Document:

EX-10.5

 Exhibit 10.5 

MANAGEMENT AGREEMENT 

between 
 ESA CANADA
OPERATING LESSEE ULC 
 (LESSEE) 

and 
 ESA MANAGEMENT,
LLC 
 (MANAGER) 

and 
 HVM CANADA HOTEL
MANAGEMENT ULC 
 (CANADA EMPLOYER) 

November 11, 2013 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I
	  	 CERTAIN DEFINITIONS
	  	 	1	  
			
	 ARTICLE II
	  	 ENGAGEMENT OF THE MANAGER PARTIES AND COMMENCEMENT OF MANAGEMENT OF THE HOTELS
	  	 	5	  
			
	 Section 2.1.
	  	 Engagement of the Manager Parties to Manage Hotels
	  	 	5	  
	 Section 2.2.
	  	 Management Commencement Date
	  	 	5	  
			
	 ARTICLE III
	  	 OPERATION OF THE HOTELS AFTER THE MANAGEMENT COMMENCEMENT DATE
	  	 	5	  
			
	 Section 3.1.
	  	 Duty and Authority of the Management Parties
	  	 	5	  
	 Section 3.2.
	  	 Operational Standards
	  	 	8	  
	 Section 3.3.
	  	 Agreements with Related Parties
	  	 	8	  
	 Section 3.4.
	  	 Emergency Repairs
	  	 	8	  
	 Section 3.5.
	  	 Major Policy Matters and Decisions
	  	 	9	  
	 Section 3.6.
	  	 Compliance with Trademark License Agreement
	  	 	9	  
	 Section 3.7.
	  	 Marketing and Reservation Services
	  	 	9	  
	 Section 3.8.
	  	 Compliance with Terms of the Loan Documents
	  	 	9	  
	 Section 3.9.
	  	 Credit Policies
	  	 	10	  
	 Section 3.10.
	  	 Collection Practices
	  	 	10	  
	 Section 3.11.
	  	 Centralized Services
	  	 	10	  
	 Section 3.12.
	  	 Intellectual Property
	  	 	10	  
			
	 ARTICLE IV
	  	 OPERATING EXPENSES PAID BY LESSEE
	  	 	11	  
			
	 Section 4.1.
	  	 Expenses Incurred by the Management Parties on Behalf of Lessee
	  	 	11	  
	 Section 4.2.
	  	 Debts and Liabilities to Third Parties
	  	 	11	  
	 Section 4.3.
	  	 The Management Parties Not Obligated to Advance Own Funds
	  	 	12	  
			
	 ARTICLE V
	  	 CONSULTING SERVICES OF MANAGER’S AFFILIATES
	  	 	12	  
			
	 ARTICLE VI
	  	 COMPLIANCE WITH LAWS
	  	 	12	  
			
	 Section 6.1.
	  	 Compliance by the Management Parties and Lessee After Management Commencement Date
	  	 	12	  
	 Section 6.2.
	  	 Lessee’s Right to Contest or Postpone Compliance
	  	 	13	  
	 Section 6.3.
	  	 The Management Parties’ Right to Terminate Agreement
	  	 	13	  
			
	 ARTICLE VII
	  	 HOTEL ACCOUNT, OPERATING FUNDS, AND RESERVE FUND ACCOUNT
	  	 	13	  
			
	 Section 7.1.
	  	 Hotel Account
	  	 	13	  

  
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	 Section 7.2.
	  	 Operating Funds
	  	 	14	  
	 Section 7.3.
	  	 Reserve Fund
	  	 	14	  
	 Section 7.4.
	  	 Fidelity Bonds
	  	 	14	  
			
	 ARTICLE VIII
	  	 BOOKS, RECORDS AND FINANCIAL STATEMENTS
	  	 	14	  
			
	 Section 8.1.
	  	 Accounting System
	  	 	14	  
	 Section 8.2.
	  	 Financial Statements
	  	 	15	  
	 Section 8.3.
	  	 Periodic Delivery of Data in Electronic Form
	  	 	15	  
			
	 ARTICLE IX
	  	 ANNUAL BUSINESS PLAN
	  	 	16	  
			
	 Section 9.1.
	  	 Preparation of Annual Business Plan
	  	 	16	  
	 Section 9.2.
	  	 Annual Business Plan Disputes
	  	 	16	  
	 Section 9.3.
	  	 Deviations from Annual Business Plan
	  	 	17	  
			
	 ARTICLE X
	  	 MANAGEMENT PARTIES’ FEES AND REIMBURSEMENTS
	  	 	17	  
			
	 Section 10.1.
	  	 Management Fee
	  	 	17	  
	 Section 10.2.
	  	 Reimbursement of Certain Expenses
	  	 	17	  
	 Section 10.3.
	  	 Technical Services
	  	 	18	  
	 Section 10.4.
	  	 Intentionally Omitted
	  	 	18	  
	 Section 10.5.
	  	 Other Hotel Revenue and Expenses
	  	 	18	  
			
	 ARTICLE XI
	  	 INSURANCE
	  	 	19	  
			
	 Section 11.1.
	  	 Insurance Coverage
	  	 	19	  
	 Section 11.2.
	  	 Waiver of Subrogation; Lessee Assumes Risk of Adequacy
	  	 	19	  
			
	 ARTICLE XII
	  	 TERM OF AGREEMENT AND TERMINATION
	  	 	19	  
			
	 Section 12.1.
	  	 Term
	  	 	19	  
	 Section 12.2.
	  	 Early Termination
	  	 	19	  
	 Section 12.3.
	  	 Termination Procedure
	  	 	19	  
	 Section 12.4.
	  	 Obligations Following Termination
	  	 	20	  
	 Section 12.5.
	  	 Additional Obligations Upon Lender Termination
	  	 	21	  
	 Section 12.6.
	  	 Survival
	  	 	23	  
			
	 ARTICLE XIII
	  	 REPRESENTATIONS AND COVENANTS
	  	 	23	  
			
	 Section 13.1.
	  	 Lessee’s Representations
	  	 	23	  
	 Section 13.2.
	  	 The Management Parties’ Representations
	  	 	24	  
	 Section 13.3.
	  	 The Management Parties’ Covenants
	  	 	24	  
			
	 ARTICLE XIV
	  	 ASSIGNMENT
	  	 	24	  
			
	 ARTICLE XV
	  	 CONFIDENTIALITY
	  	 	25	  

  
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	 ARTICLE XVI
	  	 INDEMNIFICATION AND LIMITATION OF LIABILITY
	  	 	25	  
			
	 Section 16.1.
	  	 Lessee’s Indemnification
	  	 	25	  
	 Section 16.2.
	  	 The Management Parties’ Indemnification
	  	 	25	  
	 Section 16.3.
	  	 Indemnification Procedure
	  	 	26	  
	 Section 16.4.
	  	 Good Faith Judgment
	  	 	26	  
	 Section 16.5.
	  	 Survival
	  	 	26	  
			
	 ARTICLE XVII
	  	 MISCELLANEOUS
	  	 	26	  
			
	 Section 17.1.
	  	 Severability
	  	 	26	  
	 Section 17.2.
	  	 No Partnership
	  	 	26	  
	 Section 17.3.
	  	 Meetings
	  	 	27	  
	 Section 17.4.
	  	 Consents
	  	 	27	  
	 Section 17.5.
	  	 Applicable Law
	  	 	27	  
	 Section 17.6.
	  	 Successors Bound
	  	 	27	  
	 Section 17.7.
	  	 Headings
	  	 	27	  
	 Section 17.8.
	  	 Incorporation of Recitals
	  	 	27	  
	 Section 17.9.
	  	 Notices
	  	 	27	  
	 Section 17.10.
	  	 Entire Agreement; Amendments
	  	 	28	  
	 Section 17.11.
	  	 The Management Parties’ Authority Limited
	  	 	28	  
	 Section 17.12.
	  	 Exclusive Compensation
	  	 	28	  
	 Section 17.13.
	  	 Property Rights
	  	 	28	  
	 Section 17.14.
	  	 Attorneys’ Fees
	  	 	28	  
	 Section 17.15.
	  	 Complimentary/Discount Policies
	  	 	28	  
	 Section 17.16.
	  	 No Third Party Beneficiary
	  	 	28	  
	 Section 17.17.  
	  	 REOC
	  	 	28	  

  
 iii 

 MANAGEMENT AGREEMENT 

THIS MANAGEMENT AGREEMENT (this “Agreement”) is made as of November 11, 2013 by and between ESA CANADA OPERATING LESSEE
ULC (f/k/a ESA Canada Operating Lessee Inc. and BRE/ESA Canada Lessee Inc.), a British Columbia unlimited liability corporation (“Lessee”), ESA MANAGEMENT, LLC, a Delaware limited liability company (“Manager”), and
HVM CANADA HOTEL MANAGEMENT ULC, an Alberta unlimited liability corporation (“Canada Employer”, and together with Manager, collectively, the “Management Parties”). 

BACKGROUND 
 A. ESA Canada
Administrator L.L.C., a Delaware limited liability company, and ESA Canada Properties Trust, a Delaware statutory trust (individually and collectively, “Owner”) are the owners of those certain properties constituting various hotel
properties more specifically described in Schedule A attached hereto and the buildings, structures, fixtures and additions now or hereafter located thereon (collectively, the “Hotels”); 

B. Owner has entered into that certain Lease Agreement dated as of October 8, 2010 with Lessee (as the same may be amended, restated,
supplemented or otherwise modified, the “Operating Lease”) pursuant to which Owner has leased the Hotels to Lessee pursuant to the terms thereof; 

C. Manager is an independent contractor engaged in the management of hotels throughout the United States, and the Management Parties are
experienced in the various phases of hotel operations; 
 D. Manager is the sole shareholder of Canada Employer; and 

E. Lessee desires to utilize the services and experience of the Management Parties in connection with the management and operation of the
Hotels, and the Management Parties desire to render such services, all upon the terms and conditions set forth in this Agreement. 

AGREEMENT 
 NOW THEREFORE, in
consideration of the foregoing recitals and the premises and the mutual covenants herein contained, the parties hereto agree as follows: 

ARTICLE I 
 CERTAIN DEFINITIONS

 “Accounting Period” shall mean each of 12 accounting periods of one calendar month occurring each Fiscal Year. 

“Affiliate” shall mean, with respect to any Person, any other Person that, directly or indirectly, (a) controls, is
under common control with, or is controlled by such specified Person and (b) owns at least 10% of, is under common ownership of at least 10% with, or is 

 
owned at least 10% by, such specified Person. For purposes of this definition, the term “control” shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of management, policies, or activities of a Person, whether through ownership of voting securities, by contract, or otherwise. 

“Annual Business Plan” shall have the meaning set forth in Section 9.1. 

“Cash Management Agreement” shall mean the cash management agreements executed and delivered in connection with the Loan
(including the mortgage loan and each mezzanine loan). 
 “Cash Management System” shall mean the cash management system
established pursuant to the Cash Management Agreement and each other cash management agreement relating to or contemplated by the Loan and the Loan Documents. 

“Centralized Services” shall have the meaning set forth in Section 3.11. 

“Code” shall mean the Internal Revenue Code of 1986 and, to the extent applicable, the Treasury Regulations promulgated
thereunder, each as amended from time to time. 
 “Emergency Repairs” shall mean repairs which are necessary, as a result
of emergencies, to protect, maintain, or repair the Hotels. Emergencies, for the purposes hereof, shall mean immediate threats of damage or injury to persons or property or immediate threats of violations of law. 

“ESH Hospitality” shall mean ESH Hospitality, Inc. (f/k/a ESH Hospitality, LLC), a Delaware corporation, which will elect to
be taxable as a real estate investment trust under Section 856(c) of the Code, together with its successors and assigns. 

“ESH IP” shall mean all names, trademarks, domain names and other intellectual property used in connection with the
ownership, management or operation of any Hotel. 
 “FF&E Percentage Contribution” shall have the meaning set forth in
Section 7.3. 
 “Fiscal Year” shall mean a Calendar Fiscal Year starting on January 1 and ending on
December 31 or portion thereof depending upon the Management Commencement Date and the termination date hereunder. 

“Furniture, Fixtures and Equipment” shall mean furniture, furnishings, light fixtures, outfittings, equipment and all other
items of personal property customarily installed in or used in connection with the operation of the Hotels (it being understood, for the avoidance of doubt, that Furniture, Fixtures and Equipment shall not include major capital improvements to the
Hotels). 
 “GAAP” shall mean generally accepted accounting principles, as in effect from time to time in the United States
of America, consistently applied. 

  
 2 

 “Gross Operating Revenues” shall mean all receipts, revenues, income and
proceeds of sales of every kind received by the Management Parties from the operation of the Hotels, and shall include, without limitation: room rentals; rent or other payments received from sub-tenants, licensees, and occupants of commercial and
retail space located in the Hotels (provided that the income and/or revenue received by any licensees, subtenants or other occupants which are Affiliates of Owner or Lessee shall not be included in Gross Operating Revenues); the proceeds of
insurance received by Owner, Lessee or the Management Parties with respect to use and occupancy or business interruption insurance; deposits forfeited and not refunded; frequent guest program payments; and any amount recovered in any legal action or
proceeding or settlement thereof pertaining to room revenues or other income from the Hotels which arose out of the operation of the Hotels. Gross Operating Revenues shall exclude all sales and excise taxes and any similar taxes collected as direct
taxes payable to taxing authorities; gratuities or service charges collected for payment to and paid to employees; credit or refunds to guests; proceeds of insurance, save and except for proceeds of insurance with respect to use and occupancy or
business interruption insurance; proceeds of sales of depreciable property; and proceeds of condemnation. 
 “Group
Services” shall have the meaning set forth in Section 10.2. 
 “Hotel Account” shall have the meaning
set forth in Section 7.1. 
 “Hotel Information” shall mean information collected and maintained by the
Management Parties in connection with its operation and management of the Hotels pursuant to this Agreement, regardless of the form or medium involved (e.g., paper, electronic, disc, tape, etc.), including without limitation, books of
account, guest records, customer lists, front office records and other records relating to, or reflecting the operation of, the Hotels. 

“Hotels” shall have the meaning set forth in Paragraph A of the Background section. 

“Independent Auditor” shall mean a reputable national firm of independent certified public accountants having hotel
experience, recommended by the Management Parties from time to time and approved by Lessee. 
 “Laws” shall have the
meaning set forth in Section 6.1. 
 “Lender” shall mean, collectively, all mortgage and mezzanine lenders
party to the Loan Agreement, together with their respective successors and assigns. 
 “Licensed Intellectual Property”
shall have the meaning set forth in Section 3.12(b). 
 “Licensor” shall mean ESH Strategies Branding LLC, a
Delaware limited liability company, together with its successors and assigns. 
 “Loan” shall mean, collectively, all loans
(including mortgage loans and mezzanine loans) now or hereafter made by Owner and certain Affiliates of Owner, pursuant to the Loan Documents. 

  
 3 

 “Loan Agreement” shall mean, collectively, one or more mortgage or mezzanine
loan agreements or similar instruments evidencing all or any portion of the Loan by and between Owner and certain Affiliates of Owner and Lender. 

“Loan Documents” shall mean collectively, the Loan Agreement, Cash Management Agreement and all other documentation now or
hereafter entered into by Owner and certain Affiliates of Owner and Lender related to such Loan, including, but not limited to, security agreements, promissory notes and other collateral documents. 

“Management Commencement Date” shall have the meaning set forth in Section 2.2. 

“Management Fee” shall have the meaning set forth in Section 10.1. 

“Operating Equipment” shall mean non-consumable equipment and supplies required for the operation of the Hotels, including
chinaware, glassware, linens, silverware, utensils, uniforms, and all other non-consumable supplies. 
 “Operating Funds”
shall have the meaning set forth in Section 7.2. 
 “Operating Lease” shall have the meaning set forth in
Paragraph B of the Background section. 
 “Operating Licenses” shall have the meaning set forth in
Section 3.1(e). 
 “Operating Supplies” shall mean food and beverages and other consumable items used in the
operation of a hotel, such as fuel, soap, cleaning materials, matches, stationery, brochures, folios and all other items used in the routine operation of the Hotels which are consumable by nature. 

“Owner” shall have the meaning set forth in Paragraph A of the Background section. 

“Parent” shall have the meaning set forth in Section 17.17. 

“Person” means any individual or entity, and the heirs, executors, administrators, legal representatives, successors, and
assigns of such Person where the context so admits. 
 “REOC” shall have the meaning set forth in
Section 17.17. 
 “Regional Employee” and “Regional Employees” shall have the meaning set
forth in Section 3.1(b). 
 “Reserve Fund” shall have the meaning set forth in Section 7.3. 

“Supervisory Services” shall have the meaning set forth in Section 3.1(b). 

“Trademark License Agreement” shall mean that certain Trademark License Agreement dated as of the date October 8, 2010
by and between Licensor, as licensor, and Lessee, as licensee, as the same may be amended, modified and/or supplemented from time to time. 

  
 4 

 “Uniform System” shall mean the Uniform System of Accounts for Hotels,
“Tenth Revised Edition”, as revised and adopted by the Hotel Association of New York City, Inc. from time to time. 
 ARTICLE II

 ENGAGEMENT OF THE MANAGEMENT PARTIES AND 

COMMENCEMENT OF MANAGEMENT OF THE HOTELS 

Section 2.1. Engagement of the Management Parties to Manage Hotels. Lessee hereby appoints the Management Parties as Lessee’s
exclusive manager, subject to the terms of this Agreement, to supervise, direct and control the management and operation of the Hotels, and the Management Parties hereby undertake and agree to perform, as independent contractors of Lessee, all of
the services and to comply with all of the provisions of this Agreement, upon all of the terms and conditions hereinafter set forth. 

Section 2.2. Management Commencement Date. The Management Parties shall assume management and operation of the Hotels on the date
hereof (the “Management Commencement Date”). 
 ARTICLE III 

OPERATION OF THE HOTELS AFTER THE 

MANAGEMENT COMMENCEMENT DATE 

Section 3.1. Duty and Authority of the Management Parties. On and after the Management Commencement Date, except as expressly
limited hereby, the Management Parties shall have the exclusive authority and duty to direct, supervise, manage and operate the Hotels in an efficient and economical manner and to determine the programs and policies to be followed in connection
therewith, all in accordance with the provisions of this Agreement and the Annual Business Plan. The Management Parties shall at all times be independent contractors and not employees of Owner or Lessee. Subject to the provisions of this Agreement
and the Annual Business Plan, the Management Parties shall have the discretion and control in all matters relating to the management and operation of the Hotels. Without limiting the generality of the foregoing, (subject to the provisions of this
Agreement and the Annual Business Plan): 
 (a) Canada Employer shall have the authority and duty to hire, supervise, direct the work of,
discharge and determine the compensation and other benefits of all personnel working in the Hotels pursuant to a written program of benefits, perquisites and policies which has been delivered to and approved by Lessee. Canada Employer shall be the
judge of the fitness and qualifications of such personnel and shall be vested with discretion in the hiring, training, supervision, direction, discharging, and determination of the compensation and other benefits of such personnel during the course
of their employment. It is expressly understood and agreed that all personnel are in the sole employ of Canada Employer or such company as Canada Employer may contract with regarding said personnel and are not in the employ of Lessee or Owner and
Lessee will not interfere with or give orders or instructions to personnel employed at the Hotels. 

