Employment Agreement - Ashford Hospitality Trust Inc., Ashford Hospitality LP and Montgomery J. Bennett
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement"), dated as of ___________,
2003, is between ASHFORD HOSPITALITY TRUST, INC., a corporation organized under
the laws of the State of Maryland and having its principal place of business at
Dallas, Texas (hereinafter, the "REIT"), ASHFORD HOSPITALITY LIMITED
PARTNERSHIP, a limited partnership organized under the laws of the State of
Delaware and having its principal place of business at Dallas, Texas (the
Operating Partnership"), and MONTGOMERY J. BENNETT, an individual residing in
Dallas, Texas (the "Executive").
RECITALS:
A. The REIT and the Operating Partnership (collectively, the
"Company") desire to employ the Executive in ------- the
capacities and on the terms and conditions set out below; and
B. The Executive desires to accept such employment with the
Company, on the terms and conditions set forth below.
NOW, THEREFORE, the Company and the Executive, in consideration of the
respective covenants set out below, hereby agree as follows:
1. EMPLOYMENT.
(a) POSITIONS. During the Term (defined below), the Executive shall be
employed by the Company as President and Chief Executive Officer. At the
Company's request, the Executive shall serve the Company's subsidiaries and
affiliates in other offices and capacities in addition to the foregoing. If the
Executive, during the Term, serves in any one or more of such additional
capacities, the Executive's compensation shall not be increased beyond that
provided in Sections 3, 4 or 5 below. Further, if the Executive's service in one
or more of such additional capacities is terminated, the Executive's
compensation provided herein shall not be reduced for so long as the Executive
otherwise remains employed by the Company under the terms of this Agreement.
(b) RESPONSIBILITIES. The Executive's principal employment duties and
responsibilities shall be those duties and responsibilities customary for the
positions of President and Chief Executive Officer and such other executive
duties and responsibilities as the Board of Directors of the REIT (the "Board")
shall from time to time reasonably assign to the Executive. The Executive will
be responsible for and have authority over the day-to-day operational management
of the Company. The Executive shall report directly to the Board. All other
officers of the Company shall report to the Executive or such person(s) as the
Executive may designate from time to time.
(c) EXTENT OF SERVICES. Except for (i) the time reasonably required to
perform the Executive's duties and responsibilities as Chief Executive Officer
and President of Remington Hotel Corporation ("RHC"), Remington Lodging &
Hospitality, L.P. ("Remington Lodging") and their affiliates (so long as such
duties do not materially interfere with the performance of the Executive's
duties hereunder), and (ii) illnesses and vacation periods, the
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Executive shall devote substantially all of his working time and attention and
his best efforts to the performance of his duties and responsibilities under
this Agreement and shall not be otherwise employed. However, the Executive may
(so long as the following do not materially interfere with the performance of
the Executive's duties hereunder) (i) make any passive investments where he is
not obligated or required to, and shall not in fact, devote material managerial
efforts (provided that the Executive may make and continue investments in
accordance with the terms of that certain Mutual Exclusivity Agreement, herein
so called, among RHC, Remington Lodging and their affiliates (herein
collectively called the "Remington Affiliates"), and the Company and its
affiliates dated on or about the date hereof), (ii) participate in charitable,
academic or community activities or in trade or professional organizations,
(iii) hold directorships in charitable or non-profit organizations, (iv) subject
to Board approval (which approval shall not be unreasonably withheld or
withdrawn), hold directorships in other companies, except only that the Board
shall have the right to limit such services as a director or such participation
whenever the Board shall reasonably believe that the time spent on such
activities infringes in any material respect upon the time required by the
Executive for the performance of his duties under this Agreement or is otherwise
incompatible with those duties, or (v) hold directorships in private companies
owned by the Executive (or Archie Bennett, Jr.) consistent with the Mutual
Exclusivity Agreement. Further, it is agreed that to the extent any such
activities have been conducted by the Executive prior to the Effective Date, the
continued reasonable conduct of such activities (or reasonable activities
similar in nature and scope thereto) subsequent to the Effective Date shall not,
subject to the conditions and limitations of the Mutual Exclusivity Agreement,
thereafter be deemed to interfere with the performance of the Executive's
responsibilities to the Company; provided, that no such activity that violates
the non-competition provisions herein shall be permitted.
2. TERM. This Agreement shall become effective as of the date of the
closing of the initial public offering of shares of the REIT's common stock (the
"Effective Date") and shall continue for a Term ending on December 31, 2007 (the
"Initial Termination Date") unless it is sooner terminated pursuant to Section
7; provided, however, that this Agreement shall be automatically extended for
one additional year on the Initial Termination Date and on each subsequent
anniversary of the Initial Termination Date, unless either the Company or the
Executive elect not to extend the Term of this Agreement by notifying the other
party in writing of such election not less than one hundred eighty (180) days
prior to the expiration of the then current Term. For purposes of this
Agreement, "Term" shall mean the actual duration of the Executive's employment
hereunder, taking into account any extension pursuant to this Section 2 or early
termination of employment pursuant to Section 7.
3. SALARY. The Company shall pay the Executive a Base Salary which
shall be payable in periodic installments, less statutory deductions and
withholdings, according to the Company's normal payroll practices. Commencing as
of the Effective Date, the Executive's base salary shall be FOUR HUNDRED
TWENTY-FIVE THOUSAND Dollars ($425,000) per year. The Board or a Compensation
Committee duly appointed by the Board (the "Compensation Committee") shall
thereafter review the Executive's Base Salary annually to determine within its
sole discretion whether and to what extent the Executive's salary may be
increased (for the purposes of this Agreement, the term "Base Salary" shall mean
the amount established and adjusted from time to time pursuant to this Section
3).
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4. INITIAL RESTRICTED STOCK AWARD. Effective upon execution of this
Agreement, the Company shall grant to the Executive, within thirty (30) days
after the Effective Date, a restricted stock award of 0.71% of the fully-diluted
shares of the common stock outstanding on the forty-fifth (45th) day after
closing of the initial public offering of shares of the REIT's common stock,
excluding shares issued to the underwriters as compensation to the underwriters.
Such stock shall be subject to restrictions on transfer by the Executive and
repurchase by the Company such that the Executive shall not be permitted to
transfer such shares (other than succession by will or operation of laws of
descent and distribution) and the Company shall have the right to repurchase or
recover such shares for the amount of cash paid therefor, if any, if the
Executive shall terminate employment from the Company, provided that such
transfer and repurchase restrictions shall lapse with respect to 33.33% of such
initial shares on the one-year anniversary date of the issuance of the shares
and on each subsequent anniversary of the issuance of the shares that the
Executive shall remain continuously as an employee of the Company as of such
date.
