Document:

Agreement and General Release between FCFC and Thaddeus J. Clements

 Exhibit 10.1 
 AGREEMENT AND GENERAL RELEASE 
 First Commonwealth Financial
Corporation (hereinafter “Employer”) and Thaddeus J. Clements, his heirs, executors, administrators, successors, and assigns (collectively referred to hereafter as “Employee”), agree to and intend to be legally bound by the
following: 
 1. Last Day of Employment. Employee’s last day of employment with Employer will be or has been
September 9, 2011. Effective that day (“Effective Date”), Employer shall agree to accept Employee’s voluntary resignation which Employee offers by signing below. 

2. Consideration. In consideration for signing this Agreement and General Release (“Agreement”) and in
consideration of Employee’s adherence to the promises made herein, Employer agrees that: 
 (a) Employer will pay Employee
severance in the form of salary continuation for a period of seventy-two (72) weeks in the amount of Employee’s normal base salary, less lawful deductions, with payments beginning on the first regular pay day following the execution of
this Agreement and the expiration of the revocation period set forth in Paragraph 4; and 
 (b) Employer will pay Employee a
gross amount of Fifteen Thousand Dollars ($15,000) payable in two checks as follows: 
  

	 	i.	$3,500 allocated to Employee for alleged attorneys’ fees and made payable to Samuel J. Cordes & Associates; and 

 

	 	ii.	$11,500, minus applicable taxes and withholdings, allocated to Employee for alleged lost wages and made payable to Employee. 

These amounts shall be subject to applicable withholdings and taxes. A form 1099 will be issued with check (i), and a Form W-2 shall be
issued in connection with check (ii). The settlement checks shall be delivered to Attorney Cordes within ten (10) days of the expiration of the revocation period set forth in Paragraph 4 and Attorney Cordes providing Employer with a W9. ; and

 (c) If Employee converts one or more of his Employer provided basic life insurance policy, voluntary life insurance policy or
long term care insurance policy to a private policy, Employer will agree to reimburse Employee the cost of such continuing coverage for the length of the severance period set forth in 2(a) up to a maximum of $500 per month with the balance of any
remaining payments being paid by Employee. All other Employer provided benefits shall terminate upon the Effective Date; and 

(d) Employer shall engage the services of O’Connor, O’Connor and Lordi within sixty (60) days of the expiration of the
revocation period set forth in paragraph 4 to provide outplacement services to Employee up to a maximum of $14,000; and. 
 (e)
Employee currently has a loan from Employer with the amount of the outstanding principal balance being approximately $36,300. Employee shall be required to satisfy this loan by paying off all principal and interest when due pursuant to the payment
terms as they existed prior to the Effective Date - specifically, monthly payments equal to accrued interest and one ninety-sixth (1/96) of the outstanding principal balance; and 

  

					
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 (f) Employee currently has a mortgage on his home through Employer. The terms of that
mortgage shall remain the same after the Effective Date as they were prior to the Effective Date; and 
 (g) If Employee should
die during the severance period set forth in 2(a), any remaining payments due and owing under 2(a) will be paid, in the same manner and time as above, by Employer to Employee’s designated beneficiary that he names here: My designated
beneficiary for such payments is Donna Lee Clements; and 
 (h) Upon the expiration of the revocation period in paragraph 4
and retroactive to the Effective Date, Employee shall become a consultant to Employer per the terms of Exhibit A. Employer has represented that it does not expect to retain Employee’s Services under the Consulting Agreement, and Employee has no
expectation that he will be retained for such Services; and 
 (i) If Employee applies for unemployment benefits requiring
Employer to designate the reason for Employee’s separation from employment, Employer shall characterize it as a “separation from employment - willful misconduct not alleged.” Employer shall take no affirmative actions seeking to
preclude Employee’s recovery of unemployment benefits; and 
 (j) On the first regular pay day following the execution of
this Agreement and the expiration of the revocation period set forth in Paragraph 4, Employer shall reimburse Employee for 15 accrued, unused PTO days. 
 3. No Consideration Absent Execution of this Agreement. Employee understands and agrees that Employee would not receive the benefits specified in Paragraph “2” above, except for
Employee’s execution of this Agreement and the fulfillment of the promises contained herein. 
 4.
Revocation. Employee may revoke this Agreement for a period of seven (7) calendar days following the day Employee executes this Agreement. Any revocation within this period must be submitted, in writing, to Matthew Tomb, General
Counsel of Employer, at 22 North Sixth Street, Indiana, Pennsylvania 15701, and state, “I hereby revoke my acceptance of our Agreement.” The revocation must be personally delivered to Tomb or mailed to Tomb certified mail, return receipt
requested and postmarked within seven (7) calendar days of execution of this Agreement. This Agreement shall not become effective or enforceable until the revocation period has expired. 