  
 5 

 (b) Manager shall have the authority and duty to reasonably employ the resources of its home
office and regional facilities and personnel to supervise and assist in the operation of the Hotels. Manager shall provide the following supervisory services: maintenance, human resources and personnel, administration, hotel operations,
housekeeping, advertising, food and beverage operations, sales promotion, forecasting and operations analysis, staff planning, accounting, marketing, revenue management, Information Systems, travel commission, training and oversight of reservations
(the “Supervisory Services”). The foregoing Supervisory Services may be provided by Manager’s corporate officers, Manager’s employees, home office administrative heads or otherwise and shall be provided by Manager at its
own expense, including, without limitation, the out-of-pocket expenses, and not charged to Owner, except as otherwise specifically provided for in this Agreement. Notwithstanding the foregoing, to the extent any such Supervisory Services are to be
provided in Canada, Manager will cause such services to be provided by Canadian residents. In addition to the Supervisory Services to be provided by Manager hereunder, Canada Employer shall have the authority and the duty to initially employ one
regional sales director and/or may employ other employees who will be based primarily in Canada (each a “Regional Employee”, and collectively, the “Regional Employees”). 

(c) The Management Parties shall have the authority and duty to establish all prices, price schedules, rates and rate schedules (with the goal
of maximizing revenue per available room), rents, lease charges, concession charges, and, in connection therewith, the supervision, direction and control of the collection, receipt and giving of receipts for all services or income of any nature from
the operations of the Hotels. 
 (d) The Management Parties shall have the authority and duty to supervise and maintain complete books and
records, including without limitation, the books of accounts and accounting procedures of the Hotels. 
 (e) The Management Parties shall
have the authority and duty to obtain and maintain all licenses and permits required for the operation of the Hotels (the “Operating Licenses”). The Operating Licenses may be in the name of one of the Management Parties, Lessee or
Owner in accordance with or as required by local laws, customs and practices. 
 (f) The Management Parties shall have the authority and
duty to administer leases, license and concession agreements for all public space at the Hotels, including all stores, office space and lobby space. All such leases, licenses or concessions shall be in Lessee’s name and may be executed by
Canada Employer on Lessee’s behalf after any such lease, license or other agreement has been approved by Lessee. 
 (g) The Management
Parties shall have the authority and duty to keep the Hotels and the Furniture, Fixtures and Equipment in good order, repair and condition, including, without limitation, making necessary replacements, improvements, additions and substitutions to
the Hotels, subject to the approved Annual Business Plan. The Management Parties shall effect, institute, and/or supervise all decorations, routine construction, maintenance, repairs and alterations, including, but not limited to, the administration
of a preventive maintenance program for all mechanical, electrical and plumbing systems and equipment, for the Hotels to ensure that the Hotels will be competitive in its market and in compliance with governmental regulations,

  
 6 

 
the requirements of the Trademark License Agreement and with industry standards, provided that the costs therefor (unless the same relate to emergencies) are included in the Annual Business Plan
or are otherwise approved in writing, in advance, by Lessee. Subject to the limitations set forth in and imposed by the Annual Business Plan and the Loan Documents, the Management Parties will have the right to make such alterations, additions or
improvements to the Hotels as are customarily made in the operation or comparable hotels; provided, however, that no structural alterations, additions or improvements involving a fundamental change in the character of the
Hotels will be made without Lessee’s prior written approval. The cost of such customary alterations, additions or improvements will be paid either out of the Gross Operating Revenues and charged directly to current operating expenses of the
Hotels (if permitted by the Loan Documents) or will be paid from the Reserve Fund and capitalized and amortized on the books of the Hotels. 

(h) The Management Parties shall have the authority and duty to negotiate and enter into, on behalf of Lessee, service contracts and licenses
required in the ordinary course of business in operating the Hotels, including, without limitation, contracts for life/safety systems maintenance, electricity, gas, telephone, cleaning, elevator and boiler maintenance, air conditioning maintenance,
master television service, laundry and dry cleaning, and other services which the Management Parties deem advisable; provided, however, any contract for a term in excess of one (1) year or which is not terminable
without fee or penalty upon not more than sixty (60) days written notice or under which the total amount payable is $5,000 or more per Hotel and which is not covered in the Annual Business Plan shall, be approved by Lessee, which approval shall
not be unreasonably withheld or delayed; and provided further, that to the extent any such contract of license is to provide services to the Hotels, the parties will use best efforts to cause such contract or license to specify that
all such services will be provided by Canadian residents. 
 (i) The Management Parties shall have the authority and duty to negotiate and
enter into, on behalf of Lessee, agreements for banquet facilities and guest rooms and agreements to provide entertainment for the Hotels, and licenses for copyright music and videos, provided that to the extent any such agreement is to provide
services to the Hotels, the parties will use best efforts to cause such agreement to specify that all such services will be provided by Canadian residents. 

(j) The Management Parties shall have the authority and duty to supervise and purchase or arrange for the purchase in the most economical
manner of all inventories, provisions, Operating Equipment and Operating Supplies, which, in the normal course of business, are necessary and proper to maintain and operate the Hotels. 

(k) The Management Parties shall have the authority and duty to prepare and submit to Lessee the Annual Business Plan, as hereinafter
described in Section 9.1. 
 (l) The Management Parties shall have the authority and duty to consult with Lessee at least
quarterly to discuss the operation and management of the Hotels and the performance of the Management Parties’ duties under this Agreement. 

(m) The Management Parties shall have the authority and duty to prepare, or engage an accounting firm reasonably approved by Lessee to
prepare, any tax returns and 

  
 7 

 
statements which must be filed in connection with the ownership, operation or management of the Hotels (e.g., sales, use and occupancy taxes, real property taxes, and the like), and shall file
(or cause to be filed) such returns and statements and, subject to the availability of Lessee funds, pay (or cause to be paid) such taxes, all in accordance with applicable Laws. 

(n) The Management Parties shall have the authority and duty to, at Lessee’s request, advise and assist Lessee in connection with
negotiating and prosecuting any claims for the abatement, reduction or refund of property taxes affecting the Hotels. 
 (o) The Management
Parties shall have the authority and duty to cooperate reasonably with and assist Lessee in any legal proceedings by or against Lessee or Owner with regard to the Hotels and involving third parties. 

(p) The Management Parties shall have the authority and duty to perform such other tasks as are customary and usual in the operation of a
hotel of a class and standing consistent with the Hotels’ facilities. 
 (q) The Management Parties shall have the authority and duty
to prepare and maintain all records and reports relating to the Hotels necessary to demonstrate and support ESH Hospitality’s status as a real estate investment trust for tax purposes. 

Section 3.2. Operational Standards. (a) The Management Parties will operate the Hotels at the expense of Lessee in accordance
with and subject to the provisions of this Agreement and the Annual Business Plan. The Management Parties shall manage the Hotels in a manner normally associated with extended stay hotels of similar size, type, or usage in similar locations. The
Management Parties shall use due care with respect to the management, maintenance, and protection of, and accounting for, Lessee’s and Owner’s assets. 

(b) The Management Parties shall manage and operate the Hotels and their businesses, services, and sales and shall exercise diligent efforts
to do so at all times in a manner consistent with the standards imposed by the Trademark License Agreement, the Operating Lease, the requirements of all governmental regulations, and the requirements of this Agreement. 

(c) The Management Parties shall implement policies and practices to: (i) facilitate effective and efficient discharge of their
obligations under this Agreement; and (ii) to create and enhance goodwill among existing and prospective guests and patrons. 

Section 3.3. Agreements with Related Parties. The Management Parties shall not enter into any contract with an Affiliate of the
Management Parties in connection with the Hotels or the Management Parties’ services under this Agreement, including, without limitation, for operating, cleaning, maintaining, repairing or servicing the Hotels, without the express prior written
consent of Lessee, which consent may be evidenced by Lessee’s approval of the Annual Business Plan. 
 Section 3.4. Emergency
Repairs. In the event Emergency Repairs are needed at the Hotels, Manager shall be required to use its good faith efforts to obtain Lessee’s verbal approval of any Emergency Repairs prior to making any expenditure therefor. In the event
Manager is unable to contact Lessee to obtain its verbal approval of Emergency Repairs, then 

  
 8 

 
Manager is authorized to enter into contracts occasioned by such emergency that provide for expenditures not contemplated by the Annual Business Plan up to a sum of $50,000, and provided the same
may be incurred under the Loan Documents. Manager will promptly give Lessee written notice of any Emergency Repairs made by Manager. 

Section 3.5. Major Policy Matters and Decisions. (a) Manager shall submit outlines, in reasonable detail, to Lessee setting
forth its plans for and/or any major changes in its management and operation of the Hotels that are likely to have a material effect upon the profitability of the Hotels prior to Manager’s institution of such changes. 

(b) Manager shall not make any major policy decisions or changes not reflected in the applicable Annual Business Plan that would have a
potentially material effect on the operations of the Hotels without first obtaining Lessee’s approval of such policy change. 

Section 3.6. Compliance with Trademark License Agreement. The Management Parties shall administer compliance with the Trademark
License Agreement. 
 Section 3.7. Marketing and Reservation Services. Manager shall cause the Hotels to be included in the
national advertising programs and central reservation system for all hotels operated under the trademarks and trade names covered by the Trademark License Agreement. 

Section 3.8. Compliance with Terms of the Loan Documents. (a) Nothing herein contained shall prevent Lessee or Owner from
encumbering the Hotels by mortgage, deed of trust, or trust deed in the nature of a mortgage. 
 (b) Subject to availability of Lessee
funds, Manager shall use diligent efforts to cause the operation of the Hotels to comply with all terms, conditions, and obligations contained in the Loan Documents or any substitute therefor, of which Manager is made aware (provided that Manager
shall be under no obligation to ensure that sufficient funds for payment thereof are generated from Hotels operations), and with any leases, Lessee’s organizational documents, or other agreements of which Manager is made aware that are executed
by Lessee or Owner and that relate to the Hotels. Manager acknowledges that the terms and provisions of the Loan Documents may provide different standards or requirements with respect to certain matters covered by this Agreement. To the extent the
provisions of this Agreement are inconsistent with restrictions imposed by the Loan Documents, so long as Manager has been notified in writing of such restrictions, the provisions of the Loan Documents shall govern with respect to the matters
covered hereby. 
 (c) Upon the execution of any of the Loan Documents, Lessee shall furnish Manager with a duplicate copy thereof and, if
not designated in such Loan Documents, shall designate the post office address where notices may be served upon Lender. Manager agrees that, so long as any such Loan Document shall constitute a lien on the Hotels, when Lender shall request in
writing copies of any and all financial or other information, required to be prepared or maintained by Manager, pursuant to the terms and provisions of this Agreement, Manager shall, at Lessee’s direction, deliver same to Lender as often as
Lessee may reasonably request. Moreover, Manager shall allow, upon request of Lessee, any person designated in writing by Lender to examine, audit, inspect, and transcribe all books of account and all other records relating to or reflecting the
operation of the Hotels. 

  
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 (d) Subject to the applicable terms and conditions of the Loan Documents, this Agreement and the
rights of Manager hereunder are and shall be expressly subordinate and inferior to the rights of Lender under the Loan Documents as and to the extent provided therein. 

Section 3.9. Credit Policies. Manager shall establish and implement policies and procedures for verifying, accepting, limiting,
and rejecting the credit of guests and patrons of the Hotels. In connection with the foregoing, Manager shall make appropriate arrangements to honor American Express, Visa, MasterCard, such credit cards as may be required or provided by Licensor,
and such other credit cards as Manager or Lessee may deem desirable. Manager shall utilize its best efforts to make such arrangements on the most favorable terms available. 

Section 3.10. Collection Practices. Manager shall employ its best efforts to collect any and all credit card charges, checks,
traveler’s checks, drafts, and other accounts receivable. Manager shall employ collection agencies and legal counsel, where appropriate, to pursue such claims. 

Section 3.11. Centralized Services. Manager shall provide, or shall cause one or more of its Affiliates to provide, in the
operation of the Hotels and for the benefit of its guests, those benefits, services, and facilities, including joint advertising programs to the extent appropriate (all herein collectively called “Centralized Services”), similar to
those furnished to other hotels owned and/or operated by Manager or its Affiliates. 
 Section 3.12. Intellectual Property. 

(a) Manager acknowledges that the Licensor is the sole and exclusive owner of all rights, title and interest to the ESH IP, which shall in all
events remain the exclusive property of the Licensor (or one or more of Licensor’s Affiliates). Manager further acknowledges that, pursuant to the Trademark License Agreement, Lessee and its Affiliates have a license to use the ESH IP, which
license shall in all events remain the exclusive property of Lessee (or one or more of Lessee’s Affiliates). All use of the ESH IP at or in connection with the Hotels or as otherwise contemplated by this Agreement, and all goodwill arising
therefrom or symbolized thereby, shall inure solely to the benefit of Lessee, Licensor and their respective Affiliates, as applicable. Nothing in this Agreement shall be construed to grant Manager any right of ownership in, or right to use, or right
to license others to use, the ESH IP, except in connection with fulfilling its duties and obligations under this Agreement. Manager may not otherwise use the ESH IP without the prior written consent of Licensor or Lessee, which may be withheld in
Licensor’s or Lessee’s sole and absolute discretion, in any manner whatsoever and shall not apply for registration of any ESH IP or any other intellectual property confusingly similar thereto in any jurisdiction. 

(b) Manager acknowledges that Lessee or its Affiliates are or may become the licensee of certain intellectual property including intellectual
property that may be embodied in software for use at one or more facilities leased by Lessee or its Affiliates and all source and object code versions thereof and all related documentation, flow charts, user manuals,

  
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service/operator manuals and any enhancements, modifications or substitutions thereof (all such intellectual property herein collectively called “Licensed Intellectual
Property”). Except as otherwise specified by Lessee, Manager may utilize the Licensed Intellectual Property to the extent that Manager deems appropriate in connection with the operation of the Hotels for the purpose of carrying out its
obligations hereunder, but such use shall be strictly on a non-exclusive basis and neither such use nor anything contained in this Agreement shall confer any proprietary or other rights in the Licensed Intellectual Property on Manager or any third
parties. 
 (c) Upon the expiration or earlier termination of this Agreement, any use of or right to use any of the ESH IP or Licensed
Intellectual Property at or in connection with the Hotels by Manager shall cease forthwith. In the event of the expiration or earlier termination of this Agreement, Manager shall immediately cease using all ESH IP and Licensed Intellectual Property,
except to the extent that Manager may be authorized to continue using the same pursuant to, and in accordance with, the terms and conditions of any separate management or license agreement between Manager and any Affiliate of Lessee or any licensee
or franchisee that is otherwise authorized to use any such ESH IP or Licensed Intellectual Property. Further, Manager will have no right whatsoever from and after the date of expiration or earlier termination to make use of or to dispose of any
furnishings and equipment, Operating Equipment and Operating Supplies bearing or incorporating any ESH IP except upon and in accordance with the terms and provisions of this Section 3.12(c). Specifically, it is understood and agreed that
Manager may not make any use of such property from and after the effective date of such expiration or earlier termination unless Manager is specifically authorized in writing (whether under license from Lessee, Licensor or otherwise, other than by
this Agreement) to use property bearing any ESH IP, nor may Manager dispose of such property to any person or entity whatsoever unless such person or entity is specifically authorized in writing by Lessee or Licensor (whether under license from
Lessee or Licensor or otherwise) to use property bearing or incorporating any ESH IP. 
 (d) Lessee, Licensor and their respective
Affiliates shall have the right to injunctive relief and any other right or remedy available at law or in equity to enforce the provisions of this Section 3.12. 

(e) The provisions of this Section 3.12 shall survive expiration or earlier termination of this Agreement. 

ARTICLE IV 
 OPERATING EXPENSES
PAID BY LESSEE 
 Section 4.1. Expenses Incurred by the Management Parties on Behalf of Lessee. Everything done by the
Management Parties in the performance of their obligations and all expenses incurred under and in accordance with this Agreement shall be for and on behalf of Lessee and for Lessee’s account, except the services referred to in Article V,
which shall be rendered and performed by the Management Parties or their Affiliates at their expense and not separately charged to Lessee, except as otherwise provided in Section 10.2. 

Section 4.2. Debts and Liabilities to Third Parties. As between Lessee and the Management Parties under this Agreement, all debts
and liabilities arising in the course of 

  
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business of the Hotels are and shall be the obligations of Lessee, and, provided such debts and liabilities have been incurred in accordance with the terms and provisions of this Agreement, the
Management Parties shall not be liable for any of such obligations by reason of their management, supervision and operation of the Hotels for Lessee. 

Section 4.3. The Management Parties Not Obligated to Advance Own Funds. Neither the Management Parties nor any of their Affiliates
shall be obligated to advance any of its own funds to or for the account of Lessee, nor to incur any liability unless Lessee shall have furnished the Management Parties with funds necessary for the discharge thereof prior to incurring such
liability. If the Management Parties shall have advanced any funds in payment of a permitted expense in the maintenance and operation of the Hotels, Lessee shall reimburse the Management Parties therefor on demand. Notwithstanding the foregoing,
Manager shall pay from its own funds the expenses hereinafter described in Article V. 
 ARTICLE V 

CONSULTING SERVICES OF MANAGER’S AFFILIATES 

Except as hereinafter provided in Section 10.2, after the Management Commencement Date, the normal consulting services of the
corporate officers and employees of Manager or Manager’s Affiliates, including its corporate executives for operations, human resources, training, food and beverage, finance and administration and real estate, to be rendered from time to time
to Manager in connection with the operations of the Hotels, shall be provided by corporate officers and employees of Manager or Manager’s Affiliates to Manager at Manager’s sole cost and expense and not charged to Lessee hereunder. In no
event shall Manager’s Affiliates (other than Canada Employer) be deemed a party to this Agreement or responsible in any way for Manager’s obligations pursuant to this Agreement by virtue of providing the foregoing services to Manager (or
any of the services described in Section 10.2 and Lessee reimbursing Manager for the expenses in connection therewith). 

ARTICLE VI 
 COMPLIANCE WITH LAWS

 Section 6.1. Compliance by the Management Parties and Lessee After Management Commencement Date. The Management Parties shall
make all reasonable efforts, at expense of Lessee, to assure full compliance with all laws (including privacy laws), rules, regulations, requirements, orders, notices, determinations and ordinances of any governing authority (collectively,
“Laws”) relating to the management, leasing, use, operation, repair, supervision and maintenance of the Hotels, including, without limitation, the provincial and local liquor authorities, the Board of Fire Underwriters and the
requirements of any insurance companies covering any of the risks against which the Hotels is insured. Unless otherwise directed by Lessee, the Management Parties shall, at Lessee’s expense, promptly remedy any violation of any such
governmental regulation which comes or should have come to their attention, which remedy shall be carried out solely at Lessee’s expense (subject to the limitations set forth elsewhere herein) unless caused by an action or omission of the
Management Parties not authorized pursuant to this Agreement or unless the Management Parties has failed to fulfill their duty as required in the immediately preceding sentence, in which event all costs shall be paid solely by the Management
Parties. 

  
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 Section 6.2. Lessee’s Right to Contest or Postpone Compliance. With respect to a
violation of any Laws, Lessee shall have the right to contest any of the foregoing and postpone compliance pending the determination of such contest, if so permitted by law and not detrimental to the operation of the Hotels, but in such event,
Lessee shall indemnify and hold harmless the Management Parties from any loss, cost, damage or expense, as a result thereof. 