5. ANNUAL INCENTIVE AWARDS.
(a) INCENTIVE BONUS. The Executive shall be entitled to receive an
annual cash incentive bonus (the "Incentive Bonus") for each calendar year
during the Term of this Agreement based on the level of accomplishment of
management and performance objectives as established by the Board or
Compensation Committee. Except as otherwise provided in Section 8, if the
Executive is not employed for the full calendar year, the Executive shall be
paid a pro-rated Incentive Bonus in an amount equal to the product of (x) the
amount of the Incentive Bonus for the calendar year to which the Executive would
have been entitled if the Executive had remained employed for the entire
calendar year and (y) a fraction, the numerator of which is the number of days
in the applicable calendar year for which the Executive was employed through the
last day of his employment and the denominator of which is the 365 days of the
calendar year. The minimum Incentive Bonus for the initial Term ending on the
Initial Termination Date shall be not less than 75% of Base Salary, and the
maximum Incentive Bonus amount shall be 125% of Base Salary. The Incentive Bonus
shall be paid as soon as reasonably practical following each calendar year.
(b) INCENTIVE, SAVINGS AND RETIREMENT PLANS. During the Term, the
Executive shall be entitled to participate in all other incentive plans, stock
and option plans, practices, policies and other programs, and all savings and
retirement plans, practices, polices and programs, in each case that are
applicable generally to senior executives of the Company, as may be adopted,
from time to time, by the Company's Compensation Committee.
6. BENEFITS.
(a) VACATION. The Executive will be entitled to four (4) weeks of paid
vacation per calendar year. Vacation time not used within the calendar year will
not carry forward. The Executive shall not be entitled to cash in lieu of any
unused vacation time except as provided in this Agreement.
(b) SICK LEAVE. The Executive shall be entitled to paid sick leave in
accordance with the sick leave policies of the Company in effect for other
senior executive officers.
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(c) EMPLOYEE BENEFITS. The Executive and his spouse and eligible
dependents, if any, and their respective designated beneficiaries where
applicable, will be eligible for and entitled to participate in other benefits
maintained by the Company for its senior executive officers, as such benefits
may be modified from time to time and for all such employees, such as, without
limitation, any medical, dental, pension, 401(k), accident, disability, and life
insurance benefits, on a basis not less favorable than that applicable to other
executives of the Company. The Executive will also be entitled to appropriate
office space, administrative support, secretarial assistance, and such other
facilities and services as are suitable to the Executive's positions and
adequate for the performance of the Executive's duties.
(d) EXPENSES. The Executive will be entitled to reimbursement of all
reasonable expenses, in accordance with the Company's policy as in effect from
time to time and on a basis not less favorable than that applicable to other
executives of the Company, including, without limitation, telephone, travel and
entertainment expenses incurred by the Executive in connection with the business
of the Company, promptly upon the presentation by the Executive of appropriate
documentation.
(e) D&O INSURANCE COVERAGE. During and for a period three (3) years
after the Term, the Executive shall be entitled to director and officer
insurance coverage for his acts and omissions while an officer and director of
the Company on a basis no less favorable to him than the coverage provided
current officers or directors.
7. TERMINATION. The employment of the Executive by the Company and this
Agreement (except as otherwise provided herein) shall terminate upon the
occurrence of any of the following:
(a) DEATH OR DISABILITY. Immediately upon death or Disability of the
Executive. As used in this Agreement, "Disability" shall mean an inability to
perform the essential functions of his duties, with or without reasonable
accommodation, for a period of 90 consecutive days or a total of 180 days,
during any 365-day period, in either case as a result of incapacity due to
mental or physical illness which is determined to be total and permanent. A
determination of Disability shall be made by a physician satisfactory to both
the Executive and the Company, provided that if the Executive (or his guardian)
and the Company do not agree on a physician, the Executive (or his guardian) and
the Company shall each select a physician and these two together shall select a
third physician, whose determination as to Disability shall be binding on all
parties. The appointment of one or more individuals to carry out the offices or
duties of the Executive during a period of the Executive's inability to perform
such duties and pending a determination of Disability shall not be considered a
breach of this Agreement by the Company.
(b) FOR CAUSE. At the election of the Company, for Cause, immediately
upon written notice by the Company to the Executive unless the Executive fully
corrects the circumstances constituting Cause within the cure periods provided
below, if applicable. For purposes of this Agreement, "Cause" for termination
shall be deemed to exist solely in the event of the following:
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(i) The conviction of the Executive of, or the entry of a plea
of guilty or nolo contendere by the Executive to, a felony (exclusive
of a conviction, plea of guilty or nolo contendere arising solely under
a statutory provision imposing criminal liability upon the Executive on
a PER SE basis due to the Company offices held by the Executive, so
long as any act or omission of the Executive with respect to such
matter was not taken or omitted in contravention of any applicable
policy or directive of the Board);
(ii) willful breach of duty of loyalty which is materially
detrimental to the Company which is not cured to the reasonable
satisfaction of the Board within fifteen (15) days following written
warning to the Executive from the Board describing the alleged
circumstances;
(iii) willful failure to perform or adhere to explicitly
stated duties or guidelines of employment or to follow the directives
of the Board which continues for fifteen (15) days after written
warning to the Executive that it will be deemed a basis for a "For
Cause" termination;
(iv) gross negligence or willful misconduct in the performance
of the Executive's duties (which is not cured by the Executive within
30 days after written warning from the Board);
(v) the Executive's willful commission of an act of dishonesty
resulting in economic or financial injury to the Company or willful
commission of fraud; or
(vi) the Executive's chronic absence from work for reasons
other than illness.
For purposes of this Section, no act, or failure to act, on the
Executive's part will be deemed "willful" unless done, or omitted to be done, by
the Executive not in good faith and without a reasonable belief that the
Executive's act, or failure to act, was in the best interest of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or based upon the advise of counsel for the Company shall
be conclusively presumed to be done, or omitted to be done, by the Executive in
good faith and in the best interests of the Company. The cessation of employment
of the Executive shall not be deemed to be for Cause until there shall have been
delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than 2/3rds of the entire membership of the Board
at a meeting of the Board called and held for such purpose (after reasonable
notice is provided to the Executive and the Executive is given an opportunity,
together with counsel for the Executive, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of any of
the conduct described in this Section 7(b), and specified in the particulars
thereof in detail; provided, that if the Executive is a member of the Board,
neither the Executive nor any family member of the Executive shall vote on such
resolution nor shall they be counted in determining the "Entire Membership" of
the Board.