5. General Release of Claims. 
 (a) Employee knowingly and voluntarily releases and forever discharges Employer, its parent, affiliates, subsidiaries, divisions, predecessor companies, their successors and assigns, their affiliated and
predecessor companies and the current and former employees, attorneys, shareholders, members, officers, directors and agents thereof and the current and former trustees or administrators of any pension or other benefit plan applicable to the
employees or former employees of Employer (collectively referred to throughout the remainder of this Agreement as “Releasees”), of and from any and all claims, demands, liabilities, obligations, promises, controversies, damages, rights,
actions and causes of action, known and unknown, which the Employee has or may have against Releasees as of the date of execution of this Agreement, examples include, but are not limited to, any alleged violation of: 

  

					
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	 	•	 	 Title VII of the Civil Rights Act of 1964, as amended; 

 

	 	•	 	 The Civil Rights Act of 1991; 

  

	 	•	 	 Sections 1981 through 1988 of Title 42 of the United States Code, as amended; 

 

	 	•	 	 The Employee Retirement Income Security Act of 1974, as amended; 

 

	 	•	 	 The Immigration Reform and Control Act, as amended; 

  

	 	•	 	 The Americans with Disabilities Act of 1990, as amended; 

 

	 	•	 	 The Age Discrimination in Employment Act of 1967, as amended; 

 

	 	•	 	 The Older Workers Benefit Protection Act; 

  

	 	•	 	 The Workers Adjustment and Retraining Notification Act, as amended; 

 

	 	•	 	 The Occupational Safety and Health Act, as amended; 

  

	 	•	 	 The Equal Pay Act of 1963; 

  

	 	•	 	 The Genetic Information Nondiscrimination Act; 

  

	 	•	 	 The Family and Medical Leave Act; 

  

	 	•	 	 Uniformed Services Employment and Reemployment Rights Act; 

 

	 	•	 	 The Pennsylvania Human Relations Act; 

  

	 	•	 	 The Consolidated Omnibus Budget Reconciliation Act of 1985; 

 

	 	•	 	 Any other federal, state or local civil or human rights law or any other local, state public policy, contract, tort, or common law; or

  

	 	•	 	 Any allegation for costs, fees, or other expenses including attorneys’ fees incurred in these matters (all of the above collectively referred to
as “Claims”). 

 (b) This release is intended to be a general release, and excludes only those
claims under any statute or common law that Employee is legally barred from releasing. Employee is advised to seek independent legal counsel if Employee seeks clarification on the scope of this release. Signing this Agreement does not waive
Employee’s right to seek a judicial determination of the validity of Employee’s release of rights arising under the Age Discrimination in Employment Act 
 (c) Nothing herein is intended to or shall preclude Employee from filing a charge with any appropriate federal, state, or local government agency and/or cooperating with said agency in its investigation.
Employee, however, explicitly waives any right to file a personal lawsuit or receive monetary damages that the agency may recover against Releasees, without regard as to who brought any said complaint or charge. 

