceeding by reason of his service in that capacity or (b) any individual who, while a director of the Corporation and at the request of the Corporation, serves or has served another corporation,
partnership, joint venture, trust, employee benefit plan or any other enterprise as a director, officer, partner or trustee of such corporation, partnership, joint venture, trust, employee benefit plan or other enterprise and who is made a party to
the proceeding by reason of his service in that capacity. The Corporation may, with the approval of its Board of Directors, provide such indemnification and advance for expenses to a person who served a predecessor of the Corporation in any of the
capacities described in (a) or (b) above and to any employee or agent of the Corporation or a predecessor of the Corporation. 
 Neither the amendment nor repeal of this Article, nor the adoption or amendment of any other provision of the Bylaws or charter of the Corporation inconsistent with this Article, shall apply to or affect in any respect the applicability of
the preceding paragraph with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption. 
  

 – 18 –Exhibit 10.1

 Exhibit 10.1 
 HIGHLAND HOSPITALITY CORPORATION 
 AMENDED AND RESTATED 
 2003 OMNIBUS STOCK INCENTIVE PLAN 
  

	 	1.	PURPOSE 

 The Highland Hospitality Corporation
Amended and Restated 2003 Omnibus Stock Incentive Plan is intended to promote the best interests of Highland Hospitality Corporation and its stockholders by (i) assisting the Corporation and its Affiliates in the recruitment and retention of
persons with ability and initiative, (ii) providing an incentive to such persons to contribute to the growth and success of the Corporation’s businesses by affording such persons equity participation in the Corporation and
(iii) associating the interests of such persons with those of the Corporation and its affiliates and stockholders. 
  

	 	2.	DEFINITIONS 

 As
used in the Plan the following definitions shall apply: 
 “Affiliate” means any Subsidiary, any Parent, any entity
(including, without limitation, a partnership or limited liability company) which is directly or indirectly controlled fifty percent (50%) or more (whether by ownership of stock, assets or an equivalent ownership interest or voting interest) by
the Corporation or one of its Affiliates, and any other entity in which the Corporation or any of its Affiliates has a material equity interest and which is designated as an “Affiliate” by resolution of the Committee. 
 “Award” means any Option, Stock Award, Performance Unit or Performance Share granted hereunder. 
 “Board” means the Board of Directors of the Corporation. 
 “Cause” means in the case where the Participant does not have an employment, consulting or similar agreement in effect with the Corporation or its Affiliate or where there is such an agreement but it
does not define “cause” (or words of like import), conduct related to the Participant’s service to the Corporation or an Affiliate for which either criminal or civil penalties against the Participant may be sought, misconduct,
insubordination, material violation of the Corporation’ or its Affiliate’s policies, disclosing or misusing any confidential information or material concerning the Corporation or any Affiliate or material breach of any employment,
consulting agreement or similar agreement, or in the case where the Participant has an employment agreement, consulting agreement or similar agreement that defines a termination for “cause” (or words of like import), “cause” as
defined in such agreement; provided, however, that with regard to any agreement that defines “cause” on occurrence of or in connection with change of control, such definition of “cause” shall not apply until a change of control
actually occurs and then only with regard to a termination thereafter. 
 “Code” means the Internal Revenue Code of 1986,
and any amendments thereto. 
 “Committee” means the Compensation Policy Committee of the Board acting as administrator of
the Plan pursuant to Section 3 hereof. The Committee shall consist solely of three (3) or more Directors who are (i) Non-Employee Directors (within the meaning of Rule 16b-3 under the Exchange Act) for purposes of exercising
administrative authority with respect to Awards granted to Eligible Persons who are subject to Section 16 of the Exchange Act; (ii) to the extent required by the rules of the New York Stock Exchange, “independent” within the
meaning of such rules; and (iii) at such times as an Award under the Plan by the Corporation is subject to Section 162(m) of the Code (to the extent relief from the limitation of Section 162(m) of the Code is sought with respect to
Awards and administration of the Awards by a committee of “outside directors” is required to receive such relief) “outside directors” within the meaning of Section 162(m) of the Code. Notwithstanding the preceding
designation of the Compensation Policy Committee and the qualifications for membership on the Committee, prior to the date that the Corporation has a class of equity securities registered under the Exchange Act, the “Committee” means the
Board. 
  

 1 

 “Common Stock” means the common stock, $0.01 par value, of the Corporation. 

“Consultant” means any person, other than an employee, performing consulting or advisory services for the Corporation or any
Affiliate, or a director of an Affiliate. 
 “Continuous Service” means that the Participant’s service with the
Corporation or an Affiliate, whether as an employee, Director or Consultant, is not interrupted or terminated. A Participant’s Continuous Service shall not be deemed to have been interrupted or terminated merely because of a change in the
capacity in which the Participant renders service to the Corporation or an Affiliate as an employee, Consultant or Director or a change in the entity for which the Participant renders such service. The Participant’s Continuous Service shall be
deemed to have terminated either upon an actual termination or upon the entity for which the Participant is performing services ceasing to be an Affiliate of the Corporation. The Committee shall determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved by the Corporation, including sick leave, military leave or any other personal leave. 
 “Corporation” means Highland Hospitality Corporation, a Maryland corporation. 
 “Corporation Law” means the general corporation law of the jurisdiction of incorporation of the Corporation. 
 “Deferral Period” means the period of time during which Deferred Shares are subject to deferral limitations under Section 7.C of the Plan. 
 “Deferred Shares” means the an award pursuant to Section 7.C of the Plan of the right to receive shares of Common Stock at the end of a specified Deferral Period. 
 “Director” means a member of the Board. 
 “Disability” means that a Participant covered by a Corporation- or Affiliate-funded long term disability insurance program has incurred a total disability under such insurance program and a
Participant not covered by such an insurance program has suffered a permanent and total disability within the meaning of Section 22(e)(3) of the Code or any successor statute thereto. 
 “Eligible Person” means an employee of the Corporation or an Affiliate (including an entity that becomes an Affiliate after the adoption
of the Plan), a Director or a Consultant to the Corporation or an Affiliate (including an entity that becomes an Affiliate after the adoption of the Plan). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Fair
Market Value” means, on any given date, the current fair market value of the shares of Common Stock as determined as follows: 
 (i) If the Common Stock is traded on New York Stock Exchange or is listed on a national securities exchange, the closing price for the day of determination as quoted on such market or exchange which is the primary
market or exchange for trading of the Common Stock or if no trading occurs on such date, the last day on which trading occurred, or such other appropriate date as determined by the Committee in its discretion, as reported in The Wall Street Journal
or such other source as the Committee deems reliable; 
 (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high and the low asked prices for the Common Stock for the day of determination; or 
 (iii) In the absence of an established market for the Common Stock, Fair Market Value shall be determined by the Committee in good faith.