(c) WITHOUT CAUSE OR GOOD REASON. At the election of the Company,
without Cause, and at the election of the Executive, without Good Reason, in
either case upon sixty (60) days' prior written notice to the Executive or to
the Company, as the case may be. Provided, however, that if the Executive gives
notice, without Good Reason, the Company may
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waive all or a portion of the sixty (60) days' written notice and accelerate the
effective date of the termination.
(d) FOR GOOD REASON. At the election of the Executive, for Good Reason,
which is not cured by the Company within thirty (30) days after written notice
from the Executive to the Company setting forth a description of the
circumstances constituting Good Reason. For purposes of this Agreement, "Good
Reason" shall mean any of the following actions, omissions or events occurring
without the Executive's prior written consent:
(i) The removal without Cause from, or failure to re-elect the
Executive as a Director on the Board of Directors of the Company during
the initial Term ending on the Initial Termination Date or, if the
Company has not already or in connection therewith elected to terminate
the Executive's employment hereunder pursuant to Section 8(c), after
such initial Term;
(ii) the assignment to the Executive of any duties,
responsibilities, or reporting requirements inconsistent with his
positions as President, Chief Executive Officer, and Director on the
Board of Directors of the Company, or any material diminishment, on a
cumulative basis, of the Executive's overall duties, responsibilities,
or status;
(iii) a reduction by the Company in the Executive's annual
Base Salary;
(iv) the failure by the Company to honor the minimum Incentive
Bonus or to honor the initial restricted stock award referenced in
Sections 4 and 5 hereof, unless equitable alternative compensation
arrangements (embodied in ongoing substitute or alternative plans) have
been provided for the Executive;
(v) the requirement by the Company that the principal place of
business at which the Executive performs his duties be changed to a
location outside the greater Dallas metropolitan area;
(vi) any material breach by the Company of any provision of
this Agreement;
or
(vii) Archie Bennett, Jr. is removed without Cause in his
capacity as Chairman of the Board, as the term "Cause" is defined in
that certain Non-Compete/Services Agreement (the "ABJ
Non-Compete/Services Agreement") dated on or about the Effective Date;
the Company fails to renew the ABJ Non-Compete/Services Agreement; or
Archie Bennett, Jr. leaves for "Good Reason" as defined in the ABJ
Non-Compete/ Services Agreement.
(e) NOTICE OF TERMINATION. Any termination by the Company for Cause, or
by the Executive for Good Reason, shall be communicated by Notice of Termination
to the other parties hereto given in accordance with Section 17(a) of this
Agreement. For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Executive's employment under the provision so indicated, and (iii) if the
Date of Termination (as
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defined below) is other than the date of receipt of such notice, specifies the
termination date (provided that the date specified shall not be more than thirty
(30) days after the giving of the notice). The failure by the Executive or the
Company to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
the Executive of the Company, respectively, hereunder or preclude the Executive
or the Company, respectively, from asserting such fact or circumstance in
enforcing the Executive's or the Company's rights hereunder.
(f) DATE OF TERMINATION. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified in the notice (provided that the date specified shall
not be more than thirty (30) days after the giving of the notice), as the case
may be, (ii) if the Executive's employment is terminated by the Company other
than for Cause or Disability, the Date of Termination shall be the date on which
the Company notifies the Executive of such termination or such later date
specified in such notice, (iii) if the Executive's employment is terminated by
the Executive without Good Reason, the Date of Termination shall be the date on
which the Executive notifies the Company of such termination or such later date
specified in such notice, unless otherwise agreed by the Company and the
Executive, and (iv) if the Executive's employment is terminated by reason of
death or Disability, the Date of Termination shall be the date of death or
Disability of the Executive, as the case may be.
8. EFFECTS OF TERMINATION.
(a) TERMINATION FOR DEATH OR DISABILITY; BY THE COMPANY WITHOUT CAUSE
AFTER INITIAL TERM; OR NON-RENEWAL BY THE COMPANY. If the employment of the
Executive should terminate by reason of (i) death of the Executive or
Disability, (ii) termination by the Company for any reason (other than Cause)
after the initial Term ending on the Initial Termination Date, or (iii) the
Company's failure to renew this Agreement at the initial Term ending on the
Initial Termination Date or any time thereafter, then all compensation and
benefits for the Executive shall be as follows:
(i) The Executive shall be paid, in a single lump sum payment
within thirty (30) days after the Date of Termination, the aggregate
amount of (A) the Executive's earned but unpaid Base Salary and accrued
but unpaid vacation through the Date of Termination, and any Incentive
Bonus required to be paid to the Executive pursuant to Section 5(a)
above for the prior calendar year to the extent not previously paid,
and reimbursement of all expenses through the Date of Termination as
required pursuant to Section 6(d) hereof (the "Accrued Obligations"),
and (B) one (the "Severance Multiple") times the sum of (x) the Base
Salary in effect on the Termination Date plus (y) the average Incentive
Bonus received by the Executive for the three complete calendar years
(or such lesser number of calendar years as the Executive has been
employed by the Company) immediately prior to the Termination Date (the
"Severance Payment").
(ii) At the time when incentive bonuses are paid to the
Company's other senior executives for the calendar year of the Company
in which the Date of Termination occurs, the Executive shall be paid a
pro-rated Incentive Bonus in an amount equal to the product of (x) the
amount of the Incentive Bonus to which the Executive would have
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been entitled if the Executive had remained employed for the entire
calendar year and (y) a fraction, the numerator of which is the number
of days in the applicable calendar year for which the Executive was
employed through the Date of Termination and the denominator of which
is the 365 days of the calendar year (a "Pro-Rated Bonus").
(iii) The Company will allow the Executive and his dependents,
at the Company's cost, to continue to participate for a period of
eighteen (18) months following the Date of Termination in any and all
of the employee welfare benefit plans of the Company in which the
Executive was entitled to participate immediately prior to his
termination, to the same extent and upon the same terms as the
Executive participated in such plans prior to his termination (the
"Other Benefits"); PROVIDED, that the Executive's continued
participation is permissible under the general terms and provisions of
such plans. To the extent that continued participation is not
permissible, the Company shall take such actions as may be necessary to
provide the Executive with substantially comparable benefits (without
additional cost to the Executive) outside the scope of such plans. If
the Executive engages in regular employment after his termination of
employment with any organization other than a Remington Affiliate, any
employee welfare benefits received by the Executive in consideration of
such employment which are similar in nature to the employee welfare
benefits provided by the Company will relieve the Company of its
obligation under this Section 8(a)(iii) to provide comparable benefits
to the extent of the benefits so received.
(iv) The Executive's restricted shares awarded under Section 4
hereof shall immediately vest, and any annual performance shares or
options awarded under Section 5(b) hereof shall immediately vest.