Section 6.3. The Management Parties’ Right to Terminate Agreement. Notwithstanding anything in this Agreement to the
contrary, if within 30 days of receiving the Management Parties’ written request (accompanied by a statement of the Management Parties’ intention to elect to cancel this Agreement if Lessee fails to give its approval as provided below)
Lessee fails to approve the changes, repairs, alterations, improvements, renewals or replacements to the Hotels which the Management Parties determine in their reasonable judgment are necessary to protect the Hotels, Lessee and/or the Management
Parties from innkeeper liability exposure then the Management Parties may terminate this Agreement any time after such 30 day period upon 7 days’ written notice; provided, however, that if termination of this
Agreement could result in the acceleration of the indebtedness secured by the Loan Documents, then the Management Parties shall not have such right of termination, and in such event, Lessee’s indemnification in Section 16.1 shall
apply to such innkeeper liability as set forth above. 
 ARTICLE VII 

HOTEL ACCOUNT, OPERATING FUNDS, AND RESERVE FUND ACCOUNT 

Section 7.1. Hotel Account. (a) Lessee directs the Management Parties and the Management Parties acknowledge and agree,
pursuant to the terms of the Cash Management Agreement, to deposit or cause to be deposited, all monies received by the Management Parties in the operation of the Hotels, excluding the Operating Funds furnished by Lessee, into the Cash Management
System so long as any amounts under the Loan are outstanding. Lessee agrees that disbursements to Lessee from the Operating Expense Subaccount (as defined in the Cash Management Agreement) shall be deposited in a special account or accounts
(collectively, the “Hotel Account”), in Lessee’s name (or in one of the Management Parties’ name, as agent of Lessee), in the bank or trust company recommended by the Management Parties and approved by Lessee. Such monies
shall not be mingled with the Management Parties’ other funds. Out of the Hotel Account, the Management Parties shall periodically withdraw funds and pay all operating expenses of the Hotels and any fees or compensation of any kind due to them
pursuant to this Agreement in accordance with the provisions of this Agreement. Withdrawals from accounts established pursuant to this Article VII shall be signed by representatives of the Management Parties only, provided such
representatives are bonded or otherwise insured, and the Management Parties shall supply Lessee with bonds or other insurance upon Lessee’s request unless said bond or other insurance shall have been placed by Lessee and delivered directly by
the bonding or insurance company to Lessee. The Management Parties may utilize their respective centralized disbursement accounts in their respective names for accounts payable and payroll disbursements, provided that the Management Parties shall
only transfer the necessary amount of funds from the Hotel Account to such centralized disbursement accounts required to make such disbursements on behalf of the Hotels. The parties acknowledge that pursuant to Section 11.5 of the Operating
Lease, certain amounts received in the operation of the Hotels and deposited in the Cash Management System may be offset against and applied to the payment of rent due under the Operating Lease. 

  
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 (b) The Management Parties will maintain the Hotel Account on Lessee’s behalf and all funds
received from Lessee will be and remain the property of Lessee and will be disbursed by the Management Parties only as set forth in this Agreement. Any and all expenses of the Hotels paid by the Management Parties must pass through and be withdrawn
from the Hotel Account. Lessee shall have the right from time to time to direct the Management Parties to change either the depository bank or the depository arrangements and the Management Parties shall implement such changes promptly. Lessee shall
have the right to approve and to maintain control of signature cards for the Hotel Account; provided, however, Lessee shall not withdraw funds from such accounts except as provided below. 

Section 7.2. Operating Funds. From and after the Management Commencement Date, Lessee shall, if and as required, maintain cash in
the Hotel Account (“Operating Funds”) sufficient in amount to enable the Management Parties to properly manage and operate the Hotels. 

Section 7.3. Reserve Fund. If the Loan Documents require a reserve(s) for Furniture, Fixtures and Equipment to be maintained, the
Management Parties shall cause such reserve(s) to be maintained in accordance with the terms of the Loan Documents. If the Loan Documents do not require such a reserve, then, as part of the Hotel Account, there shall be established the Reserve Fund
in the manner hereinafter described. To the extent Operating Funds exceed the amount described in Section 7.2 and the amounts needed for capital expenditures anticipated pursuant to the Annual Business Plan, the Management Parties shall
deposit from such excess, if any, in a reserve fund (“Reserve Fund”) an amount equal to 4% of Gross Operating Revenues or such other percentage of Gross Operating Revenues as Lessee may, from time to time, require (the
“FF&E Percentage Contribution”). The Management Parties shall deduct the FF&E Percentage Contribution, if any, on a monthly basis from Gross Operating Revenues and deposit such amount in the Reserve Fund. The Reserve Fund
shall be used only for additions or replacements to Furniture, Fixtures and Equipment in accordance with the Annual Business Plan. 

Section 7.4. Fidelity Bonds. The Management Parties shall obtain a fidelity bond or insurance, in an amount not less than
$1,000,000 (or such other amount reasonably required by Lessee consistent with the commercial availability thereof, the size and scope of Lessee’s business being handled by the Management Parties hereunder and reasonable business practice),
issued by a company reasonably acceptable to Lessee, covering the Management Parties and such of the Management Parties’ on-site employees who may handle or be responsible for monies or property of Lessee and place policies of insurance
covering the Hotels as directed by Lessee. 
 ARTICLE VIII 

BOOKS, RECORDS AND FINANCIAL STATEMENTS 

Section 8.1. Accounting System. The Management Parties shall keep full and adequate books of account and other records reflecting
the results of operation of the Hotels on an accrual basis, all in accordance with GAAP and, as and to the extent applicable to the Hotels, the Uniform System. The Fiscal Year used by the Management Parties will consist of 12 Accounting Periods of
one calendar month each. The Hotel Information shall be kept at the 

  
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Hotels and/or Manager’s home office and computer storage systems and shall be available to Lessee and its representatives at all reasonable times for examination, audit, inspection and
transcription. All of the Hotel Information, at all times, shall be the property of Lessee. The Management Parties shall treat as confidential any Hotel Information in its possession, and shall not disclose to any third party, without the prior
written consent of Lessee (which approval and consent may be withheld in Lessee’s sole discretion) any Hotel Information, except as may be necessary to perform its duties and obligations under this Agreement or as may be necessitated by any
applicable Laws. Upon the expiration or earlier termination of this Agreement, all Hotel Information shall be turned over to Lessee to ensure the orderly continuation of the operation of the Hotels, but the books and records shall thereafter be
available to the Management Parties at all reasonable times for inspection, audit, examination and transcription. 
 Section 8.2.
Financial Statements. 
 (a) The Management Parties shall deliver to Lessee within twenty (20) days after the end of each
Accounting Period a profit and loss statement showing the results of the operation of the Hotels for such Accounting Period, the Fiscal Year to date, and the trailing twelve (12) month period, and a statement of gross revenues received from
rooms, food and beverage and other sources, guest room occupancy percentage, average room rates, total expenses paid and a cash forecast. Information relating to other matters pertaining to the management, operation, maintenance, and supervision of
the Hotels not covered in such monthly operating reports as Lessee shall reasonably request will be provided to Lessee (provided such information is generally within the scope of Manager’s other obligations and duties hereunder), within 20 days
of such request. 
 (b) The Management Parties shall deliver to Lessee within forty-five (45) days after the end of each of the first,
second and third calendar quarters, quarterly financial statements in consistent form and presentation to the annual combined balance sheet, income statement and statement of cash flows, exclusive of footnotes, accompanied by a reconciliation to the
year-to-date monthly property operations reports and capital expenditures report. 
 (c) The Management Parties shall cooperate with the
Independent Auditor so as to allow the Independent Auditor to deliver to Lessee within 90 days after the end of each Fiscal Year a profit and loss statement showing the result of operation of the Hotels during such Fiscal Year, and the net operating
income or loss, if any, for such Fiscal Year and a balance sheet for the Hotels as of the close of such Fiscal Year. The Management Parties shall, together with such statement, deliver to Lessee a statement of income and expenses for such Fiscal
Year and a statement of balances in the Hotel Account. Any disputes as to the contents of any such statements or any accounting matter hereunder, shall be determined by the Independent Auditor whose decision shall be final and conclusive on the
Management Parties and Lessee. 
 Section 8.3. Periodic Delivery of Data in Electronic Form. Upon request by Lessee (but not
more than twice in any calendar year), the Management Parties shall deliver to Lessee, within a reasonable period of time after such request, a copy of such Hotel Information as may be requested by Lessee (or if Lessee has previously made a request
under this Section 8.3 for such Hotel Information, a copy of all such Hotel Information collected since such previous request) collected or maintained by the Management Parties, in such electronic format as Lessee may reasonably require.

  
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 ARTICLE IX 

ANNUAL BUSINESS PLAN 

Section 9.1. Preparation of Annual Business Plan. (a) The Management Parties shall operate the Hotels pursuant to the annual
business plan previously approved by Lessee for the remainder of calendar year 2013. Thereafter, at least 15 days prior to the date on which Lessee is required to deliver the same to Lender pursuant to the Loan Documents for each Fiscal Year, the
Management Parties shall submit to Lessee an annual business plan for the succeeding Fiscal Year. Each annual business plan proposed by the Management Parties and approved by Lessee in accordance with this Article IX (an “Annual
Business Plan”) shall include: an operating budget showing estimated Gross Operating Revenues, department profits, operating expenses, and net operating income or loss for the forthcoming Fiscal Year for the Hotels; a marketing plan (for
Fiscal Year 2014 and each Fiscal Year thereafter); a cash flow forecast; projected average daily room rates; the budget for replacing Furniture, Fixtures and Equipment and for making capital improvements; and the basis of allocation of the Group
Services, all in reasonable detail and, where appropriate, with the basis for all assumptions expressly set forth, and otherwise complying with the applicable requirements set forth in the Operating Lease. 

(b) Within 5 business days after the proposed Annual Business Plan is submitted to Lessee, Lessee shall approve such proposed Annual Business
Plan or notify the Management Parties of any revisions therein which Lessee deems reasonably necessary. If Lessee approves the proposed Annual Business Plan or if Lessee requires revisions to the proposed Annual Business Plan, and the Management
Parties do not make reasonable objections to such proposed revisions within 5 business days after receipt thereof, then such proposed Annual Business Plan, together with the proposed revisions required by Lessee, shall be deemed thereafter to
constitute the Annual Business Plan for the Fiscal Year in question for all purposes hereof. In the event the Management Parties timely make any reasonable objection to any proposed revision by Lessee to the proposed Annual Business Plan, Lessee and
the Management Parties shall cooperate with each other to resolve any questions with respect to such revisions to the proposed Annual Business Plan and shall use their best efforts to agree upon an approved Annual Business Plan for the Hotels for
the Fiscal Year in question prior to the date such Annual Business Plan must be submitted to Lender under the Loan Documents. 

Section 9.2. Annual Business Plan Disputes. In the event Lessee and the Management Parties are unable to agree upon an Annual
Business Plan, or as to any revisions requested by Lessee to the proposed Annual Business Plan, for any Fiscal Year by the date on which such Annual Business Plan must be submitted to Lender under the Loan Documents, Lessee shall prevail and the
proposed Annual Business Plan shall be deemed approved as so revised by Lessee (and as the same may further be revised by Lessee to the extent required by Lender pursuant to the Loan Documents) and shall thereafter constitute the Annual Business
Plan for the Fiscal Year in question for all purposes hereof. No action shall be taken and no expenditures shall be made under any proposed Annual Business Plan unless and until the proposed Annual Business Plan is approved by Lessee. 

  
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 Section 9.3. Deviations from Annual Business Plan. The Management Parties shall
diligently pursue all feasible measures to enable the Hotels to adhere to the Annual Business Plan. To the extent ascertainable in advance, the Management Parties shall notify Lessee of any projected material variance from the Annual Business Plan.
Notwithstanding anything herein to the contrary, the Management Parties is not warranting or guaranteeing in any respect that the actual operating results of the Hotels during the period covered by the Annual Business Plan will not materially vary
from the projections described in the Annual Business Plan. 
 ARTICLE X 

MANAGEMENT PARTIES’ FEES AND REIMBURSEMENTS 

Section 10.1. Management Fee. During each Fiscal Year after the Management Commencement Date (and for a fraction of any partial
Fiscal Year) during the term hereof, in consideration of the services Manager is to render under this Agreement, Manager will be paid a fee in U.S. Dollars (the “Manager Fee”) equal to the sum the of (a) 2.50% of all Gross
Operating Revenues converted into U.S. Dollars using the average daily exchange rate published by the www.OANDA.com website for the period beginning on the first day of the Fiscal Year (or, in the case of the first Fiscal Year, beginning on
the Management Commencement Date and ending on the last day of the month for which such Manager Fee is due), less an amount payable in Canadian Dollars directly to Canada Employer attributable to all costs and expenses actually incurred by Canada
Employer in connection with the employment by Canada Employer of the Regional Employees in accordance with Section 3.1(b) (the “Employer Fee”, the Employer Fee and Manager Fee, collectively, the “Management
Fee”) up to $12,000,000 for such Fiscal Year plus (b) 0.5% of all Gross Operating Revenues converted into U.S. Dollars using the average daily exchange rate as published by the www.OANDA.com website for the period
beginning on the first day of the Fiscal Year (or, in the case of the first Fiscal Year, beginning on the Management Commencement Date and ending on the last day of the month for which such Management Fee is due), less the Employer Fee, over
$12,000,000 for such Fiscal Year. Subject to the applicable provisions of the Loan Documents (including, without limitation, any Cash Management System), the Management Fee will be paid in installments by deducting such fee from Gross Operating
Revenues immediately following each Accounting Period at the rate of (i) 2.50% of Gross Operating Revenues for that Accounting Period until Gross Operating Revenues for the applicable Fiscal Year are equal to $12,000,000 and (ii) 0.5% of
Gross Operating Revenues for that Accounting Period thereafter. At the end of each Fiscal Year following the annual audit, an adjustment will be made, if necessary, and all sums due either the Management Parties or Lessee shall be paid promptly.

 Section 10.2. Reimbursement of Certain Expenses. Notwithstanding the provisions of Article V (but subject to the
Annual Business Plan), Lessee shall reimburse the applicable Management Party for all of the following property-level costs and expenses incurred in managing and operating the Hotels: (i) the salaries or wages of any officers, directors or
employees of Canada Employer or any of its Affiliates who shall be regularly or temporarily employed or assigned on a full-time basis at the Hotels for the period of such employment or assignment; (ii) personnel providing in-house legal
services to the Management Parties or any of their Affiliates in connection with matters involving the Hotels, which services shall be charged at rates equal to or less than the Management Parties’ or such Affiliate’s costs associated with

  
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such services (provided, that to the extent such services are provided to Lessee and other lessees, owners or other clients of the Management Parties and/or their Affiliates on a group rather
than on an individual basis, the cost of such services shall be allocated on a fair and equitable basis among Lessee and such other lessees, owners or other clients benefiting therefrom in the manner, if any, described in the Annual Business Plan);
(iii) the out-of-pocket expenses of employees of the Management Parties or any of their Affiliates incurred in connection with the management and operation of the Hotels (provided, that to the extent such services are provided to Lessee and
other lessees, owners or other clients of the Management Parties and/or their Affiliates on a group rather than on an individual basis, the cost of such services shall be allocated on a fair and equitable basis among Lessee and such other lessees,
owners or other clients benefiting therefrom in the manner, if any, described in the Annual Business Plan); and (iv) certain other services (including general and administrative) (collectively, the “Group Services”) best
provided to Lessee and other lessees, owners or other clients of Manager and/or Manager’s Affiliates on a group rather than on an individual basis, the cost of which Group Services shall be allocated on a fair and equitable basis among Lessee
and such other lessees, owners or other clients benefiting therefrom in the manner described in the Annual Business Plan, including, without limitation, the following: (A) advertising, sales and marketing, (B) payroll processed through
Automatic Data Processing Inc. (or other companies providing similar services), and MIS support services; (C) accounting services; (D) revenue management; (E) facilities and purchasing services; (F) information technology
services; (G) reservation services; (H) travel agent commissions; and (I) Centralized Services. All costs and expenses incurred by Manager or Canada Employer in Canadian Dollars, including, without limitation, costs and expenses of
Canada Employer in connection with its employment of the Regional Employees in accordance with Section 3.1(b), shall be reimbursed in Canadian Dollars. 

Section 10.3. Technical Services. Service fees for technical services for the Hotels shall be paid to the Management Parties or
their Affiliates if Lessee requests such services of the Management Parties, or any other services beyond the scope of services to be provided pursuant to this Agreement. The amount of fees shall be agreed to by Lessee and the Management Parties
prior to commencing such services. Technical services include renovation coordination, design review, construction management and related services. 

Section 10.4. Intentionally Omitted. 

Section 10.5. Other Hotel Revenue and Expenses. Lessee acknowledges that the Management Parties and their Affiliates have the
right to, and currently do, manage, operate and otherwise provide services to hotel and lodging facilities and enterprises other than the Hotels. Each of Lessee and the Management Parties acknowledges and agrees that any and all income derived from,
and expenses incurred by, the Management Parties or any of their Affiliates, directly or indirectly, from the management and operation of, and provision of services to, such other hotel and lodging facilities and enterprises shall be, as between
Lessee (on the one hand), and the Management Parties and their Affiliates (on the other hand), solely for the account of the Management Parties and/or their Affiliates and shall in no event be borne by or credited to Lessee. 

  
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 ARTICLE XI 

INSURANCE 
 Section 11.1.
Insurance Coverage. Lessee, or the Management Parties at the direction of Lessee, shall provide and maintain, at Lessee’s cost and expense and in Lessee’s and Owner’s name, insurance sufficient to furnish to Lessee, Owner and
the Management Parties reasonable and adequate protection in the management and operation of the Hotels. All insurance shall be in the name of Lessee, Owner and the Management Parties as the insured and shall contain riders and endorsements
adequately protecting the interests of Lessee, the Management Parties and Owner as it may appear including, without limitation, provisions for at least 20 days’ notice to the Management Parties, Lessee and Owner of cancellation or of any
material change therein. Prior to the Management Commencement Date and the commencement of each Fiscal Year thereafter, the Management Parties shall furnish Lessee and each Owner with certificates evidencing the insurance coverages required pursuant
to this Agreement and with evidence of the payment of premiums therefor. 
 Section 11.2. Waiver of Subrogation; Lessee Assumes Risk
of Adequacy. Lessee shall have all policies of insurance provide that the insurance company will have no right of subrogation against any party hereto, their agents or employees. Lessee assumes all risks in connection with the adequacy of any
insurance or self-insurance program. 
 ARTICLE XII 

TERM OF AGREEMENT AND TERMINATION 

Section 12.1. Term. This Agreement shall be for a period commencing on Management Commencement Date and ending on
December 31, 2025 (the “Expiration Date”), unless sooner terminated as hereinafter provided. 
 Section 12.2.
Early Termination. This Agreement can be terminated by either Lessee or Manager (on behalf of the Management Parties) at its option for any or no reason. If either Lessee or Manager exercises its right to terminate this Agreement prior to the
Expiration Date, the rights and obligations of the parties will cease (other than those that expressly survive the termination of this Agreement) except as to fees and reimbursements due the Management Parties or their Affiliates or Lessee pursuant
to this Agreement, including without limitation, Article X, and claims for non-performance by Lessee against the Management Parties and other claims of liabilities of any party which accrued or arose before termination. 

Section 12.3. Termination Procedure. 

(a) If a termination occurs pursuant to Section 12.2, the party electing to terminate shall give the other party at least 60
days’ prior written notice of such election, specifying the date of such termination. On the date specified in such notice, the Management Parties shall cease all activities at the Hotels and shall have no further obligations under this
Agreement except those obligations which specifically survive any termination hereof. 
 (b) If one or more (but less than substantially
all) of the Hotels are (i) sold, conveyed or otherwise transferred to another party, (ii) damaged or destroyed by casualty and Owner has elected not to restore, or (iii) taken in a condemnation proceeding, then this Agreement shall
automatically terminate with respect to such Hotel(s) from the date of such sale, casualty or condemnation but shall continue with respect to the other Hotels in accordance with the terms of this Agreement. 

  
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 (c) Prior to the date the Management Parties cease activities at the Hotels, the Management
Parties shall be paid any and all fees earned or expenses due to them pursuant to this Agreement, and as soon thereafter as is reasonably practicable, pay any fees or expenses upon the final accounting in Section 12.4(a), and the
Management Parties shall cooperate with Lessee (and Owner, if applicable) in effectuating an orderly transition to any new manager of the Hotels (or to any new owner, or to Lessee or Owner, or to any of their respective designee’s, as the case
may be) so as to avoid any interruption in the rendering of services at the Hotels and take such other actions as are required under Section 12.4. 

