EX-10.3



 Exhibit 10.3 

EXECUTION COPY 
 EMPLOYMENT
AGREEMENT 
 This Employment Agreement (this “Agreement”), dated May 5, 2014 (the “Execution Date”), is entered
into between Morgans Hotel Group Co., a Delaware corporation (the “Company”), and Meredith L. Deutsch (the “Executive”) (collectively, the “Parties” and each, a “Party”). In addition to the terms defined
elsewhere herein, initial capitalized terms have the meanings given to them in Section 28. 
 WHEREAS, the Company and Executive have
agreed that Executive shall perform the duties of Executive Vice President & General Counsel of the Company, subject to the terms and conditions set forth in this Agreement. 

NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
  

	1.	Position. During the Employment Term, the Executive will serve as the Executive Vice President & General Counsel of the Company. The employment relationship between the Company and the Executive
will be governed by the applicable written general employment policies and practices of the Company contained or referred to in the Morgans Hotel Group Corporate Handbook (the “Handbook”), as well as those written general polices relating
to ethics and business conduct, confidential information, expense reimbursement and avoidance of conflicts (together, the “Company Policies”), a copy of which has been delivered to the Executive, except that when any express term of this
Agreement is in conflict with the Company Policies, such term of this Agreement will control. 

  

	2.	Term. Subject to Section 6, the Executive’s employment will be for an initial term of two (2) years, deemed to be effective from March 10, 2014 to March 10, 2016 (the “Initial
Employment Term”). At the end of the Initial Employment Term and on each succeeding March 10th, the Employment Term will be automatically extended by one additional year (each, a
“Renewal Term”), unless, not less than 60 days prior to the end of the Initial Employment Term or any Renewal Term, either the Executive or the Company has given the other written notice of nonrenewal. Without limiting the generality or
effect of the foregoing, the Executive will, if applicable, provide the Company with written notice of the Executive’s intent to terminate employment with the Company at least 60 days prior to the effective date of such termination.


  

	3.	Duties of the Executive. The Executive will report directly to the Company’s Chief Executive Officer or the President or Chairman of the Company if the CEO so designates either the President or
Chairman to serve in this role (the “Supervisor”), and have duties, responsibilities and authorities commensurate with the Executive’s title and position. 


 

	 	3.1	During the Employment Term, the Executive will devote the Executive’s best efforts, full attention and energies during business hours to the business of the Company and the performance of any of the
Executive’s duties as set forth herein. 









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	 	3.2	So long as such activities do not involve a breach of this Agreement and do not interfere with the performance of the Executive’s duties hereunder, the Executive may participate in any governmental, educational,
charitable or other community affairs during the Employment Term and, subject to the prior approval of the Supervisor in the Supervisor’s discretion, serve as a member of the governing board of any such organization. The Executive may retain
all fees and other compensation from any such service, and the Company will not reduce the Executive’s compensation by the amount of such fees. Notwithstanding anything herein to the contrary, the Executive may not accept any position during
the Employment Term with a for-profit enterprise without the prior written approval of the Supervisor in the Supervisor’s discretion. 

  

	4.	Compensation. 

  

	 	4.1	Base Salary. During the Employment Term, the Company will pay to the Executive a base salary per annum equal to $360,000, which will be reviewed annually, but may not be decreased except in the event of a
reduction in salaries of all Company C-suite senior executives and at a percentage reduction being applied to all C-suite senior executives; provided, however, that in no event shall the Executive’s base salary be reduced to less than $360,000
(as in effect from time to time, the “Base Salary”). The Base Salary will be payable at the times and in the manner consistent with the Company’s policies regarding compensation of the Company’s executives generally, but in no
event less frequently than monthly. 

  

	 	4.2	Signing Bonus. The Company will pay to the Executive a one-time lump sum signing bonus of $72,000, subject to applicable tax withholding, to be paid no later than May 31, 2014. 


 

	 	4.3	Annual Discretionary Bonus. With respect to each calendar year during the Employment Term, the Executive will be eligible to receive an annual incentive bonus in accordance with, and subject to, the terms and
conditions of the Company’s applicable annual incentive bonus program applicable to similarly situated senior executive officers, in the sole discretion of the Company (the “Annual Discretionary Bonus”). During the Employment Term,
the Executive’s target Annual Discretionary Bonus will be 20% of the Executive’s Base Salary (the “Target Bonus”), subject to the achievement of applicable performance objectives delivered to the Executive in written form at the
commencement of the applicable fiscal year. Notwithstanding the foregoing, with respect to the 2014 fiscal calendar year, the Executive shall be entitled to a guaranteed bonus (the “2014 Bonus”) in an amount equal to the greater of
(i) 50% of the Target Bonus or (ii) the amount payable pursuant to the Annual Discretionary Bonus. The Company shall pay the Annual Discretionary Bonus within 90 days of the end of the applicable fiscal year. Subject to Sections 6.2 and
6.3 below, Executive must be employed by the Company on the date bonuses are paid to Company employees to be eligible to receive any such discretionary bonus. 


  
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	 	4.4	Equity. Executive will be eligible to participate in the Company’s equity-based incentive plan applicable to similarly situated executive officers in amounts and on terms and conditions determined by the
Company in its sole discretion and in accordance with the various plan documents and award agreements governing these awards. In addition, subject to approval by the Morgans Hotel Group Co. Board of Directors (the “Board”), or applicable
committee thereof, within 30 days of both Parties executing this Agreement, Executive will receive a one-time grant of Morgans Hotel Group Co. restricted stock units (“RSUs”), having a grant date value of $54,000, which RSUs will vest 1/3
on December 31, 2014, 1/3 on December 31, 2015 and 1/3 on the third anniversary of the grant date. 

  

	5.	Benefits  

  

	 	5.1	Employee Benefit Plans. Beginning on May 1, 2014 and for remainder of the Employment Term, subject to the terms and conditions of the applicable plans, the Executive will be eligible to participate in the
Company-sponsored group health, major medical, dental, vision, life insurance, 401(k) and other employee welfare benefit plans applicable to similarly situated executive officers (the “Employee Benefit Plans”). The Executive acknowledges
that the Company reserves the right to amend or terminate any Employee Benefit Plan(s) at any time in its discretion, subject to the terms of such Employee Benefit Plan(s) and applicable law. 


 

	 	5.2	Paid Time Off. Beginning on May 1, 2014 and for remainder of the Employment Term, the Executive will be eligible to participate in the Company’s vacation, holiday and sick, personal and other leave
policies as are provided under the Handbook applicable to similarly situated executive officers. During each full fiscal year during the Employment Term, the Executive will be eligible to take five (5) weeks of paid vacation, three
(3) personal days and six (6) sick days. Paid time off will not carry over from one fiscal year to the next, other than as permitted in accordance with Company Policies. Notwithstanding the forgoing, with respect to 2014, all vacation,
personal and sick days shall be deemed to have commenced accruing and credited as of January 1, 2014. 

