# EDGAR Filing Document

**Accession Number:** 0001301236
**File Stem:** 0000950170-23-001092
**Filing Date:** 2023-1
**Character Count:** 34513
**Document Hash:** 9ac78289fe96143d804af8dc78e61f7d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-001092.hdr.sgml**: 20230124

**ACCESSION NUMBER**: 0000950170-23-001092

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20230123

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230124

**DATE AS OF CHANGE**: 20230124

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sotherly Hotels Inc.
- **CENTRAL INDEX KEY:** 0001301236
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32379
- **FILM NUMBER:** 23548508

**BUSINESS ADDRESS:**
- **STREET 1:** 306 SOUTH HENRY STREET
- **STREET 2:** SUITE 100
- **CITY:** WILLIAMSBURG
- **STATE:** VA
- **ZIP:** 23185
- **BUSINESS PHONE:** 757-229-5648

**MAIL ADDRESS:**
- **STREET 1:** 306 SOUTH HENRY STREET
- **STREET 2:** SUITE 100
- **CITY:** WILLIAMSBURG
- **STATE:** VA
- **ZIP:** 23185

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Sotherly Hotel Inc.
- **DATE OF NAME CHANGE:** 20130416

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MHI Hospitality CORP
- **DATE OF NAME CHANGE:** 20040823
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SOTHERLY HOTELS LP
- **CENTRAL INDEX KEY:** 0001313536
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOTELS & MOTELS [7011]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36091
- **FILM NUMBER:** 23548509

**BUSINESS ADDRESS:**
- **STREET 1:** 306 SOUTH HENRY STREET
- **STREET 2:** SUITE 100
- **CITY:** WILLIAMSBURG
- **STATE:** VA
- **ZIP:** 23185
- **BUSINESS PHONE:** 757-229-5648

**MAIL ADDRESS:**
- **STREET 1:** 306 SOUTH HENRY STREET
- **STREET 2:** SUITE 100
- **CITY:** WILLIAMSBURG
- **STATE:** VA
- **ZIP:** 23185

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MHI HOSPITALITY LP
- **DATE OF NAME CHANGE:** 20050106

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549** 

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**FORM** 8-K

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**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

**Date of Report (Date of earliest event reported):** **January 23, 2023**

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SOTHERLY HOTELS INC.

SOTHERLY HOTELS LP

**(Exact name of Registrant as Specified in Its Charter)** 

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---

| | | |
|:---|:---|:---|
| Maryland **(Sotherly Hotels Inc.)**<br>Delaware **(Sotherly Hotels LP)** | 001-32379 **(Sotherly Hotels Inc.)**<br>001-36091 **(Sotherly Hotels LP)** | 20-1531029 **(Sotherly Hotels Inc.)**<br>20-1965427 **(Sotherly Hotels LP)** |
| **(State or Other Jurisdiction**<br>**of Incorporation)** | **(Commission File Number)** | **(IRS Employer**<br>**Identification No.)** |
| 306 South Henry Street, Suite 100<br>Williamsburg**,** Virginia |  | 23185 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code: (**757**)** 229-5648

**Not Applicable** 

**(Former Name or Former Address, if Changed Since Last Report)** 

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

**Sotherly Hotels Inc**. ☐ **Sotherly Hotels LP** ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

**Sotherly Hotels Inc**. ☐ **Sotherly Hotels LP** ☐

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Securities registered or to be registered pursuant to Section 12(b) of the Act.

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| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of each exchange on which registered</u> |
| Common Stock, $0.01 par value | SOHO | The NASDAQ Stock Market LLC |
| 8.0% Series B Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | SOHOB | The NASDAQ Stock Market LLC |
| 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | SOHOO | The NASDAQ Stock Market LLC |
| 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | SOHON | The NASDAQ Stock Market LLC |

---

**Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

On January 23, 2023, Sotherly Hotels Inc. (the "Company"), as recommended by the Company's Nominating, Corporate Governance and Compensation Committee and approved by the Company's Board of Directors, entered into amendments, each effective as of January 23, 2023, to the respective employment agreements between the Company and each of the following: Andrew M. Sims, Chairman of the Board of Directors (the "Sims Amendment"); David R. Folsom, President and Chief Executive Officer (the "Folsom Amendment"); Scott M. Kucinski, Executive Vice President and Chief Operating Officer (the "Kucinski Amendment"); Anthony E. Domalski, Chief Financial Officer (the "Domalski Amendment"); and Robert E. Kirkland IV, General Counsel (the "Kirkland Amendment").

The Sims Amendment extends the term of the Employment Agreement dated January 1, 2020, between the Company and Andrew M. Sims (the "Sims Agreement"), from December 31, 2024 to December 31, 2027. Thereafter, the term of the Sims Agreement will be automatically extended for an additional year, on each anniversary of the commencement date of the Sims Agreement, unless either party gives 180 days' prior written notice that the term will not be extended. The Sims Amendment provides for a restricted stock grant of 75,000 restricted shares of the Company's common stock, $0.01 par value per share (the "Common Stock"). The shares were issued on January 23, 2023 and will vest in equal amounts of 15,000 shares over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027.