Section 12.4. Obligations Following Termination. Upon the expiration or earlier termination of this Agreement for any reason, the
Management Parties’ authority to act for the Lessee or the Owners shall immediately cease and the Management Parties shall do, and execute and/or deliver to Lessee, the following with respect to the Hotels, all of which shall be done, and
executed and/or delivered to or as directed by Lessee, promptly upon the expiration or earlier termination hereof or as soon thereafter as is reasonably practicable. 

(a) A final accounting, reflecting receipts and disbursements in connection with the operations of the Hotels during the current Fiscal Year
through the date of termination. 
 (b) Any balance of monies of Lessee, including, without limitation, any undisbursed funds in the Hotel
Account. 
 (c) All Hotel Information (including all Hotel Information stored in any electronic format), service contracts, reservations,
leases, receipts for deposits, unpaid bills and other papers or documents which pertain to the Hotels, including, but not limited to, all original documents. In addition, the Management Parties shall assist Lessee (or its designee) in migrating and
porting any Hotel Information stored in electronic format from the system or systems used by the Management Parties to any new system or systems designated employed by Lessee or its designee, including, to the extent necessary, parsing and decoding
the existing content and format of such electronic data to facilitate such transfer, all such reasonable out-of-pocket costs to be reimbursed to the Management Parties. 

(d) All documents and instruments necessary to transfer to Lessee or its designee or nominee, to the extent transferable, all Operating
Licenses held by the Management Parties necessary to operate the Hotels. 
 (e) The Management Parties will assign to Lessee or its nominee,
and Lessee and its nominee, if any, will assume, all space leases and concession agreements in effect with respect to the Hotels then in either of the Management Parties’, rather than Lessee’s, name, except for blanket concessions
affecting other hotels or conference centers operated by the Management Parties or their Affiliates. 
 (f) The Management Parties will take
such further actions as Lessee may reasonably require to assure an orderly transition of the Hotels’ operations, including, without limitation, providing inventories of Furniture, Fixtures and Equipment, Operating Equipment and Operating
Supplies. 

  
 20 

 (g) Any and all Furniture, Fixtures and Equipment (along with then existing warranties, operating
instructions, and service contracts), Operating Equipment, Operating Supplies, keys, locks and safe combinations, reservation lists, ledgers, bank statements for the Hotel Account, budgets, accounting books and records, insurance policies, bonds and
other documents, memoranda, schedules, lists, contracts, agreements, leases, licenses, correspondence, and other items required for the operation of the Hotels. 

(h) The Management Parties shall remove all of the Management Parties’ personal property from the Hotel premises. 

(i) Without limiting the provisions of clause (d) above, the Management Parties shall cooperate with Lessee to transfer all liquor
licenses to, or to obtain new liquor licenses, in the name of Lessee or Lessee’s designee. The Management Parties shall make commercially reasonable efforts to provide interim liquor licenses for up to one hundred eighty (180) days to
Lessee or Lessee’s designee, provided that the Management Parties may condition such provision on their receipt of market standard fees and a commercially reasonable indemnity from such party with respect to such claims as may arise in
connection with the sale of liquor from Hotels. 
 (j) Without limiting any of the foregoing, the Management Parties shall, for a period of
ninety (90) days after such expiration or earlier termination of this Agreement, make itself available at all reasonable times to consult with and advise Lessee or Lessee’s designee regarding the management, operation and maintenance of
the Hotels; in such event, Lessee, Owner or the purchaser of the Hotels shall reimburse the Management Parties for all of the Management Parties’ reasonable out-of-pocket costs and expenses incurred during such 90-day period in connection with
providing such consulting and advisory services, including, without limitation, the appropriately allocable portion of the Management Parties’ payroll expenses for personnel involved in assisting with such transition. 

Section 12.5. Additional Obligations Upon Lender Termination. Capitalized terms used but not otherwise defined in this
Section 12.5 shall have the meaning given to such terms in that certain Assignment of Management Agreement and Subordination of Management Agreement, dated as of the date hereof, by and among Lessee, ESA P Portfolio Operating Lessee LLC,
ESA P Portfolio MD Trust, Owner, Lender (as defined therein) and Manager (the “AMA”). Subject to the provisions of Sections 8 and 9 of the AMA, if (I) upon the occurrence of a Termination Event, Lender elects to cause this
Agreement to be terminated pursuant to clause (ii) of Section 5(a) of the AMA, or (II) Manager (on behalf of the Management Parties) elects to terminate this Agreement pursuant to Section 12.2 following a foreclosure or
deed-in-lieu thereof where Lender or its designee takes title to the Property, then, at the election of Lender (to be specified in the written notice to Lessee and Manager specified in clause (ii) of Section 5(a) of the AMA), for a period
continuing through the earlier of (x) the date that is twenty-four (24) months after the Termination Event or (y) such earlier date on which Lender provides written notice to Manager that the transition to a replacement manager is
complete (the “Transition Period”; the end of the Transition Period being the “Termination Date” in such case) 

  
 21 

 
the Management Parties shall (subject to Lender’s payment and the Management Parties’ receipt of all Management Fees, including reimbursement of all costs and expenses of the Management
Parties that are reimbursable under and in accordance with this Agreement, during the Transition Period): 
 (a) subject to the terms of the
AMA, continue to perform all of the Management Parties’ obligations under the terms of this Agreement and provide reasonable cooperation and assistance to Lender in conducting such diligence and related activities as Lender may from time to
time reasonably request in anticipation of and in connection with the transfer of management of any one or more Individual Properties or any other Collateral to a replacement manager, including in respect of the reservation system, the marketing
program and all Intellectual Property utilized by Manager in operating each Individual Property (such activities, collectively, the “Diligence Activities”); provided, that in connection with any such Diligence Activities, Lender
shall pay or reimburse the Management Parties for all out-of pocket costs and expenses actually incurred by the Management Parties without duplication of any costs or expenses reimbursed under the Management Agreement or Services Agreement; 

(b) in order to facilitate the orderly transition as a going concern of the hotel business conducted at the Properties by Borrower, Lessee and
the other Loan Parties and the ability of Lender to transfer that business to a third party subsequent to the commencement of the Transition Period, shall provide reasonable cooperation and transition assistance to Lender, any successor owner of any
one or more Individual Properties and/or any third party replacement manager or management company identified by Lender, which assistance shall consist of the following: (A) complying with all obligations set forth in Section 12.3
and Section 12.4 of this Agreement for the entire term of the Transition Period, notwithstanding the ninety (90) day period set forth therein, (B) operating the Properties as part of a national advertising program otherwise
applicable to its hotels, (C) including the Properties in the central reservation system for all hotels operated under the ESA Brand and any third party software owned and/or licensed by Manager and used by Manager or any Person in managing and
operating the Collateral, in each case, as provided in this Agreement and substantially in accordance with Manager’s then current practice, (D) subject to any limitations or restrictions imposed by applicable law, providing reasonable
access to, and upon reasonable request transferring to Lender, any successor owner of any one or more Individual Properties and/or any third party replacement manager or management company identified by Lender (each, a “Transition
Party” and collectively, the “Transition Parties”) all guest data (to the extent maintained or compiled by the Management Parties on behalf of Borrower or any other Loan Party) and Individual Property-level employee data
relating to the operation of the Properties, (E) maintaining and cooperating with Lender to effectuate the transfer (to the extent transferable), at Lender’s request and at Lender’s sole cost and expense, of all licenses, permits,
authorizations held by the Management Parties and necessary for the operation of each Individual Property, (F) delivering to the Transition Parties any Hotel Information, financial information and other books and records relating to the
operation of the Individual Properties which are in the control of the Management Parties and which are required to be delivered by the Management Parties under this Agreement or are otherwise reasonably requested, (G) providing onsite access
at reasonable times and upon reasonable notice to the office of the Management Parties for inspection of books and records and observation of operations (which shall not be construed to include any training activities) as provided in this Agreement,
(H) providing reasonable access to senior management of the 

  
 22 

 
Management Parties to discuss the provision of the services contemplated hereby at reasonable times and upon reasonable notice, (I) subject to any limitations or restrictions imposed by
applicable law, providing the Transition Parties with employment records with respect to (1) Individual Property-level employees that Lender is seeking to transfer and (2) back-office employees that provide services exclusively to one or
more Individual Properties; provided, that such employees do not provide services to other assets managed by Manager (collectively, “Target Employees”), (J) providing reasonable access to Target Employees upon reasonable
notice to permit the Transition Parties to offer employment to such employees in connection with such transfer, (K) providing Centralized Services to the Transition Parties for the operation of the Collateral, subject to the terms and
provisions of this Agreement and (L) taking all reasonable steps necessary, subject to availability of sufficient Property revenue, to keep in full force and effect during the Transition Period all insurance policies and coverages required
under this Agreement (such services, collectively, the “Transition Services”); and 
 (c) if requested by the Transition
Parties, reasonably cooperate with the Transition Parties at no cost or expense to the Management Parties, in identifying and contracting third-party licensors, vendors and providers of software used or licensed in the operation of the centralized
reservation system, website and property management system to secure any required consents necessary for a Transition Party to continue operating the Collateral. 

Section 12.6. Survival. The provisions of Sections 12.3, 12.4, and 12.5 shall survive the expiration or
earlier termination of this Agreement. 
 ARTICLE XIII 

REPRESENTATIONS AND COVENANTS 

Section 13.1. Lessee’s Representations. Lessee covenants, represents and warrants as follows: (a) as of the date hereof,
Lessee will be the tenant under the Operating Lease with respect to the Hotels and has full power and authority to enter into this Agreement; (b) throughout the term of this Agreement and except as provided in the Operating Lease, Lessee will
pay, keep, observe and perform all payments, terms, covenants, conditions and obligations under any lease or other concession and any real estate taxes or assessments covering or affecting the Hotels; (c) the execution of this Agreement is
permitted by the Articles of Incorporation, By-Laws or other organizational documents of Lessee and this Agreement has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation of Lessee; (d) there is
no claim, litigation, proceeding or governmental investigation pending, or as far as is known to Lessee, threatened, against or relating to Lessee, the properties or business of Lessee or the transactions contemplated by this Agreement that does, or
may reasonably be expected to, materially and adversely affect the ability of Lessee to enter into this Agreement or to carry out its obligations under this Agreement; and (e) neither the consummation of the actions contemplated by this
Agreement on the part of Lessee to be performed, or the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of the terms, conditions or provisions of, or constitute a default
under, any agreement, indenture, instrument or undertaking to which Lessee is a party or by which it is bound. 

  
 23 

 Section 13.2. The Management Parties’ Representations. Each of the Management
Parties, as applicable, covenants, represents and warrants as follows: (a) the execution of this Agreement is permitted by the limited liability company agreement or other organizational documents of the Management Parties and this Agreement
has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation of the Management Parties enforceable in accordance with its terms; (b) there is no claim, litigation, proceedings or governmental
investigation pending, or as far as is known to the Management Parties, threatened, against or relating to the Management Parties, the properties or business of the Management Parties or the transactions contemplated by this Agreement that does, or
may reasonably be expected to, materially and adversely affect the ability of the Management Parties to enter into this Agreement; (c) neither the consummation of the actions contemplated by this Agreement on the part of the Management Parties
to be performed, nor the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of the terms, conditions or provisions of, or constitute a default under, any agreement, indenture,
instrument or undertaking to which either of the Management Parties is a party or by which it is bound; (d) subject to obtaining Lender’s consent to the extent required under the Loan Agreement and so long as any amounts under the Loan are
outstanding, this Agreement shall be modified in the event that it is reasonably determined by Owner under the Operating Lease that the terms of this Agreement cause the Rent (as defined in the Operating Lease) to fail to qualify as “rents from
real property” within the meaning of Section 856(d) of the Code; provided however, no such modification shall affect the amount of the Management Fee or the practical realization of the rights and benefits of the Management Parties
hereunder and (e) Canada Employer is, and has at all times been treated as, a disregarded entity for U.S. federal income tax purposes. 

Section 13.3. The Management Parties’ Covenants. From the Management Commencement Date until the Expiration Date or earlier
termination of this Agreement, the Management Parties covenant that they shall satisfy the following requirements: (a) the Management Parties shall not permit wagering activities to be conducted at or in connection with the Hotels by any Person
who is engaged in the business of accepting wagers and who is legally authorized to engage in such business at or in connection with the Hotels; and (b) the Management Parties shall not sublet the Hotels or enter into any similar arrangement on
any basis such that the rental or other amounts to be paid by the sublessee thereunder would be based, in whole or in part, on either (i) the net income or profits derived by the business activities of the sublessee or (ii) any other
formula such that any portion of the rent would fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto. 

ARTICLE XIV 
 ASSIGNMENT 

No party hereto shall assign or transfer or permit the assignment of transfer of this Agreement without the prior written consent of the other
parties. In the event of consent by a party to an assignment of this Agreement by the other parties, no further assignment shall be made without the express consent in writing of such parties, unless such assignment may otherwise be made without
such consent pursuant to the terms of this Agreement. An assignment by either Lessee or any of the Management Parties of its interest in this Agreement 

  
 24 

 
shall not relieve Lessee or either of the Management Parties, as the case may be, from their respective obligations hereunder unless the assignee accepts full responsibility for performance of
the same. 
 ARTICLE XV 

CONFIDENTIALITY 
 The matters set
forth in this Agreement are strictly confidential and Lessee and the Management Parties will make every reasonable effort to ensure that the information is not disclosed to any person or entities (including the press) other than those persons or
entities needed to carry out the provisions of this Agreement without first consulting with and obtaining the consent of the other party, which consent shall not be unreasonably withheld. The provisions of this Article XV shall survive the
expiration or earlier termination of this Agreement. 
 ARTICLE XVI 

INDEMNIFICATION AND LIMITATION OF LIABILITY 

Section 16.1. Lessee’s Indemnification. Lessee shall hold harmless, indemnify and defend the Management Parties and their
Affiliates and their respective agents, employees, officers, directors and shareholders from and against all claims (administrative or judicial), damages, losses and expenses (including, but not limited to, attorneys’ fees for pre-trial, trial
and appellate proceedings, accounting fees, appraisal fees and consulting and expert witness fees) arising out of or resulting from the Management Parties’ activities performed pursuant to this Agreement, any franchise agreement, any past or
future building code or life/safety code violations, and injury to person(s) and damage to property or business by reason of any cause whatsoever in and about the Hotels or elsewhere, and any requirement or award relating to course of employment,
working conditions, wages and/or compensation of employees or former employees at the Hotels, unless such injury or damage is caused by the gross negligence or willful misconduct or fraud on the part of the Management Parties, their agents,
employees, representatives or independent contractors or by any breach of the Management Parties’ obligations under this Agreement. Lessee’s foregoing indemnification obligation to indemnify the Management Parties and their Affiliates
shall extend to any claims between Lessee and the Management Parties or their Affiliates arising out of this Agreement or otherwise. Any indemnification shall apply regardless of whether or not said claim, damage, loss or expense is covered by
insurance as herein provided. 
 Section 16.2. The Management Parties’ Indemnification. the Management Parties shall hold
harmless, indemnify and defend Lessee and its Affiliates, and their respective agents, employees, officers, directors and shareholders, from and against all claims (administrative or judicial), damages, losses and expenses (including, but not
limited to, attorneys’ fees for pre-trial, trial and appellate proceedings accounting fees, appraisal fees and consulting and expert witness fees) arising out of or resulting from the Management Parties’ gross negligence, willful
misconduct or fraud or from the Management Parties’ breach of their obligations under this Agreement. The Management Parties’ foregoing indemnification obligation to indemnify Lessee and its Affiliates shall extend to any claims between
the Management Parties and Lessee or its Affiliates arising out of this Agreement or otherwise. Any indemnification shall apply regardless of whether or not said claim, damage, loss or expense is covered by insurance as herein provided. 

  
 25 

 Section 16.3. Indemnification Procedure. Upon the occurrence of an event giving rise
to indemnification, the party seeking indemnification shall notify the other party hereto and provide the other party hereto with copies of any documents reflecting the claim, damage, loss or expense. The party seeking indemnification is entitled to
engage such attorneys and other persons to defend against the claim, damage, loss or expense, as it may choose. The party providing indemnification shall pay the reasonable charges and expenses of such attorneys and other persons on a current basis
within 20 days of submission of invoices or bills. Except as otherwise provided in the Operating Lease, if any claim, lawsuit or action (administrative or judicial) is maintained against the Management Parties, Lessee or the Hotels due to
allegations or actions arising prior to the Management Commencement Date and the Management Parties had no involvement with the Hotels prior to such date, Lessee shall bear full and complete responsibility for the defense of Lessee and the
Management Parties, specifically including all legal fees and necessary and attendant expenses for the vigorous defense and representation of the interests of the Management Parties (for pre-trial, trial and appellate proceedings) and Lessee. Lessee
shall support and pay for all legal fees and representations necessary to remove the Management Parties from any claim, action (administrative or judicial), or lawsuit covered by the immediately preceding sentence. 

Section 16.4. Good Faith Judgment. To the extent that any provision of this Agreement leaves something to the discretion of the
Management Parties, the Management Parties will not be liable for any action taken by the Management Parties in the exercise of their discretion as long as in exercising such discretion, the Management Parties were using their good faith judgment.

 Section 16.5. Survival. The provisions of this Article XVI shall survive the expiration or earlier termination of this
Agreement. 
 ARTICLE XVII 

MISCELLANEOUS 
 Section 17.1.
Severability. In the event that any portion of this Agreement shall be declared invalid by order, decree or judgment of a court, this Agreement shall be construed as if such portion had not been inserted herein except when such construction
would operate as an undue hardship to the Management Parties or Lessee or constitute a substantial deviation from the general intent and purpose of said parties as reflected in this Agreement. The failure of a party to insist upon a strict
performance of any of the terms or provisions of this Agreement or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as a relinquishment for the future of such term, provision, option, right or remedy,
but the same shall continue and remain in full force and effect. No waiver by a party of any term or provision hereof shall be deemed to have been made unless expressed in writing and signed by such party. 

Section 17.2. No Partnership. The relationship of Lessee and the Management Parties shall be that of principal and independent
contractors. Nothing contained in this Agreement shall be construed to create a partnership or joint venture between Lessee and the 

  
 26 

 
Management Parties or their respective Affiliates or successors in interest. In the performance of its duties in the management and operation of the Hotels, the Management Parties shall act
solely as independent contractors. It is expressly covenanted that this Agreement is no more than an agreement for the rendering of services by the Management Parties on behalf of Lessee in the operation and management of the Hotels. The Management
Parties shall not be Lessee’s fiduciary, nor shall the Management Parties owe Lessee a fiduciary duty. 
 Section 17.3.
Meetings. Lessee and the Management Parties shall meet with each other from time to time so that the Management Parties and Lessee may discuss the status of operations and future plans, recommendations and projections. The meetings will be
held at mutually convenient dates and locations. 
 Section 17.4. Consents. Except as herein otherwise provided, whenever in
this Agreement the consent or approval of Lessee or the Management Parties is required, such consent or approval shall not be unreasonably withheld or delayed. Such consent or approval shall be in writing only and shall be duly executed by an
authorized officer or agent of the party granting such consent or approval. 
 Section 17.5. Applicable Law. This Agreement
shall be construed under, and governed in accordance with, the laws of the State of New York. 
 Section 17.6. Successors Bound.
This Agreement shall be binding upon and inure to the benefit of Lessee, its successors and assigns, and shall be binding and inure to the benefit of the Management Parties and their permitted assigns. 

Section 17.7. Headings. Headings of Articles and Sections are inserted only for convenience and are in no way to be construed as a
limitation on the scope of the particular Articles or Sections to which they refer. 
 Section 17.8. Incorporation of Recitals.
The recitals set forth in the preamble of this Agreement are hereby incorporated into this Agreement as if fully set forth herein. 

