Exhibit 10.66





Exhibit 10.66




FORM OF LTIP UNIT VESTING AGREEMENT




LTIP UNIT VESTING AGREEMENT




UNDER THE MORGANS HOTEL GROUP CO.

AMENDED AND RESTATED 2007 OMNIBUS INCENTIVE PLAN




	 	 	 
	Name of Grantee:

	 	(“Grantee”)
	No. of LTIP Units:

	 	 
	Grant Date:

	 	(the “Grant Date”)
	Final Acceptance Date:

	 	(the “Final Acceptance Date”)






Pursuant to the Morgans Hotel Group Co. Amended and Restated 2007 Omnibus Incentive Plan (the
“Plan”) and the Limited Liability Company Agreement (the “LLC Agreement”) of Morgans Group
LLC (the “LLC”), a Delaware limited liability company, Morgans Hotel Group Co. (the
“Company”), a Delaware corporation and the managing member of the LLC, hereby grants to the
Grantee named above an Other Stock-Based Award (as defined in the Plan, referred to herein as an
“Award”) in the form of, and by causing the LLC to issue to the Grantee, the number of LTIP
Units (as defined in the LLC Agreement) set forth above (the “Award LTIP Units”) having the
rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and
conditions of redemption and conversion set forth herein and in the LLC Agreement. Upon the close
of business on the Final Acceptance Date, if this LTIP Unit Vesting Agreement (this
“Agreement”) is accepted, the Grantee shall receive the number of LTIP Units specified
above, subject to the restrictions and conditions set forth herein, in the Plan and in the LLC
Agreement. Unless otherwise indicated, capitalized terms used herein but not defined shall have
the meanings given to those terms in the Plan.




1. Acceptance of Agreement.



(a) Unless the Grantee is already a Member (as defined in the LLC Agreement), Grantee must
sign, as a Member, and deliver to the LLC a counterpart signature page to the LLC Agreement
(attached hereto as Exhibit A). Upon signing and delivery of the signature page, to the
extent required, the Grantee shall be admitted as a Member of the LLC, as of the Grant Date, with
beneficial ownership of the number of LTIP Units specified above, the LLC Agreement shall be
amended to reflect the issuance to the Grantee of the Award LTIP Units and the LLC shall deliver to
the Grantee a certificate of the Company certifying the number of LTIP Units then issued to the
Grantee. Thereupon, the Grantee shall have all the rights of a Member of the LLC with respect to
the number of LTIP Units specified above, as set forth in the LLC Agreement, subject, however, to
the restrictions and conditions specified herein and in the LLC Agreement.



(b) In order to confirm receipt of this Agreement, Grantee must sign and deliver to the
Company a copy of this Agreement.


 


 









 






2. Vesting of LTIP Units.



[(a) Except as provided in Sections 2(b) and 2(c) below, the Award LTIP Units shall vest
one-third (1/3) each year on each of the first three one-year anniversaries of the Grant Date,
(each such date on which Award LTIP Units vest is referred to herein as a “Vesting Date”)];
provided that upon termination of Grantee’s employment with, cessation of consulting
relationship with or cessation of service to the Company and its Subsidiaries for any reason, the
LTIP Units that have not yet vested shall, without payment of any consideration by the LLC,
automatically and without notice terminate, be forfeited and be and become null and void, and
neither the Grantee nor any of his successors, heirs, assigns, or personal representatives will
thereafter have any further rights or interests in such LTIP Units. In the event Grantee becomes a
consultant, advisor or Non-Employee Director, such change in status shall not be deemed a
termination of employment or service with the Company at the time of such change in status or
thereafter so long as the Grantee continues in one of such positions.



(b) Notwithstanding any other term or provision of this Agreement, if a Corporate Transaction
occurs and the LTIP Units subject to this Agreement are not assumed or substituted for, or if
assumed or substituted for, upon the Grantee’s Involuntary Termination within the 12 month period
following the Corporate Transaction, any restrictions and conditions on all LTIP Units subject to
this Agreement shall be deemed waived by the Company and all LTIP Units granted hereby that have
not previously been forfeited shall automatically become fully vested. Notwithstanding any other
provision in this Agreement, if assumed or substituted for, the award will expire one year after
the date of termination.