Without limiting the foregoing, it is agreed that if the Executive's
employment is terminated pursuant to this Section 8(a), all outstanding
stock options, restricted stock and other equity awards granted to the
Executive under any of the Company's equity incentive plans (or awards
substituted therefore covering the securities of a successor company)
shall become immediately vested and exercisable in full.
(b) TERMINATION BY THE COMPANY WITHOUT CAUSE DURING INITIAL TERM OR BY
THE EXECUTIVE WITH GOOD REASON. In the event that the Executive's employment is
terminated by the Company for any reason other than Cause before the Initial
Termination Date, or by the Executive with Good Reason, the Company will pay the
Executive the same Accrued Obligations, Pro-Rated Bonus, employee welfare
benefits and accelerated vesting, all as provided in Sections 8(a)(i) (ii),
(iii) and (iv) above at the times as provided in such sections. In addition, the
Executive shall be entitled to a Severance Payment determined and paid in
accordance with Section 8(a)(i) above; PROVIDED, HOWEVER, the Severance Multiple
shall be three (3). Without limiting the foregoing, it is agreed that if the
Executive's employment is terminated pursuant to this Section 8(b), all
outstanding stock options, restricted stock and other equity awards granted to
the Executive under any of the Company's equity incentive plans (or awards
substituted therefore covering the securities of a successor company) shall
become immediately vested and exercisable in full.
(c) TERMINATION BY EXECUTIVE WITHOUT GOOD REASON. If the Executive's
employment is terminated by the Executive without Good Reason including a
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resignation by the Executive without Good Reason and including an election not
to renew this Agreement by the Executive, the Company will pay the Executive the
Accrued Obligations as provided in Section 8(a)(i) above but the Executive shall
not be entitled to the Severance Payment, Pro-rated Bonus, the Other Benefits
and accelerated vesting set forth in Sections 8(a)(i), (ii), (iii) and (iv)
hereof; provided, however, that if such termination under this Section 8(c)
occurs prior to the Initial Termination Date, then the Company will allow the
Executive and his dependents, at the Company's cost, during the Non-Compete
Period, to continue to participate in any and all of the employee welfare
benefit plans of the Company in which the Executive was entitled to participate
immediately prior to his termination, to the same extent and upon the same terms
as the Executive participated in such plans prior to his termination as allowed
under the general terms and provisions of such plans. HOWEVER, if the Executive
is re-employed after his termination of employment with any organization other
than a Remington Affiliate, any employee welfare benefits received by the
Executive in consideration of such employment which are similar in nature to the
employee welfare benefits provided by the Company will relieve the Company of
its obligation under this Section 8(c) to provide comparable benefits to the
extent of the benefits so received. In addition, in consideration for the
Executive's agreement for honoring the non-compete and non-solicitation
covenants in Section 11 hereof for a period of one (1) year following the Date
of Termination resulting from this Section 8(c), the Company shall pay the
Executive a non-compete payment (the "Non-Compete Payment") equal to the
Severance Payment determined with a Severance Multiple equal to one (1). The
Non-Compete Payment shall be paid monthly over the one-year non-compete period
in equal monthly installments of one-twelfth (1/12th) of the Non-Compete
Payment.
(d) TERMINATION BY THE COMPANY FOR CAUSE. If the Executive's employment
is terminated by the Company for Cause, the Company will pay the Executive the
Accrued Obligations as provided in Section 8(a)(i) above but the Executive shall
not be entitled to the Severance Payment, Pro-Rated Bonus, the Other Benefits
and accelerated vesting set forth in Sections 8(a)(i), (ii), (iii) and (iv)
hereof.
(e) TERMINATION OF AUTHORITY. Immediately upon the Date of Termination
or upon the expiration of this Agreement, notwithstanding anything else to the
contrary contained herein or otherwise, the Executive will stop serving the
functions of his terminated or expired positions, and shall be without any of
the authority or responsibility for such positions. On request of the Board at
any time following the termination of the Executive's employment by the Company
for Cause or by the Executive without Good Reason (including Executive's
termination of his employment after a Change in Control (as defined herein)),
the Executive agrees to resign immediately from the Board, if then a member.
(f) RELEASE OF CLAIMS. As conditions of Executive's entitlement to the
Severance Payment, Non-Compete Payment and benefits provided by this Agreement,
the Executive shall be required to execute and honor the terms of a waiver and
release of claims against the Company substantially in the form attached hereto
as Exhibit "A" (as may be modified consistent with the purposes of such waiver
and release to reflect changes in law following the date hereof).
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9. CHANGE OF CONTROL.
(a) CHANGE OF CONTROL. For purposes of this Agreement, a "Change of
Control" will be deemed to have taken place upon the occurrence of any of the
following events:
(i) Any "person" (as defined in Section 3(a)(9) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and
as modified in Section 13(d) and 14(d) of the Exchange Act) other than
(A) the Company or any of its subsidiaries, (B) any employee benefit
plan of the Company or any of its subsidiaries, (C) any Remington
Affiliate, (D) a company owned, directly or indirectly, by stockholders
of the Company in substantially the same proportions as their ownership
of the Company, or (E) an underwriter temporarily holding securities
pursuant to an offering of such securities, becomes the "beneficial
owner" (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing 30% or more of
the shares of voting stock of the Company then outstanding;
(ii) the consummation of any merger, organization, business
combination or consolidation of the Company or one of its subsidiaries
with or into any other company, other than a merger, reorganization,
business combination or consolidation which would result in the holders
of the voting securities of the Company outstanding immediately prior
thereto holding securities which represent immediately after such
merger, reorganization, business combination or consolidation more than
50% of the combined voting power of the voting securities of the
Company or the surviving company or the parent of such surviving
company;
(iii) the consummation of the sale or disposition by the
Company of all or substantially all of the Company's assets, other than
a sale or disposition if the holders of the voting securities of the
Company outstanding immediately prior thereto hold securities
immediately thereafter which represent more than 50% of the combined
voting power of the voting securities of the acquiror, or parent of the
acquiror, of such assets; or the stockholders of the Company approve a
plan of complete liquidation or dissolution of the Company; or
(iv) individuals who, as of the Effective Date, constitute the
Board (the "Incumbent Board") cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual
becoming a director subsequent to the Effective Date whose election to
the Board was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an election contest with
respect to the election or removal of directors or other solicitation
of proxies or consents by or on behalf of a person other than the
Board.