Section 17.9. Notices. Notices, statements and other communications to be given under the terms of this Agreement shall be in
writing and (a) delivered by hand against receipt, (b) sent by certified or registered mail or by Federal Express or other similar overnight mail service, return receipt requested or (c) sent by telecopier (with answer back
acknowledged), (or at such other address as from time to time designated by the party receiving the notice): 
  

			
	If to Lessee:	  	11525 N. Community House Road, Suite 100
		  	Charlotte, NC 28277
		  	Attention: President
		  	Attention: President
		  	Facsimile No.: (980) 335-3089
		  	Attention: General Counsel
		  	Facsimile No.: (980) 335-3089

  
 27 

			
	If to the Management Parties:
		
		  	11525 N. Community House Road, Suite 100
		  	Charlotte, NC 28277
		  	Attention: President
		  	Facsimile No.: (980) 335-3089
		  	Attention: General Counsel
		  	Facsimile No.: (980) 335-3089

 Section 17.10. Entire Agreement; Amendments. This Agreement, together with other writings signed
by the parties hereto expressly stated to be supplementing this Agreement and together with any instruments to be executed and delivered pursuant to this Agreement, constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof. This Agreement may be amended, modified or changed only by a writing signed by the parties hereto. 

Section 17.11. The Management Parties’ Authority Limited. The Management Parties’ authority shall be derived wholly from
this Agreement, and the Management Parties have no authority to act for or represent Lessee except as herein specified. 

Section 17.12. Exclusive Compensation. The payments to be made to the Management Parties hereunder shall be in lieu of all other
or further compensation or commissions of any nature whatsoever for the services described herein and this Agreement shall be considered as a special agreement between the parties hereto covering the appointment and compensation of the Management
Parties to the exclusion of any other method of compensation unless otherwise agreed to in writing. 
 Section 17.13. Property
Rights. This Agreement and the rights created hereunder are personal to Lessee and the Management Parties and shall not create in favor of the Management Parties any property rights in the Hotels. 

Section 17.14. Attorneys’ Fees. In the event of any litigation arising out of this Agreement, the prevailing party shall be
entitled to reasonable costs and expenses, including without limitation, attorneys’ fees. 
 Section 17.15.
Complimentary/Discount Policies. The Management Parties will be permitted to provide customary gratuitous accommodations, services and amenities to such employees and representatives of the Management Parties visiting the Hotels in accordance
with the Management Parties’ normal policies, provided that such employees shall in no way displace the Hotels’ third-party business. 

Section 17.16. No Third Party Beneficiary. Nothing herein contained shall be understood or construed to create or grant any third
party benefits, rights or property interests unless the person claiming such rights is expressly identified herein and the rights claimed are expressly set forth herein. Notwithstanding the foregoing, it is acknowledged and agreed that the Licensor
is an intended third-party beneficiary of Section 3.12. 
 Section 17.17. REOC. The parties acknowledge that Lessee
is a direct or indirect controlled subsidiary of an entity, Extended Stay America, Inc., a Delaware corporation (“Parent”), that is intended to qualify as a “real estate operating company” (a “REOC”)
within 

  
 28 

 
the meaning of the U.S. Department of Labor plan assets regulation (Section 2510.3-101, Part 2510 of Chapter XXV, Title 29 of the Code of Federal Regulations) and that it is intended that Lessee
will have the rights, pursuant to this Agreement, as would be reasonably necessary to result in the qualification of Parent as a REOC. Without limiting the generality of the foregoing, notwithstanding any other provision of this Agreement, without
prejudice to the other rights provided to Lessee under this Agreement, the Management Parties agree to: (i) permit Lessee and Parent to visit and inspect the Hotels and inspect and copy the books and records of the Management Parties, at such
times as Lessee shall reasonably request; (ii) periodically (at least quarterly) provide Lessee and Parent with information and reports regarding the Management Parties’ operation and management of the Hotels and the performance of its
duties under this Agreement and with respect to renovations, alterations, general maintenance, repairs and development activities that the Management Parties have engaged in or intends to engage in with respect to the Hotels and their surroundings;
(iii) periodically (at least quarterly) consult with Lessee and Parent in advance with respect to any significant leasing, management and development matters, as appropriate, including, without limitation, with respect to matters relating to
renovations, alterations, general maintenance, repairs and development activities with respect to the Hotels and their surroundings and the management, participatory and development rights retained by Lessee under this Agreement; and (iv) to
provide Lessee and Parent with such other rights as may reasonably be determined by Lessee to be necessary to enable Parent to qualify as a REOC, provided the rights described in clauses (i)-(iv) above do not materially adversely affect
(X) the Management Parties’ ability to perform their duties under this Agreement or the economic benefits enjoyed by the Management Parties under this Agreement or (Y) the status of ESH Hospitality as a real estate investment trust
under the Code. The Management Parties agree to consider, in good faith, the recommendations of Lessee in connection with the matters on which it is consulted as described above. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 29 

 IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed and delivered as
of the date first above written. 
  

					
	LESSEE:
	
	 ESA CANADA OPERATING LESSEE ULC,
 a
British Columbia unlimited liability corporation

		
	By:	 	 /s/ William D. Rahm

		 	Name:	 	William D. Rahm
		 	Title:	 	Authorized Signatory
	
	MANAGER:
	
	 ESA MANAGEMENT, LLC,
 a Delaware
limited liability company

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	CANADA EMPLOYER:
	
	 HVM CANADA HOTEL MANAGEMENT ULC,
 an
Alberta unlimited liability corporation

		
	By:	 	ESA MANAGEMENT, LLC,
		 	a Delaware limited liability company
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:

 [Signature page to Management Agreement – ESA Canada Operating Lessee ULC] 

 IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed and delivered as
of the date first above written. 
  

							
	LESSEE:
	
	 ESA CANADA OPERATING LESSEE ULC,
 a
British Columbia unlimited liability corporation

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	MANAGER:
	
	 ESA MANAGEMENT, LLC,
 a Delaware
limited liability company

		
	By:	 	 /s/ David Levine

		 	Name:	 	David Levine
		 	Title:	 	Vice President
	
	CANADA EMPLOYER:
	
	 HVM CANADA HOTEL MANAGEMENT ULC,
 an
Alberta unlimited liability corporation

		
	By:	 	ESA MANAGEMENT, LLC,
		 	a Delaware limited liability company
			
		 	By:	 	 /s/ David Levine

		 		 	Name:	 	David Levine
		 		 	Title:	 	Vice President

 [Signature page to Management Agreement – ESA Canada Operating Lessee ULC] 

 SCHEDULE A 

HOTELS 
 (see attached) 

							
	 Site
#
	  	 Address
	  	 Owner
	  	 
	 1250
	  	141 Cooper Street, Ottawa, ON	  	ESA Canada Administrator LLC	  	
	 1251
	  	3600 Steeles Avenue West, Vaughan, ON	  	ESA Canada Administrator LLC	  	
	 1252
	  	222 LeMarchant Road, St. John’s, NF	  	ESA Canada Administrator LLCEX-10.6

 Exhibit 10.6 

Extended Stay America, Inc. 

2013 LONG-TERM INCENTIVE PLAN 

(Adopted as of November 12, 2013) 
  

	 	1.	Purpose. 

 The purpose of the Plan is to assist the Company to attract, retain,
incentivize and motivate officers and employees of, consultants to, and non-employee directors providing services to, the Company and its Subsidiaries and Affiliates and to promote the success of the Company’s business by providing such
participating individuals with a proprietary interest in the performance of the Company, its Subsidiaries and Affiliates. The Company believes that this incentive program will cause participating officers, employees, consultants and non-employee
directors to increase their interest in the welfare of the Company, its Subsidiaries and Affiliates and to align those interests with those of the stockholders of the Company, its Subsidiaries and Affiliates. 

 

	 	2.	Definitions. For purposes of the Plan: 

 2.1. “Affiliate” shall
mean any entity that the Company, either directly or indirectly through one or more intermediaries, is in common control with, is controlled by or controls, each within the meaning of the Securities Act. 

2.2. “Award” means, individually or collectively, a grant of an Option, Restricted Stock, a Restricted Stock Unit, a Stock
Appreciation Right, a Performance Award, a Dividend Equivalent Right, a Share Award or any or all of them. 
 2.3. “Award
Agreement” means a written or electronic agreement between the Company and a Participant evidencing the grant of an Award and setting forth the terms and conditions thereof. 

2.4. “Blackstone” means Blackstone Real Estate Partners VI L.P and its affiliates. 

2.5. “Board” means the Board of Directors of the Company. 

2.6. “Cause” means, with respect to the Termination of a Participant by the Company or any Subsidiary of the Company that
employs such individual or to which the Participant performs services (or by the Company on behalf of any such Subsidiary), such Participant’s (i) refusal or neglect to perform substantially his or her employment-related duties or
services, (ii) personal dishonesty, incompetence, willful misconduct or breach of fiduciary duty, (iii) indictment for, conviction of or entering a plea of guilty or nolo contendere to a crime constituting a felony or his or her willful
violation of any applicable law (other than a traffic violation or other offense or violation outside of the course of employment or services to the Company or its Subsidiaries which does not adversely affect the Company and its Subsidiaries or its
reputation or the ability of the Participant to perform his or her employment-related duties or services or to represent the Company or any Subsidiary of the Company that employs such 

 
Participant or to which the Participant performs services), (iv) failure to reasonably cooperate, following a request to do so by the Company, in any internal or governmental investigation
of the Company or any of its Subsidiaries or (v) material breach of any written covenant or agreement with the Company or any of its Subsidiaries not to disclose any information pertaining to the Company or such Subsidiary or not to compete or
interfere with the Company or such Subsidiary; provided that, in the case of any Participant who, as of the date of determination, is party to an effective services, severance or employment agreement with the Company or any Subsidiary,
“Cause” shall have the meaning, if any, specified in such agreement. 
 2.7. “Centerbridge” means Centerbridge
Partners, LP and its affiliates. 
 2.8. “Change in Capitalization” means any increase or reduction in the number of Paired
Shares, any change (including, but not limited to, in the case of a spin-off, dividend or other distribution in respect of Paired Shares, a change in value) in the Paired Shares, the elimination of the Pairing of the Paired Shares or any change in
the ratio in Company Common Shares to Class B REIT Shares in accordance with the terms of the Pairing Agreement, the Company Charter and the ESH REIT Charter, or any exchange of Paired Shares for a different number or kind of shares or other
securities of the Company or another corporation, by reason of a reclassification, recapitalization, merger, consolidation, reorganization, spin-off, split-up, issuance of warrants, rights or debentures, stock dividend, stock split or reverse stock
split, cash dividend, property dividend, combination or exchange of shares, repurchase of shares, change in corporate structure or any similar corporate event or transaction. 

2.9. “Change in Control” means the occurrence of any of the following: 

(a) An acquisition (other than directly from the Company) of any voting securities of the Company (the “Voting
Securities”) by any Person, immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of the combined
voting power of the Company’s then-outstanding Voting Securities; provided, however, that in determining whether a Change in Control has occurred pursuant to this Section 2.7(a), the acquisition of Voting Securities in a Non-Control
Acquisition (as hereinafter defined) shall not constitute a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by
(A) the Company or (B) any corporation or other Person the majority of the voting power, voting equity securities or equity interest of which is owned, directly or indirectly, by the Company (for purposes of this definition, a
“Related Entity”), (ii) the Company or any Related Entity, (iii) any of the Principal Stockholders, or (iv) any Person in connection with a Non-Control Transaction (as hereinafter defined); 

(b) The individuals who, as of the effective date of this Plan are members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the election, or nomination for election by the Company’s common stockholders, of any new 

  
 2 

 
director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided
further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Proxy Contest; 

(c) The consummation of: 
  

	 	(1)	A merger, consolidation or reorganization (x) with or into the Company or (y) in which securities of the Company are issued (a “Merger”), unless such Merger is a Non-Control
Transaction. A “Non-Control Transaction” shall mean a Merger in which: 

  

	 	i.	the stockholders of the Company immediately before such Merger own directly or indirectly immediately following such Merger at least a majority of the combined voting power of the outstanding voting securities of
(1) the corporation resulting from such Merger (the “Surviving Corporation”), if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not
Beneficially Owned, directly or indirectly, by another Person (a “Parent Corporation”), or (2) if there is one or more than one Parent Corporation, the ultimate Parent Corporation; 

 

	 	ii.	the individuals who were members of the Board immediately prior to the execution of the agreement providing for such Merger constitute at least a majority of the members of the board of directors of (1) the
Surviving Corporation, if there is no Parent Corporation, or (2) if there is one or more than one Parent Corporation, the ultimate Parent Corporation; and 

  

	 	iii.	no Person other than (1) the Company or another corporation that is a party to the agreement of Merger, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that,
immediately prior to the Merger, was maintained by the Company or any Related Entity, (4) any Principal Stockholder or (5) any Person who, immediately prior to the Merger, had Beneficial Ownership of Voting Securities representing more
than fifty percent (50%) of the combined voting power of the Company’s then-outstanding Voting Securities, has Beneficial Ownership, directly or indirectly, of fifty percent (50%) or more of the combined voting power of the
outstanding voting securities of (x) the Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more than one Parent Corporation, the ultimate Parent Corporation; 

  
 3 

	 	(2)	A complete liquidation or dissolution of the Company; or 

  

	 	(3)	The sale or other disposition of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole to any Person (other than (x) a transfer to a Related Entity or (y) the distribution
to the Company’s stockholders of the stock of a Related Entity or any other assets). 

 Notwithstanding the foregoing, a Change in
Control shall not be deemed to occur solely because any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of the then outstanding Voting Securities as a result of the acquisition of Voting
Securities by the Company which, by reducing the number of Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person; provided that if a Change in Control would occur (but for the
operation of this sentence) as a result of the acquisition of Voting Securities by the Company and, after such acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional Voting Securities and such Beneficial
Ownership increases the percentage of the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 

2.10. “Class B REIT Share” means one Class B share of common stock, par value $0.01 per share, of ESH REIT. 

2.11. “Code” means the Internal Revenue Code of 1986, as amended. 

2.12. “Committee” means the Committee which administers the Plan as provided in Section 3. 

2.13. “Company” means Extended Stay, Inc., a Delaware corporation, or any successor thereto. 

2.14. “Company Charter” means the articles of incorporation of the Company. 

2.15. “Company Common Share” means one share of common stock, par value $.01 per share, of the Company. 

2.16. “Consultant” means any consultant or advisor who is a natural person and who renders services to the Company or a
Subsidiary that (a) are not in connection with the offer and sale of the Company’s securities in a capital raising transaction and (b) do not directly or indirectly promote or maintain a market for the Company’s securities, but
who is not an Employee or Director. 
 2.17. “Corporate Transaction” means (a) a merger, consolidation,
reorganization, recapitalization or other similar change in the capital stock of the Company or ESH REIT; (b) a liquidation or dissolution of the Company or ESH REIT; or (c) a Change in Control. 

  
 4 

 2.18. “Covered Employee” means, for any Performance Period: 

(a) an Employee who 

(a) as of the beginning of the Performance Period is an officer subject to Section 16 of the Exchange Act, and 

(b) prior to determining Performance Objectives for the Performance Period pursuant to Section 9, the Committee
designates as a Covered Employee for purposes of this Plan; provided that, if the Committee does not make the designation in clause (ii) for a Performance Period, all Employees described in clause (i) shall be deemed to be Covered
Employees for purposes of this Plan, and 
 (b) any other Employee that the Committee designates as a Covered Employee for
purposes of this Plan. 
 2.19. “Director” means a member of the Board or the Board of Directors of ESH REIT. 

2.20. “Disability” means permanent and total disability as defined in Code Section 22(e)(3). A determination of
Disability may be made by a physician selected or approved by the Committee and, in this respect, the Participant shall submit to any reasonable examination(s) required by such physician upon request. Notwithstanding the foregoing provisions of this
Section 2.20, in the event any Award is considered to be “deferred compensation” as that term is defined under Section 409A of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the
requirements of Section 409A of the Code, the definition of “Disability” for purposes of such Award shall be the definition of “disability” provided for under Section 409A of the Code and the regulations or other
guidance issued thereunder. 
 2.21. “Division” means any of the operating units or divisions of the Company designated as
a Division by the Committee. 
 2.22. “Dividend Equivalent Right” means a right to receive cash or Paired Shares based on
the value of dividends that are paid with respect to Paired Shares. 
 2.23. “Effective Date” means the date of the
Plan’s approval by the Company’s stockholders on November 12, 2013. 
 2.24. “Eligible Individual” means any
Employee, Director or Consultant. 
 2.25. “Employee” means any individual performing services for the Company or a
Subsidiary and designated as an employee of the Company or the Subsidiary on its payroll records. An Employee shall not include any individual during any period he or she is classified or treated by the Company or Subsidiary as an independent
contractor, a consultant or an employee of an employment, consulting or temporary agency or any other entity other than the Company or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently
retroactively reclassified, as a common-law employee of the Company or Subsidiary during such period. An individual shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or any Subsidiary, or between the Company and any Subsidiaries. 

  
 5 

 2.26. “ESH REIT” means ESH Hospitality, Inc., a Delaware corporation and
Subsidiary of the Company. 
 2.27. “ESH REIT Charter” means the certificate of incorporation of ESH REIT. 

2.28. “ESH REIT Long-Term Incentive Plan” means the ESH Hospitality, Inc. 2013 Long-Term Incentive Plan, as may be amended
from time to time. 
 2.29. “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

2.30. “Fair Market Value” on any date means: 

(a) if the Paired Shares are listed for trading on the New York Stock Exchange, the closing price at the close of the primary
trading session of the Paired Shares on such date on the New York Stock Exchange, or if there has been no such closing price of the Paired Shares on such date, on the next preceding date on which there was such a closing price; 

(b) if the Paired Shares are not listed for trading on the New York Stock Exchange, but are listed on another national
securities exchange, the closing price at the close of the primary trading session of the Paired Shares on such date on such exchange, or if there has been no such closing price of the Paired Shares on such date, on the next preceding date on which
there was such a closing price; 
 (c) if the Paired Shares are not listed on the New York Stock Exchange or on another
national securities exchange, the last sale price at the end of normal market hours of the Paired Shares on such date as quoted on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) or, if no such price
shall have been quoted for such date, on the next preceding date for which such price was so quoted; or 
 (d) if the Paired
Shares are not listed for trading on a national securities exchange or are not authorized for quotation on NASDAQ, the fair market value of the Paired Shares as determined in good faith by the Committee, and in the case of Incentive Stock Options,
in accordance with Section 422 of the Code. 
 2.31. “Incentive Stock Option” means an Option satisfying the
requirements of Section 422 of the Code and designated by the Committee as an Incentive Stock Option. 
 2.32. “Initial Public
Offering” means the consummation of the first public offering of Paired Shares pursuant to a registration statement (other than a Form S-8 or successor forms) filed with, and declared effective by, the United States Securities and Exchange
Commission. 
 2.33. “Nonemployee Director” means a Director of the Board who is a “nonemployee director” within
the meaning of Rule 16b-3 promulgated under the Exchange Act. 

  
 6 

 2.34. “Nonqualified Stock Option” means an Option which is not an Incentive
Stock Option. 
 2.35. “Option” means a Nonqualified Stock Option or an Incentive Stock Option. 

2.36. “Option Price” means the price at which a Paired Share may be purchased pursuant to an Option. 

2.37. “Outside Director” means a Director of the Board who is an “outside director” within the meaning of
Section 162(m) of the Code and the regulations promulgated thereunder. 
 2.38. “Paired Share” means one Company
Common Share and one Class B REIT Share, which interests are attached and trade together, and as such Paired Share may be adjusted pursuant to the provisions of Section 12 of the Plan. 