  

	 	5.3	Expenses. During the Employment Term, the Company will pay or reimburse the Executive for reasonable and necessary business expenses incurred by the Executive during the Employment Term in connection with the
Executive’s duties on behalf of the Company in accordance with the Company’s travel and expense policy, as it may be amended from time to time, or other applicable Company Polices, following submission by the Executive of reimbursement
expense forms in a form consistent with such expense policies. The Executive shall also be entitled to reimbursement of fees and expenses incurred in connection with maintaining Executive’s professional law license in the State of New York or
any other State in the United States where the Company may relocate. 


  
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	6.	Termination. 

  

	 	6.1	Termination by the Company for Cause or Resignation by the Executive Without Good Reason. If, during the Employment Term, the Executive’s employment is terminated by the Company for Cause or the Executive
resigns without Good Reason, the Executive will not be eligible to receive Base Salary, to receive an Annual Discretionary Bonus or the 2014 Bonus or to participate in any Employee Plans with respect to future periods after the date of such
termination or resignation, except for the right to receive: (i) accrued but unpaid Base Salary through the date of termination of employment, to be paid in accordance with the Company’s normal payroll practice; (ii) up to four
(4) weeks of accrued unused vacation time, to be paid in accordance with the Company’s normal payroll practice; (iii) any unreimbursed business expenses incurred by the Executive prior to the date of termination, to be paid in
accordance with the provisions of Section 5.3; and (iv) all compensation and benefits payable to the Executive under the terms of the Employee Benefit Plans in which the Executive participated prior to the date of termination of
employment, in accordance with the terms of such Employee Plans (together, the “Accrued Compensation and Benefits”). 

  

	 	6.2	Termination by the Company Without Cause or Resignation by the Executive for Good Reason. If during the Employment Term, the Executive’s employment is terminated by the Company without Cause or the Executive
terminates employment for Good Reason (in each case other than due to the Executive’s death or Disability), the Executive will be entitled to receive from the Company, in full satisfaction of the Executive’s rights and any benefits the
Executive is entitled to under this Agreement, any other employment arrangement with the Company Group or otherwise, subject to Section 6.7 for the benefits described in clauses (ii) through (v) below, the following: (i) the
Accrued Compensation and Benefits; (ii) twelve (12) months of salary continuance at the same rate as the Base Salary at the time of termination, less applicable withholdings and deductions, for any termination that occurs on or before
March 10, 2015, which salary continuance period shall be reduced to six (6) months of salary continuance for any termination that occurs after March 10, 2015; (iii) a one-time lump sum payment in an amount equivalent to the
number of months of salary continuance provided by Section 6.2(ii) times the amount that the Company contributes to the health insurance premiums of the Executive per month at the time of the Executive’s termination, less applicable
withholdings and deductions; (iv) accelerated vesting of any portion of the RSUs described in Section 4.4 that remain unvested and outstanding as of the Executive’s termination date (which RSUs thereafter will be settled and payable);
and (v) in the event that the effective date of Executive’s termination occurs after the end of a calendar year worked by Executive and prior to payment of bonuses for that calendar year, the Company will pay Executive her bonus for such
calendar year (if any) calculated based upon application of the performance metrics determined by the Company in its sole discretion with respect to such bonus. For the avoidance of doubt, if the Company provides notice of non-renewal of the Initial
Employment Term or any Renewal Term as provided in Section 2, such non-renewal shall not constitute a Termination by the Company without Cause for purposes of this Section 6.2. 


  
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	 	6.3	Change in Control. In the event that there is a Change in Control of the Company and the Company or its successor terminates Executive’s employment without Cause, or Executive resigns for Good Reason, in
either case within twelve (12) months following the Change in Control, then the Executive will be entitled to receive from the Company, in full satisfaction of the Executive’s rights and any benefits the Executive is entitled to under this
Agreement, any other employment arrangement with the Company Group or otherwise, subject to preconditions set forth in Section 6.7 (except for the Accrued Compensation and Benefits, which are not subject to these preconditions), the following:
the amounts and items set forth in clauses (i)-(v) in Section 6.2 above. For the avoidance of doubt, if the Company or its successor provides notice of non-renewal of the Initial Employment Term or any Renewal Term as provided in
Section 2 during the twelve (12) month period following a Change in Control, such non-renewal shall not constitute a Termination by the Company or its successor without Cause for purposes of this Section 6.3. 


 

	 	6.4	Termination by Death. If the Executive dies during the Employment Term, the Executive’s employment and this Agreement will terminate upon the Executive’s death and the Executive’s beneficiary or,
if none, the Executive’s estate, will be entitled to receive the Accrued Compensation and Benefits from the Company. 

  

	 	6.5	Termination by Disability. If the Executive becomes Disabled during the Employment Term, the Executive’s employment will terminate upon receipt by the Executive of a notice to terminate for Disability
setting forth in reasonable detail the facts and circumstances for the termination for Disability. The Executive will be entitled to receive from the Company the following: (i) the Accrued Compensation and Benefits; and (ii) six
(6) months of salary continuance at the same rate as the Base Salary then in effect, less applicable withholdings and deductions. 

  

	 	6.6	Termination upon Non-Renewal. If the Executive’s employment is terminated in conjunction with non-renewal of the Initial Employment Term or any Renewal Term as provided in Section 2 of this Agreement,
Executive shall receive the Accrued Compensation and Benefits. In the event that the effective date of Executive’s termination occurs after the end of a calendar year worked by Executive and prior to payment of bonuses for that calendar year,
the Company will pay Executive her bonus for such calendar year (if any) calculated based upon application of the performance metrics determined by the Company in its sole discretion with respect to such, provided that Executive complies with the
release provisions in Section 6.7. 


  
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	 	6.7	Payment Timing & Release Requirement. Continued payment of Base Salary amounts pursuant to Sections 6.2, 6.3 or 6.5 will be made in equal installments during the salary continuance period set forth in
Sections 6.2, 6.3 and 6.5 above commencing on the date of the Executive’s termination of employment at such times as Base Salary is customarily paid to the Company’s employees, provided that no salary continuance installment will be paid
prior to the first payroll date that is coincident with or next following the 60th day following Executive’s termination date and any installment that otherwise would have been paid during
such 60 day period will instead be paid with the first installment paid to the Executive, and provided further that the Company’s obligation to make any such payments is conditioned upon the Executive first executing and delivering to the
Company an effective release, substantially in the form attached hereto as Exhibit A (the “Release”), within 59 days after the date of termination of employment, with all periods for revocation therein having expired. Subject to the
effectiveness of a timely Release as provided in this Section 6.7, any lump-sum cash payment to be made pursuant to Section 6.2, 6.3, or 6.6 will be made on the first payroll date that occurs on or immediately following the 60th day
following the Executive’s termination date, provided that any unpaid bonus amount will be paid when annual bonuses are paid to Company employees if later, but in no event will any such bonus payment be made later than the end of the calendar
year in which Executive’s termination of employment occurs. 