(d) Other than filing suit to determine the validity of Employee’s release under the ADEA as set forth in 5(b) or filing a charge
consistent with 5(c), Employee covenants not to file any lawsuit, charge, complaint, allegation or cause of action in any forum regarding his employment with or his termination of employment from Employer. If Employee breaches this covenant, he
agrees to forfeit any and all consideration offered to him in this Agreement. 
 6. Affirmations. Employee
represents and agrees by signing below that Employee has not been denied any leave or benefit requested, has received the appropriate pay for all hours worked for Employer and has no known workplace injuries or occupational diseases. Employee
affirms that Employee has not filed, nor has Employee caused to be filed, nor is Employee presently a party to any claim, complaint, or action against Releasees in any forum or form. Other than the consideration set forth in Paragraph 2, Employee
further affirms that Employee has been paid and/or has received all 

  

					
		  	3 of 6	  	Privileged and Confidential

 
leave (paid or unpaid), compensation, wages, bonuses and/or commissions to which Employee may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses and/or commissions
are due to Employee, except as provided in this Agreement. Employee acknowledges that Employee received with this Agreement a COBRA notice advising of Employee’s rights under COBRA. 

Employee agrees that as of the date this Agreement is executed, Employee has no knowledge of any perceived or alleged failure by Employer
to comply with federal, state or local laws and regulations governing Employer which Employee has failed to disclose to Employer. 
 7. Confidentiality. Employee agrees not to disclose any information regarding the existence or substance of this Agreement, except to Employee’s spouse, tax advisor, and an attorney
with whom Employee chooses to consult regarding Employee’s consideration of this Agreement except as compelled to do so by process of law. Employee shall be permitted to make a limited disclosure to the Outplacement Service referred to in
paragraph 2(d) to facilitate his job search provided it does not disclose the monetary terms of this Agreement. 
 8.
Return of Confidential Information and Documents. Employee hereby confirms that he has returned to Employer all documents, memoranda, letters, correspondence, electronic mail, notes, plans, records, reports, lists and other documents,
including hard and electronic copies, relating to Employer’s business and that he has not retained copies of this information in any form whatsoever. If Employee subsequently discovers any such material, he will promptly return it to Employer,
marked to the attention of the General Counsel. Employee confirms that he has returned to Employer, on or prior to the Effective Date, any and all of Employer’s property in his possession, including but not limited to credit cards, security key
cards, telephone cards and identification cards. 
 9. Current Employment. Employee waives any claim or right to
reinstatement, recall or future employment with Releasees as defined in Paragraph 5 herein. Employee agrees that he will not seek reemployment with Releasees. 
 10. Letter of Reference. Employer’s CEO shall draft and sign a letter of reference in a mutually agreed upon form attached hereto as Exhibit B. 

11. Public Announcement. Employer shall issue a public announcement concerning Employee’s resignation from Employer in
a mutually agreed upon form attached hereto as Exhibit C. Employer shall also, in due course, make an internal announcement containing similar content as Exhibit C and expanding upon the transfer of responsibilities. 

12. Mutual Nondisparagement. Employee agrees that he shall not, in writing or orally, or through conduct, disparage,
deprecate, discredit, vilify or otherwise say anything negative about Releasees. Employee agrees never to disparage the services, products, customers, or employees of Releasees. These prohibitions include, without limitation, any such statements
made through use of social media sites, such as FaceBook or Twitter. Current members of Employer’s Executive Leadership Team and current members of Employer’s Board of Directors (“Restricted Persons”) shall not, in writing
or orally, or through conduct, disparage, deprecate, discredit, vilify or otherwise say anything negative about Employee. These prohibitions include, without limitation, any such statements made through use of social media sites, such as FaceBook or
Twitter. To the extent Restricted Persons are asked to comment on Employee, their remarks, if any, shall be consistent with those contained in Exhibit B. 