2.39. “Pairing Agreement” means the Pairing Agreement by and between the Company and ESH REIT dated as of November 12,
2013, as may be amended from time to time. 
 2.40. “Parent” means any corporation which is a “parent
corporation” (within the meaning of Section 424(e) of the Code) with respect to the Company. 
 2.41.
“Participant” means an Eligible Individual to whom an Award has been granted under the Plan. 
 2.42.
“Paulson” means Paulson & Co. Inc. and its affiliates. 
 2.43. “Performance Awards” means
Performance Share Units, Performance Units, Performance-Based Restricted Stock or any or all of them. 
 2.44. “Performance-Based
Compensation” means any Award that, pursuant to Section 14.3, is intended to constitute “performance based compensation” within the meaning of Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder.

 2.45. “Performance-Based Restricted Stock” means Paired Shares issued or transferred to an Eligible Individual under
Section 9.2. 
 2.46. “Performance Cycle” means the time period specified by the Committee at the time Performance
Awards are granted during which the performance of the Company, a Subsidiary or a Division will be measured. 
 2.47. “Performance
Objectives” means the objectives set forth in Section 9.3 for the purpose of determining, either alone or together with other conditions, the degree of payout and/or vesting of Performance Awards. 

  
 7 

 2.48. “Performance Share Units” means Performance Share Units granted to an
Eligible Individual under Section 9.1(b). 
 2.49. “Performance Units” means Performance Units granted to an Eligible
Individual under Section 9.1(a). 
 2.50. “Person” shall have the meaning ascribed to such term in
Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) of the Exchange Act. 
 2.51. “Plan” means
this Extended Stay America, Inc. 2013 Long-Term Incentive Plan, as amended from time to time. 
 2.52. “Plan Termination
Date” means the date that is ten (10) years after the Effective Date, unless the Plan is earlier terminated by the Board pursuant to Section 15 hereof. 

2.53. “Principal Stockholders” include each of the Blackstone, Centerbridge and Paulson. 

2.54. “Reimbursement Agreement” means that certain Reimbursement Agreement by and between the Company and ESH REIT, as may be
amended from time to time. 
 2.55. “Restricted Stock” means Paired Shares issued or transferred to an Eligible Individual
pursuant to Section 8.1. 
 2.56. “Restricted Stock Units” means rights granted to an Eligible Individual under
Section 8.2 representing a number of hypothetical Paired Shares. 
 2.57. “Securities Act” means the Securities Act of
1933, as amended. 
 2.58. “Share Award” means an Award of Paired Shares granted pursuant to Section 10. 

2.59. “Stock Appreciation Right” means a right to receive all or some portion of the increase, if any, in the value of the
Paired Shares as provided in Section 6 hereof. 
 2.60. “Subsidiary” means (a) except as provided in subsection
(b) below, any corporation which is a subsidiary corporation within the meaning of Section 424(f) of the Code with respect to the Company and (b) in relation to the eligibility to receive Awards other than Incentive Stock Options and
continued employment or the provision of services for purposes of Awards (unless the Committee determines otherwise), any entity, whether or not incorporated, in which the Company directly or indirectly owns at least 25% of the outstanding equity or
other ownership interests. 
 2.61. “Ten-Percent Shareholder” means an Eligible Individual who, at the time an Incentive
Stock Option is to be granted to him or her, owns (within the meaning of Section 422(b)(6) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, a Parent or a
Subsidiary. 

  
 8 

 2.62. “Termination”, “Terminated” or
“Terminates” shall mean (a) with respect to a Participant who is an Employee, the date such Participant ceases to be employed by the Company and its Subsidiaries, (b) with respect to a Participant who is a Consultant, the
date such Participant ceases to provide services to the Company and its Subsidiaries or (c) with respect to a Participant who is a Director, the date such Participant ceases to be a Director, in each case, for any reason whatsoever (including
by reason of death, Disability or adjudicated incompetency). Unless otherwise set forth in an Award Agreement, (a) if a Participant is both an Employee and a Director and terminates as an Employee but remains as a Director, the Participant will
be deemed to have continued in employment without interruption and shall be deemed to have Terminated upon ceasing to be a Director and (b) if a Participant who is an Employee or a Director ceases to provide services in such capacity and
becomes a Consultant, the Participant will thereupon be deemed to have been Terminated. 
 2.63. “Transition Period” means
the period beginning with an Initial Public Offering and ending as of the earlier of: 
 (a) the date of the first annual
meeting of stockholders of the Company at which Directors are to be elected that occurs after the close of the third calendar year following the calendar year in which the Initial Public Offering occurs; and 

(b) the expiration of the “reliance period” under Treasury Regulation Section 1.162-27(f)(2). 

 

	 	3.	Administration. 

 3.1. Committee; Procedure. The Plan shall be administered
by a Committee which, until the Board appoints a different Committee, shall be the Compensation Committee of the Board. The Committee may adopt such rules, regulations and guidelines as it deems are necessary or appropriate for the administration of
the Plan. The Committee shall consist of at least two (2) Directors of the Board and may consist of the entire Board; provided, however, that (a) if the Committee consists of less than the entire Board, then, with respect to any
Award granted to an Eligible Individual who is subject to Section 16 of the Exchange Act, the Committee shall consist of at least two (2) Directors of the Board, each of whom shall be a Nonemployee Director and (b) to the extent
necessary for any Award intended to qualify as Performance-Based Compensation to so qualify, the Committee shall consist of at least two (2) Directors of the Board, each of whom shall be an Outside Director. For purposes of the preceding
sentence, if one or more members of the Committee is not a Nonemployee Director or an Outside Director but recuses himself or herself or abstains from voting with respect to a particular action taken by the Committee, then the Committee, with
respect to that action, shall be deemed to consist only of the members of the Committee who have not recused themselves or abstained from voting. 

3.2. Board Reservation and Delegation. 

(a) Except to the extent necessary for any Award intended to qualify as Performance-Based Compensation to so qualify, the
Board may, in its discretion, 

  
 9 

 
reserve to itself or exercise any or all of the authority and responsibility of the Committee hereunder. To the extent the Board has reserved to itself or exercises the authority and
responsibility of the Committee, all references to the Committee in the Plan shall be to the Board. 
 (b) Subject to
applicable law, the Board may delegate, in whole or in part, any of the authority of the Committee hereunder (subject to such limits as may be determined by the Board) to any individual or committee of individuals (who need not be Directors),
including without limitation the authority to make Awards to Eligible Individuals who are not officers or directors of the Company or any of its Subsidiaries and who are not subject to Section 16 of the Exchange Act. To the extent that the
Board delegates any such authority to make Awards as provided by this Section 3.2(b), all references in the Plan to the Committee’s authority to make Awards and determinations with respect thereto shall be deemed to include the
Board’s delegate. 
 3.3. Committee Powers. Subject to the express terms and conditions set forth herein, the Committee shall
have the power from time to time to: 
 (a) select those Eligible Individuals to whom Options shall be granted under the
Plan and the number of such Options to be granted and prescribe the terms and conditions (which need not be identical) of each such Option, including the exercise price per Paired Share, the vesting schedule and the duration of each Option, and make
any amendment or modification to any Award Agreement consistent with the terms of the Plan; 
 (b) select those Eligible
Individuals to whom other Awards shall be granted under the Plan, determine the type of Award, the number of Paired Shares or amount of cash in respect of which each Award is granted and the terms and conditions (which need not be identical) of each
such Award and make any amendment or modification to any Award Agreement consistent with the terms of the Plan; 
 (c)
construe and interpret the Plan and the Awards granted hereunder, establish, amend and revoke rules and regulations for the administration of the Plan, including, but not limited to, correcting any defect, supplying any omission or reconciling
any inconsistency in the Plan or in any Award Agreement in the manner and to the extent it shall deem necessary or advisable, including so that the Plan and the operation of the Plan comply with Rule 16b-3 under the Exchange Act, the Code
to the extent applicable and other applicable law, and otherwise make the Plan fully effective; 
 (d) determine the
duration and purposes for leaves of absence which may be granted to a Participant on an individual basis without constituting a Termination for purposes of the Plan; 

  
 10 

 (e) cancel, with the consent of the Participant, outstanding Awards or as
otherwise permitted under the term of the Plan; 
 (f) exercise its discretion with respect to the powers and rights granted
to it as set forth in the Plan; and 
 (g) generally, exercise such powers and perform such acts as are deemed necessary or
advisable to promote the best interests of the Company with respect to the Plan. 
 The Committee’s determinations under the Plan need
not be uniform and may be made by it selectively among Persons who receive, or are eligible to receive, Awards (whether or not such Persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled,
among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements, as to the Eligible Individuals to receive Awards under the Plan and the terms and provision of Awards under the Plan.
All decisions and determinations by the Committee in the exercise of the above powers shall be final, binding and conclusive upon the Company, its Subsidiaries, the Participants and all other persons having any interest therein. 

Notwithstanding anything herein to the contrary, with respect to Participants working outside the United States, the Committee may determine
the terms and conditions of Awards and make such adjustments to the terms thereof as are necessary or advisable to fulfill the purposes of the Plan taking into account matters of local law or practice, including tax and securities laws of
jurisdictions outside the United States. 
 3.4. Indemnification. No member of the Committee shall be liable for any action, failure
to act, determination or interpretation made in good faith with respect to the Plan or any transaction hereunder. The Company hereby agrees to indemnify each member of the Committee for all costs and expenses and, to the extent permitted by
applicable law, any liability incurred in connection with defending against, responding to, negotiating for the settlement of or otherwise dealing with any claim, cause of action or dispute of any kind arising in connection with any actions in
administering the Plan or in authorizing or denying authorization to any transaction hereunder. 
 3.5. No Repricing of Options or Stock
Appreciation Rights. The Committee shall have no authority to make any adjustment (other than in connection with a Change in Capitalization, a Corporate Transaction or other transaction where an adjustment is permitted or required under the
terms of the Plan) or amendment, and no such adjustment or amendment shall be made, that reduces or would have the effect of reducing the exercise price of an Option or Stock Appreciation Right previously granted under the Plan, whether through
amendment, cancellation or replacement grants or other means, unless the Company’s stockholders shall have approved such adjustment or amendment. 

3.6. Coordination with ESH REIT. 

(a) Notwithstanding anything to the contrary herein, any Award granted under the Plan, shall be made subject to the approval of either
(x) the Board of Directors 

  
 11 

 
of ESH REIT or (y) a committee of the Board of Directors of ESH REIT composed solely of at least two (2) directors of the Board of Directors of ESH REIT, each of whom shall be a
“nonemployee director” within the meaning of Rule 16b-3 promulgated under the Exchange Act, and the agreement of ESH REIT to issue a Class B REIT Share upon the grant, exercise or settlement of the Award, as applicable. The Company’s
obligation to the Participant in respect of such Award shall be limited to the issuance of a Company Common Share or payment in lieu thereof at the time of grant, exercise or settlement of the Award, as applicable. 

(b) Notwithstanding that Awards under the Plan are denominated in respect of Paired Shares, unless the context clearly indicates otherwise,
(i) any references in the Plan to the issuance or delivery of, or payment in the form of, a Paired Share shall be deemed to be references to the issuance, delivery or payment of a Company Common Share by the Company (and the issuance, delivery
or payment of a Class B REIT Share by ESH REIT), which Company Common Share shall be paired with the Class B REIT Share as and when it is issued by ESH REIT in respect of such Award and (ii) any reference to a payment in respect of a Paired
Share shall be deemed to a reference to a payment in respect of a Company Common Share by the Company (and the issuance, delivery or payment of a Class B REIT Share by ESH REIT), any such payment to be based on the relative values of a Company
Common Share and a Class B REIT Share at the relevant time, as determined by the Committee. 
 (c) If any award made under the ESH REIT
Long-Term Incentive Plan is made subject to the approval of the Board or the Committee under this Plan, the Board or the Committee may approve the terms of such award and the issuance of a Company Common Share under this Plan upon the grant,
exercise or settlement of such award, as applicable. 
 (d) Notwithstanding anything to the contrary, any grants of Awards and any issuance
of Company Common Shares by the Company and Class B REIT Shares by ESH REIT shall be subject to the terms and conditions as set forth in the Reimbursement Agreement. 
  

	 	4.	Stock Subject to the Plan; Grant Limitations. 

 4.1. Aggregate Number of Shares
Authorized for Issuance. Subject to any adjustment as provided in the Plan, the Company Common Shares to be issued by the Company as part of the Paired Shares under the Plan may be, in whole or in part, authorized but unissued Company Common
Shares or issued Company Common Shares which shall have been reacquired by the Company and held by it as treasury shares. The aggregate number of Company Common Shares that may be made the subject of Awards of Paired Shares granted under the Plan
shall not exceed 8,000,000, no more than 4,000,000 of which may be granted as Incentive Stock Options. Any Company Common Shares related to an award of Paired Shares granted under this Plan that terminates by expiration, forfeiture, cancellation or
otherwise without the issuance of the Company Common Shares shall become available for Award under this Plan. 

  
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 4.2. Individual Participant Limit. With respect to Awards granted following the last day
of the Transition Period (or, if later, the date the Plan is approved by the Company’s stockholders for purposes of Section 162(m)), (a) the aggregate number of Company Common Shares that may be the subject of Options, Stock
Appreciation Rights, Performance-Based Restricted Stock and Performance Share Units granted to an Eligible Individual in any calendar year (or in respect of the calendar year during which the Transition Period expires, the remainder of such calendar
year) may not exceed 2,000,000, provided, however, that each Company Common Share that may be the subject of an Award of Performance-Based Restricted Stock or Performance Share Units shall be counted as two (2) Company Common Shares against the
aggregate limit set forth in this Section 4.2; and (b) the maximum dollar amount of cash or the Fair Market Value of Paired Shares that any individual may receive in any calendar year (or in respect of the calendar year during which the
Transition Period expires, the remainder of such calendar year) in respect of Performance Units may not exceed $10,000,000. 
 4.3.
Calculating Shares Available. The Committee shall determine the appropriate method for determining the number of Company Common Shares available for grants of Awards under the Plan, subject to the following: 

(a) Except as provided in Section 4.3(b), in connection with the granting of an Option, a Stock Appreciation Right (other
than a Stock Appreciation Right related to an Option) or a Share Award, or the granting of an Award of Restricted Stock Units, Restricted Stock, Performance-Based Restricted Stock or Performance Share Units or the settlement of any Award of
Performance Units, the number of Company Common Shares available under this Section 4 for the granting of further Awards shall be reduced by the number of Company Common Shares in respect of which the Award is granted, denominated or settled,
as applicable. 
 (b) In the event that an Award is granted that, pursuant to the terms of the Award Agreement, cannot be
settled in Paired Shares such that the Company would not issue the Company Common Shares in settlement of such Award, the aggregate number of Company Common Shares that may be made the subject of Awards under the Plan shall not be reduced. Any
Company Common Shares related to an Award granted under this Plan that (i) terminates by expiration, forfeiture, cancellation or otherwise without the issuance of Company Common Shares, (ii) is settled in cash in lieu of Company Common
Shares, or (iii) is exchanged with the Committee’s permission, prior to the issuance of Company Common Shares, for an Award pursuant to which no Company Common Shares may be issued, shall again be available for Awards under this Plan. 

(c) The number of Company Common Shares tendered or withheld (i) to pay all or a portion of the Option Price of an Option
granted under this Plan or (ii) to satisfy tax withholding obligations associated with an Award granted under this Plan, shall become available again for grant under this Plan. 

  
 13 

 (d) Notwithstanding anything to the contrary, Awards made under the ESH REIT
Long-Term Incentive Plan in accordance with Section 3.6(c) shall have the effect of reducing the number of Company Common Shares available for grants of Awards under the Plan. 

4.4. Director Grant Limit. Except for grants made in connection with the Initial Public Offering, the maximum Fair Market Value of
Paired Shares underlying an Award that any Director may receive in any calendar year may not exceed (i) $500,000 in respect of such Director’s services as a member of the Board and (ii) $500,000 in respect of such Director’s
services as a member of the Board of ESH REIT, as applicable, which, in each case, shall be determined based upon the aggregate grant date fair value of Awards computed in accordance with FASB ASC Topic 718. 

 

	 	5.	Stock Options. 

 5.1. Authority of Committee. Subject to
Section 3.6, the Committee may grant Options to Eligible Individuals in accordance with the Plan, the terms and conditions of the grant of which shall be set forth in an Award Agreement. Incentive Stock Options may be granted only to Eligible
Individuals who are employees of the Company or any of its Subsidiaries on the date the Incentive Stock Option is granted. The terms and conditions of any grants of Options as set forth in an Award Agreement shall comply with Section 409A of
the Code and all regulations and other guidance issued thereunder. 
 5.2. Option Price. The Option Price or the manner in which
the exercise price is to be determined for Paired Shares under each Option shall be determined by the Committee and set forth in the Award Agreement; provided, however, that the exercise price per Paired Share under each Option
shall not be less than the greater of (i) the par value of a Paired Share and (ii) 100% of the Fair Market Value of a Paired Share on the date the Option is granted (110% in the case of an Incentive Stock Option granted to a Ten-Percent
Shareholder). 
 5.3. Maximum Duration. Options granted hereunder shall be for such term as the Committee shall determine;
provided that an Incentive Stock Option shall not be exercisable after the expiration of ten (10) years from the date it is granted (five (5) years in the case of an Incentive Stock Option granted to a Ten-Percent Shareholder) and a
Nonqualified Stock Option shall not be exercisable after the expiration of ten (10) years from the date it is granted; provided, further, however, that unless the Committee provides otherwise, an Option (other than an Incentive
Stock Option) may, upon the death of the Participant prior to the expiration of the Option, be exercised for up to one (1) year following the date of the Participant’s death, even if such period extends beyond ten (10) years from the
date the Option is granted. The Committee may, subsequent to the granting of any Option, extend the period within which the Option may be exercised (including following a Participant’s Termination), but in no event shall the period be extended
to a date that is later than the earlier of the latest date on which the Option could have been exercised and the 10th anniversary of the date of grant of the Option. 

5.4. Vesting. The Committee shall determine and set forth in the applicable Award Agreement the time or times at which an Option shall
become vested and exercisable. To the extent not exercised, vested installments shall accumulate and be exercisable, in whole or in part, at any time after becoming exercisable, but not later than the date the Option expires. The Committee may
accelerate the exercisability of any Option or portion thereof at any time. 

  
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 5.5. Limitations on Incentive Stock Options. To the extent that the aggregate Fair Market
Value (determined as of the date of the grant) of Paired Shares with respect to which Incentive Stock Options granted under the Plan and “incentive stock options” (within the meaning of Section 422 of the Code) granted under all other
plans of the Company or its Subsidiaries (in either case determined without regard to this Section 5.5) are exercisable by a Participant for the first time during any calendar year exceeds $100,000, such Incentive Stock Options shall be treated
as Nonqualified Stock Options. In applying the limitation in the preceding sentence in the case of multiple Option grants, unless otherwise required by applicable law, Options which were intended to be Incentive Stock Options shall be treated as
Nonqualified Stock Options according to the order in which they were granted such that the most recently granted Options are first treated as Nonqualified Stock Options. 

5.6. Method of Exercise. The exercise of an Option shall be made only by giving notice in the form and to the Person designated by the
Company, specifying the number of Paired Shares to be exercised and, to the extent applicable, accompanied by payment therefor and otherwise in accordance with the Award Agreement pursuant to which the Option was granted. The Option Price for any
Paired Shares purchased pursuant to the exercise of an Option shall be paid in any or any combination of the following forms: (a) cash or its equivalent (e.g., a check) or (b) if permitted by the Committee, (i) the transfer, either
actually or by attestation, to the Company of Paired Shares that have been held by the Participant for at least six (6) months (or such lesser period as may be permitted by the Committee) prior to the exercise of the Option, such transfer to be
upon such terms and conditions as determined by the Committee, (ii) the withholding of Paired Shares otherwise issuable upon exercise of the Option, such withholding to be upon such terms and conditions as determined by the Committee or
(c) in the form of other property as determined by the Committee. In addition, Options may be exercised through a registered broker-dealer pursuant to such cashless exercise procedures that are, from time to time, deemed acceptable by the
Committee. If requested by the Committee, the Participant shall deliver the Award Agreement evidencing the Option to the Company, which shall endorse thereon a notation of such exercise and return such Award Agreement to the Participant. No
fractional Paired Shares (or cash in lieu thereof) shall be issued upon exercise of an Option and the number of Paired Shares that may be purchased upon exercise shall be rounded to the nearest number of whole Paired Shares. 