  

	 	6.8	Forfeiture. Notwithstanding the foregoing, any right of the Executive to receive termination payments and benefits hereunder will be forfeited if the Executive breaches Sections 8, 9, or 10; provided that, before
invoking this paragraph, the Company will provide the Executive a reasonable time (not to exceed 30 days) to respond to such assertion and, to the extent curable, a right to cure such breach within such time. For the avoidance of doubt, any
reasonable time to cure a breach referenced as provided in this Section 6.8 shall not extend the payment dates referenced in Section 6.7. 

  

	7.	Duty of Loyalty. During the course, and as a result, of the Executive’s employment with the Company, the Executive will have access to Confidential Information; the opportunity to gain close knowledge
of, and possible influence over, customers, suppliers, independent contractors and employees of the Company Group; possess in some measure the goodwill of the Company Group; and come to possess an intimate knowledge of the business of the Company
Group, including all of its policies, methods, personnel and operations. 

  

	8.	Confidentiality. 

  

	 	8.1	The Executive acknowledges that, in the course of the Executive’s employment, the Executive will become familiar with the trade secrets, confidential information and other proprietary information concerning the
Company Group, including projects, promotions, marketing plans and strategies, business plans or practices, business operations, employees, employment pay information and data, research and development, intellectual property, trademarks, customer
lists, pricing information, cost data, compensation and fee information, accounting and financing data, and methods of design, marketing, service or procurement, regardless of whether such information has been reduced to documentary form, which the
Company and/or an Affiliate treats as confidential or proprietary (collectively, the “Confidential Information”). 


  
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	 	8.2	The Executive acknowledges and agrees that any and all Confidential Information will be received and held by the Executive in a confidential capacity. The Executive will not, during the Employment Term and/or at any
time thereafter, in any manner, whether directly or indirectly, knowingly use for the Executive’s own benefit or the benefit of any other Person, or disclose, divulge, render or offer, any Confidential Information, except on behalf of the
Company in the course of the proper performance of the Executive’s duties hereunder. 

  

	 	8.3	The Executive’s obligation of confidentiality will survive, regardless of any other breach of this Agreement or any other agreement, by any Party, until and unless such Confidential Information has become, through
no fault of the Executive, generally known to the public. For purposes of this paragraph, “generally known” means known throughout the domestic U.S. industry or the appropriate foreign country’s or countries’ industry. In the
event that the Executive is required by law, regulation, or court order to disclose any of the Confidential Information, the Executive will promptly notify the Company prior to making any such disclosure to facilitate the Company Group seeking a
protective order or other appropriate remedy from the proper authority at its sole cost and expense. The Executive further agrees to cooperate with the Company Group in seeking such order or other remedy (at the Company Group’s sole cost and
expense) and that, if the Company is not successful in precluding the requesting legal body from requiring the disclosure of the Confidential Information, the Executive will furnish only that portion of the Confidential Information that is legally
required, and the Executive will exercise all reasonable legal efforts (at the Company Group’s sole cost and expense) to obtain reliable assurances that confidential treatment will be accorded to the Confidential Information. 


 

	 	8.4	The Executive’s obligations under this Section 8 are in addition to, and not in limitation of, all other obligations of confidentiality under the Company Group’s policies and applicable law and regulatory
guidance. 

  

	9.	Restrictive Covenants. 

  

	 	9.1	Non-Interference with Business Relationships. 

  

	 	9.1.1.	The Executive acknowledges that (A) the Executive’s services are of special, unique and extraordinary value to the Company Group and (B) the Company Group’s ability to accomplish its purposes and to
successfully compete in the marketplace depends substantially on the skills and expertise of the Executive. The Executive acknowledges and agrees that the Company Group would be irreparably damaged if the Executive were to not devote substantially
all of the Executive’s business time and efforts to the business and affairs of the Company Group during the Employment Term. 


  
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	 	9.1.2.	The Executive agrees that, during the Employment Term, and for a period 12 months after the termination date of employment (the “Restricted Period”), the Executive will not interfere with, or attempt to
interfere with, any business relationships (whether formed before, on or after the date of this Agreement) between the Company Group and any of the Company Group’s customers, suppliers or partners. 


 

	 	9.2	Non-Solicitation. The Executive agrees that, during the Restricted Period, the Executive will not: 

  

	 	9.2.1.	hire, solicit, encourage or otherwise induce any employee, consultant or independent contractor of any member of the Company Group, who provided services to any member of the Company Group within the preceding six
months, to terminate his or her employment or other contractual relationship with any member of the Company Group; or 

  

	 	9.2.2.	induce or attempt to induce any Person or entity which is a supplier, distributor, guest, travel agent, vendor, customer or otherwise a contracting party of any member of the Company Group at any time during the
applicable Restricted Period, to terminate or modify any written or oral agreement or understanding with any member of the Company Group. 

  

	 	9.3	The Executive acknowledges that a violation of the foregoing provisions of Sections 8 and 9 would cause irreparable harm to the Company Group, and that the Company Group’s remedy at law for any such violation would
be inadequate. In recognition of the foregoing, in addition to any other relief afforded by law or this Agreement, including damages sustained by a breach of this Agreement and any forfeitures under Section 6.7, and without the necessity or
proof of actual damages or the posting of a bond, the Company Group will have the right to enforce this Agreement by specific equitable remedies, which will include temporary and permanent injunctions, it being the understanding of the Parties that
damages, the forfeitures described above and injunctions will all be proper modes of relief and are not to be considered as alternative remedies. 

  

	 	9.4	If a court at any time determines that any restriction or limitation in this Section 9 is unreasonable or unenforceable, it will be deemed amended so as to provide the maximum protection to the Company Group and be
deemed reasonable and enforceable by the court. 


  
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	10.	Developments. 

  

	 	10.1	The Executive will make full and prompt disclosure to the Company Group of all inventions, improvements, discoveries, methods, developments, software, mask works and works of authorship, whether patentable or
copyrightable or not, (i) which relate to the business(es) of the Company Group and have heretofore been created, made, conceived or reduced to practice by the Executive or under the Executive’s direction or jointly with others, and not
assigned to prior employers, or (ii) which have utility in or relate to the Company Group’s business(es) and are created, made, conceived or reduced to practice by the Executive or under the Executive’s direction or jointly with
others during the Executive’s employment with the Company Group, whether or not during normal working hours or on the premises of the Company Group (all of the foregoing of which are collectively referred to in this Agreement as
“Developments”). 

  

	 	10.2	The Executive agrees to assign and hereby assigns to the Company Group (or any Person designated by the Company Group) all of the Executive’s rights, title and interest worldwide in and to all Developments and all
related patents, patent applications, copyrights and copyright applications, and any other applications for registration of a proprietary right. This paragraph will not apply to Developments that the Executive developed entirely on the
Executive’s own time without using the Company Group’s equipment, supplies, facilities or Confidential Information and that does not, at the time of conception or reduction to practice, have utility in or relate to the Company Group’s
business(es), or actual or demonstrably anticipated research or development. To the extent this Agreement is construed in accordance with the laws of any jurisdiction which precludes a requirement in an employee agreement to assign certain classes
of inventions made by an employee, this paragraph will be interpreted not to apply to any invention which a court rules or the Company agrees falls within such classes but will be interpreted to apply thereto to the maximum extent legally
permissible. 