  

 2 

 “Incentive Stock Option” means an Option (or portion thereof) intended to qualify for
special tax treatment under Section 422 of the Code. 
 “Nonqualified Stock Option” means an Option (or portion
thereof) which is not intended or does not for any reason qualify as an Incentive Stock Option. 
 “Option” means any option
to purchase shares of Common Stock granted under the Plan. 
 “Parent” means any corporation (other than the Corporation) in
an unbroken chain of corporations ending with the Corporation if each of the corporations (other than the Corporation) owns stock possessing at least fifty percent (50%) of the total combined voting power of all classes of stock in one of the
other corporations in such chain. 
 “Participant” means an Eligible Person who is selected by the Committee to receive an
Option or Stock Award and is party to any Stock Option Agreement or Stock Award Agreement required by the terms of such Option or Stock Award. 
 “Performance Agreement” means an agreement described in Section 8.I of the Plan. 
 “Performance
Objectives” means the performance objectives established pursuant to the Plan for Participants who have received grants of Performance Shares or Performance Units or, when so determined by the Committee, Deferred Shares or Restricted Stock
Awards. Performance Objectives may be described in terms of Corporation-wide objectives or objectives that are related to the performance of the individual Participant or the Affiliate, subsidiary, division, department or function within the
Corporation or Affiliate in which the Participant is employed or has responsibility. Any Performance Objectives applicable to Awards to the extent that such and Award is intended to qualify as “performance-based compensation” under
Section 162(m) of the Code shall be limited to specified levels of or increases in the Corporation’s or a business unit’s return on equity, earnings per share, total earnings, earnings growth, return on capital, return on assets,
economic value added, earnings before interest and taxes, earnings before interest, taxes, depreciation and amortization, sales growth, gross margin return on investment, increase in the Fair Market Value of the shares, share price (including but
not limited to growth measures and total shareholder return), net operating profit, cash flow (including, but not limited to, operating cash flow and free cash flow), cash flow return on investments (which equals net cash flow divided by total
capital), internal rate of return, increase in net present value or expense targets. If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Corporation (including an event described in
Section 9.B.), or the manner in which it conducts is business, or other events or circumstances render the Performance Objectives unsuitable, the Committee may modify such Performance Objectives or the related minimum acceptable level of
achievement, in whole or in part, as the Committee deems appropriate and equitable provided, however, that no such modification shall be made to an Award intended to qualify as performance-based compensation under Section 162(m) of the Code
unless the Committee determines that such modification will not result in loss of such qualification or the Committee determines that loss of such qualification is in the best interests of the Corporation. 
 “Performance Period” means a period of time established under Section 8 of the Plan within which the Performance Objectives
relating to a Performance Share, Performance Unit, Deferred Share or Restricted Stock Award are to be achieved. 
 “Performance
Share” means a bookkeeping entry that records the equivalent of one share of Common Stock awarded pursuant to Section 8 of the Plan. 
 “Performance Unit” means a bookkeeping entry that records a unit equivalent to $1.00 awarded pursuant to Section 8 of the Plan. 
 “Plan” means this Highland Hospitality Corporation Amended and Restated 2003 Omnibus Stock Incentive Plan. 
  

 3 

 “Restricted Stock Award” means an award of Common Stock under Section 7.A.

 “Securities Act” means the Securities Act of 1933 as amended. 
 “Stock Award” means a Restricted Stock Award, award of Deferred Shares or award of Stock Appreciation Rights. 
 “Stock Appreciation Right” means an award of a right of the Participant to receive a payment in accordance with the provisions of
Section 7.B. 
 “Stock Award Agreement” means an agreement (written or electronic) between the Corporation and a
Participant setting forth the specific terms and conditions of a Stock Award granted to the Participant under Section 7. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan and shall include such terms and
conditions as the Committee shall authorize. 
 “Stock Option Agreement” means an agreement (written or electronic) between
the Corporation and a Participant setting forth the specific terms and conditions of an Option granted to the Participant. Each Stock Option Agreement shall be subject to the terms and conditions of the Plan and shall include such terms and
conditions as the Committee shall authorize. 
 “Subsidiary” means any corporation (other than the Corporation) in an
unbroken chain of corporations beginning with the Corporation if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing at least fifty percent (50%) of the total combined voting power of all
classes of stock in one of the other corporations in such chain. 
 “Ten Percent Owner” means any Eligible Person owning at
the time an Option is granted more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation or of a Parent or Subsidiary. An individual shall, in accordance with Section 424(d) of the Code, be
considered to own any voting stock owned (directly or indirectly) by or for his brothers, sisters, spouse, ancestors and lineal descendants and any voting stock owned (directly or indirectly) by or for a corporation, partnership, estate,
trust or other entity shall be considered as being owned proportionately by or for its stockholders, partners or beneficiaries. 
  