5.7. Rights of Participants. No Participant shall be deemed for any purpose to be the owner of any Paired Shares subject to any Option
unless and until (a) the Option shall have been exercised pursuant to the terms thereof, (b) the Company shall have issued and delivered Company Common Shares and ESH REIT shall have issued and delivered REIT Shares (whether or not
certificated) to the Participant, a securities broker acting on behalf of the Participant or such other nominee of the Participant and (c) the Participant’s name, or the name of his or her broker or other nominee, shall have been entered
as a shareholder of record on the books of the Company and ESH REIT. Thereupon, the Participant shall have full voting, dividend and other ownership rights with respect to such Paired Shares, subject to such terms and conditions as may be set forth
in the applicable Award Agreement. 
 5.8. Effect of Change in Control. Any specific terms applicable to an Option in the event of a
Change in Control and not otherwise provided in the Plan shall be set forth in the applicable Award Agreement. 

  
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	 	6.	Stock Appreciation Rights. 

 6.1. Grant. Subject to Section 3.6, the
Committee may grant Stock Appreciation Rights to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement. A Stock Appreciation Right may be granted (a) at any time if
unrelated to an Option or (b) if related to an Option, either at the time of grant or at any time thereafter during the term of the Option. Notwithstanding anything to the contrary, the Committee may only grant Stock Appreciation Rights to the
extent that the terms and conditions of any such grants of Stock Appreciation Rights as set forth in an Award Agreement shall comply with Section 409A of the Code and all regulations and other guidance issued thereunder. 

6.2. Terms; Duration. Stock Appreciation Rights shall contain such terms and conditions as to exercisability, vesting and duration as
the Committee shall determine, but in no event shall they have a term of greater than ten (10) years; provided, however, that unless the Committee provides otherwise, a Stock Appreciation Right may, upon the death of the
Participant prior to the expiration of the Award, be exercised for up to one (1) year following the date of the Participant’s death even if such period extends beyond ten (10) years from the date the Stock Appreciation Right is
granted. The Committee may, subsequent to the granting of any Stock Appreciation Right, extend the period within which the Stock Appreciation Right may be exercised (including following a Participant’s Termination), but in no event shall the
period be extended to a date that is later than the earlier of the latest date on which the Stock Appreciation Right could have been exercised and the 10th anniversary of the date of grant of the Stock Appreciation Right. 

6.3. Amount Payable. Upon exercise of a Stock Appreciation Right, the Participant shall be entitled to receive an amount determined by
multiplying (i) the excess of the Fair Market Value of a Paired Share on the last business day preceding the date of exercise of such Stock Appreciation Right over the Fair Market Value of a Paired Share on the date the Stock Appreciation Right
was granted (the “Base Price”) by (ii) the number of Paired Shares as to which the Stock Appreciation Right is being exercised. Notwithstanding the foregoing, the Committee may limit in any manner the amount payable with
respect to any Stock Appreciation Right by including such a limit in the Award Agreement evidencing the Stock Appreciation Right at the time it is granted. 

6.4. Method of Exercise. Stock Appreciation Rights shall be exercised by a Participant only by giving notice in the form and to the
Person designated by the Company, specifying the number of Paired Shares with respect to which the Stock Appreciation Right is being exercised. If requested by the Committee, the Participant shall deliver the Award Agreement evidencing the Stock
Appreciation Right being exercised, which shall endorse thereon a notation of such exercise and return such Award Agreement to the Participant. 

  
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 6.5. Form of Payment. Payment of the amount payable upon exercise of a Stock Appreciation
Right may be made in the discretion of the Committee solely in whole Paired Shares in a number determined at their Fair Market Value on the last business day preceding the date of exercise of the Stock Appreciation Right, solely in cash or in a
combination of cash and Paired Shares. If the Committee decides to make full payment in Paired Shares and the amount payable results in a fractional Paired Share, payment for the fractional Paired Share will be made in cash. 

6.6. Effect of Change in Control. Any specific terms applicable to a Stock Appreciation Right in the event of a Change in Control and
not otherwise provided in the Plan shall be set forth in the applicable Award Agreement. 
  

	 	7.	Dividend Equivalent Rights. 

 Subject to Section 3.6, the Committee may grant
Dividend Equivalent Rights, either in tandem with an Award or as a separate Award, to Eligible Individuals in accordance with the Plan. The terms and conditions applicable to each Dividend Equivalent Right shall be specified in the Award Agreement
evidencing the Award. Amounts payable in respect of Dividend Equivalent Rights may be payable currently or, if applicable, deferred until the lapsing of restrictions on such Dividend Equivalent Rights or until the vesting, exercise, payment,
settlement or other lapse of restrictions on the Award to which the Dividend Equivalent Rights relate. In the event that the amount payable in respect of Dividend Equivalent Rights are to be deferred, the Committee shall determine whether such
amounts are to be held in cash or reinvested in Paired Shares or deemed (notionally) to be reinvested in Paired Shares. Dividend Equivalent Rights may be settled in cash or Paired Shares or a combination thereof, in a single installment or multiple
installments, as determined by the Committee. The terms and conditions of any grants of Dividend Equivalent Rights as set forth in an Award Agreement shall comply with Section 409A of the Code and all regulations and other guidance issued
thereunder. 
  

	 	8.	Restricted Stock; Restricted Stock Units. 

 8.1. Restricted Stock. Subject
to Section 3.6, the Committee may grant Awards of Restricted Stock to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement. Each Award Agreement shall contain such
restrictions, terms and conditions as the Committee may, in its discretion, determine and (without limiting the generality of the foregoing) such Award Agreements may require that an appropriate legend be placed on Paired Share certificates. Paired
Shares in a book entry account in Participant’s name may have appropriate stop transfer instructions to the account custodian, administrator or the Company’s corporate secretary as determined by the Committee in its sole discretion. Awards
of Restricted Stock shall be subject to the terms and provisions set forth below in this Section 8.1. 
 (a) Rights
of Participant. Restricted Stock granted pursuant to an Award hereunder shall be issued in the name of the Participant as soon as reasonably practicable after the Award is granted provided that the Participant has executed an Award Agreement
evidencing the Award and any other documents which the Committee may require as a condition to the issuance of such Paired Shares. At the 

  
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discretion of the Committee, Paired Shares issued in connection with an Award of Restricted Stock may be held in escrow by an agent (which may be the Company) designated by the Committee. Unless
the Committee determines otherwise and as set forth in the Award Agreement, upon the issuance of the Paired Shares, the Participant shall have all of the rights of a shareholder with respect to such Paired Shares, including the right to vote the
Paired Shares and to receive all dividends or other distributions paid or made with respect to the Paired Shares. 
 (b)
Terms and Conditions. Each Award Agreement shall specify the number of shares of Restricted Stock to which it relates, the conditions which must be satisfied in order for the Restricted Stock to vest and the circumstances under which the
Award will be forfeited. 
 (c) Delivery of Shares. Upon the lapse of the restrictions on shares of Restricted Stock,
the Committee shall cause a stock certificate or evidence of book entry Paired Shares to be delivered to the Participant with respect to such shares of Restricted Stock, free of all restrictions hereunder. 

(d) Treatment of Dividends. At the time an Award of Restricted Stock is granted, the Committee may, in its discretion,
determine that the payment to the Participant of dividends, or a specified portion thereof, declared or paid on such Paired Shares by the Company shall be (i) deferred until the lapsing of the restrictions imposed upon such Paired Shares and
(ii) held by the Company for the account of the Participant until such time. In the event that dividends are to be deferred, the Committee shall determine whether such dividends are to be reinvested in Paired Shares (which shall be held as
additional shares of Restricted Stock) or held in cash. Payment of deferred dividends in respect of shares of Restricted Stock (whether held in cash or as additional shares of Restricted Stock), shall be made upon the lapsing of restrictions imposed
on the shares of Restricted Stock in respect of which the deferred dividends were paid, and any dividends deferred in respect of any shares of Restricted Stock shall be forfeited upon the forfeiture of such shares of Restricted Stock. 

(e) Effect of Change in Control. Any specific terms applicable to Restricted Stock in the event of a Change in Control
and not otherwise provided in the Plan shall be set forth in the applicable Award Agreement. 
 8.2. Restricted Stock Unit Awards.
Subject to Section 3.6, the Committee may grant Awards of Restricted Stock Units to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement. Each such Award Agreement shall
contain such restrictions, terms and conditions as the Committee may, in its discretion, determine. Awards of Restricted Stock Units shall be subject to the terms and provisions set forth below in this Section 8.2. 

(a) Payment of Awards. Each Restricted Stock Unit shall represent the right of the Participant to receive a payment
upon vesting of the Restricted Stock Unit or on any later date specified by the Committee of an amount equal to the Fair Market Value of a Paired Share as of the date the Restricted Stock Unit becomes

  
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vested or such other date as determined by the Committee at the time the Restricted Stock Unit is granted. The Committee may, at the time a Restricted Stock Unit is granted, provide a limitation
on the amount payable in respect of each Restricted Stock Unit. The Committee may provide for the settlement of Restricted Stock Units in cash or with Paired Shares having a Fair Market Value equal to the amount to which the Participant has become
entitled or a combination thereof. 
 (b) Effect of Change in Control. Any specific terms applicable to Restricted
Stock Units in the event of a Change in Control and not otherwise provided in the Plan shall be set forth in the applicable Award Agreement. 
  

	 	9.	Performance Awards. 

 9.1. Performance Units and Performance Share Units.
Subject to Section 3.6, the Committee may grant Awards of Performance Units and/or Performance Share Units to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement. 

(a) Performance Units. Performance Units shall be denominated in a specified dollar amount and, contingent upon the
attainment of specified Performance Objectives within the Performance Cycle and such other vesting conditions as may be determined by the Committee (including without limitation, a continued employment requirement following the end of the applicable
Performance Period), represent the right to receive payment as provided in Sections 9.1(c) and (d) of the specified dollar amount or a percentage of the specified dollar amount depending on the level of Performance Objective attained;
provided, however, that the Committee may at the time a Performance Unit is granted specify a maximum amount payable in respect of a vested Performance Unit. 

(b) Performance Share Units. Performance Share Units shall be denominated in Paired Shares and, contingent upon the
attainment of specified Performance Objectives within the Performance Cycle and such other vesting conditions as may be determined by the Committee, (including without limitation, a continued employment requirement following the end of the
applicable Performance Period), represent the right to receive payment as provided in Sections 9.1(c) and (d) of the Fair Market Value of a Paired Share on the date the Performance Share Unit was granted, the date the Performance Share Unit
became vested or any other date specified by the Committee or a percentage of such amount depending on the level of Performance Objective attained; provided, however, that the Committee may at the time a Performance Share Unit is granted
specify a maximum amount payable in respect of a vested Performance Share Unit. 
 (c) Terms and Conditions; Vesting and
Forfeiture. Each Award Agreement shall specify the number of Performance Units or Performance Share Units to which it relates, the Performance Objectives and other conditions which must be satisfied in order for the of Performance Units or
Performance Share Units to vest and the Performance Cycle within which such Performance Objectives must be 

  
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satisfied and the circumstances under which the Award will be forfeited; provided, however, that no Performance Cycle for Performance Units or Performance Share Units shall
be less than one (1) year. 
 (d) Payment of Awards. Subject to Section 9.3(c), payment to Participants in
respect of vested Performance Share Units and Performance Units shall be made as soon as practicable after the last day of the Performance Cycle to which such Award relates or at such other time or times as the Committee may determine that the Award
has become vested. Such payments may be made entirely in Paired Shares valued at their Fair Market Value, entirely in cash or in such combination of Paired Shares and cash as the Committee in its discretion shall determine at any time prior to such
payment; provided, however, that if the Committee in its discretion determines to make such payment entirely or partially in shares of Restricted Stock, the Committee must determine the extent to which such payment will
be in shares of Restricted Stock and the terms of such Restricted Stock at the time the Award is granted. 
 9.2. Performance-Based
Restricted Stock. Subject to Section 3.6, the Committee, may grant Awards of Performance-Based Restricted Stock to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set forth in an Award Agreement.
Each Award Agreement may require that an appropriate legend be placed on Paired Share certificates. Paired Shares in a book entry account in Participant’s name may have appropriate stop transfer instructions to the account custodian,
administrator or the Company’s corporate secretary as determined by the Committee in its sole discretion. Awards of Performance-Based Restricted Stock shall be subject to the following terms and provisions: 

(a) Rights of Participant. Performance-Based Restricted Stock shall be issued in the name of the Participant as soon as
reasonably practicable after the Award is granted or at such other time or times as the Committee may determine; provided, however, that no Performance-Based Restricted Stock shall be issued until the Participant has executed an Award
Agreement evidencing the Award, and any other documents which the Committee may require as a condition to the issuance of such Performance-Based Restricted Stock. At the discretion of the Committee, Paired Shares issued in connection with an Award
of Performance-Based Restricted Stock may be held in escrow by an agent (which may be the Company) designated by the Committee. Unless the Committee determines otherwise and as set forth in the Award Agreement, upon issuance of the Paired Shares,
the Participant shall have all of the rights of a shareholder with respect to such Paired Shares, including the right to vote the Paired Shares and to receive all dividends or other distributions paid or made with respect to the Paired Shares. 

(b) Terms and Conditions. Each Award Agreement shall specify the number of shares of Performance-Based Restricted Stock
to which it relates, the Performance Objectives and other conditions which must be satisfied in order for the Performance-Based Restricted Stock to vest, the Performance Cycle within which such Performance Objectives must be satisfied and the
circumstances under which the Award will be forfeited; provided, however, that no Performance Cycle for Performance-Based Restricted Stock shall be less than one (1) year. 

  
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 (c) Treatment of Dividends. At the time the Award of
Performance-Based Restricted Stock is granted, the Committee may, in its discretion, determine that the payment to the Participant of dividends, or a specified portion thereof, declared or paid on Paired Shares represented by such Award which have
been issued by the Company to the Participant shall be (i) deferred until the lapsing of the restrictions imposed upon such Performance-Based Restricted Stock and (ii) held by the Company for the account of the Participant until such time.
In the event that dividends are to be deferred, the Committee shall determine whether such dividends are to be reinvested in Paired Shares (which shall be held as additional shares of Performance-Based Restricted Stock) or held in cash. If deferred
dividends are to be held in cash, there may be credited interest on the amount of the account at such times and at a rate per annum as the Committee, in its discretion, may determine. Payment of deferred dividends in respect of shares of
Performance-Based Restricted Stock (whether held in cash or in additional Paired Shares of Performance-Based Restricted Stock), together with interest accrued thereon, if any, shall be made upon the lapsing of restrictions imposed on the
Performance-Based Restricted Stock in respect of which the deferred dividends were paid, and any dividends deferred (together with any interest accrued thereon) in respect of any Performance-Based Restricted Stock shall be forfeited upon the
forfeiture of such Performance-Based Restricted Stock. 
 (d) Delivery of Shares. Upon the lapse of the
restrictions on shares of Performance-Based Restricted Stock awarded hereunder, the Committee shall cause a stock certificate or evidence of book entry Paired Shares to be delivered to the Participant with respect to such Paired Shares, free of all
restrictions hereunder. 
 9.3. Performance Objectives. 

(a) Establishment. With respect to any Performance Awards intended to constitute Performance-Based Compensation,
Performance Objectives for Performance Awards may be expressed in terms of (i) earnings per share, (ii) operating income, (iii) return on equity or assets, (iv) cash flow, (v) net cash flow, (vi) cash flow from
operations; (vii) EBITDA, (viii) increased revenues, (ix) revenue ratios; (x) cost reductions; (xi) cost ratios; (xii) overall revenue or sales growth, (xiii) expense reduction or management, (xiv) market
position, (xv) total shareholder return, (xvi) return on investment, (xvii) earnings before interest and taxes (EBIT), (xviii) net income, (xix) return on net assets, (xx) economic value added, (xxi) shareholder
value added, (xxii) cash flow return on investment, (xxiii) net operating profit, (xxiv) net operating profit after tax, (xxv) return on capital, (xxvi) return on invested capital or (xxvii) any combination of the
foregoing. With respect to Performance Awards not intended to constitute Performance-Based Compensation, Performance Objectives may be based on any of the foregoing or any other performance criteria as may be established by the Committee.
Performance Objectives may be in respect of the performance of the Company, any of its Subsidiaries, any of its Divisions or any combination thereof. Performance 

  
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Objectives may be absolute or relative (to prior performance of the Company or to the performance of one or more other entities or external indices) and may be expressed in terms of a progression
within a specified range. In the case of a Performance Award which is intended to constitute Performance-Based Compensation, the Performance Objectives with respect to a Performance Cycle shall be established in writing by the Committee by the
earlier of (i) the date on which a quarter of the Performance Cycle has elapsed and (ii) the date which is ninety (90) days after the commencement of the Performance Cycle and in any event while the performance relating to the
Performance Objectives remains substantially uncertain. 
 (b) Effect of Certain Events. The Committee may, at the
time the Performance Objectives in respect of a Performance Award are established, provide for the manner in which performance will be measured against the Performance Objectives to reflect the impact of specified events, including any one or more
of the following with respect to the Performance Period (i) the gain, loss, income or expense resulting from changes in accounting principles or tax laws that become effective during the Performance Period; (ii) the gain, loss, income or
expense reported publicly by the Company with respect to the Performance Period that are extraordinary or unusual in nature or infrequent in occurrence; (iii) the gains or losses resulting from and the direct expenses incurred in connection
with, the disposition of a business, or the sale of investments or non-core assets; (iv) the gain or loss from all or certain claims and/or litigation and all or certain insurance recoveries relating to claims or litigation; or (v) the
impact of investments or acquisitions made during the year or, to the extent provided by the Committee, any prior year. The events may relate to the Company as a whole or to any part of the Company’s business or operations, as determined by the
Committee at the time the Performance Objectives are established. Any adjustments based on the effect of certain events are to be determined in accordance with generally accepted accounting principles and standards, unless another objective method
of measurement is designated by the Committee and, in respect of Performance Awards intended to constitute Performance-Based Compensation, such adjustments shall be permitted only to the extent permitted under Section 162(m) of the Code and the
regulations promulgated thereunder without adversely affecting the treatment of any Performance Award as Performance-Based Compensation. 

(c) Determination of Performance. Prior to the vesting, payment, settlement or lapsing of any restrictions with respect
to any Performance Award, the Committee shall certify in writing that the applicable Performance Objectives have been satisfied to the extent necessary for such Award to qualify as Performance-Based Compensation. In respect of a Performance Award,
the Committee may, in its sole discretion, reduce the amount of cash paid or number of Paired Shares to be issued or that have been issued and that become vested or on which restrictions lapse. The Committee shall not be entitled to exercise any
discretion otherwise authorized hereunder with respect to any Performance Award intended to constitute Performance-Based Compensation if the ability to exercise such discretion or the exercise of such discretion itself would cause the compensation
attributable to such Awards to fail to qualify as Performance-Based Compensation. 
 (d) Effect of Change in Control.
Any specific terms applicable to a Performance Award in the event of a Change in Control and not otherwise provided in the Plan shall be set forth in the applicable Award Agreement. 

  
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	 	10.	Share Awards. 

 Subject to Section 3.6, the Committee may grant a Share Award
to any Eligible Individual on such terms and conditions as the Committee may determine in its sole discretion. Share Awards may be made as additional compensation for services rendered by the Eligible Individual or may be in lieu of cash or other
compensation to which the Eligible Individual is entitled from the Company. 
  