  

					
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 13. Governing Law and Interpretation. This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania without giving effect to the principles of conflicts of law. 
 14. Severability. If any term, provision or paragraph of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, such determination
shall be limited to the narrowest possible scope in order to preserve the enforceability of the remaining portions of the term, provision or paragraph, and such determination shall not affect the remaining terms, provisions or paragraphs of this
Agreement, which shall continue to be given full force and effect. 
 15. Nonadmission of Wrongdoing. The Parties
agree that neither this Agreement nor the furnishing of the consideration for this Release shall be deemed or construed at anytime for any purpose as an admission by Employer, or evidence of any liability or unlawful conduct of any kind. 

16. Amendment. This Agreement may not be modified, altered or changed except in writing and signed by both parties wherein
specific reference is made to this Agreement. 
 17. Entire Agreement. No prior or contemporaneous oral or written
agreements or representations may be offered to alter the terms of this Agreement which, along with Exhibits, represents the entire agreement of the parties with respect to the subject matter hereof. To the extent Employee has entered into an
enforceable agreement with Employer that contains provisions that are not in direct conflict with provisions in this Agreement, the terms of this Agreement shall not supersede, but shall be in addition to, any other such agreement. 

18. Section 409A. This Agreement will be administered, interpreted and construed in compliance with Section 409A
of the Internal Revenue Code (“Section 409A”), the regulations issued thereunder or any exception thereto. For purposes of this Agreement, separation pay is intended to be excepted under the short-term deferral exception as specified in
Treas. Reg. § 1.409A-1(b)(4). With respect to payments, if any, subject to Section 409A (and not excepted therefrom), each such payment is paid as a result of a permissible distribution event, and at a specified time, consistent with
Section 409A. Employee has no right to, and there shall not be, any acceleration or deferral with respect to payments hereunder. Employee acknowledges and agrees that Releasees shall not be liable for, and nothing provided or contained in this
Agreement will obligate or cause the Releasees to be liable for, any tax, interest or penalties imposed on Employee related to or arising with respect to any violation of Section 409A 

19. Signatures. This Agreement may be executed in counterparts, any such copy of which to be deemed an original, but all of
which together shall constitute the same instrument. 
 20. Assignment. Employer and Releasees have the right to
assign this Agreement, but Employee does not. This Agreement inures to the benefit of the successors and assigns of the Employer, who are intended third party beneficiaries of this Agreement. 

EMPLOYEE HAS BEEN ADVISED THAT EMPLOYEE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER THIS AGREEMENT, AND SEVEN
(7) CALENDAR DAYS TO REVOKE AFTER EXECUTION. UNDER NO CIRCUMSTANCES SHALL EMPLOYEE HAVE MORE THAN 60 DAYS FROM THE EFFECTIVE DATE TO SIGN AND DELIVER THIS AGREEMENT, OTHERWISE THIS AGREEMENT SHALL BE

  

					
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WITHDRAWN HAVING NO FORCE OR EFFECT. EMPLOYEE IS HEREBY ADVISED IN WRITING TO CONSULT WITH AN ATTORNEY OF EMPLOYEE’S CHOICE PRIOR TO EXECUTION OF THIS AGREEMENT. 

EMPLOYEE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT DO NOT RESTART OR AFFECT IN ANY MANNER THE
ORIGINAL TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD. 
 HAVING ELECTED TO EXECUTE THIS AGREEMENT, TO FULFILL
THE PROMISES SET FORTH HEREIN, AND TO RECEIVE THEREBY THE BENEFITS SET FORTH IN PARAGRAPH “2” ABOVE, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL
RELEASABLE CLAIMS EMPLOYEE HAS OR MIGHT HAVE AGAINST EMPLOYER. 
 IN WITNESS WHEREOF, the parties hereto knowingly and
voluntarily executed this Agreement as of the date set forth below: 
  

									
	By:	 	 /s/    John J. Dolan
	 		 	 /s/    Thaddeus J. Clements

		 	Employer	 		 	Employee
					
	Date:	 	 September 14, 2011
	 		 	Date:	 	 September 9, 2011

  