	 	3.	ADMINISTRATION 

 A.
Administration. The Committee shall serve as the administrator of the Plan. If permitted by the Corporation Law, and not prohibited by the charter or the bylaws of the Corporation, the Committee may delegate a portion of its authority to
administer the Plan to another committee of the Board, provided that such delegation by the Committee shall not apply to the grant of Awards to Eligible Persons subject to Section 16 of the Exchange Act. 
 B. Powers of the Committee. Subject to the provisions of the Plan, and subject at all times to the terms and conditions of the delegation of
authority from the Board, the Committee shall have the authority to implement, interpret and administer the Plan. Such authority shall include, without limitation, the authority: 
 (i) To construe and interpret all provisions of the Plan and all Stock Option Agreements, Performance Award Agreements and Stock Award
Agreements under the Plan. 
 (ii) To determine the Fair Market Value of Common Stock. 
 (iii) To select the Eligible Persons to whom Awards, are granted from time-to-time hereunder. 
 (iv) To determine the number of shares of Common Stock covered by an Option or Stock Award; determine whether an Option shall be an
Incentive Stock Option or Nonqualified Stock Option; and determine such other terms and conditions, not inconsistent with the terms of the Plan, of each Award. Such 

  

 4 

 
terms and conditions include, but are not limited to, the exercise price of an Option, purchase price of Common Stock subject to a Stock Award, the time or
times when Options or Stock Awards may be exercised or Common Stock issued thereunder, the right of the Corporation to repurchase Common Stock issued pursuant to the exercise of an Option or a Stock Award and other restrictions or limitations (in
addition to those contained in the Plan) on the forfeitability or transferability of Options, Stock Awards or Common Stock issued pursuant to Awards. Such terms may include conditions as shall be determined by the Committee and need not be uniform
with respect to Participants. 
 (v) To amend, cancel, extend, renew, accept the surrender of, modify or accelerate the
vesting of or lapse of restrictions on all or any portion of an outstanding Option or Stock Award; and to determine the time at which a Stock Award or Common Stock issued under the Plan may become transferable or nonforfeitable. 
 (vi) To prescribe the form of Stock Option Agreements, Performance Award Agreements and Stock Award Agreements; to adopt policies and
procedures for the exercise of Options or Stock Awards, including the satisfaction of withholding obligations; to adopt, amend, and rescind policies and procedures pertaining to the administration of the Plan; and to make all other determinations
necessary or advisable for the administration of the Plan. 
 Any decision made, or action taken, by the Committee or in connection with the administration
of the Plan shall be final, conclusive and binding on all persons having an interest in the Plan. 
  

	 	4.	ELIGIBILITY 

 A. Eligibility for
Awards. Incentive Stock Options may be granted only to employees of the Corporation or a Parent or Subsidiary. Other Awards may be granted to any Eligible Person selected by the Committee. 
 B. Substitution Awards. The Committee may make Stock Awards and may grant Options under the Plan by assumption, substitution or replacement of
performance shares, phantom shares, stock awards, stock options, stock appreciation rights or similar awards granted by another entity (including an Affiliate), if such assumption, substitution or replacement is in connection with an asset
acquisition, stock acquisition, merger, consolidation or similar transaction involving the Corporation (and/or its Affiliate) and such other entity (and/or its affiliate). Notwithstanding any provision of the Plan (other than the maximum number of
shares of Common Stock that may be issued under the Plan), the terms of such assumed, substituted or replaced Stock Awards or Options shall be as the Committee, in its discretion, determines is appropriate. 
  

	 	5.	COMMON STOCK SUBJECT TO PLAN 

 A. Share Reserve and Limitations on Grants. Subject to adjustment as provided in Section 9, the maximum aggregate number of shares of Common
Stock that may be (i) issued under the Plan pursuant to the exercise of Options, (ii) issued pursuant to Restricted Stock Awards, Deferred Shares or Performance Shares, and (iii) shares of Common Stock covered by Stock Appreciation
Rights (without regard to whether payment on exercise of the Stock Appreciation Right is made in cash or shares of stock) is 5,002,0001 shares of Common Stock. No Participant may receive Awards representing more than 500,000 shares in any one calendar year. In addition, the maximum number of Performance Units that may be granted to a Participant in any one
calendar year is 750,000 for each full or fractional year included in the Performance Period for the grant of Performance Units during such calendar year. This limitation shall be applied as of any date by taking into account the number of shares
available to be made the subject of new Awards as of such date, plus the number of shares previously issued under the Plan and the number of share subject to outstanding Awards as of such date. 

	1	2,002,000 prior to the Amendment and Restatement. 

  

 5 

 B. Reversion of Shares. If an Option or Stock Award is terminated, expires or becomes
unexercisable, in whole or in part, for any reason, the unissued or unpurchased shares of Common Stock (or shares subject to an unexercised Stock Appreciation Right) which were subject thereto shall become available for future grant under the Plan.
Shares of Common Stock that have been actually issued under the Plan shall not be returned to the share reserve for future grants under the Plan; except that shares of Common Stock issued pursuant to a Stock Award which are repurchased or reacquired
by the Corporation at the original purchase price of such shares (including, in the case shares forfeited back to the Corporation, no purchase price), shall be returned to the share reserve for future grant under the Plan. For avoidance of doubt,
this Section 5B shall not apply to any per Participant limit set forth in Section 5A. 
 C. Source of Shares. Common Stock
issued under the Plan may be shares of authorized and unissued Common Stock or shares of previously issued Common Stock that have been reacquired by the Corporation. 
  

	 	6.	OPTIONS 

 A. Award. In
accordance with the provisions of Section 4, the Committee will designate each Eligible Person to whom an Option is to be granted and will specify the number of shares of Common Stock covered by such Option. The Stock Option Agreement shall
specify whether the Option is an Incentive Stock Option or Nonqualified Stock Option, the vesting schedule applicable to such Option and any other terms of such Option. No Option that is intended to be an Incentive Stock Option shall be invalid for
failure to qualify as an Incentive Stock Option. 
 B. Exercise Price. The exercise price per share for Common Stock subject to an
Option shall be determined by the Committee, but shall comply with the following: 
 (i) The exercise price per share for
Common Stock subject to a Nonqualified Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value on the date of grant. 
 (ii) The exercise price per share for Common Stock subject to an Incentive Stock Option: 
  

	 	•	 	granted to a Participant who is deemed to be a Ten Percent Owner on the date such option is granted, shall not be less than one hundred ten percent (110%) of the Fair Market
Value on the date of grant. 