  

	 	10.3	The Executive will cooperate fully with the Company Group, both during and after the Executive’s employment with the Company Group, with respect to the procurement, maintenance and enforcement of copyrights,
patents and other intellectual property rights (both in the United States and other countries) relating to Developments. The Executive will not be required to incur or pay any costs or expenses in connection with the rendering of such cooperation.
The Executive will sign all papers, including copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers of attorney, and do all things that the Company Group may deem necessary
or desirable in order to protect its rights and interests in any Development. If any member of the Company Group is unable, after reasonable effort, to secure the Executive’s signature on any such papers, any executive officer of the Company is
expressly authorized to execute any such papers as the Executive’s agent and attorney-in-fact, coupled with interest, and the Executive hereby irrevocably designates and appoints each executive officer of the Company as the Executive’s
agent and attorney-in-fact to execute any such papers on the Executive’s behalf and to take any and all other actions as the Company Group may deem necessary or desirable in order to protect its rights and interests in any Development, under
the conditions described in this sentence. 


  
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	11.	Remedies. The Executive and the Company acknowledge that the covenants contained in Sections 8, 9 and 10 are reasonable under the circumstances. Accordingly, if, in the opinion of any court of competent
jurisdiction, any such covenant is not reasonable in any respect, such court will have the right, power and authority to sever or modify any provision or provisions of such covenants as to the court will appear not reasonable and to enforce the
remainder of the covenants as so amended. The Executive further acknowledges that the remedy at law available to the Company Group for breach of any of the Executive’s obligations under Sections 8, 9 and 10 would be inadequate and that damages
flowing from such a breach may not readily be susceptible to being measured in monetary terms. Accordingly, in addition to any other rights or remedies that the Company Group may have at law, in equity or under this Agreement, upon proof of the
Executive’s violation of any such provision of this Agreement, the Company Group will be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach, without the necessity of proof of
actual damage or the posting of any bond. 

  

	12.	Company Property. All notes, lists, records, files, documents and other papers and other like items (and all copies, extracts and summaries thereof), advertising, sales, manufacturers’ and other
materials or articles or information, including data processing reports, computer programs, software, customer information and records, business records, price lists or information, samples, or any other materials or data of any kind furnished to
the Executive by the Company Group or developed, made or compiled by the Executive on behalf of the Company Group or at the Company Group’s direction or for the Company Group’s use or otherwise in connection with the Executive’s
employment hereunder, are and will remain the sole property of the Company Group, including in each case all copies thereof in any medium, including computer tapes and other forms of information storage, but excluding materials relating directly to
the terms and conditions of the Executive’s employment and the Executive’s performance as an employee of the Company Group (the “Company Property”). If any member of the Company Group requests the return of any Company Property
at any time during or at or after the date of termination of employment, the Executive will deliver, at the Company’s sole cost and expense, all such Company Property, including all copies of the same, to the Company as soon as practicable. The
provisions of this paragraph apply during and after the period when the Executive is an employee of the Company Group and will be in addition to (and not a limitation of) any legally applicable protections of the Company Group’s interest in
Confidential Information, trade secrets and the like. 

  

	13.	Continued Availability and Cooperation. Following termination of the Executive’s employment, the Executive will reasonably cooperate, at the Company’s sole expense, with the Company Group and
with the Company Group members’ counsel in connection with any present or future actual or threatened litigation, administrative proceeding or investigation involving any member of the Company Group that relates to events, occurrences or
conduct occurring (or claimed to have occurred) during the period of the Executive’s employment by the Company Group. Cooperation will include: 

  

	 	13.1	Being reasonably available for interviews and discussions with the Company Group members’ counsel, as well as for depositions and trial testimony; 


  
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	 	13.2	If depositions or trial testimony are to occur, being reasonably available and cooperating in the preparation therefore, as and to the extent that the Company Group or any Company Group member’s counsel reasonably
requests; 

  

	 	13.3	Refraining from impeding in any way the Company Group’s prosecution or defense of such litigation or administrative proceeding; and 


 

	 	13.4	Reasonably cooperating fully in the development and presentation of the Company Group’s prosecution or defense of such litigation or administrative proceeding. 


 

	 	13.5	The Company will reimburse the Executive for reasonable travel, lodging, telephone and similar expenses, as well as reasonable attorneys’ fees (if independent legal counsel is authorized in advance in writing by
the Company, such authorization not to be unreasonably withheld), incurred in connection with any such cooperation, consultation and advice rendered under this Agreement after the Executive’s termination of employment. However, the Executive
will not be entitled to any separate compensation for any matter referred to in this Section 13. 

  

	14.	Dispute Resolution. In the event that the Parties are unable to resolve any controversy or claim arising out of or in connection with this Agreement or breach thereof, any Party may refer the dispute to
binding arbitration, which, except as expressly provided hereafter, will be the exclusive forum for resolving such claims. Such arbitration will be administered by the American Arbitration Association (the “AAA”) and governed by New
York law. The arbitration will be conducted by a single arbitrator selected by the Executive and the Company according to the rules of the AAA. In the event that the Parties fail to agree on the selection of the arbitrator within 30 days after
either the Executive’s or the Company’s request for arbitration, the arbitrator will be chosen by the AAA. The arbitration proceeding will commence on a mutually agreeable date within 90 days after the request for arbitration. The forum
for arbitration will be agreed on by the Parties or, in the absence of any agreement, will be in a venue located in New York, New York. 

  

	 	14.1	The Parties agree that each will bear its own costs and attorneys’ fees in any arbitration hereunder. The arbitrator will not have authority to award attorneys’ fees or costs to any Party, except as provided
by statute or ordinance. 

  

	 	14.2	The arbitrator will have no power or authority to make awards or orders granting relief that would not be available to a Party in a court of law. The arbitrator’s award is limited by and must comply with this
Agreement and applicable federal, state and local laws. The decision of the arbitrator will be final and binding on the Parties. 

  

	 	14.3	Notwithstanding the foregoing, no claim or controversy for injunctive or equitable relief contemplated by or allowed under applicable law pursuant to Sections 8, 9 and 10 will be subject to arbitration under this
Section 14, but will instead be subject to determination as provided in Section 19. 


  
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	15.	Entire Agreement. No agreements or representations or warranties, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by any Party which are not expressly set
forth in this Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to the subject matter hereof. 


 

	16.	Withholding of Taxes. The Company will have the right to withhold from any amount payable hereunder any federal, state, city, local or other taxes in order for the Company Group to satisfy any withholding
tax obligation it may have under any applicable law, regulation or ruling. 