	 	11.	Effect of Termination of Employment; Transferability. 

 11.1. Termination.
The Award Agreement evidencing the grant of each Award shall set forth the terms and conditions applicable to such Award upon Termination, which shall be as the Committee may, in its discretion, determine at the time the Award is granted or at
anytime thereafter, and which terms and conditions may include provisions regarding the treatment of an Award in the event of a Termination by reason of a divestiture of any Subsidiary or Division or other assets of the Company or any Subsidiary.

 11.2. Transferability of Awards and Paired Shares. 

(a) Non-Transferability of Awards. Except as set forth in Section 11.2(c) or (d) or as otherwise permitted by
the Committee and as set forth in the applicable Award Agreement, either at the time of grant or at anytime thereafter, no Award shall be (i) sold, transferred or otherwise disposed of, (ii) pledged or otherwise hypothecated or
(iii) subject to attachment, execution or levy of any kind; and any purported transfer, pledge, hypothecation, attachment, execution or levy in violation of this Section 11.2 shall be null and void. 

(b) Restrictions on Paired Shares. The Committee may impose such restrictions on any Paired Shares acquired by a
Participant under the Plan as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, restrictions under the requirements of any stock exchange or market upon
which such Paired Shares are then listed or traded and restrictions under any blue sky or state securities laws applicable to such Paired Shares. 

(c) Transfers By Will or by Laws of Descent or Distribution. Any Award may be transferred by will or by the laws of
descent or distribution; provided, however, that (i) any transferred Award will be subject to all of the same terms and conditions as provided in the Plan and the applicable Award Agreement; and (ii) the Participant’s estate or
beneficiary appointed in accordance with this Section 11.2(c) will remain liable for any withholding tax that may be imposed by any federal, state or local tax authority. 

  
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 (d) Beneficiary Designation. Each Participant may, from time to time,
name one or more individuals (each, a “Beneficiary”) to whom any benefit under the Plan is to be paid or who may exercise any rights of the Participant under any Award granted under the Plan in the event of the Participant’s
death before he or she receives any or all of such benefit or exercises such Award. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when
filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such designation, benefits under Awards remaining unpaid at the Participant’s death and rights to be exercised following the
Participant’s death shall be paid to or exercised by the Participant’s estate. 
  

	 	12.	Adjustment upon Changes in Capitalization. 

 12.1. In the event of a Change in
Capitalization, the Committee shall conclusively determine the appropriate adjustments, if any, to (a) the maximum number of Company Common Shares or other stock or securities with respect to which Awards may be granted under the Plan,
(b) the maximum number of Company Common Shares or other stock or securities that may be issued upon exercise of Incentive Stock Options, (c) the maximum number of Company Common Shares or other stock or securities with respect to which
Awards may be granted to any Eligible Individual in any calendar year, (d) the number of Paired Shares, Company Common Shares or other stock or securities, cash or other property which are subject to outstanding Awards granted under the Plan
and the exercise price therefore, if applicable, and (e) the Performance Objectives. 
 12.2. Any such adjustment in the Company Common
Shares or other stock or securities (a) subject to outstanding Incentive Stock Options (including any adjustments in the exercise price) shall be made in such manner as not to constitute a modification as defined by Section 424(h)(3) of
the Code and only to the extent otherwise permitted by Sections 422 and 424 of the Code, (b) subject to outstanding Awards that are intended to qualify as Performance-Based Compensation shall be made in such a manner as not to adversely affect
the treatment of the Awards as Performance-Based Compensation and (c) with respect to any Award that is not subject to Section 409A of the Code, in a manner that would not subject the Award to Section 409A of the Code and, with
respect to any Award that is subject to Section 409A of the Code, in a manner that complies with Section 409A of the Code and all regulations and other guidance issued thereunder. 

12.3. If, by reason of a Change in Capitalization, pursuant to an Award, a Participant shall be entitled to, or shall be entitled to exercise
an Option with respect to, new, additional or different shares of stock or securities of the Company or any other corporation, such new, additional or different shares shall thereupon be subject to all of the conditions, restrictions and performance
criteria which were applicable to the Paired Shares subject to the Award, prior to such Change in Capitalization. 

  
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	 	13.	Effect of Certain Transactions. 

 13.1. Except as otherwise provided in the
applicable Award Agreement, in connection with a Corporate Transaction, either: 
 (a) outstanding Awards shall, unless
otherwise provided in connection with the Corporate Transaction, continue following the Corporate Transaction and shall be adjusted if and as provided for in the agreement or plan (in the case of a liquidation or dissolution) entered into or adopted
in connection with the Corporate Transaction (the “Transaction Agreement”), which may include, in the sole discretion of the Committee or the parties to the Corporate Transaction, the assumption or continuation of such Awards by, or
the substitution for such Awards of new awards of, the surviving, successor or resulting entity, or a parent or subsidiary thereof, or the Company or ESH REIT with such adjustments as to the number and kind of shares or other securities or property
subject to such new awards, exercise prices and other terms of such new awards as the Committee or the parties to the Corporate Transaction shall agree, or 

(b) outstanding Awards shall terminate upon the consummation of the Corporate Transaction; provided,
however, that vested Awards shall not be terminated without: 
 (i) in the case of vested Options and Stock Appreciation Rights
(including those Options and Stock Appreciation Rights that would become vested upon the consummation of the Corporate Transaction), (1) providing the holders of affected Options and Stock Appreciation Rights a period of at least fifteen
(15) calendar days prior to the date of the consummation of the Corporate Transaction to exercise the Options and Stock Appreciation Rights, or (2) providing the holders of affected Options and Stock Appreciation Rights payment (in cash or
other consideration upon or immediately following the consummation of the Corporate Transaction, or, to the extent permitted by Section 409A of the Code, on a deferred basis) in respect of each Paired Share covered by the Option or Stock
Appreciation Rights being cancelled an amount equal to the excess, if any, of the per Paired Share price to be paid or distributed to stockholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the
Committee in good faith) over the Option Price of the Option or the Base Price of the Stock Appreciation Rights, or 
 (ii) in the case
vested Awards other than Options or Stock Appreciation Rights (including those Awards that would become vested upon the consummation of the Corporate Transaction), providing the holders of affected Awards payment (in cash or other consideration upon
or immediately following the consummation of 

  
 25 

 
the Corporate Transaction, or, to the extent permitted by Section 409A of the Code, on a deferred basis) in respect of each Paired Share covered by the Award being cancelled of the per
Paired Share price to be paid or distributed to stockholders in the Corporate Transaction, in each case with the value of any non-cash consideration to be determined by the Committee in good faith. 

(c) For the avoidance of doubt, if the amount determined pursuant to clause (b)(i)(2) above is zero or less, the affected
Option or Stock Appreciation Rights may be cancelled without any payment therefor. 
 13.2. Without limiting the generality of the foregoing
or being construed as requiring any such action, in connection with any such Corporate Transaction the Committee may, in its sole and absolute discretion (but subject to Section 3.6), cause any of the following actions to be taken effective
upon or at any time prior to any Corporate Transaction (and any such action may be made contingent upon the occurrence of the Corporate Transaction): 

(a) cause any or all unvested Options and Stock Appreciation Rights to become fully vested and immediately exercisable (as
applicable) and/or provide the holders of such Options and Stock Appreciation Rights a reasonable period of time prior to the date of the consummation of the Corporate Transaction to exercise the Options and Stock Appreciation Rights; 

(b) with respect to unvested Options and Stock Appreciation Rights that are terminated in connection with the Corporate
Transaction, provide to the holders thereof a payment (in cash and/or other consideration) in respect of each Paired Share covered by the Option or Stock Appreciation Right being terminated in an amount equal to all or a portion of the excess, if
any, of the per Paired Share price to be paid or distributed to stockholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in good faith) over the exercise price of the Option or the Base
Price of the Stock Appreciation Right, which may be paid in accordance with the vesting schedule of the Award as set forth in the applicable Award Agreement, upon the consummation of the Corporate Transaction or, to the extent permitted by
Section 409A of the Code, at such other time or times as the Committee may determine; 
 (c) with respect to unvested
Awards (other than Options or Stock Appreciation Rights) that are terminated in connection with the Corporate Transaction, provide to the holders thereof a payment (in cash and/or other consideration) in respect of each Paired Share covered by the
Award being terminated in an amount equal to all or a portion of the per Paired Share price to be paid or distributed to stockholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in good
faith), which may be paid in accordance with the vesting schedule of the Award as set forth in the applicable Award Agreement, upon the consummation of the Corporate Transaction or, to the extent permitted by Section 409A of the Code, at such
other time or times as the Committee may determine. 

  
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 13.3. 

(a) Notwithstanding anything to the contrary, the Committee may, in its sole discretion, provide in the Transaction Agreement
or otherwise for different treatment for different Awards or Awards held by different Participants and, where alternative treatment is available for a Participant’s Awards, may allow the Participant to choose which treatment shall apply to such
Participant’s Awards. 
 (b) Any action permitted under this Section 13 may be taken without the need for the
consent of any Participant. To the extent a Corporate Transaction also constitutes a Change in Capitalization and action is taken pursuant to this Section 13 with respect to an outstanding Award, such action shall conclusively determine the
treatment of such Award in connection with such Corporate Transaction notwithstanding any provision of the Plan to the contrary (including Section 12). 

(c) To the extent the Committee chooses to make payments to affected Participants pursuant to Section 13.1(b)(i)(2) or
(ii) or Section 13.2(b) or (c) above, any Participant who has not returned any letter of transmittal or similar acknowledgment that the Committee requires be signed in connection with such payment within the time period established by
the Committee for returning any such letter or similar acknowledgement shall forfeit his or her right to any payment and his or her associated Awards may be cancelled without any payment therefor. 

 

	 	14.	Interpretation. 

 14.1. Section 16 Compliance. The Plan is
intended to comply with Rule 16b-3 promulgated under the Exchange Act and the Committee shall interpret and administer the provisions of the Plan or any Award Agreement in a manner consistent therewith. Any provisions inconsistent with such Rule
shall be inoperative and shall not affect the validity of the Plan. 
 14.2. Compliance with Section 409A. All Awards granted
under the Plan are intended either not to be subject to Section 409A of the Code or, if subject to Section 409A of the Code, to be administered, operated and construed in compliance with Section 409A of the Code and all regulations
and other guidance issued thereunder. Notwithstanding this or any other provision of the Plan to the contrary, the Committee may amend the Plan or any Award granted hereunder in any manner or take any other action that it determines, in its sole
discretion, is necessary, appropriate or advisable (including replacing any Award) to cause the Plan or any Award granted hereunder to comply with Section 409A of the Code and all regulations and other guidance issued thereunder or to not be
subject to Section 409A of the Code. Any such action, once taken, shall be deemed to be effective from the earliest date necessary to avoid a violation of Section 409A of the Code and shall be final, binding and conclusive on all Eligible
Individuals and other individuals having or claiming any right or interest under the Plan. 
 14.3. Section 162(m). 

(a) Performance-Based Compensation Awards. Unless otherwise determined by the Committee at the time of grant and
subject to Section 14.3(b), each 

  
 27 

 
Option, Stock Appreciation Right and Performance Award granted to an Eligible Individual who is also a Covered Employee is intended to constitute Performance-Based Compensation; provided, that no
Award granted following the Transition Period shall be intended to constitute Performance-Based Compensation unless the stockholder approval and other requirements of Section 162(m) to enable Awards to qualify as Performance-Based Compensation
have been satisfied. If any provision of the Plan or any Award Agreement relating to an Award that is intended to constitute Performance-Based Compensation does not comply or is inconsistent with Section 162(m), such provision shall be
construed or deemed amended to the extent necessary to conform to such requirements and, in the case of any Performance Award, no provision of the Plan or any Award Agreement shall be deemed to confer upon the Committee any discretion to increase
the amount of compensation otherwise payable in connection with any such Award upon the attainment of the Performance Objectives. 

(b) Section 162(m) Transition Period. 
  

	 	(1)	With respect to Options, Stock Appreciation and Performance Awards granted during the Transition Period and with respect to which on the transition relief provided in Treas. Reg. §1.162-27(f) (“Transition
Relief”) is applicable (“Transition Awards”), the Company intends to rely, to the maximum extent possible, on such Transition Relief. Accordingly, the requirements in this Plan applicable to Awards intended to constitute
Performance-Based Compensation shall not apply to Transition Awards which, without limiting the generality of the foregoing, include the provisions of Section 4.2 and those provisions of Sections 3.1(b), 4.3(a) and 9 that apply only to Awards
intended to constitute Performance-Based Compensation. 

  

	 	(2)	With respect to Awards granted during the Transition Period other than Transition Awards, and with respect to all Awards granted following the Transition Period, the stockholder approval and other requirements of
Section 162(m) must be satisfied for those Awards to be intended to qualify as Performance-Based Compensation. 

  

	 	15.	Term; Plan Termination and Amendment of the Plan; Modification of Awards. 

15.1. Term. The Plan shall terminate on the Plan Termination Date and no Award shall be granted after that date. The applicable terms of
the Plan and any terms and conditions applicable to Awards granted prior to the Plan Termination Date shall survive the termination of the Plan and continue to apply to such Awards. 

  
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 15.2. Plan Amendment or Plan Termination. The Board may earlier terminate the Plan and the
Board may at any time and from time to time amend, modify or suspend the Plan; provided, however, that: 
 (a) no
such amendment, modification, suspension or termination shall impair or adversely alter any Awards theretofore granted under the Plan, except with the consent of the Participant, nor shall any amendment, modification, suspension or termination
deprive any Participant of any Paired Shares which he or she may have acquired through or as a result of the Plan; and 

(b) to the extent necessary under any applicable law, regulation or exchange requirement, no other amendment shall be
effective unless approved by the stockholders of the Company in accordance with applicable law, regulation or exchange requirement. 
 15.3.
Modification of Awards. No modification of an Award shall adversely alter or impair any rights or obligations under the Award without the consent of the Participant. 
  

	 	16.	Non-Exclusivity of the Plan. 

 The adoption of the Plan by the Board shall not be
construed as amending, modifying or rescinding any previously approved incentive arrangement or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation,
the granting of stock options otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. 
  

	 	17.	Limitation of Liability. 

 As illustrative of the limitations of liability of the
Company, but not intended to be exhaustive thereof, nothing in the Plan shall be construed to: 
 (a) give any person any
right to be granted an Award other than at the sole discretion of the Committee; 
 (b) limit in any way the right of the
Company or any of its Subsidiaries to terminate the employment of or the provision of services by any person at any time; 

(c) be evidence of any agreement or understanding, express or implied, that the Company will pay any person at any particular
rate of compensation or for any particular period of time; or 
 (d) be evidence of any agreement or understanding, express
or implied, that the Company will employ any person at any particular rate of compensation or for any particular period of time. 
  

	 	18.	Regulations and Other Approvals; Governing Law. 

 18.1. Governing Law.
Except as to matters of federal law, the Plan and the rights of all persons claiming hereunder shall be construed and determined in accordance with the laws of the State of Delaware without giving effect to conflicts of laws principles thereof. 

  
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 18.2. Compliance with Law. 

(a) The obligation of the Company to sell or deliver Company Common Shares with respect to Awards granted under the Plan shall
be subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee. 

(b) The Board may make such changes as may be necessary or appropriate to comply with the rules and regulations of any
government authority or to obtain for Eligible Individuals granted Incentive Stock Options the tax benefits under the applicable provisions of the Code and regulations promulgated thereunder. 

(c) Each grant of an Award and the issuance of Company Common Shares by the Company and Class B REIT Shares by ESH REIT or
other settlement of the Award is subject to compliance with all applicable federal, state and foreign law. Further, if at any time the Committee determines, in its discretion, that the listing, registration or qualification of Paired Shares issuable
by each of the Company and ESH REIT pursuant to the Plan is required by any securities exchange or under any federal, state or foreign law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a condition
of, or in connection with, the grant of an Award or the issuance of Company Common Shares by the Company and REIT Shares by ESH REIT, no Awards shall be or shall be deemed to be granted or payment made or Company Common Shares issued by the Company
or Class B REIT Shares issued by ESH REIT, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions that are not acceptable to the Committee. Any person exercising an
Option or receiving Paired Shares in connection with any other Award shall make such representations and agreements and furnish such information as the Board or Committee may request to assure compliance with the foregoing or any other applicable
legal requirements. 
 18.3. Transfers of Plan Acquired Paired Shares. Notwithstanding anything contained in the Plan or any Award
Agreement to the contrary, in the event that the disposition of Paired Shares acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act and is not otherwise exempt from such registration, such
Paired Shares shall be restricted against transfer to the extent required by the Securities Act and Rule 144 or other regulations promulgated thereunder. The Committee may require any individual receiving Paired Shares pursuant to an Award
granted under the Plan, as a condition precedent to receipt of such Paired Shares, to represent and warrant to the Company in writing that the Paired Shares acquired by such individual are acquired without a view to any distribution thereof and will
not be sold or transferred other than pursuant to an effective registration thereof under the Securities Act or pursuant to an exemption applicable under the Securities Act or the rules and regulations promulgated thereunder. The certificates
evidencing any of such Paired Shares shall be appropriately amended or have an appropriate legend placed thereon to reflect their status as restricted securities as aforesaid. 

  
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	 	19.	Miscellaneous. 

 19.1. Forfeiture Events; Clawback. The Committee may
specify in an Award Agreement that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, clawback or recoupment upon the occurrence of certain specified events or as
required by law, in addition to any otherwise applicable forfeiture provisions that apply to the Award. 
 19.2. Multiple Agreements.
The terms of each Award may differ from other Awards granted under the Plan at the same time or at some other time. The Committee may also grant more than one Award to a given Eligible Individual during the term of the Plan, either in addition to
or, subject to Section 3.5, in substitution for one or more Awards previously granted to that Eligible Individual. 
 19.3.
Withholding of Taxes. 
 (a) The Company or any of its Subsidiaries, including ESH REIT, may withhold from any
payment of cash or Paired Shares to a Participant or other person under the Plan an amount sufficient to cover any withholding taxes which may become required with respect to such payment or take any other action it deems necessary to satisfy any
income or other tax withholding requirements as a result of the grant or exercise of any Award under the Plan. The Company or any of its Subsidiaries shall have the right to require the payment of any such taxes and require that any person furnish
information deemed necessary by the Company or any of its Subsidiaries to meet any tax reporting obligation as a condition to exercise or before making any payment or the issuance or release of any Paired Shares pursuant to an Award. If specified in
an Award Agreement at the time of grant or otherwise approved by the Committee, a Participant may, in satisfaction of his or her obligation to pay withholding taxes in connection with the exercise, vesting or other settlement of an Award, elect to
(i) make a cash payment to the Company, (ii) have withheld a portion of the Paired Shares then issuable to him or her from both the Company and ESH REIT or (iii) surrender Paired Shares owned by the Participant prior to the exercise,
vesting or other settlement of an Award, in each case having an aggregate Fair Market Value equal to the withholding taxes to each of the Company and ESH REIT. 

(b) If a Participant makes a disposition, within the meaning of Section 424(c) of the Code and regulations promulgated
thereunder, of any Paired Share or Paired Shares issued to such Participant pursuant to the exercise of an Incentive Stock Option within the two-year period commencing on the day after the date of the grant or within the one-year period commencing
on the day after the date of transfer of such Paired Share or Paired Shares to the Participant pursuant to such exercise, the Participant shall, within ten (10) days of such disposition, notify the Company thereof, by delivery of written notice
to the Company at its principal executive office. 
 19.4. Plan Unfunded. The Plan shall be unfunded. Except for reserving a
sufficient number of authorized Paired Shares to the extent required by law to meet the 

  
 31 

 
requirements of the Plan, the Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure payment of any Award granted under the
Plan. 

  
 32

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