  

	 	•	 	granted to any other Participant, shall not be less than one hundred percent (100%) of the Fair Market Value on the date of grant. 

 C. Maximum Option Period. The maximum period during which an Option may be exercised shall be determined by the Committee on the date of grant,
except that no Option shall be exercisable after the expiration of ten years from the date such Option was granted. In the case of an Incentive Stock Option that is granted to a Participant who is or is deemed to be a Ten Percent Owner on the date
of grant, such Option shall not be exercisable after the expiration of five years from the date of grant. The terms of any Option may provide that it is exercisable for a period less than such maximum period. 
 D. Maximum Value of Options which are Incentive Stock Options. To the extent that the aggregate Fair Market Value of the Common Stock with respect
to which Incentive Stock Options granted to any person are exercisable for the first time during any calendar year (under all stock option plans of the Corporation or any of its Subsidiaries or Parent) exceeds $100,000 (or such other amount provided
in Section 422 of the Code), the Options are not Incentive Stock Options. For purposes of this section, the Fair Market Value of the Common Stock will be determined as of the time the Incentive Stock Option with respect to the Common Stock is
granted. This section will be applied by taking Incentive Stock Options into account in the order in which they are granted. 
 E.
Nontransferability. Options granted under the Plan which are intended to be Incentive Stock Options shall be nontransferable except by will or by the laws of descent and distribution and during the lifetime of the 

  

 6 

 
Participant shall be exercisable by only the Participant to whom the Incentive Stock Option is granted. If the Stock Option Agreement so provides or the
Committee so approves, a Nonqualified Stock Option may be transferred by a Participant through a gift or domestic relations order to the Participant’s family members to the extent in compliance with applicable securities registration rules and
provided that such transfer is not a transfer for value (within the meaning of applicable securities registration rules). The holder of a Nonqualified Stock Option transferred pursuant to this section shall be bound by the same terms and conditions
that governed the Option during the period that it was held by the Participant; provided that unless the Committee approves a subsequent transfer, such Option shall be nontransferable by the initial transferee of such Option except by will or by the
laws of descent and distribution. Except to the extent transferability of a Nonqualified Stock Option is provided for in the Stock Option Agreement or is approved by the Committee, during the lifetime of the Participant to whom the Nonqualified
Stock Option is granted, such Option may be exercised only by the Participant. No right or interest of a Participant in any Option shall be liable for, or subject to, any lien, obligation, or liability of such Participant. 
 F. Vesting and Termination of Continuous Service. Except as provided in a Stock Option Agreement, the following rules shall apply: 
 (i) Options will vest as provided in the Stock Option Agreement. An Option will be exercisable only to the extent that it is vested on the
date of exercise. Vesting of an Option will cease on the date of the Participant’s termination of Continuous Service and the Option will be exercisable only to the extent the Option is vested on the date of termination of Continuous Service.

 (ii) If the Participant’s termination of Continuous Service is for reason of death or Disability, the right to
exercise the Option (to the extent vested) will expire on the earlier of (a) one (1) year after the date of the Participant’s termination of Continuous Service, or (b) the expiration date under the terms of the Stock Option
Agreement. Until the expiration date, the Participant or, in the event of the Participant’s death (including death after termination of Continuous Service but before the right to exercise the Option expires) Participant’s heirs, legatees
or legal representative may exercise the Option, except to the extent the Option was previously transferred pursuant to Section 6.E. 
 (iii) If the Participant’s termination of Continuous Service is an involuntary termination without Cause or a voluntary termination (other than a voluntary termination described in Section 6.F(iv)), the
right to exercise the Option (to the extent that it is vested) will expire on the earlier of (a) three months (3) after the date of the Participant’s termination of Continuous Service, or (b) the expiration date under the terms
of the Stock Option Agreement. If the Participant’s termination of Continuous Service is an involuntary termination without Cause or a voluntary termination (other than a voluntary termination described in Section 6.F(iv)) and the
Participant dies after his or her termination of Continuous Service but before the right to exercise the Option has expired, the right to exercise the Option (to the extent vested) shall expire on the earlier of (c) one (1) year after the
date of the Participant’s termination of Continuous Service or (d) the date the Option expires under the terms of the Stock Option Agreement, and, until expiration, the Participant’s heirs, legatees or legal representative may
exercise the Option, except to the extent the Option was previously transferred pursuant to Section 6.E. 
 (iv) If the
Participant’s termination of Continuous Service is for Cause or is a voluntary termination at any time after an event which would be grounds for termination of the Participant’s Continuous Service for Cause, the right to exercise the
Option shall expire as of the date of the Participant’s termination of Continuous Service. 
 G. Exercise. An Option, if
exercisable, shall be exercised by completion, execution and delivery of notice (written or electronic) to Corporation of the Option which states (i) the Option holder’s intent to exercise the Option, (ii) the number of shares of
Common Stock with respect to which the Option is being exercised, (iii) such other representations and agreements as may be required by the Corporation and (iv) the method for satisfying any applicable tax withholding as provided in
Section 10. Such notice of exercise shall be provided on such form or by such method as the Committee may designate, and payment of the exercise price shall be made in 

  

 7 

 
accordance with Section 6.H. Subject to the provisions of the Plan and the applicable Stock Option Agreement, an Option may be exercised to the extent
vested in whole at any time or in part from time to time at such times and in compliance with such requirements as the Committee shall determine. A partial exercise of an Option shall not affect the right to exercise the Option from time to time in
accordance with the Plan and the applicable Stock Option Agreement with respect to the remaining shares subject to the Option. An Option may not be exercised with respect to fractional shares of Common Stock. 
  