  

	17.	Successors and Binding Agreement.  

  

	 	17.1	The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company expressly to
assume in writing and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement will be binding upon and inure to the benefit of the
Company and any successor to the Company, including any Person acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such
successor will thereafter be deemed “the Company” for purposes of this Agreement), but will not otherwise be assignable or delegable by the Company, except that the Company may assign this Agreement, or may assign its rights and delegate
its duties hereunder, to any Person who acquires all of the voting stock of the Company (or to any parent entity thereof) subject to the first sentence of this Section 17.1. 


 

	 	17.2	This Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees and legatees. If the Executive dies
while any amount would still be payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the death of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein, will
be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate. 

  

	 	17.3	This Agreement is personal in nature and neither the Company nor the Executive may, without the consent of the other, assign or delegate this Agreement or any rights or obligations hereunder, except as expressly
provided in Sections 17.1 and 17.2. Without limiting the generality or effect of the foregoing, the Executive’s right to receive payments hereunder will not be assignable, transferable or delegable, whether by pledge, creation of a
security interest, or otherwise, other than by a transfer by the Executive’s will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this paragraph, the Company will have no
liability to pay any amount so attempted to be assigned, transferred or delegated. 


  
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	18.	Notices. Any notice, demand, claim or other communication under this Agreement will be in writing and will be deemed to have been given (a) on delivery if delivered personally; (b) on the date on
which delivery thereof is guaranteed by the carrier if delivered by a national courier guaranteeing delivery within a fixed number of days of sending; or (c) on the date of transmission thereof if delivery is confirmed, but, in each case, only
if addressed to the Parties in the following manner at the following addresses (or at the other address as a Party may specify by notice to the other) to the Company, to the attention of the Chief Executive Officer at its principal executive
offices, and to the Executive, at the Executive’s principal residence as set forth in the employment records of the Company. 

  

	19.	Governing Law and Choice of Forum. 

  

	 	19.1	This Agreement will be construed and enforced according to the laws of the State of New York, other than the choice of law provisions thereof. 


 

	 	19.2	To the extent not otherwise provided for by Section 14, the Parties consent to the exclusive jurisdiction of all state and federal courts located in New York, as well as to the jurisdiction of all courts of which
an appeal may be taken from such courts, for the purpose of any suit, action or other proceeding arising out of, or in connection with, this Agreement or that otherwise arise out of the employment relationship. Each Party hereby expressly waives
(i) any and all rights to bring any suit, action or other proceeding in or before any court or tribunal other than the courts described above, and covenants that it will not seek in any manner to resolve any dispute other than as set forth in
this paragraph, and (ii) any and all objections either may have to venue, including the inconvenience of such forum, in any of such courts. In addition, each Party consents to the service of process by personal service or any manner in which
notices may be delivered hereunder in accordance with this Agreement. 

  

	20.	Validity/Severability. The Parties agree that (a) the provisions of this Agreement will be severable in the event that for any reason whatsoever any of the provisions hereof are invalid, void or
otherwise unenforceable, (b) any such invalid, void or otherwise unenforceable provisions will be replaced by other provisions which are as similar as possible in terms to such invalid, void or otherwise unenforceable provisions but are valid
and enforceable, and (c) the remaining provisions will remain valid and enforceable to the fullest extent permitted by applicable law. 

  

	21.	Survival. The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total performance after the expiration or termination of the Employment
Term or this Agreement (including those under Sections 6 (to the extent applicable), 8, 9, 10, 11, 12, 13 and 33) will survive any termination or expiration of this Agreement. 


  
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	22.	Subsequent Employment. During the Restricted Period, if the Executive is offered employment or the opportunity to enter into any business activity, whether as owner, investor, executive, manager, employee,
independent consultant, contractor, advisor or otherwise, the Executive will inform the offeror of the existence of Sections 8, 9, 10, 11, 12, and 13 of this Agreement and provide the offeror a copy thereof. The Executive authorizes the Company to
provide a copy of the relevant provisions of this Agreement to any of the Persons described in this paragraph and to make such Persons aware of the Executive’s obligations under this Agreement. 


 

	23.	Excise Tax. 

  

	 	23.1	Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit received or to be received by the Executive (including any payment or benefit received in connection with a change in
control of the Company or the termination of the Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, program, arrangement or agreement) (all such payments and benefits, together, the “Total
Payments”) would be subject (in whole or part), to any excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision thereto (the “Excise Tax”), then,
after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, program, arrangement or agreement, the Company will reduce the Total Payments to the extent necessary (as defined
by the Auditor (as hereinafter defined)) so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however, that the Total Payments will only be reduced if (i) the amount of such Total
Payments, as so reduced (and after subtracting the amount of federal, state, municipal and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to
such reduced Total Payments), is greater than or equal to (ii) the amount of such Total Payments without such reduction (but after subtracting the amount of federal, state, municipal and local income taxes on such Total Payments and the amount
of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).



  
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	 	23.2	In the case of a reduction in the Total Payments, the Total Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation
Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation
Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are
valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full
value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other
non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata. Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash
payment and payments and benefits due in respect of any equity not subject to Section 409A, and second, a pro-rata reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A as deferred
compensation. 

  

	 	23.3	For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax: (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have
waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken into account which, in the
opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and selected by the accounting firm which was, immediately prior to the change in control, the Company’s independent auditor (the “Auditor”), does
not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including without limitation by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total
Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered by Executive, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base
amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be
determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. 

  

	 	23.4	Prior to the time that relevant payments subject to this Section 23 are made under this Agreement, the Company will provide the Executive with a written statement setting forth the manner in which such payments
were calculated for the purposes of this Section 23 and the basis for such calculations, including any opinions or other advice the Company received from Tax Counsel, the Auditor, or other advisors or consultants (and any such opinions or
advice which are in writing will be attached to the statement). If the Executive objects to the Company’s calculations, the Company will pay to the Executive such portion of the Total Payments (up to 100% thereof) as the Executive determines is
necessary to result in the proper application of this Section 23. All determinations required by this Section 23 (or requested by either the Executive or the Company in connection with this Section 23) will be at the expense of the
Company. The fact that the Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 23 will not of itself limit or otherwise affect any other rights of the Executive under this
Agreement. 


  
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	24.	Compliance with Section 409A. 

  

	 	24.1	The Parties intend that any amounts payable under this Agreement, and the Company’s and the Executive’s exercise of authority or discretion hereunder, be exempt from or comply, as applicable, with the
provisions of Section 409A of the Code, along with the rules, regulations and guidance promulgated thereunder by the Department of the Treasury or the Internal Revenue Service (collectively, “Section 409A”) so as not to subject the
Executive to the payment of the additional tax, interest or penalty which may be imposed under Section 409A. In furtherance thereof, to the extent that any provision of this Agreement would result in the Executive being subject to payment of
additional tax, interest or penalty under Section 409A, the Parties agree to interpret and apply and amend this Agreement if permitted under Section 409A in a manner which does not impose any additional taxes, interest or penalties on
Executive in order to bring this Agreement into compliance with Section 409A, without materially changing the economic value of the arrangements under this Agreement to any Party, and thereafter the Parties will interpret its provisions in a
manner that complies with Section 409A. Notwithstanding the foregoing, no particular tax result for the Executive with respect to any income recognized by the Executive in connection with this Agreement is guaranteed. 