“Involuntary Termination” means termination by reason of (i) the Grantee’s involuntary
dismissal by the Company or its successor for reasons other than Cause; or (ii) the Grantee’s
voluntary resignation for Good Reason as defined in any applicable employment or severance
agreement, plan, or arrangement between the Grantee and the Company, or if none, then as set forth
in the Plan following (x) a substantial adverse alteration in the Grantee’s title or
responsibilities from those in effect immediately prior to the Corporate Transaction; (y) a
material reduction in the Grantee’s annual base salary as of immediately prior to the Corporate
Transaction (or as the same may be increased from time to time) or a material reduction in the
Grantee’s annual target bonus opportunity as of immediately prior to the Corporate Transaction; or
(z) the relocation of the Grantee’s principal place of employment to a location more than 35 miles
from the Grantee’s principal place of employment as of the Corporate Transaction or the Company’s
requiring the Grantee to be based anywhere other than such principal place of employment (or
permitted relocation thereof) except for required travel on the Company’s business to an extent
substantially consistent with the Grantee’s business travel obligations as of immediately prior to
the Corporate Transaction. To qualify as an “Involuntary Termination” the Grantee must provide
notice to the Company of any of the foregoing occurrences within 90 days of the initial occurrence
and the Company shall have 30 days to remedy such occurrence.



(c) Other Vesting Terms. Notwithstanding anything to the contrary in this Section 2,
to the extent the Grantee is a party to another agreement or arrangement with the Company that
provides accelerated vesting of the Award LTIP Units in the event of certain types of employment
terminations or any other applicable vesting-related events or provides more favorable vesting
provisions than provided for in this Agreement, the more favorable vesting terms of such other
agreement or arrangement shall control.



3. Distributions. Distributions on the LTIP Units shall be paid currently to the
Grantee in accordance with the terms of the LLC Agreement.


 


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4. Rights with Respect to LTIP Units. If (i) the Company shall at any time be
involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of shares,
sale of all or substantially all of the assets or stock of the Company or a transaction similar
thereto, (ii) any stock dividend, stock split, reverse stock split, stock combination,
reclassification, recapitalization, significant repurchases of stock or other similar change in the
capital structure of the Company, or any distribution to holders of Common Stock other than regular
cash dividends, shall occur or (iii) any other event shall occur which in the judgment of the
Administrator necessitates action by way of adjusting the terms of the Agreement, then and in that
event, the Administrator shall take any such action as in its discretion shall be necessary to
maintain the Grantee’s rights hereunder so that they are substantially proportionate to the rights
existing under this Agreement prior to such event, including but not limited to, adjustments in the
number of LTIP Units then subject to this Agreement.



5. Legend. The records of the LLC evidencing the Award LTIP Units shall bear an
appropriate legend, as determined by the LLC in its sole discretion, to the effect that such LTIP
Units are subject to restrictions as set forth herein, in the Plan and in the LLC Agreement.



6. Restrictions on Transfer. None of the Award LTIP Units shall be sold, assigned,
transferred, pledged, hypothecated, given away or in any other manner disposed of, encumbered,
whether voluntarily or by operation of law (each such action a “Transfer”), or converted
into Membership Units in accordance with the LLC Agreement (a) prior to vesting, or (b) unless such
Transfer is in compliance with all applicable securities laws (including, without limitation, the
Securities Act of 1933, as amended (the “Securities Act”)), and such Transfer is in
accordance with the applicable terms and conditions of the LLC Agreement; provided that, upon the
approval of, and subject to the terms and conditions specified by, the Administrator, unvested
Award LTIP Units may be Transferred to members of the Grantee’s Immediate Family, which for
purposes of this Agreement shall include family limited partnerships and similar entities which are
primarily for the benefit of the Grantee and his or her Immediate Family, provided that the
transferee agrees in writing with the Company and the LLC to be bound by all of the terms and
conditions of this Agreement. In connection with any Transfer of Award LTIP Units, the LLC may
require the Grantee to provide an opinion of counsel, satisfactory to the LLC, that such Transfer
is in compliance with all federal and state securities laws (including, without limitation, the
Securities Act). Any attempted Transfer of Award LTIP Units not in accordance with the terms and
conditions of this Section 6 shall be null and void, and the LLC shall not reflect on its
records any change in record ownership of any LTIP Units as a result of any such Transfer, shall
otherwise refuse to recognize any such Transfer and shall not in any way give effect to any such
Transfer of any LTIP Units. This Agreement is personal to the Grantee, is non-assignable and is
not transferable in any manner, by operation of law or otherwise, other than by will, the laws of
descent and distribution or the transfer provisions specified above in this Section 6.