	 	H.	Payment. 

 (i) Unless otherwise
provided by the Stock Option Agreement, payment of the exercise price for an Option shall be made in cash or a cash equivalent acceptable to the Committee. With the consent of and in accordance with such conditions as required by the Committee,
payment of all or part of the exercise price of an Option may also be made (a) by surrendering shares of Common Stock to the Corporation, or (b) if the Common Stock is traded on an established securities market, the Committee may approve
payment of the exercise price by a broker-dealer or by the Option holder with cash advanced by the broker-dealer if the exercise notice is accompanied by the Option holder’s written irrevocable instructions to deliver the Common Stock acquired
upon exercise of the Option to the broker-dealer. 
 (ii) If Common Stock is used to pay all or part of the exercise price,
the sum of the cash or cash equivalent and the Fair Market Value (determined as of the date of exercise) of the shares surrendered must not be less than the exercise price of the shares for which the Option is being exercised. 
 (iii) On or after the date any Option other than an Incentive Stock Option is granted, the Committee may determine that payment of the
exercise price may also be made in whole or part in the form of Restricted Stock or other Common Stock that is subject to a risk of forfeiture or restrictions on transfer. Unless otherwise determined by the Committee, whenever the exercise price is
paid in whole or in part in accordance with this Section 6.H(iii), the Stock received by the Participant upon such exercise shall be subject to the same risks of forfeiture or restrictions on transfer as those that applied to the consideration
surrendered by the Participant, provided that such risks of forfeiture and restrictions on transfer shall apply only to the same number of shares received by the Participant as applied to the forfeitable or restricted shares surrendered by the
Participant. 
 (iv) On or after the date any Option is granted, the Committee may provide for the automatic grant to the
Participant of a reload Option in the event that the Participant surrenders shares in satisfaction of the exercise price upon the exercise of an Option as authorized under this Section 6.H. Each reload Option shall pertain to a number of shares
equal to the number of shares utilized by the Participant to exercise the original Option, shall have an exercise price equal to Fair Market Value on the date that the reload Option is granted and shall expire on the stated exercise date of the
original Option. 
 I. No Repricing of Options. The Committee may not without the approval of the stockholders of the Corporation
lower the exercise price of an outstanding Option, whether by amending the exercise price of the outstanding Option, through cancellation of the outstanding Option and reissuance of a replacement or substitute Option or issuance of a replacement or
substitute Stock Award; provided that stockholder approval shall not be required for adjustments made in connection with a capitalization event described in Section 9.B. in order to prevent enlargement, dilution or diminishment of rights.

 J. Stockholder Rights. No Participant shall have any rights as a stockholder with respect to shares subject to an Option until the
date of exercise of such Option and the certificate for shares of Common Stock to be received on exercise of such Option has been issued by the Corporation. 
 K. Disposition. A Participant shall notify the Corporation of any sale or other disposition of Common Stock acquired pursuant to an Incentive Stock Option if such sale or disposition occurs (i) within two
years of the grant of an Option or (ii) within one year of the issuance of the Common Stock to the Participant. Such notice shall be in writing and directed to the Secretary of the Corporation. 
  

 8 

	 	7.	STOCK AWARDS 

 A.
Restricted Stock Awards. Each Stock Award Agreement for a Restricted Stock Award shall be in such form and shall contain such terms and conditions as the Committee shall deem appropriate. The terms and conditions of the Stock Award Agreements
for Restricted Stock Awards may change from time to time, and the terms and conditions of separate Restricted Stock Awards need not be identical, but each Restricted Stock Award shall include (through incorporation of the provisions hereof by
references in the agreement or otherwise) the substance of each of the following provisions. 
 (i) Purchase Price. The
Committee may establish a purchase price for Common Stock subject to a Restricted Stock Award. 
 (ii) Consideration.
The purchase price, if any, of Common Stock acquired pursuant to the Restricted Stock Award shall be paid either: (a) in cash at the time of purchase, or(b) in any other form of legal consideration that may be acceptable to the Committee in its
discretion. 
 (iii) Vesting. Shares of Common Stock acquired under a Restricted Stock Award may, but need not, be
subject to a share repurchase option in favor of the Corporation in accordance with a vesting schedule to be determined by the Committee. Any grant or the vesting thereon may be further conditioned upon the attainment of Performance Objectives
established by the Committee in accordance with the applicable provisions of Section 8 of the Plan regarding Performance Shares and Performance Units. 
 (iv) Participant’s Termination of Service or Failure of Vesting. In the event of a Participant’s termination of Continuous Service before vesting or other failure of the Common Stock to vest, then,
unless otherwise provided in the Stock Award Agreement, the Participant shall forfeit shares of Common Stock held by a Participant under the terms of a Restricted Stock Award which have not vested and for which no purchase price was paid by the
Participant and the Corporation may repurchase or otherwise reacquire (including by way of forfeiture by the Participant) any or all of the shares of Common Stock held by the Participant which have not vested under the terms of the Stock Award
Agreement for such Restricted Stock Award and for which a purchase price was paid by the Participant at such purchase price. 
 (v) Transferability. Rights to acquire shares of Common Stock under a Restricted Stock Award shall be transferable by the Participant only upon such terms and conditions as are set forth in the Stock Award Agreement for such
Restricted Stock Award, as the Committee shall determine in its discretion, so long as Common Stock granted under the Restricted Stock Award remains subject to the terms of the Stock Award Agreement. 
 (vi) Additional Rights. Any grant may require that any or all dividends or other distributions paid on the shares acquired
under a Restricted Stock Award during the period of such restrictions be automatically sequestered and reinvested on an immediate or deferred basis in additional shares of Common Stock which may be subject to the same restrictions as the underlying
Award or such other restrictions as the Committee shall determine. Unless provided otherwise in the Stock Award Agreement, Participants holding shares of Common Stock subject to restrictions under a Stock Award Agreement may exercise full voting
rights with respect to the shares. 
 B. Stock Appreciation Rights. Each Stock Award Agreement for Stock Appreciation Rights shall be
in such form and shall contain such terms and conditions as the Committee shall deem appropriate. The terms and conditions of Stock Appreciation Rights may change from time to time, and the terms and conditions of separate Stock Appreciation Rights
need not be identical, but each Stock Appreciation Right shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 
 (i) Benefit Provided. Each Stock Appreciation Right shall provide the Participant with the right to receive payment in cash or
shares of Common Stock having a Fair Market Value, as designated in the Stock Award Agreement for such Stock Appreciation Rights, of an amount equal to the difference between the base amount provided for each share of Common Stock as described in
the Stock Award Agreement and the Fair Market Value of the Common Stock on the date of exercise of such Stock Appreciation Right or a percentage thereof (not to exceed 100%). 
  