 

	 	24.2	Notwithstanding any provisions of this Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Section 409A and determined pursuant to any policies adopted by the
Company consistent with Section 409A), at the time of the Executive’s “Separation From Service” (within the meaning of Section 409A) and if any portion of the payments or benefits to be received by the Executive upon
Separation From Service would be considered deferred compensation under Section 409A and cannot be paid or provided to the Executive without the Executive incurring taxes, interest or penalties under Section 409A, amounts that would
otherwise be payable pursuant to this Agreement and benefits that would otherwise be provided pursuant to this Agreement and by subject to tax under Section 409A, in each case, during the six-month period immediately following the
Executive’s Separation From Service, will instead be paid or made available to Executive or her estate on the earlier of (i) the first business day of the seventh month following the date of Executive’s Separation From Service or
(ii) the Executive’s death. 

  

	 	24.3	With respect to any amount of expenses eligible for reimbursement or the provision of any in-kind benefits under this Agreement, to the extent such payment or benefit would be considered deferred compensation under
Section 409A or is required to be included in the Executive’s gross income for federal income tax purposes, such expenses (including expenses associated with in-kind benefits) will be reimbursed by the Executive no later than
December 31st of the year following the year in which the Executive incurs the related expenses. In no event will the reimbursements or in-kind benefits to be provided by the Company in one
taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable year, nor will the Executive’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit.



  
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	 	24.4	Each payment under this Agreement is intended to be a “separate payment” and not one of a series of payments for purposes of Section 409A. 


 

	 	24.5	A termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a
termination of employment unless such termination is also a Separation From Service, and notwithstanding anything contained herein to the contrary, the date on which such Separation From Service takes place will be the termination date.


  

	25.	Amendment; Waiver. 

  

	 	25.1	This Agreement may be amended and any provision of this Agreement may be waived only if such amendment or waiver is set forth in a writing executed by the Parties hereto. No course of dealing between the Parties will be
deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement. 

  

	 	25.2	No delay or failure in exercising any right, power or remedy hereunder will affect or operate as a waiver thereof; nor will any single or partial exercise thereof or any abandonment or discontinuance of steps to enforce
such a right, power or remedy preclude any further exercise thereof or of any other right, power or remedy. 

  

	26.	Counterparts. This Agreement may be executed in multiple counterparts (any one of which need not contain the signatures of more than one Party), each of which will be deemed to be an original but all of
which taken together will constitute one and the same agreement. This Agreement, and any amendments hereto, to the extent signed and delivered by means of a facsimile machine or other electronic transmission, will be treated in all manner and
respects as an original agreement and will be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person. No Party will raise the use of a facsimile machine or other electronic means to
deliver a signature or the fact that any signature was transmitted or communicated through the use of facsimile machine or other electronic means as a defense to the formation of a contract and each Party forever waives any such defense.


  

	27.	Headings; Interpretation. 

  

	 	27.1	The descriptive headings herein are inserted for convenience of reference only and are not intended to be a substantive part of or to affect the meaning or interpretation of this Agreement. 


  
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	 	27.2	Reference to any agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time to time in accordance with the terms thereof, and if applicable hereof. Unless
otherwise indicated, any reference to a “Section” means a Section of this Agreement. 

  

	 	27.3	In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the Parties, and no presumption or burden of proof will arise favoring or disfavoring
any Party by virtue of the authorship of any of the provisions of this Agreement. 

  

	 	27.4	The word “including” (in its various forms) means including without limitation. All references in this Agreement to “days” refer to “calendar days” unless otherwise specified.


  

	28.	Defined Terms. In addition to the terms defined elsewhere herein, the following terms will have the following meanings when used herein with initial capital letters: 


 

	 	28.1	“Affiliate” means, as to any Person, any other Person that directly or indirectly controls, or is controlled by, or is under common control with, such Person. For this purpose, “control”
(including, with its correlative meanings, “controlled by” and “under common control with”) will mean the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of a Person,
whether through ownership of securities or partnership or other ownership interests, by contract or otherwise. Unless otherwise indicated, an Affiliate refers to an Affiliate of the Company. 


 

	 	28.2	“Cause” means: 

  

	 	28.2.1.	Any act or omission constituting a material breach by the Executive of any provisions of this Agreement; after written notice is delivered to the Executive by the Company that identifies in reasonable detail the manner
in which the Company believes the Executive has breached the Agreement, if, within thirty (30) days of such demand, the Executive fails to cure any such breach that is capable of being cured; 


 

	 	28.2.2.	The willful failure by the Executive to perform the Executive’s duties hereunder (other than any such failure resulting from the Executive’s Disability), after written demand for performance is delivered by
the Company that identifies in reasonable detail the manner in which the Company believes the Executive has not performed the Executive’s duties, if, within 30 days of such demand, the Executive fails to cure any such failure that is capable of
being cured; 

  

	 	28.2.3.	Any misconduct by the Executive that is materially injurious to any member of the Company Group, financial or otherwise, or any act of misappropriation, fraud including with respect to any member of the Company
Group’s accounting and financial statements, embezzlement or conversion by the Executive of the property of any member of the Company Group; 


  
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	 	28.2.4.	The conviction (or plea of no contest) of the Executive for any felony or the indictment of the Executive for any felony; 

  

	 	28.2.5.	The Executive’s gross negligence, gross neglect of duties or gross insubordination; 

  

	 	28.2.6.	The Executive’s commission of any violation of any antifraud provision of federal or state securities laws; 

  

	 	28.2.7.	The Executive’s alcohol or prescription or other drug abuse substantially affecting work performance; 

  

	 	28.2.8.	The Executive’s violation of the Company’s policies regarding harassment or discrimination; or 

  

	 	28.2.9.	The Executive’s material violation of the Company Policies. 

  

	 	28.3	“Change in Control” means the occurrence of a “change in control event” (within the meaning of Section 409A and the Regulations thereunder) with respect to Morgans Hotel Group Co.


  

	 	28.4	“Company Group” means Morgans Hotel Group Co. and its respective Affiliates. 

  

	 	28.5	“Disability” or “Disabled” means: 

  

	 	28.5.1.	The Executive’s incapacity due to physical or mental illness to substantially perform the Executive’s duties and the essential functions of the Executive’s position, with reasonable accommodation, on a
full-time basis for 12 months; or 

  

	 	28.5.2.	The Executive becomes eligible to receive benefits under the Company’s applicable long-term disability plan; 

  

	 	28.5.3.	Except that, if the Executive does not agree with a determination to terminate the Executive’s employment because of Disability, the question of the Executive’s Disability will be subject to the certification
of a qualified medical doctor reasonably agreed upon by the Company and the Executive. The costs of such qualified medical doctor will be paid by the Company. 