(b) CERTAIN BENEFITS UPON A CHANGE OF CONTROL. If a Change in Control
occurs during the Term and the Executive's employment is terminated by the
Company without Cause or by the Executive for any reason on or before the one
(1) year anniversary of the effective date of the Change in Control, then the
Executive shall be entitled to the Accrued
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Obligations, Pro-Rated Bonus, employee welfare benefits and accelerated vesting,
all as provided in Sections 8(a)(i), (ii), (iii) and (iv) above at the times as
provided in such sections. In addition, the Executive shall be entitled to a
Severance Payment determined and paid in accordance with Section 8(a)(i) above;
PROVIDED, HOWEVER, the Severance Multiple shall be three (3). Without limiting
the foregoing, it is agreed that if the Executive's employment is terminated
pursuant to this Section 9(b), all outstanding stock options, restricted stock
and other equity awards granted to the Executive under any of the Company's
equity incentive plans (or awards substituted therefore covering the securities
of a successor company) shall become immediately vested and exercisable in full.
(c) EXCISE TAX.
(i) In the event that any payment or benefit received or to be
received by the Executive in connection with a Change of Control or the
termination of the Executive's employment (whether pursuant to the
terms of this Agreement or any other plan, arrangement or agreement
with the Company, any person whose actions result in a Change of
Control or any person affiliated with the Company or such person) (all
such payments and benefits being hereinafter called "Total Payments")
will be subject (in whole or part) to the excise tax (the "Excise Tax")
imposed under Section 4999 of the Internal Revenue Code of 1986, as
amended (the "Code"), then, subject to the provisions of Section
9(c)(ii) hereof, the Company will pay to the Executive an additional
amount (the "Gross-Up Payment") such that the net amount retained by
the Executive, after deduction of any Excise Tax on the Total Payments
and any federal, state and local income tax and Excise Tax upon the
payment provided for by this Section 9(c)(i), will be equal to the
Total Payments. For purposes of determining the amount of the Gross-Up
Payment, the Executive will be deemed to pay federal income taxes at
the highest marginal rate of federal income taxation in the calendar
year in which the Gross-Up Payment is to be made and state and local
income taxes at the highest marginal rate of taxation in the state and
locality of the Executive's residence on such date, net of the maximum
reduction in federal income taxes which could be obtained from
deduction of such state and local taxes.
(ii) In the event that, after giving effect to any
redeterminations described in Section 9(c)(iv) hereof, a reduction in
the Total Payments to the largest amount that would result in no
portion of the Total Payments being subject to the Excise Tax (after
taking into account any reduction in the Total Payments provided by
reason of Section 280G of the Code in such other plan, arrangement or
agreement) would produce a net amount (after deduction of the net
amount of federal, state and local income tax on such reduced Total
Payments) that would be greater than the net amount of unreduced Total
Payments (after deduction of the net amount of federal, state and local
income tax and the amount of Excise Tax to which the Executive would be
subject in respect of such Total Payments), then Section 9(c)(i) hereof
will not apply and the Total Payments will be so reduced.
(iii) The determination of whether any of the Total Payments
will be subject to the Excise Tax and the amount of such Excise Tax
will be made by the Company's independent auditors. The Company will
provide the Executive with its calculation of
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the amounts referred to in this Section 9(c) and such supporting
materials as are reasonably necessary for the Executive to evaluate the
Company's calculations. If the Executive disputes the Company's
calculations (in whole or in part), the reasonable opinion of the
Company's independent auditors with respect to the matter in dispute
will prevail.
(iv) In the event that (A) the Excise Tax is subsequently
determined to be less than the amount taken into account hereunder at
the time of payment of the Total Payments and (B) after giving effect
to such redetermination, the Total Payments are reduced pursuant to
Section 9(c)(ii) hereof, the Executive will repay to the Company, at
the time that the amount of such reduction in Excise Tax is finally
determined, the portion of the Gross-Up Payment attributable to such
reduction (plus that portion of the Gross-Up Payment attributable to
the Excise Tax and federal, state and local income tax imposed on the
Gross-Up Payment being repaid by the Executive to the extent that such
repayment results in a reduction in the Excise Tax and/or a federal,
state or local income tax deduction) plus interest on the amount of
such repayment at the rate provided in Section 1274(b)(2)(B) of the
Code. In the event that (X) the Excise Tax is determined to exceed the
amount taken into account hereunder at the time of the termination of
the Executive's employment (including by reason of any payment the
existence or amount of which cannot be determined at the time of the
Gross-Up Payment) and (Y) after giving effect to such redetermination,
the Total Payments are not reduced pursuant to Section 9(c)(ii) hereof,
the Company will make an additional Gross-Up Payment in respect of such
excess and in respect of any portion of the Excise Tax with respect to
which the Company had not previously made a Gross-Up Payment (plus any
interest, penalties or additions payable by the Executive with respect
to such excess and such portion) at the time that the amount of such
excess is finally determined.
(v) The Executive shall notify the Company in writing of any
claim that, if successful, would require the payment by the Company of
a Gross-Up Payment or might entitle the Company to the refund of all or
part of any previous Gross-Up Payment. Such notification shall be given
as soon as practicable but no later than ten (10) business days after
the Executive is informed in writing of such claim and shall apprise
the Company of the nature of such claim and the date on which such
claim is required to be paid. The Executive shall not pay such claim
prior to the expiration of the thirty (30) day period following the
date on which he gives such notice to the Company. If the Company
notifies the Executive in writing prior to the expiration of such
period that it desires to contest such claim, the Executive shall: (i)
give the Company any information reasonably requested by the Company
relating to such claim; (ii) take such action in connection with
contesting such claim as the Company shall reasonably request in
writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney jointly
selected by the Executive and the Company; (iii) cooperate with the
Company in good faith in order to effectively contest such claim; and
(iv) permit the Company to participate in any proceedings relating to
such claim. The Company shall bear and pay directly all costs and
expenses (including legal fees and additional interest and penalties)
incurred in connection with such contest and shall indemnify and hold
the Executive harmless, on an after-tax basis, for any Excise Tax or
income tax
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(including interest and penalties with respect thereto) imposed as a
result of such representation and payment of costs and expenses.
(vi) Without limitation on the foregoing, the Company shall
control all audits and proceedings taken in connection with any claim,
audit or proceeding involving Excise Taxes or Gross-Up Payments and, at
its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing
authority in respect of any such claim, audit or proceeding and may, at
its sole option, either direct the Executive to pay the tax claimed and
sue for a refund or contest the tax in any permissible manner, and the
Executive agrees to prosecute such contest to a determination before
any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as the Company shall determine; PROVIDED,
HOWEVER, that if the Company directs the Executive to pay such tax and
sue for a refund, the Company shall advance the amount of such payment
to the Executive, on an interest-free basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any imputed
income with respect to such advance. The Company's control of the
contest shall be limited to issues with respect to which such a
Gross-Up Payment would be payable or refundable hereunder and the
Executive shall be entitled to settle or contest, as the case may be,
any other issue.