7. Incorporation of Plan. The provisions of the Plan are hereby incorporated by
reference as if set forth herein. If and to the extent that any provision contained in this
Agreement is inconsistent with the Plan, this Agreement shall govern.


 


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8. Investment Representation; Registration. The Grantee hereby makes the covenants,
representations and warranties set forth on Exhibit B attached hereto as of the date of
acceptance of this Agreement and each Vesting Date. All of such covenants, warranties and
representations shall survive the execution and delivery of this Agreement by the Grantee.
The Grantee shall immediately notify the LLC upon discovering that any of the representations or
warranties set forth on Exhibit B were false when made or have, as a result of changes in
circumstances, become false. The LLC will have no obligation to register under the Securities Act
any LTIP Units or any other securities issued pursuant to this Agreement or upon conversion or
exchange of the LTIP Units.



9. Section 83(b) Election. The Grantee hereby agrees to make an election to include
in gross income in the year of transfer the Award LTIP Units pursuant to Section 83(b) of the Code
substantially in the form attached hereto as Exhibit C and to supply the necessary
information in accordance with the regulations promulgated thereunder.



10. Amendment. The Grantee acknowledges that the Plan may be amended or discontinued
in accordance with Section 12 thereof and that this Agreement may be amended or canceled by the
Administrator of the Plan, on behalf of the LLC, for the purpose of satisfying changes in law or
for any other lawful purpose, provided that no such action shall impair the Grantee’s rights under
this Agreement without the Grantee’s written consent.



11. Withholding and Taxes. No later than the date as of which an amount first becomes
includible in the gross income of the Grantee for income tax purposes or subject to the Federal
Insurance Contributions Act withholding with respect to the Award LTIP Units, the Grantee will pay
to the Company or, if appropriate, any of its affiliates, or make arrangements satisfactory to the
Administrator regarding the payment of, any United States federal, state or local or foreign taxes
of any kind required by law to be withheld with respect to such amount. The obligations of the
Company under this Agreement will be conditional on such payment or arrangements, and the Company
and its affiliates shall, to the extent permitted by law, have the right to deduct any such taxes
from any payment otherwise due to the Grantee.



12. No Obligation to Continue Employment. Neither the Company, the LLC nor any
subsidiary of any of them is obligated by or as a result of the Plan or this Agreement to continue
to have the Grantee provide services to it or to continue the Grantee in employment and neither the
Plan nor this Agreement shall interfere in any way with the right of the Company, the LLC or any
subsidiary of any of them to terminate its relationship with the Grantee or the employment of the
Grantee at any time.



13. Notices. Notices hereunder shall be mailed or delivered to the LLC at its
principal place of business and shall be mailed or delivered to the Grantee at the address on file
with the LLC or, in either case, at such other address as one party may subsequently furnish to the
other party in writing.


 


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14. Section 409A. If any compensation provided by this Agreement may result in the
application of Section 409A of the Code, the Company shall, in consultation with the Executive,
modify the Agreement in the least restrictive manner necessary in order to, where applicable, (a)
exclude such compensation from the definition of “deferred compensation” within the meaning of such
Section 409A or (b) comply with the provisions of Section 409A, other applicable provision(s) of
the Code and/or any rules, regulations or other regulatory guidance
issued under such statutory provisions and to make such modifications, in each case, without
any diminution in the value of the payments to the Executive.



15. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York, applied without regard to conflict of law principles. The
parties hereto agree that any action or proceeding arising directly, indirectly or otherwise in
connection with, out of, related to or from this Agreement, any breach hereof or any action covered
hereby, shall be resolved within the State of New York and the parties hereto consent and submit to
the jurisdiction of the federal and state courts located within the City of New York, New York.
The parties hereto further agree that any such action or proceeding brought by either party to
enforce any right, assert any claim, obtain any relief whatsoever in connection with this Agreement
shall be brought by such party exclusively in federal or state courts located within the State of
New York.