  

	 	28.6	“Employment Term” means the Initial Employment Term and any Renewal Term(s). 


  
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	 	28.7	“Good Reason” means, without the Executive’s consent: 

  

	 	28.7.1.	A material diminution in the Executive’s Base Salary or Target Bonus, other than a reduction in Base Salary that affects all similarly situated Company executives in substantially the same proportions as provided
for in Section 4.3 hereof; 

  

	 	28.7.2.	A material diminution in the Executive’s authority, duties, or responsibilities (other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law);


  

	 	28.7.3.	A relocation of the Executive’s principal place of employment by more than 50 miles from the Executive’s principal place of employment as of the signing of this Agreement; or 


 

	 	28.7.4.	Any material breach by the Company of this Agreement; 

 provided, however, that the
foregoing conditions will constitute Good Reason only if (A) the Executive provides written notice to the Company within 90 days of the initial existence of the condition(s) constituting Good Reason and (2) the Company fails to cure such
condition(s) within 30 days after receipt from the Executive of such notice; and provided further, that Good Reason will cease to exist with respect to a condition one year following the initial existence of such condition. 

 

	 	28.8	“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture or an unincorporated organization.


  

	29.	Certain Costs. Each Party will pay and be fully responsible for its own costs and expenses (including costs of professional advisors) incurred in connection with the negotiation, execution, interpretation
and enforcement of this Agreement. 

  

	30.	Clawback Provisions. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to the Executive pursuant to this Agreement or
any other agreement or arrangement with any member of the Company Group, which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to
be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by any member of the Company Group pursuant to any such law, government regulation or stock exchange listing requirement).


  

	31.	Acknowledgements. The Executive acknowledges and agrees that (i) the Executive has read this Agreement carefully and in its entirety, (ii) the Executive understands the terms and conditions
contained herein, (iii) the Executive has had the opportunity to review this Agreement with legal counsel of the Executive’s own choosing and has not relied on any statements made by the Company or its legal counsel as to the meaning of
any term or condition contained herein or in deciding whether to enter into this Agreement, and (iv) the Executive is entering into this Agreement knowingly and voluntarily. The Executive acknowledges and agrees that each member of the Company
Group is an intended third party beneficiary of this Agreement and, as such, will be entitled to all of the benefits, and will be permitted to enforce its rights, under this Agreement as if such third party were an original party hereto. As an
inducement to enter into this Agreement, the Executive represents and warrants as follows: (A) the Executive is not a party to any other agreement or obligation for personal services; (B) there exist no impediments or restraints,
contractual or otherwise on the Executive’s power, right or ability to enter into this Agreement and to perform the Executive’s duties and obligations hereunder; and (C) the performance of the Executive’s obligations under this
Agreement do not and will not violate or conflict with any agreement relating to confidentiality, non-competition or exclusive employment to which the Executive is or was subject. 


  
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	32.	Resignations. Following the termination of the Executive’s employment for any reason, if and to the extent requested by the Board, the Executive agrees to resign from the Board, all fiduciary
positions (including as trustee) and all other offices and positions the Executive holds with the Company Group; provided, however, that if the Executive refuses to tender the Executive’s resignation after the Board has made such request, then
the Board will be empowered to tender the Executive’s resignation from such offices and positions. 

  

	33.	Indemnification. If the Executive is made a party, is threatened to be made a party, or reasonably anticipates being made a party, to any Proceeding (as defined below) by reason of the fact that the
Executive is or was a director, officer, executive, agent, manager, trustee, consultant or representative of the Company or any of its affiliates or is or was serving at the request of the Company or any of its affiliates, or in connection with the
Executive’s service hereunder, as a director, officer, member, executive, agent, manager, trustee, consultant or representative of another person or entity, or if any Claim (as defined below) is made, is threatened to be made, or is reasonably
anticipated to be made, that arises out of or relates to the Executive’s service in any of the foregoing capacities, then the Executive shall promptly be indemnified and held harmless to the fullest extent permitted or authorized by the
Certificate of Incorporation or Bylaws of the Company, or if greater, by applicable law, against any and all costs, expenses, liabilities and losses (including, without limitation, attorneys’ and other fees, judgments, interest, expenses of
investigation, penalties, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) incurred or suffered by the Executive in connection therewith or in connection with seeking to enforce the Executive’s rights under
this Section 33, and such indemnification shall continue as to the Executive even if the Executive has ceased to be a director, member, executive, agent, manager, trustee, consultant or representative of the Company or other person or entity
and shall inure to the benefit of the Executive’s heirs, executors and administrators. The Executive shall be entitled to prompt advancement of any and all costs and expenses (including, without limitation, attorneys’ and other
professional fees and other charges) incurred by the Executive in connection with any such Proceeding or Claim, or in connection with seeking to enforce Executive’s rights under this Section 33, any such advancement to be made within 15
days after Executive gives written notice, supported by reasonable documentation, requesting such advancement. Such notice shall include, to the extent required by applicable law, an undertaking by the Executive to repay the amount advanced if
Executive is ultimately determined not to be entitled to indemnification against such costs and expenses. Nothing in this Agreement shall operate to limit or extinguish any right to indemnification, advancement of expenses, or contribution that the
Executive would otherwise have (including, without limitation, by agreement or under applicable law). For purposes of this Agreement, “Claim” shall include, without limitation, any claim, demand, request, investigation, dispute,
controversy, threat, discovery request, or request for testimony or information and “Proceeding” shall include, without limitation, any actual, threatened, or reasonably anticipated, action, suit or proceeding, whether civil, criminal,
administrative, investigative, appellate, formal, informal or other. 


  
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 A directors’ and officers’ liability insurance policy (or policies) shall be kept
in place, during the Employment Term and thereafter until the later of (x) the sixth anniversary of the date on which the Executive’s employment with the Company terminates and (y) the date on which all claims against the Executive
that would otherwise be covered by the policy (or policies) would become fully time barred, providing coverage to the Executive that is no less favorable to Executive in any respect (including, without limitation, with respect to scope, exclusions,
amounts, and deductibles) than the coverage then being provided to any other present or former executive or director of the Company 
 IN WITNESS
WHEREOF, this Agreement is duly executed as of the Execution Date listed on the first page. 
  

			
	MORGANS HOTEL GROUP CO.
		
	By:	 	/s/ Jason Taubman Kalisman
	Name: Jason Taubman Kalisman
	Title: Interim Chief Executive Officer

  

	
	EXECUTIVE
	
	 /s/ Meredith L. Deutsch

	Meredith L. Deutsch

  

  
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 Exhibit A 

WAIVER AND RELEASE OF CLAIMS AGREEMENT 

                    
(“Employee”) hereby acknowledges that                     (“Employer”) is offering Employee certain payments in
connection with Employee’s termination of employment pursuant to the employment agreement entered into between Employer and Employee, as amended (the “Employment Agreement”), in exchange for Employee’s promises in this
Waiver and Release of Claims Agreement (this “Agreement”). 
 Severance Payments 

1. Employee agrees that Employee will be entitled to receive the applicable severance payments and benefits set forth under Section 6 of
the Employment Agreement (the “Severance Payments”) only if Employee accepts and does not revoke this Agreement, which requires Employee to release both known and unknown claims. 