					
		  	6 of 6	  	Privileged and ConfidentialExhibit 10.4

 EXHIBIT 10.4 
 STRATEGIC ALLIANCE AGREEMENT 
 THIS STRATEGIC ALLIANCE AGREEMENT
(“Agreement”) is made and entered into as of the 21st day of December 2004 (the “Effective Date”) by and among (i) MHI Hospitality, L.P., a Delaware limited partnership (the “Partnership”), (ii) MHI Hospitality
Corporation, a Maryland corporation and the general partner of the Partnership (the “REIT”) (the REIT and the Partnership are sometimes collectively referred to herein as the “Company”), and (iii) MHI Hotels Services LLC
(“MHI Hotels Services”). 
 RECITALS 
 THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions: 
 A. The REIT proposes to undertake an underwritten initial public offering (the “Offering”) of shares of its common stock, par value $0.01 per share (“Shares”). 

B. The REIT will serve as general partner of the Partnership and initially will own a majority interest in the
Partnership. 
 C. The Company has designated MHI Hotels Services as its preferred hotel management company. In
conjunction with the execution of this Agreement, MHI Hotels Services will amend and restructure its existing management agreements by entering into a master management agreement (the “Master Management Agreement”) with respect to certain
of the initial hotel properties upon contribution of those assets to the Partnership in exchange for a cash payment of $2.0 million. 
 D. MHI Hotels Services desires to provide the Company, on an exclusive basis, with information regarding hotel investment opportunities that become known to MHI Hotels Services as set forth herein.

 E. The parties have determined that, in connection with the Offering, it is desirable to set forth in this
Agreement certain covenants and agreements among the parties. 
 AGREEMENTS 

NOW THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the parties provided for in this Agreement and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

ARTICLE I 

1. Acquisition Opportunities. 
 (a) During the Term (as defined in Article V below), MHI Hotels Services agrees to promptly notify the Company, on an exclusive basis, of any opportunity to invest in, acquire or develop a property,
whether in fee or leasehold, and, whether in whole or in part, that 

 
is suitable for, the development or operation of a hotel (“Hotel Property”) which is presented to MHI Hotels Services or its subsidiaries and that meets the Company’s acquisition
criteria, as the Company may communicate such acquisition criteria to MHI Hotels Services from time to time. For purposes of this Agreement, a Hotel Property includes, but is not limited to, full-service upper up-scale, up-scale and mid-scale hotels
(as such terms are used by Smith Travel Research or similar industry source), whether or not such hotels are underperforming in their respective marketplace, or may be functionally obsolete. MHI Hotels Services shall promptly provide to the Company
all information, materials and documents reasonably available to MHI Hotels Services or its subsidiaries with respect to such Hotel Property or opportunity, subject to the requirements of any confidentiality agreements with third parties, provided,
however, that any confidentiality agreement must permit MHI Hotels Services to notify the Company of such hotel property investment, acquisition or development opportunity. Notwithstanding the foregoing, MHI Hotels Services shall refer any such
opportunity directly to the Company prior to execution of a confidentiality agreement but otherwise will use its best efforts, at no additional out-of-pocket expense to MHI Hotels Services, to negotiate any confidentiality agreement so as to permit
disclosure of the opportunity, and all information, materials and documents with respect thereto, to the Company. 
 (b) The Company shall notify MHI Hotels Services, within 10 business days following the Company’s receipt from MHI Hotels Services of the information with respect to a Hotel Property investment,
acquisition or development opportunity as described in Section 2(a), whether the Company intends to pursue such opportunity. During such 10 day period, if the Company notifies MHI Hotels Services that the Company intends to pursue such opportunity,
MHI Hotels Services shall not provide any information regarding such opportunity to any third party until otherwise notified by the Company, provided that the Company is making commercially reasonable efforts to conduct due diligence or is otherwise
actively pursuing the investment, acquisition or development opportunity. If the Company (i) notifies MHI Hotels Services that the Company does not intend to pursue the opportunity, or (ii) fails to notify MHI Hotels Services by the end of the 10
business day period that the Company intends to pursue the opportunity, then, in either event, MHI Hotels Services may (A) pursue the opportunity on its own behalf or (B) notify other capital sources of the opportunity; provided, however, that, if
MHI Hotels Services subsequently becomes aware that the price or other terms with respect to the opportunity previously presented to the Company have changed materially and MHI Hotels Services is pursuing the acquisition opportunity on its own
behalf, rather than in conjunction with another capital source, MHI Hotels Services will notify the Company of any such change in terms with respect to such opportunity in accordance with the provisions of this Article I, Section 2 and agrees to
provide the Company with another chance to pursue the opportunity in accordance with the provisions set forth in this Article I(b). 
 ARTICLE II 
 2. Management Agreements. 