10. CONFIDENTIAL INFORMATION. The Executive recognizes and acknowledges
that the Executive has and will have access to confidential and proprietary
information of the Company which constitute valuable, special, and unique assets
of the Company. The term "Confidential Information" as used in this Agreement
shall mean all information which is known only to the Executive, the Company,
the Remington Affiliates with respect to a Remington Transaction (as defined in
the Mutual Exclusivity Agreement), other employees of the Company, or others in
a confidential relationship with the Company, and relating to the Company's
business (including, without limitation, information regarding clients,
customers, pricing policies, methods of operation, proprietary company programs,
sales, acquisitions, products, profits, costs, conditions (financial or other),
cash flows, key personnel, formulae, product applications, technical processes,
and trade secrets, as such information may exist from time to time, which the
Executive acquired or obtained by virtue of work performed for the Company, or
which the Executive may acquire or may have acquired knowledge of during the
performance of said work.
The Executive acknowledges that the Company has put in place certain
policies and practices to keep such Confidential Information secret, including
disclosing the information only on a need-to-know basis. The Executive further
acknowledges that the Confidential Information has been developed or acquired by
the Company through the expenditure of substantial time, effort, and money and
provides the Company with an advantage over competitors who do not know such
Confidential Information. Finally, the Executive acknowledges that such
Confidential Information, if revealed to or used for the benefit of the
Company's competitors or in a manner contrary to the Company's interests, would
cause extensive and immeasurable harm to the Company and to the Company's
competitive position.
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The Executive shall not, during the Term or at any time after this
Agreement ends, for a period of two (2) years thereafter, use for personal gain
or detrimentally to the Company all or any part of the Confidential Information,
or disclose or make available all or any part of the Confidential Information to
any person, firm, corporation, association, or any other entity for any reason
or purpose whatsoever, directly or indirectly, except as may be required for the
benefit of the Company pursuant to his employment hereunder, unless and until
such Confidential Information becomes publicly available other than as a
consequence of the breach by the Executive of his confidentiality obligations
hereunder.
The Executive acknowledges that the Confidential Information shall
remain at all times the exclusive property of the Company, and no license is
granted. In the event of the termination of his employment, whether voluntary or
involuntary and whether by the Company or the Executive, or within seven (7)
business days of the Company's request under any other circumstances, the
Executive shall deliver to the Company all Confidential Information, in any form
whatsoever, including electronic formats, and shall not take with him any
Confidential Information or any reproductions (in whole or in part) or extracts
of any items relating to the Confidential Information. The Company acknowledges
that prior to his employment with the Company, the Executive has lawfully
acquired extensive knowledge of the industries in which the Company engages in
business including, without limitation, markets, valuation methods and
techniques, capital markets, investor relationships and similar items, and that
the provisions of this Section 10 are not intended to restrict the Executive's
use of such previously acquired knowledge.
In the event that the Executive receives a request or is required (by
deposition, interrogatory, request for documents, subpoena, civil investigative
demand or similar process) to disclose all or any part of the Confidential
Information, the Executive agrees to (a) promptly notify the Company of the
existence, terms and circumstances surrounding such request or requirement, (b)
consult with the Company on the advisability of taking legally available steps
to resist or narrow such request or requirement and (c) assist the Company in
seeking a protective order or other appropriate remedy; provided, however, that
the Executive shall not be required to take any action in violation of
applicable laws. In the event that such protective order or other remedy is not
obtained or that the Company waives compliance with the provisions hereof, the
Executive shall not be liable for such disclosure unless disclosure to any such
tribunal was caused by or resulted from a previous disclosure by the Executive
not permitted by this Agreement.
11. NON-COMPETITION AND NONSOLICITATION. During the Term and any
Non-Compete Period (hereinafter defined), the Executive will not, directly or
indirectly, either as a principal, agent, employee, employer, stockholder or
partner: (i) engage in any "Competitive Business," or (ii) employ or solicit the
employment of, or assist others in employing or soliciting the employment of,
any individual employed by the Company at any time while the Executive was also
so employed; PROVIDED, HOWEVER, the foregoing shall not prohibit or limit the
Executive's right to (i) pursue investments, transactions or businesses allowed
pursuant to the terms of the Mutual Exclusivity Agreement, (ii) continue the
Executive's ownership, investment, management and operation of the Remington
Affiliates consistent with the terms of the Mutual Exclusivity Agreement, (iii)
continue the Executive's ownership, investment, management and operation of all
existing investments of the Executive and the Remington
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Affiliates as of the Effective Date consistent with the terms of the Mutual
Exclusivity Agreement, and (iv) remain an officer and/or director of all
Remington Affiliates consistent with the terms of the Mutual Exclusivity
Agreement.
For purposes of this Section 11, "Competitive Business" means
acquiring, investing in or with respect to, owning, leasing, managing
or developing hotel properties in the United States or originating or
acquiring loans in respect of hotel properties in the United States
where the Executive has duties or performs services that are the same
or similar to those services actually performed by the Executive for
the Company.
For purposes of this Section 11, the "Non-Compete Period" shall mean:
(i) In the case of a termination of the Executive's employment
as a result of Disability, or a termination by the Executive without
Good Reason (including, without limitation, a resignation by the
Executive without Good Reason or an election not to renew by the
Executive), a period during the Term and ending one (1) year after the
Date of Termination;
(ii) in the case of a termination of the Executive's
employment as a result of a termination by the Company for Cause, a
period during the Term and ending eighteen (18) months after the Date
of Termination;
(iii) in the case of a termination of the Executive's
employment as a result of (i) a Change in Control, (ii) a termination
by the Executive for Good Reason, or (iii) a termination by the Company
for any reason other than Cause, only during the Term; or
(iv) notwithstanding the foregoing, in all cases the
Non-Compete Period shall terminate effective on the termination of the
REIT Exclusivity Rights (as defined in the Mutual Exclusivity
Agreement) by Remington Lodging as a result of a Remington Termination
Event (and provided further that upon such termination of the
Non-Compete Period, the outstanding Non-Compete Payment shall be paid
by the Company within five (5) days of such termination to the
Executive).
The Executive acknowledges that the services provided by the Executive
are of a special, unique, and extraordinary nature. The Executive further
acknowledges that his work and experience with the Company will enhance his
value to a Competitive Business, and that the nature of the Confidential
Information to which the Executive has immediate access and will continue to
have access during the course of his employment makes it difficult, if not
impossible, for him to engage in any Competitive Business or work in any
capacity similar to the Executive's duties or services with the Company without
disclosing or utilizing the Confidential Information. The Executive further
acknowledges that his work and experience with the Company places him in a
position of trust with the Company.