 9 

 (ii) Tandem Awards. Stock Appreciation Rights may be granted either alone or a
tandem with other awards, including Options, under the Plan; provided, however, if the Stock Appreciation Rights are granted in tandem with another Option, the base amount provided for each share of Common Stock in the applicable Stock Award
Agreement shall be equal to the exercise price per share provided for in the Option. 
 (iii) Vesting. The Stock Award
Agreement for a Stock Appreciation Right shall provide the vesting schedule applicable to such award and may, but need not, provide that shares of Common Stock acquired upon exercising a Stock Appreciation Right are subject to a repurchase option in
favor of the Corporation. 
 (iv) Participant’s Termination of Service or Failure of Vesting. In the event of a
Participant’s termination of Continuous Service or other failure of the Stock Appreciation Right or Common Stock to vest the Participant shall forfeit such unvested Stock Appreciation Rights, and the Corporation, if so provided in the Stock
Award Agreement, may repurchase or otherwise reacquire (including by way of forfeiture by the Participant) any or all of the shares of Common Stock held by the Participant which have not vested under the terms of the Stock Appreciation Right.

 (v) Transferability. Rights to acquire cash or shares of Common Stock under a Stock Appreciation Rights shall be
nontransferable except by will or by the laws of descent and distribution and during the lifetime of the Participant shall be exercisable by only the Participant to whom the Stock Appreciation Rights are granted. 
 C. Deferred Shares. The Committee may authorize grants of Deferred Shares to Participants upon such terms and conditions as the Committee may
determine in accordance with the following provisions: 
 (i) Each grant shall constitute the agreement by the Corporation to
issue or transfer shares of Common Stock to the Participant in the future in consideration of the performance of services, subject to the fulfillment during the Deferral Period of such conditions as the Committee may specify. 
 (ii) Each grant may be made without additional consideration from the Participant or in consideration of a payment by the Participant that
is less than the Fair Market Value on the date of grant. 
 (iii) Each grant shall provide that the Deferred Shares covered
thereby shall be subject to a Deferral Period, which shall be fixed by the Committee on the date of grant, and any grant or sale may provide for the earlier termination of such period in the event of a change in control of the Corporation or other
similar transaction or event. 
 (iv) During the Deferral Period, the Participant shall not have any right to transfer any
rights under the subject Award, shall not have any rights of ownership in the Deferred Shares and shall not have any right to vote such shares, but the Committee may on or after the date of grant, authorize the payment of dividend or other
distribution equivalents on such shares in cash or additional shares on a current, deferred or contingent basis. 
 (v) Any
grant of the vesting thereof may be further conditioned upon the attainment of Performance Objectives established by the Committee in accordance with the applicable provisions of Section 8 of the Plan regarding Performance Shares and
Performance Units. 
 (vi) Each grant shall be evidenced by an agreement delivered to and accepted by the Participant and
containing such terms and provisions as the Committee may determine consistent with the Plan. 
  

	 	8.	PERFORMANCE SHARES AND PERFORMANCE UNITS 

 The Committee may also authorize grants of Performance Shares and Performance Units, which shall become payable to the Participant upon the achievement of specified
Performance Objectives, upon such terms and conditions as the Committee may determine in accordance with the following provisions: 
 A. Each grant shall specify the number of Performance Shares or Performance Units to which it pertains, which may be subject to adjustment to reflect changes in compensation or other factors. 
  

 10 

 B. The Performance Period with respect to each Performance Share or Performance Unit shall
commence on the date established by the Committee and may be subject to earlier termination in the event of a change in control of the Corporation or similar transaction or event. 
 C. Each grant shall specify the Performance Objectives that are to be achieved by the Participant. 
 D. Each grant may specify in respect of the specified Performance Objectives a minimum acceptable level of achievement below which no payment will
be made and may set forth a formula for determining the amount of any payment to be made if performance is at or above such minimum acceptable level but falls short of the maximum achievement of the specified Performance Objectives. 
 E. Each grant shall specify the time and manner of payment of Performance Shares or Performance Units that shall have been earned, and any grant
may specify that any such amount may be paid by the Corporation in cash, shares of Common Stock or any combination thereof and may either grant to the Participant or reserve to the Committee the right to elect among those alternatives. 

F. Any grant of Performance Shares may specify that the amount payable with respect thereto may not exceed a maximum specified by the Committee
on the date of grant. Any grant of Performance Units may specify that the amount payable, or the number of shares of Common Stock issued, with respect thereto may not exceed maximums specified by the Committee on the date of grant. 
 G. Any grant of Performance Shares may provide for the payment to the Participant of dividend or other distribution equivalents thereon in cash or
additional shares of Common Stock on a current, deferred or contingent basis. 
 H. If provided in the terms of the grant and subject
to the requirements of Section 162(m) of the Code (in the case of Awards intended to qualify for exception therefrom), the Committee may adjust Performance Objectives and the related minimum acceptable level of achievement if, in the sole
judgment of the Committee, events or transactions have occurred after the date of grant that are unrelated to the performance of the Participant and result in distortion of the Performance Objectives or the related minimum acceptable level of
achievement. 
 I. Each grant shall be evidenced by an agreement that shall be delivered to and accepted by the Participant, which
shall state that the Performance Shares or Performance Units are subject to all of the terms and conditions of the Plan and such other terms and provisions as the Committee may determine consistent with the Plan. 
  