16. Electronic Signature. All references to signatures and delivery of documents in
this Agreement can be satisfied by procedures the Company has established or may establish for an
electronic signature system for delivery and acceptance of any such documents, including this
Agreement. The Grantee’s electronic signature is the same as, and shall have the same force and
effect as, Grantee’s manual signature. Any such procedures and delivery may be effected by a third
party engaged by the Company to provide administrative services related to the Plan.



(Signature Page Follows)




 


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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the                     
day of                     , 200_____.



	 	 	 	 	 
	 	MORGANS HOTEL GROUP CO.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MORGANS GROUP LLC

 	 
	 	By:  	Morgans Hotel Group Co.,
 	 
	 	 	its managing member 	 
	 	 	 
	 	 	By:	 	 
	 	 	 	Name: 

	 
	 	 	 	Title: 

	 
	 
	 	GRANTEE
 	 
	 	
 	 
	 	Name:  	 	 
	 	Address: 

	 
	 



 


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EXHIBIT A




FORM OF MEMBER SIGNATURE PAGE




The Grantee, desiring to become one of the within named Members of Morgans Group LLC, hereby
accepts all of the terms and conditions of, and becomes a party to, the Limited Liability Company
Agreement of Morgans Group LLC (the “LLC Agreement”). The Grantee agrees that this signature page
may be attached to any counterpart of the LLC Agreement.




Signature Line for Member:



	 	 	 	 	 	 	 	 	 
	 	 	   	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Date:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address of Member:	 	 	 	 





 


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EXHIBIT B




GRANTEE’S COVENANTS, REPRESENTATIONS AND WARRANTIES





The Grantee hereby represents, warrants and covenants as follows:



(a) The Grantee has received and had an opportunity to review the following documents (the
“Background Documents”):




(i) The Company’s latest Annual Report to Stockholders that has been provided to
stockholders after the Company’s initial public offering, if available;




(ii) The Company’s Proxy Statement for its most recent Annual Meeting of Stockholders
following the Company’s initial public offering, if available;




(iii) The Company’s Report on Form 10-K for the fiscal year most recently ended
following the Company’s initial public offering, if available;




(iv) If any of the documents described in clauses (i) — (iii) above or (v) or (vi)
below is not available, the Company’s Registration Statement on Form S-1 registering the
Company’s initial public offering of its common stock;




(v) The Company’s Form 10-Q for the most recently ended quarter if one has been filed
by the Company with the Securities and Exchange Commission since the filing of the Form 10-K
described in clause (iii) above or, if a Form 10-K has not been filed by the Company, since
the filing of the Form S-1 described in clause (iv) above;




(vi) Each of the Company’s Current Report(s) on Form 8-K, if any, filed since the later
of the end of the fiscal year most recently ended for which a Form 10-K has been filed by
the Company or the filing of the Form S-1 described in clause (iv) above;




(vii) The LLC Agreement;




(viii) The Plan; and




(ix) The Company’s Certificate of Incorporation, as amended.



The Grantee also acknowledges that any delivery of the Background Documents and other
information relating to the Company and the LLC prior to the determination by the LLC of the
suitability of the Grantee as a holder of LTIP Units shall not constitute an offer of LTIP Units
until such determination of suitability shall be made.


 


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(b) The Grantee hereby represents and warrants that




(i) The Grantee either (A) is an “accredited investor” as defined in Rule 501(a) under
the Securities Act of 1933, as amended (the “Securities Act”), or (B) by reason of the
business and financial experience of the Grantee, together with the business and financial
experience of those persons, if any, retained by the Grantee to represent or
advise him, her or it with respect to the grant to him, her or it of LTIP Units, the
potential conversion of LTIP Units into common units of the LLC (“Common Units”) and the
potential redemption of such Common Units for shares of common stock (“Shares”), has such
knowledge, sophistication and experience in financial and business matters and in making
investment decisions of this type that the Grantee (I) is capable of evaluating the merits
and risks of an investment in the LLC and potential investment in the Company and of making
an informed investment decision, (II) is capable of protecting his, her or its own interest
or has engaged representatives or advisors to assist him, her or it in protecting his, her
or its interests, and (III) is capable of bearing the economic risk of such investment.