(a) Subject to the provisions of this Article II, the Company agrees to cause MHI Hospitality TRS, LLC (the “TRS
Lessee”) to offer to MHI Hotels Services the opportunity to manage any Hotel Property acquired by the Company or one of its subsidiaries and leased to 

  
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TRS Lessee during the Term which meets any of the following criteria: 
 (i) the Hotel Property is not encumbered by a management contract that would continue beyond the date of the Company’s acquisition of the Hotel Property; or 

(ii) no termination fee is payable by the Company in connection with termination of any then existing management contract
for the Hotel Property; or 
 (iii) if the then existing management agreement for the Hotel Property can be
terminated at the time of the Company’s purchase of the Hotel Property upon payment of a termination fee, MHI Hotels Services pays such termination fee. 
 (b) Not less than 30 days prior to the Company’s acquisition of a Hotel Property that meets the criteria described in Section 2(a) above, the Company will notify MHI Hotels Services of the
Company’s proposed acquisition of the Hotel Property and will make available to MHI Hotels Services all information reasonably available to the Company with respect to the Hotel Property. MHI Hotels Services shall have 10 business days from
receipt of such notice from the Company to notify the Company in writing that MHI Hotels Services elects to manage the Hotel Property pursuant to the master management agreement which is substantially in the form of Annex A (the “Master
Management Agreement”). If MHI Hotels Services (i) notifies the Company that MHI Hotels Services does not intend to manage the Hotel Property or (ii) fails by the end of the 10 business day period to notify the Company of its election to manage
the Hotel Property, then, in either event, the Company may offer management of the Hotel Property to other hotel management companies on such terms as the Company shall determine and MHI Hotels Services shall have no further rights with respect
thereto. 
 (c) With respect to Hotel Properties acquired by the Company in the future, the parties intend to
utilize the Master Management Agreement between the TRS Lessee and MHI Hotels Services. Notwithstanding the foregoing, any material change in the provisions of the Master Management Agreement, as they relate to the rights and obligations of the TRS
Lessee, shall be subject to approval by a majority of the directors of the REIT who, at the time, are “independent” in accordance with rules promulgated from time to time by the American Stock Exchange (“AMEX”) for companies
listed on the AMEX (“Independent Directors”). 
 (d) Notwithstanding the provisions of this Article II,
if a majority of the Independent Directors in good faith conclude for valid business reasons that a management company other than MHI Hotels Services should manage one or more Hotel Properties, the Company shall so notify MHI Hotels Services and MHI
Hotels Services shall not have the right to manage such Hotel Properties. 
 ARTICLE III 

3. Right to Designate Director of the REIT. 

(a) During the Term, MHI Hotels Services shall have the right to designate one (1) person (the “Designee”) as
nominee for election to the Board of Directors of the REIT at each 