2. Employee agrees that the Severance Payments tendered under the Employment Agreement constitute fair and adequate consideration for the
execution of this Agreement. Employee further agrees that Employee has been fully compensated for all wages and fringe benefits, including, but not limited to, paid and unpaid leave, due and owing, and that the Severance Payments are in addition to
payments and benefits to which Employee is otherwise entitled. 
 Claims That Are Being Released 

3. Employee agrees that this Agreement constitutes a full and final release by Employee and Employee’s descendants, dependents, heirs,
executors, administrators, assigns, and successors, of any and all claims, charges, and complaints, whether known or unknown, that Employee has or may have to date against Employer and any of its parents, subsidiaries, or affiliated entities and
their respective officers, directors, shareholders, partners, joint venturers, employees, consultants, insurers, agents, predecessors, successors, and assigns, arising out of or related to Employee’s employment or the termination thereof, or
otherwise based upon acts or events that occurred on or before the date on which Employee signs this Agreement. To the fullest extent allowed by law, Employee hereby waives and releases any and all such claims, charges, and complaints in return for
the Severance Payments. This release of claims is intended to be as broad as the law allows, and includes, but is not limited to, rights arising out of alleged violations of any contracts, express or implied, any covenant of good faith or fair
dealing, express or implied, any tort or common law claims, any legal restrictions on Employer’s right to terminate employees, and any claims under any federal, state, municipal, local, or other governmental statute, regulation, or ordinance,
including, without limitation: 
 (a) claims of discrimination, harassment, or retaliation under equal employment laws such as Title VII of
the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Rehabilitation Act of 1973, and any and all other federal, state, municipal, local, or foreign
equal opportunity laws; 

  









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 (b) if applicable, claims of wrongful termination of employment; statutory, regulatory, and
common law “whistleblower” claims, and claims for wrongful termination in violation of public policy; 
 (c) claims arising under
the Employee Retirement Income Security Act of 1974, except for any claims relating to vested benefits under Employer’s employee benefit plans; 

(d) claims of violation of wage and hour laws, including, but not limited to, claims for overtime pay, meal and rest period violations, and
recordkeeping violations; and 
 (e) claims of violation of federal, state, municipal, local, or foreign laws concerning leaves of absence,
such as the Family and Medical Leave Act, New York State Human Rights Law, and New York City Human Rights Law. 
 Claims That Are Not Being Released

 4. This release does not include any claims that may not be released as a matter of law, and this release does not waive claims or
rights that arise after Employee signs this Agreement. Further, this release will not prevent Employee from doing any of the following: 

(a) obtaining unemployment compensation, state disability insurance, or workers’ compensation benefits from the appropriate agency of the
state in which Employee lives and works, provided Employee satisfies the legal requirements for such benefits (nothing in this Agreement, however, guarantees or otherwise constitutes a representation of any kind that Employee is entitled to such
benefits); 
 (b) asserting any right that is created or preserved by this Agreement, such as Employee’s right to receive the Severance
Payments and the enforcement of the terms of the Employment Agreement that survive termination of employment as set forth in Section 20 of the Employment Agreement; 

(c) filing a charge, giving testimony or participating in any investigation conducted by the Equal Employment Opportunity Commission (the
“EEOC”) or any duly authorized agency of the United States or any state (however, Employee is hereby waiving the right to any personal monetary recovery or other personal relief should the EEOC (or any similarly authorized agency)
pursue any class or individual charges in part or entirely on Employee’s behalf); or 
 (d) challenging or seeking determination in good
faith of the validity of this waiver under the Age Discrimination in Employment Act (nor does this release impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law); or 

(e) the enforcement of any of the terms or conditions of this Agreement. 

  
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 Additional Employee Covenants 

5. To the extent applicable, Employee confirms and agrees to Employee’s continuing obligations under the Employment Agreement, including,
without limitation, following termination of Employee’s employment with Employer. This includes, without limitation, Employee’s continuing obligations under Sections 8-13 of the Employment Agreement. 

Voluntary Agreement And Effective Date 

6. Employee understands and acknowledges that, by signing this Agreement, Employee is agreeing to all of the provisions stated in this
Agreement, and has read and understood each provision. 
 7. The parties understand and agree that: 

(a) Employee will have a period of 21 calendar days in which to decide whether or not to sign this Agreement, and an additional period of seven
calendar days after signing in which to revoke this Agreement. If Employee signs this Agreement before the end of such 21-day period, Employee certifies and agrees that the decision is knowing and voluntary and is not induced by Employer through
(i) fraud, misrepresentation, or a threat to withdraw or alter the offer before the end of such 21-day period or (ii) an offer to provide different terms in exchange for signing this Agreement before the end of such 21-day period. 

(b) In order to exercise this revocation right, Employee must deliver written notice of revocation to [INSERT COMPANY CONTACT] on or
before the seventh calendar day after Employee executes this Agreement. Employee understands that, upon delivery of such notice, this Agreement will terminate and become null and void. 

(c) The terms of this Agreement will not take effect or become binding, and Employee will not become entitled to receive the Severance
Payments, until that seven-day period has lapsed without revocation by Employee. If Employee elects not to sign this Agreement or revokes it within seven calendar days of signing, Employee will not receive the Severance Payments. 

(d) All amounts payable hereunder will be paid in accordance with the applicable terms of the Employment Agreement. 

Governing Law 
 8. This Agreement will be
governed by the substantive laws of the State of New York, without regard to conflicts of law, and by federal law where applicable. 
 9. If
any part of this Agreement is held to be invalid or unenforceable, the remaining provisions of this Agreement will not be affected in any way. 

  
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 EXECUTION COPY 
  

 Consultation With Attorney 

10. Employee is hereby encouraged and advised to confer with an attorney regarding this Agreement. By signing this Agreement, Employee
acknowledges that Employee has consulted, or had an opportunity to consult with, an attorney or a representative of Employee’s choosing, if any, and that Employee is not relying on any advice from Employer or its agents or attorneys in
executing this Agreement. 
 (a) This Agreement was provided to Employee for consideration on [INSERT DATE THIS AGREEMENT PROVIDED TO
EMPLOYEE]. 
 PLEASE READ THIS AGREEMENT CAREFULLY; IT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. 

Employee certifies that Employee has read this Agreement and fully and completely understands and comprehends its meaning, purpose, and effect. Employee
further states and confirms that Employee has signed this Agreement knowingly and voluntarily and of Employee’s own free will, and not as a result of any threat, intimidation or coercion on the part of Employer or its representatives or agents.

  
  

					
		 		  	EMPLOYEE
	Date:	 		  	 


  
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