(ii) The Grantee understands that (A) the Grantee is responsible for consulting his,
her or its own tax advisors with respect to the application of the U.S. federal income tax
laws, and the tax laws of any state, local or other taxing jurisdiction to which the Grantee
is or by reason of the award of LTIP Units may become subject, to his, her or its particular
situation; (B) the Grantee has not received or relied upon business or tax advice from the
Company, the LLC or any of their respective employees, agents, consultants or advisors, in
their capacity as such; (C) the Grantee provides or will provide services to the LLC on a
regular basis and in such capacity has access to such information, and has such experience
of and involvement in the business and operations of the LLC, as the Grantee believes to be
necessary and appropriate to make an informed decision to accept this Award of LTIP Units;
and (D) an investment in the LLC and/or the Company involves substantial risks. The Grantee
has been given the opportunity to make a thorough investigation of matters relevant to the
LTIP Units and has been furnished with, and has reviewed and understands, materials relating
to the LLC and the Company and their respective activities (including, but not limited to,
the Background Documents). The Grantee has been afforded the opportunity to obtain any
additional information (including any exhibits to the Background Documents) deemed necessary
by the Grantee to verify the accuracy of information conveyed to the Grantee. The Grantee
confirms that all documents, records, and books pertaining to his, her or its receipt of
LTIP Units which were requested by the Grantee have been made available or delivered to the
Grantee. The Grantee has had an opportunity to ask questions of and receive answers from
the LLC and the Company, or from a person or persons acting on their behalf, concerning the
terms and conditions of the LTIP Units. The Grantee has relied upon, and is making its
decision solely upon, the Background Documents and other written information provided to the
Grantee by the LLC or the Company. The Grantee did not receive any tax, legal or financial
advice from the LLC or the Company and, to the extent it deemed necessary, has consulted
with its own advisors in connection with its evaluation of the Background Documents and this
Agreement and the Grantee’s receipt of LTIP Units.




(iii) The LTIP Units to be issued, the Common Units issuable upon conversion of the
LTIP Units and any Shares issued in connection with the redemption of any such Common Units
will be acquired for the account of the Grantee for investment only and not with a current
view to, or with any intention of, a distribution or resale thereof, in whole or in part, or
the grant of any participation therein, without prejudice, however, to the Grantee’s right
(subject to the terms of the LTIP Units, the Plan and this Agreement)
at all times to sell or otherwise dispose of all or any part of his or her LTIP Units,
Common Units or Shares in compliance with the Securities Act, and applicable state
securities laws, and subject, nevertheless, to the disposition of his or her assets being at
all times within his or her control.


 


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(iv) The Grantee acknowledges that (A) neither the LTIP Units to be issued, nor the
Common Units issuable upon conversion of the LTIP Units, have been registered under the
Securities Act or state securities laws by reason of a specific exemption or exemptions from
registration under the Securities Act and applicable state securities laws and, if such LTIP
Units or Common Units are represented by certificates, such certificates will bear a legend
to such effect, (B) the reliance by the LLC and the Company on such exemptions is predicated
in part on the accuracy and completeness of the representations and warranties of the
Grantee contained herein, (C) such LTIP Units, or Common Units, therefore, cannot be resold
unless registered under the Securities Act and applicable state securities laws, or unless
an exemption from registration is available, (D) there is no public market for such LTIP
Units and Common Units and (E) neither the LLC nor the Company has any obligation or
intention to register such LTIP Units or the Common Units issuable upon conversion of the
LTIP Units under the Securities Act or any state securities laws or to take any action that
would make available any exemption from the registration requirements of such laws, except,
that, upon the redemption of the Common Units for Shares, the Company currently intends to
issue such Shares under the Plan and pursuant to a Registration Statement on Form S-8 under
the Securities Act, to the extent that (I) the Grantee is eligible to receive such Shares
under the Plan at the time of such issuance, (II) the Company has filed an effective Form
S-8 Registration Statement with the Securities and Exchange Commission registering the
issuance of such Shares. The Grantee hereby acknowledges that because of the restrictions
on transfer or assignment of such LTIP Units acquired hereby and the Common Units issuable
upon conversion of the LTIP Units which are set forth in the LLC Agreement or this
Agreement, the Grantee may have to bear the economic risk of his, her or its ownership of
the LTIP Units acquired hereby and the Common Units issuable upon conversion of the LTIP
Units for an indefinite period of time.