The Executive agrees that restraints imposed upon him pursuant to this
Section are necessary for the reasonable and proper protection of the Company
and its subsidiaries and affiliates, and that each and every one of the
restraints is reasonable in respect to subject matter, length of time and
geographic area. The parties further agree that, in the event that any provision
of this Section shall be determined by any court of competent jurisdiction to be
unenforceable by
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reason of its being extended over too great a time, too large a geographic area
or too great a range of activities, such provision shall be deemed to be
modified to permit its enforcement to the maximum extent permitted by law.
12. NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent
or limit the Executive's continuing or future participation in any plan,
program, policy or practice provided by the Company and for which the Executive
may qualify, nor shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company. Amounts
which are vested benefits or which the Executive is otherwise entitled to
receive under any plan, policy, practice or program of or any contract agreement
with the Company at or subsequent to the Date of Termination shall be payable in
accordance with such plan, policy, practice or program or contract or agreement
except as explicitly modified by this Agreement.
13. FULL SETTLEMENT. The Company's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement and except as
expressly provided, such amounts shall not be reduced whether or not the
Executive obtains other employment. The Company agrees to pay as incurred
(within 30 days following the Company's receipt of an invoice from the
Executive), to the full extent permitted by law, all reasonable legal fees and
expenses which the Executive or his beneficiaries may reasonably incur as a
result of any contest (regardless of the outcome thereof) by the Company, the
Executive or others of the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by the Executive or his beneficiaries
about the amount of any payment pursuant to this Agreement), plus in each case
interest on any delayed payment at the applicable Federal rate provided for in
Section 7872(f)(2)(a) of the Code. The preceding sentence shall not apply with
respect to any such contest if the court having jurisdiction over such contest
determines that the Executive's claim in such contest is frivolous or maintained
in bad faith.
14. DISPUTES.
(a) EQUITABLE RELIEF. The Executive acknowledges and agrees that upon
any breach by the Executive of his obligations under Sections 10 or 11 hereof,
the Company will have no adequate remedy at law, and accordingly will be
entitled to specific performance and other appropriate injunctive and equitable
relief.
(b) ARBITRATION. Excluding only requests for equitable relief by the
Company under Section 14(a) of this Agreement, in the event that there is any
claim or dispute arising out of or relating to this Agreement, or the breach
thereof, and the parties hereto shall not have resolved such claim or dispute
within 60 days after written notice from one party to the other setting forth
the nature of such claim or dispute, then such claim or dispute shall be settled
exclusively by binding arbitration in Dallas, Texas in accordance with the
Commercial Arbitration Rules of the American Arbitration Association by an
arbitrator mutually agreed upon
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by the parties hereto or, in the absence of such agreement, by an arbitrator
selected according to such Rules. Notwithstanding the foregoing, if either the
Company or the Executive shall request, such arbitration shall be conducted by a
panel of three arbitrators, one selected by the Company, one selected by the
Executive and the third selected by agreement of the first two, or, in the
absence of such agreement, in accordance with such Rules. Neither party shall
have the right to claim or recover punitive damages. Judgment upon the award
rendered by such arbitrator(s) shall be entered in any Court having jurisdiction
thereof upon the application of either party.
15. INDEMNIFICATION. The Company will indemnify the Executive, to the
maximum extent permitted by applicable law, against all costs, charges and
expenses incurred or sustained by the Executive, including the cost of legal
counsel selected and retained by the Executive in connection with any action,
suit or proceeding to which the Executive may be made a party by reason of the
Executive being or having been an officer, director, or employee of the Company
or any subsidiary or affiliate of the Company.
16. COOPERATION IN FUTURE MATTERS. The Executive hereby agrees that,
for a period of one (1) year following his termination of employment, he shall
cooperate with the Company's reasonable requests relating to matters that
pertain to the Executive's employment by the Company, including, without
limitation, providing information or limited consultation as to such matters,
participating in legal proceedings, investigations or audits on behalf of the
Company, or otherwise making himself reasonably available to the Company for
other related purposes. Any such cooperation shall be performed at times
scheduled taking into consideration the Executive's other commitments, including
business and family matters, and the Executive shall be compensated at a
reasonable hourly or PER DIEM rate to be agreed by the parties to the extent
such cooperation is required on more than an occasional and limited basis. The
Executive shall not be required to perform such cooperation to the extent it
conflicts with any requirements of exclusivity of services for another employer
or otherwise, nor in any manner that in the good faith belief of the Executive
would conflict with his rights under or ability to enforce this Agreement.
17. GENERAL.
(a) NOTICES. All notices and other communications hereunder shall be in
writing or by written telecommunication, and shall be deemed to have been duly
given if delivered personally or if sent by overnight courier or by certified
mail, return receipt requested, postage prepaid or sent by written
telecommunication or telecopy, to the relevant address set forth below, or to
such other address as the recipient of such notice or communication shall have
specified to the other party hereto in accordance with this Section 17(a).
If to the Company, to: Ashford Hospitality Trust, Inc.
14180 Dallas Parkway, Suite 900
Dallas, Texas 75254
Attn: Chairman of the Board of Directors
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with a copy to: Ashford Hospitality Trust, Inc.
14180 Dallas Parkway, Suite 900
Dallas, Texas 75254
Attn: Chief Legal Officer
If to the Executive, at his last residence shown on the records of the
Company,
with a copy to:
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Any such notice shall be effective (i) if delivered personally, when received,
(ii) if sent by overnight courier, when receipted for, and (iii) if mailed, two
(2) days after being mailed as described above.
(b) SEVERABILITY. If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any respect under any law, the validity,
legality and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired.
(c) WAIVERS. No delay or omission by either party hereto in exercising
any right, power or privilege hereunder shall impair such right, power or
privilege, nor shall any single or partial exercise of any such right, power or
privilege preclude any further exercise thereof or the exercise of any other
right, power or privilege.
(d) COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. In making proof of this
Agreement, it shall not be necessary to produce or account for more than one
such counterpart.
(e) ASSIGNS. This Agreement shall be binding upon and inure to the
benefit of the Company's successors and the Executive's personal or legal
representatives, executors, administrators, heirs, distributees, devisees and
legatees. This Agreement shall not be assignable by the Executive, it being
understood and agreed that this is a contract for the Executive's personal
services. This Agreement shall not be assignable by the Company except in
connection with a transaction involving the succession by a third party to all
or substantially all of the Company's business and/or assets (whether direct or
indirect and whether by purchase, merger, consolidation, liquidation or
otherwise), in which case such successor shall assume this Agreement and
expressly agree to perform this Agreement in the same manner and to the same
extent as the Company would be required to perform it in the absence of a
succession. For all purposes under this Agreement, the term "Company" shall
include any successor to the Company's business and/or assets that executes and
delivers the assumption agreement described in the immediately preceding
sentence or that becomes bound by this Agreement by operation of law.