  
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meeting of stockholders of the REIT at which directors are elected (the “Designation Right”), for so long as Andrew Sims, Christopher Sims, Kim Sims, and their families and affiliates
hold, in the aggregate, not less than 1.5 million units of operating partnership interest in the Partnership or shares of the Company’s common stock. MHI Hotels Services shall submit the name of the Designee to the REIT’s Corporate
Governance and Nominating Committee of the Board of Directors (the “Nominating Committee”) not less than 90 days prior to the anniversary date of the prior year’s annual stockholder meeting of the REIT but no earlier than 120 days
prior to the first anniversary of the date of the mailing notice for the preceding year’s annual meeting or, in the case of election of directors other than at the annual meeting of stockholders, not less than 60 days prior to the meeting date
set by the Board of Directors of the REIT. The Designee shall satisfy the standards established by the Nominating Committee for membership on the Board of Directors of the REIT and shall provide to the REIT (i) a written consent to being named as a
nominee for director of the REIT and to serving as a director if elected, (ii) a questionnaire prepared by the REIT and completed by the Designee, and (iii) such other information regarding the Designee as the REIT may reasonably request. A Designee
shall not serve on the Nominating Committee and shall not automatically be deemed to be an Independent Director. 
 (b) The Nominating Committee shall respond to MHI Hotels Services as to whether the Nominating Committee approves the Designee for nomination within 20 days following MHI Hotels Services submission of the
Designee’s name and the information described in Section 2(a) above. In the event the Designee is not approved and nominated by the Nominating Committee for election as a director of the REIT, MHI Hotels Services may submit to the Nominating
Committee another Designee for approval and nomination by the Nominating Committee in accordance with Section 2(a) and the Nominating Committee will respond to any such new submission within 10 days thereafter. When a Designee is approved by the
Nominating Committee as a nominee for election as a director, the REIT shall include such Designee in the proxy materials delivered to stockholders in connection with the meeting and shall recommend such Designee for election in the same manner as
other nominees approved by the Nominating Committee. 
 (c) In the event that the Designee who is elected as a
director resigns, refuses to stand for re-election, is removed, dies or becomes disabled while serving as a director, MHI Hotels Services shall submit a new Designee to the Nominating Committee and, upon approval by the Nominating Committee, such
Designee shall be appointed by the Board of Directors to fill the resulting vacancy on the Board of Directors. Unless MHI Hotels Services otherwise submits a new Designee to the Nominating Committee in accordance with Section 2(a) above, such then
current Designee shall be nominated by the Nominating Committee as a nominee for election at the next succeeding meeting of stockholders at which directors are to be elected. 

(d) Notwithstanding the foregoing, (i) if MHI Hotels Services fails to designate a Designee who is approved by the
Nominating Committee not less than 45 days prior to a meeting of stockholders at which directors are to be elected, the Designation Right with respect to directors to be elected at that meeting of stockholders shall terminate; provided, however,
that if (A) the Designee is then serving on the REIT’s Board of Directors, and (B) the Designee continues to satisfy the standards established by the Nominating Committee for membership on the Board of Directors of the REIT, and consents to
being named as a nominee for director of the 

  
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REIT, such Designee shall be the Designee for election at any such meeting of stockholders at which directors are to be elected notwithstanding that MHI Hotels Services has not formally submitted
such Designee as a nominee in accordance with the procedures set forth herein. 
 ARTICLE IV 

4. Termination 
 This Agreement may be terminated: 
 (a) by the Company, if the
Master Management Agreement is terminated by the TRS Lessee, provided that the TRS Lessee has paid all required termination fees related to such termination; 
 (b) by MHI Hotels Services in the event that the Master Management Agreement is terminated by the TRS Lessee or by MHI Hotels Services as a result of a breach by the TRS Lessee or MHI Hotels Services or
is otherwise terminated in accordance with its terms. 
 In the event of the termination of this Agreement pursuant to this
Article 4, this Agreement shall become null and void. 
 ARTICLE V 

5. Miscellaneous. 
 (a) The term of this Agreement shall commence on the date hereof and shall continue until the tenth anniversary of the date of closing of the Offering (the “Term”). 