(v) The Grantee has determined that the LTIP Units are a suitable investment for the
Grantee.




(vi) No representations or warranties have been made to the Grantee by the LLC or the
Company, or any officer, director, shareholder, agent, or affiliate of any of them, and the
Grantee has received no information relating to an investment in the LLC or the LTIP Units
except the information specified in Paragraph (b) above.



(c) So long as the Grantee holds any LTIP Units, the Grantee shall disclose to the LLC in
writing such information as may be reasonably requested with respect to ownership of LTIP Units as
the LLC may deem reasonably necessary to ascertain and to establish compliance with provisions of
the Internal Revenue Code of 1986, as amended (the “Code”), applicable to the LLC or to comply with
requirements of any other appropriate taxing authority.


 


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(d) The Grantee hereby agrees to make an election under Section 83(b) of the Code with respect
to the LTIP Units awarded hereunder, and has delivered with this Agreement a completed, executed
copy of the election form attached hereto as Exhibit C. The Grantee agrees to file the election
(or to permit the LLC to file such election on the Grantee’s behalf) within thirty (30) days after
the Award of the LTIP Units hereunder with the IRS Service Center at which such Grantee files his
or her personal income tax returns, and to file a copy of such election with the Grantee’s U.S.
federal income tax return for the taxable year in which the LTIP Units are awarded to the Grantee.



(e) The address set forth on the signature page of this Agreement is the address of the
Grantee’s principal residence, and the Grantee has no present intention of becoming a resident of
any country, state or jurisdiction other than the country and state in which such residence is
sited.



(f) The representations of the Grantee as set forth above are true and complete to the best of
the information and belief of the Grantee, and the LLC shall be notified promptly of any changes in
the foregoing representations.


 


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EXHIBIT C




ELECTION TO INCLUDE IN GROSS INCOME IN YEAR OF

TRANSFER OF PROPERTY PURSUANT TO SECTION 83(B)

OF THE INTERNAL REVENUE CODE




The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue
Code with respect to the property described below and supplies the following information in
accordance with the regulations promulgated thereunder:




	 	1.	 	The name, address and taxpayer identification number of the undersigned are:





	 	 	 	 	 
	 

	 	Name:
	 	(the “Taxpayer”)
	 
	 	 	 	 
	 

	 	Address:	 	 







	 	 	 	Social Security No./Taxpayer Identification No.:






	 	2.	 	Description of property with respect to which the election is being made:
	 
	 	 	 	The election is being made with respect to                      LTIP Units in Morgans Group LLC
(the “LLC”).
	 
	 	3.	 	The date on which the LTIP Units were transferred is                     , 200
 ___. The
taxable year to which this election relates is calendar year 200
 ___.
	 
	 	4.	 	Nature of restrictions to which the LTIP Units are subject:






	 	(a)	 	With limited exceptions, until the LTIP Units vest, the
Taxpayer may not transfer in any manner any portion of the LTIP Units without
the consent of the LLC.






	 	(b)	 	The Taxpayer’s LTIP Units vest in accordance with the vesting
provisions described in the Schedule attached hereto. Unvested LTIP Units are
forfeited in accordance with the vesting provisions described in the Schedule
attached hereto.






	 	5.	 	The fair market value at time of transfer (determined without regard to any
restrictions other than restrictions which by their terms will never lapse) of the LTIP
Units with respect to which this election is being made was $0 per LTIP Unit.
	 
	 	6.	 	The amount paid by the Taxpayer for the LTIP Units was $0 per LTIP Unit.






	 	7.	 	A copy of this statement has been furnished to the LLC and to its managing
member, Morgans Hotel Group Co.





Dated:                     , 200__




	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 





 


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Schedule to Section 83(b) Election -Vesting Provisions of LTIP Units




LTIP Units are subject to time-based vesting with one-third (1/3) vesting each year on the
first three one-year anniversaries of the date of grant, provided that the Taxpayer remains an
employee of Morgans Hotel Group Co. (the “Company”) or its subsidiaries through such dates, subject
to acceleration in the event of certain extraordinary transactions. Unvested LTIP Units are
subject to forfeiture in the event of failure to vest based on the passage of time and continued
employment with the Company or its subsidiaries.




 


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