	 	9.	CHANGES IN CAPITAL STRUCTURE 

 A. No Limitations of Rights. The existence of outstanding Options or Stock Awards shall not affect in any way the right or power of the Corporation
or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Corporation’s capital structure or its business, or any merger or consolidation of the Corporation, or any issuance of
bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Corporation, or any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise. 
 B. Changes in Capitalization. If the Corporation
shall effect (i) any stock dividend, stock split, subdivision or consolidation of shares, recapitalization or other capital readjustment, (ii) any merger consolidation, separation of the Corporation (including a spin-off or split-up),
reorganization, partial or complete liquidation or other distribution of assets (other than ordinary dividends or distributions) without receiving consideration therefore in money, services or property, or (iii) any other corporate transaction
having a similar effect, then (iv) the number, class, and per share price or base amount of shares of Common Stock subject to outstanding Options and Stock Awards shall be equitably adjusted by the Committee as it in good faith determines is
required in order to prevent enlargement, dilution, or diminishment of rights, (v) the number and class of shares of Common Stock then 

  

 11 

 
reserved for issuance under the Plan and the maximum number of shares for which Awards may be granted to a Participant during a specified time period shall
be adjusted as the Committee deems appropriate to reflect such transaction, and (vi) the Committee shall make such modifications to the Performance Objectives for each outstanding Award as the Committee determines are appropriate in accordance
with Section 2, “Performance Objectives.” The conversion of convertible securities of the Corporation shall not be treated as effected “without receiving consideration.” The Committee shall make such adjustments, and its
determinations shall be final, binding and conclusive. 
 C. Merger, Consolidation or Asset Sale. If the Corporation is merged or
consolidated with another entity or sells or otherwise disposes of substantially all of its assets to another entity while Options or Stock Awards remain outstanding under the Plan, unless provisions are made in connection with such transaction for
the continuance of the Plan and/or the assumption or substitution of such Options or Stock Awards with new options or stock awards covering the stock of the successor entity, or parent or subsidiary thereof, with appropriate adjustments as to the
number and kind of shares and prices, then all outstanding Options and Stock Awards which have not been continued, assumed or for which a substituted award has not been granted shall, become exercisable immediately prior to and terminate immediately
as of the effective date of any such merger, consolidation or sale. 
 D. Limitation on Adjustment. Except as previously expressly
provided, neither the issuance by the Corporation of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property, or for labor or services either upon direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of the Corporation convertible into such shares or other securities, nor the increase or decrease of the number of authorized shares of stock, nor the addition or deletion
of classes of stock, shall affect, and no adjustment by reason thereof shall be made with respect to, the number, class or price of shares of Common Stock then subject to outstanding Options or Stock Awards. 
  

	 	10.	WITHHOLDING OF TAXES 

 The Corporation or an Affiliate shall have the right, before any certificate for any Common Stock is delivered, to deduct or withhold from any payment owed to a Participant any amount that is necessary in order to satisfy any withholding
requirement that the Corporation or Affiliate in good faith believes is imposed upon it in connection with Federal, state, or local taxes, including transfer taxes, as a result of the issuance of, or lapse of restrictions on, such Common Stock, or
otherwise require such Participant to make provision for payment of any such withholding amount. Subject to such conditions as may be established by the Committee, the Committee may permit a Participant to (i) have Common Stock otherwise
issuable under an Option or Stock Award withheld to the extent necessary to comply with minimum statutory withholding rate requirements for supplemental income, (ii) tender back to the Corporation shares of Common Stock received pursuant to an
Option or Stock Award to the extent necessary to comply with minimum statutory withholding rate requirements for supplemental income, (iii) deliver to the Corporation previously acquired Common Stock, (iv) have funds withheld from payments
of wages, salary or other cash compensation due the Participant, or (v) pay the Corporation or its Affiliate in cash, in order to satisfy part or all of the obligations for any taxes required to be withheld or otherwise deducted and paid by the
Corporation or its Affiliate with respect to the Option or Stock Award. 
  

	 	11.	COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES

 A. General Requirements. No Option or Stock Award shall be exercisable, no Common Stock shall be issued, no
certificates for shares of Common Stock shall be delivered, and no payment shall be made under the Plan except in compliance with all applicable federal and state laws and regulations (including, without limitation, withholding tax requirements),
any listing agreement to which the Corporation is a party, and the rules of all domestic stock exchanges or quotation systems on which the Corporation’s shares may be listed. The Corporation shall have the right to rely on an opinion of its
counsel as to such compliance. Any share certificate 

  

 12 

 
issued to evidence Common Stock when a Stock Award is granted or for which an Option or Stock Award is exercised may bear such legends and statements as the
Committee may deem advisable to assure compliance with federal and state laws and regulations. No Option or Stock Award shall be exercisable, no Stock Award shall be granted, no Common Stock shall be issued, no certificate for shares shall be
delivered, and no payment shall be made under the Plan until the Corporation has obtained such consent or approval as the Committee may deem advisable from regulatory bodies having jurisdiction over such matters. 
 B. Participant Representations. The Committee may require that a Participant, as a condition to receipt or exercise of a particular award, execute
and deliver to the Corporation a written statement, in form satisfactory to the Committee, in which the Participant represents and warrants that the shares are being acquired for such person’s own account, for investment only and not with a
view to the resale or distribution thereof. The Participant shall, at the request of the Committee, be required to represent and warrant in writing that any subsequent resale or distribution of shares of Common Stock by the Participant shall be made
only pursuant to either (i) a registration statement on an appropriate form under the Securities Act of 1933, which registration statement has become effective and is current with regard to the shares being sold, or (ii) a specific
exemption from the registration requirements of the Securities Act of 1933, but in claiming such exemption the Participant shall, prior to any offer of sale or sale of such shares, obtain a prior favorable written opinion of counsel, in form and
substance satisfactory to counsel for the Corporation, as to the application of such exemption thereto. 
  