(b) This Agreement, and the other agreements and documents referred to herein, shall constitute the entire agreement
among the parties with respect to the subject matter thereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. 

(c) This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction of the State of
Maryland without regard to the principles of conflicts of laws thereof. 
 (d) All notices and other
communications required or permitted hereunder shall be in writing, shall be deemed duly given upon actual receipt, and shall be delivered (i) in person, (ii) by registered or certified mail (air mail if addressed to an address outside of the
country in which mailed), postage prepaid, return receipt requested, or (iii) by facsimile or other generally accepted means of electronic transmission (provided that a copy of any notice delivered pursuant to this clause (iii) shall also be sent
pursuant to clause (ii), addressed as follows (or to such other addresses as may be specified by like notice to the other parties): 

  
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	 To MHI Hotels Services:
	  	 MHI Hotels Services LLC
 6411 Ivy Lane – Suite 510
 Greenbelt, Maryland 20770

Attention Kim E. Sims

		  	
	 To the Company:
	  	 MHI Hospitality Corporation
 814 Capitol Landing Road
 Williamsburg, Virginia 23185

Attention: Andrew M. Sims
 President and Chief
Executive Officer

 (e) No amendment, modification or supplement to this Agreement shall be binding on any of
the parties hereto unless it is in writing and signed by the parties in interest at the time of the modification, and further provided any such modification is approved by a majority of the Independent Directors. No provision hereof may be waived
except by a writing signed by the party against whom any such waiver is sought and further provided any such waiver by the Company is approved by a majority of the Independent Directors. The waiver by any party of a breach of any provision of this
Agreement shall not operate as or be construed as a waiver of any subsequent breach. 
 (f) Neither this
Agreement nor any rights or obligations hereunder shall be assignable by a party to this Agreement without the prior, express written consent of the other party and further provided any such assignment by MHI Hotels Services is approved by a
majority of the Independent Directors. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and permitted assigns. 

(g) This Agreement is solely for the benefit of the parties to this Agreement and should not be deemed to confer upon
third-parties any remedy, claim, liability, reimbursement, claims or action or other right in excess of those existing without reference to this Agreement. 
 (h) Titles and headings to sections in this Agreement are inserted for the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

 (i) Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. Without prejudice to any rights or remedies otherwise available to any party to this Agreement, each party hereto acknowledges that damages would not be an adequate remedy for any breach of the provisions of
this Agreement and agrees that the obligations of the parties hereunder shall be specifically enforceable. 

(j) The parties to this Agreement will execute and deliver or cause the execution and delivery of such further
instruments and documents and will take such other 

  
 6 

 
actions as any other party to the Agreement may reasonably request in order to effectuate the purpose of this Agreement and to carry out the terms hereof. 

(k) This Agreement may be executed in counterparts, each of which shall be deemed an original but together shall be
deemed one and the same Agreement. 
 (l) If any provision of this Agreement is held unenforceable, this
Agreement shall be construed without such provision. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers, as of the Effective Date. 
  

			
	REIT:
	
	 MHI Hospitality Corporation

a Maryland corporation

		
	By:  	 	/S/  ANDREW M. SIMS
		 	 Andrew M. Sims
 President
and Chief Executive Officer

	
	MANAGER:
	
	 MHI HOTELS SERVICES LLC,
 a Maryland limited liability company

		
	By:  	 	/S/  KIM E. SIMS
		 	Kim E. Sims
	
	OPERATING PARTNERSHIP
	
	 MHI Hospitality, L.P.
 a Delaware limited partnership

		
	 By:  
	 	 MHI Hospitality Corporation

		 	its General Partner

 
					
			
		 	By:  	 	/S/  ANDREW M. SIMS
		 		 	Andrew M. Sims
		 		 	President and Chief Executive Officer

  
 7

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