(f) ENTIRE AGREEMENT. This Agreement contains the entire understanding
of the parties, supersedes all prior agreements and understandings, whether
written or oral, relating
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to the subject matter hereof and may not be amended except by a written
instrument hereafter signed by the Executive and a duly authorized
representative of the Board.
(g) GOVERNING LAW. This Agreement and the performance hereof shall be
construed and governed in accordance with the laws of the State of Texas,
without giving effect to principles of conflicts of law. Jurisdiction and venue
shall be solely in the federal or state courts of Dallas County, Texas. This
provision should not be read as a waiver of any right to removal to federal
court in Dallas County.
(h) CONSTRUCTION. The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no
rule of strict construction will be applied against any party. The headings of
sections of this Agreement are for convenience of reference only and shall not
affect its meaning or construction.
(i) PAYMENTS AND EXERCISE OF RIGHTS AFTER DEATH. Any amounts due
hereunder after the Executive's death shall be paid to the Executive's
designated beneficiary or beneficiaries, whether received as a designated
beneficiary or by will or the laws of descent and distribution. The Executive
may designate a beneficiary or beneficiaries for all purposes of this Agreement,
and may change at any time such designation, by notice to the Company making
specific reference to this Agreement. If no designated beneficiary survives the
Executive or the Executive fails to designate a beneficiary for purposes of this
Agreement prior to his death, all amounts thereafter due hereunder shall be
paid, as and when payable, to his spouse, if she survives the Executive, and
otherwise to his estate.
(j) CONSULTATION WITH COUNSEL. The Executive acknowledges that he has
had a full and complete opportunity to consult with counsel or other advisers of
his own choosing concerning the terms, enforceability and implications of this
Agreement, and that the Company has not made any representations or warranties
to the Executive concerning the terms, enforceability and implications of this
Agreement other than as are reflected in this Agreement.
(k) WITHHOLDING. Any payments provided for in this Agreement shall be
paid net of any applicable tax withholding required under federal, state or
local law.
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IN WITNESS WHEREOF, and intending to be legally bound hereby, the
parties hereto have caused this Agreement to be duly executed under seal as of
the date first above written.
REIT:
ASHFORD HOSPITALITY TRUST, INC.
By:
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Name:
-----------------------------
Title:
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Dated:
----------------------------
OPERATING PARTNERSHIP:
ASHFORD HOSPITALITY LIMITED
PARTNERSHIP
By: Ashford OP General Partner, LLC
By:
-------------------------------
Name:
-----------------------------
Title:
----------------------------
Dated:
----------------------------
EXECUTIVE:
----------------------------------
MONTGOMERY J. BENNETT
Dated:
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EXHIBIT "A"
RELEASE AND WAIVER
THIS RELEASE AND WAIVER (the "Termination Release") is made as of the
_____ day of ___________, 2003 by MONTGOMERY J. BENNETT (the "Executive").
WHEREAS, the Executive, Ashford Hospitality Trust, Inc. (the "REIT"),
and Ashford Hospitality Limited Partnership (the "Operating Partnership") have
entered into an Employment Agreement (the "Agreement") dated as of
________________, 2003 and providing certain compensation and severance amounts
upon the Executive's termination of employment; and
WHEREAS, the Executive has agreed, pursuant to the terms of the
Agreement, to execute a release and waiver in the form set forth in this
Termination Release in consideration of the REIT and the Operating Partnership
(collectively, the "Company") agreement to provide the compensation and
severance amounts upon the Executive's termination of employment set out in the
Agreement; and
WHEREAS, the Company and the Executive desire to settle all rights,
duties and obligations between them, including without limitation all such
rights, duties, and obligations arising under the Agreement or otherwise out of
the Executive's employment by the Company;
NOW THEREFORE, intending to be legally bound and for good and valid
consideration the sufficiency of which is hereby acknowledged, the Executive
agrees as follows:
1. RELEASE. (a) The Executive knowingly and voluntarily releases,
acquits, covenants not to sue and forever discharges the Company, and its
respective owners, parents, stockholders, predecessors, successors, assigns,
agents, directors, officers, employees, representatives, divisions and
subsidiaries (collectively, the "Releasees") from any and all charges,
complaints, claims, liabilities, obligations, promises, agreements, damages,
causes of action, suits, rights, costs, losses, debts and expenses of any nature
whatsoever, known or unknown, suspected or unsuspected, foreseen or unforeseen,
matured or unmatured, against them which the Executive or any of his heirs,
executors, administrators, successors and assigns ever had, now has or at any
time hereafter may have, own or hold by reason of any matter, fact, or cause
whatsoever from the beginning of time up to and including the date of this
Termination Release, including without limitation all claims arising under the
Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964,
the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of
1993, the Employee Retirement Income Security Act of 1974, Texas Labor Code
Section 21.001, et seq. (Texas Employment Discrimination); Texas Labor Code
Section 61.001, et seq. (Texas Pay Day Act); Texas Labor Code Section 62.002, et
seq. (Texas Minimum Wage Act); Texas Labor Code Section 201.001, et seq. (Texas
Unemployment Compensation Act); Texas Labor Code Section 401.001, et seq.,
specifically Section 451.001 formerly codified as Article 8307c of the Revised
Civil Statutes (Texas Workers' Compensation Act and Discrimination Issues); and
Texas Genetic Information and Testing Law, each as amended, or any other
federal, state or local laws, rules, regulations, ordinances, judicial decisions
or public policies now or hereafter recognized.
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(a) The Executive represents that he has not filed or permitted to be
filed against the Releasee, any complaints, charges or lawsuits and covenants
and agrees that he will not seek or be entitled to any personal recovery in any
court or before any governmental agency, arbitrator or self-regulatory body
against any of the Releasees arising out of any matters set forth in Section
1(a) hereof. Nothing herein shall prevent the Executive from seeking to enforce
his rights under the Agreement. The Executive does not hereby waive or release
his rights to any benefits under the Company's employee benefit plans to which
he is or will be entitled pursuant to the terms of such plans in the ordinary
course.
2. ACKNOWLEDGMENT. The Company has advised the Executive to consult
with an attorney of his choosing prior to signing this Termination Release and
the Executive hereby represents to the Company that he has been offered an
opportunity to consult with an attorney prior to signing this Termination
Release. The Company has also advised the Executive that Executive has up to
twenty-one days to consider and sign the Release and Waiver and up to seven days
after signing in which to revoke acceptance by giving notice to _______________
at _________________ by personal delivery or by mail postmarked no later than
the seventh day after the Executive signs the Release and Waiver.
IN WITNESS WHEREOF, the Executive has executed this Termination Release
under seal as of the day and year first above written.
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MONTGOMERY J. BENNETT
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