	 	12.	GENERAL PROVISIONS 

 A. Effect on Employment and Service. Neither the adoption of the Plan, its operation, nor any documents describing or referring to the Plan (or any part thereof) shall (i) confer upon any individual any right to continue in the
employ or service of the Corporation or an Affiliate, (ii) in any way affect any right and power of the Corporation or an Affiliate to change an individual’s duties or terminate the employment or service of any individual at any time with
or without assigning a reason therefor, or (iii) except to the extent the Committee grants an Option or Stock Award to such individual, confer on any individual the right to participate in the benefits of the Plan. 
 B. Use of Proceeds. The proceeds received by the Corporation from the sale of Common Stock pursuant to the Plan shall be used for general
corporate purposes. 
 C. Unfunded Plan. The Plan, insofar as it provides for grants, shall be unfunded, and the Corporation shall not
be required to segregate any assets that may at any time be represented by grants under the Plan. Any liability of the Corporation to any person with respect to any grant under the Plan shall be based solely upon any contractual obligations that may
be created pursuant to the Plan. No such obligation of the Corporation shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Corporation. 
 D. Further Restrictions on Transfer. Any Award made under the Plan may expressly provide that all or any part of the shares of Common Stock that
are: (i) to be issued or transferred by the Corporation upon the exercise of an Option or Stock Appreciation Right, upon termination of the Deferral Period applicable to Deferred Shares or upon payment under any grant of Performance Shares or
Performance Units, or (ii) no longer subject to a substantial risk of forfeiture and restrictions on transfer referred to in Section 7.A of the Plan, shall be subject to further restrictions on transfer. 
 E. Fractional Shares. The Corporation shall not be required to issue fractional shares pursuant to the Plan. The Committee may provide for
elimination of fractional shares or the settlement of such fraction shares in cash. 
 F. Rules of Construction. Headings are given to
the Sections of the Plan solely as a convenience to facilitate reference, and shall not be used in interpreting, construing or enforcing any provision hereof. The reference to any statute, regulation, or other provision of law shall be construed to
refer to any amendment to or successor of such provision of law. To the extent that any provision of the Plan would prevent any Option that 

  

 13 

 
was intended to qualify under particular provisions of the Code from so qualifying, such provision of the Plan shall be null and void with respect to such
Option, provided that such provision shall remain in effect with respect to other Options, and there shall be no further effect on any provision of the Plan. 
 G. Foreign Employees. In order to facilitate the making of any grant or combination of grants under the Plan, the Committee may provide for such special terms for Awards to Participants who are foreign
nationals, or who are employed by the Corporation or any affiliate outside of the United States, as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Committee may
approve such supplements to, or amendments, restatements or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan, as then in effect, unless the Plan could
have been amended to eliminate such inconsistency without further approval by the Stockholders of the Corporation. 
 H. Choice of
Law. The Plan and all Stock Option Agreements and Stock Award Agreements entered into under the Plan (except to the extent that any such Stock Option Agreement or Stock Award Agreement otherwise provides) shall be governed by and interpreted
under the laws of the jurisdiction of incorporation of the Corporation excluding (to the greatest extent permissible by law) any rule of law that would cause the application of the laws of any jurisdiction other than the laws of the jurisdiction of
incorporation of the Corporation. 
  

	 	13.	AMENDMENT AND TERMINATION 

 The Board may amend or terminate the Plan from time to time; provided, however, that with respect to any amendment that (i) increases the aggregate number of shares of Common Stock that may be issued under the Plan,
(ii) changes the class of employees eligible to receive Incentive Stock Options or (iii) stockholder approval is required by the terms of any applicable law, regulation, or rule, including, without limitation, any rule of New York Stock
Exchange, or any national securities exchange on which the Common Stock is publicly traded, each such amendment shall be subject to the approval of the stockholders of the Corporation within twelve (12) months of the date such amendment is
adopted by the Board. Except as specifically permitted by a provision of the Plan (other than Section 3.B.), the Stock Option Agreement or Stock Award Agreement or as required to comply with applicable law, regulation or rule, no amendment to
the Plan or a Stock Option Agreement or Stock Award Agreement shall, without a Participant’s consent, adversely affect any rights of such Participant under any Option or Stock Award outstanding at the time such amendment is made; provided,
however, that an amendment that may cause an Incentive Stock Option to become a Nonqualified Stock Option, and any amendment that is required to comply with the rules applicable to Incentive Stock Options, shall not be treated as adversely affecting
the rights of the Participant. 
  

	 	14.	EFFECTIVE DATE AND DURATION OF PLAN 

 A. The Plan as amended and restated became effective upon adoption by the Board, subject to approval within twelve (12) months by the
stockholders of the Corporation. Unless and until the Plan as amended and restated has been approved the stockholders of the Corporation, no Option or Stock Award may be exercised, and no shares of Common Stock may be issued under the Plan to the
extent such Option, Stock Award or Shares of Common Stock is available under the Plan by reason of the amendment and restatement. In the event that the stockholders of the Corporation shall not approve the amended and restated Plan within such
twelve (12) month period, the amendment to the Plan incorporated in the amendment and restatement shall terminate and any previously granted Option or Stock Award shall terminate if the Option or Stock Award was dependent on stockholder
approval of the amendment and restatement of the Plan. 
 B. Unless previously terminated, the Plan will terminate ten (10) years
after the earlier of (i) the date the Plan is amended and restated was adopted by the Board, or (ii) the date the Plan as amended and restated is approved by the stockholders, except that Options and Stock Awards that are granted under the
Plan prior to its termination will continue to be administered under the terms of the Plan until the Options and Stock Awards terminate or are exercised. 
  

 14 

 Certificate of Secretary 
 I, the undersigned secretary of Highland Hospitality Corporation (the “Corporation”), do hereby certify that the attached copy of the Highland
Hospitality Corporation Amended and Restated 2003 Omnibus Stock Incentive Plan was adopted by the Board of Directors of the Corporation on March 31, 2006. 
  

							
				
	 /s/ Tracy M.J. Colden
	 		 		 	3/31/2006
	Secretary	 		 		 	Date

  

 15

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