The Folsom Amendment extends the term of the Employment Agreement dated January 1, 2020, between the Company and David R. Folsom (the "Folsom Agreement"), from December 31, 2024 to December 31, 2027. Thereafter, the term of the Folsom Agreement will be automatically extended for an additional year, on each anniversary of the commencement date of the Folsom Agreement, unless either party gives 180 days' prior written notice that the term will not be extended. The Folsom Amendment provides for a restricted stock grant of 38,000 restricted shares of Common Stock. The shares were issued on January 23, 2023 and will vest in equal amounts of 7,600 shares over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027. The Folsom Amendment also amends the vesting terms for the existing stock grant of 30,000 restricted shares of Common Stock (the "Existing Folsom Restricted Shares") to provide that the full amount of the Existing Folsom Restricted Shares shall immediatly vest and be delivered to Mr. Folsom as of the earliest of any of the following occurrences: (1) Mr. Folsom's death, (2) Mr. Folsom's disability, (3) Mr. Folsom's termination without cause, (4) Mr. Folsom's resignation for good reason, or (5) December 31, 2024. The Folsom Amendment removes a provision from the Folsom Agreement pursuant to which the execution of a new or successor employment agreement between Mr. Folsom and the Company on or before December 31, 2024 would cause the Existing Folsom Restricted Shares to vest and be delivered in five equal amounts of 6,000 shares each over a five-year period beginning on the date of the execution of the new or successor agreement.

The Kucinski Amendment extends the term of the Employment Agreement dated January 1, 2020, between the Company and Scott M. Kucinski (the "Kucinski Agreement"), from December 31, 2024 to December 31, 2027. Thereafter, the term of the Kucinski Agreement will be automatically extended for an additional year, on the anniversary of the commencement date of the Kucinski Agreement, unless either party gives 180 days' prior written notice that the term will not be extended. The Kucinski Amendment provides for a restricted stock grant of 28,000 restricted shares of Common Stock. The shares were issued on January 23, 2023 and will vest in equal amounts of 5,600 shares over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027.

The Domalski Amendment extends the term of the Employment Agreement dated January 1, 2018, between the Company and Anthony E. Domalski (the "Domalski Agreement"), from December 31, 2022 to December to December 31, 2027. Thereafter, the term of the Domalski Agreement will be automatically extended for an additional year, on the anniversary of the commencement date

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of the Domalski Agreement, unless either party gives 180 days' prior written notice that the term will not be extended. The Domalski Amendment provides for a restricted stock grant of 34,000 restricted shares of Common Stock. The shares were issued on January 23, 2023 and will vest in equal amounts of 6,800 shares over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027.

The Kirkland Amendment extends the term of the Employment Agreement dated January 1, 2020, between the Company and Robert E. Kirkland IV (as previously amended, the "Kirkland Agreement"), from December 31, 2024 to December 31, 2027. Thereafter, the term of the Kirkland Agreement will be automatically extended for an additional year, on the anniversary of the commencement date of the Kirkland Agreement, unless either party gives 180 days' prior written notice that the term will not be extended. The Kirkland Amendment provides for a restricted stock grant of 17,500 restricted shares of Common Stock. The shares were issued on January 23, 2023 and will vest in equal amounts of 3,500 shares over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027. Mr. Kirkland is the son-in-law of the Chairman of the Board of Directors, Andrew M. Sims.

Copies of the Sims Amendment, Folsom Amendment, Kucinski Amendment, Domalski Amendment, and the Kirkland Amendment are attached hereto as Exhibits 10.1, 10.2, 10.3, 10.4, and 10.5, respectively, and each is incorporated herein by reference as though it were fully set forth herein. The foregoing summary descriptions of the employment agreements are not intended to be complete and are qualified in their entirety by the complete text of each agreement.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits.

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| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 10.1 | [<u>First Amendment to Employment Agreement between Sotherly Hotels Inc. and Andrew M. Sims, dated January 23, 2023.</u>](soho-ex10_1.htm) |
| 10.2 | [<u>First Amendment to Employment Agreement between Sotherly Hotels Inc. and David R. Folsom, dated January 23, 2023.</u>](soho-ex10_2.htm) |
| 10.3 | [<u>First Amendment to Employment Agreement between Sotherly Hotels Inc. and Scott M. Kucinski, dated January 23, 2023.</u>](soho-ex10_3.htm) |
| 10.4 | [<u>First Amendment to Employment Agreement between Sotherly Hotels Inc. and Anthony E. Domalski, dated January 23, 2023.</u>](soho-ex10_4.htm) |
| 10.5 | [<u>Second Amendment to Employment Agreement between Sotherly Hotels Inc. and Robert E. Kirkland IV, dated January 23, 2023.</u>](soho-ex10_5.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

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**SIGNATURES6**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
| Date: January 24, 2023 | **SOTHERLY HOTELS INC.** | **SOTHERLY HOTELS INC.** |
|  | By: | /s/ Anthony E. Domalski |
|  |  | **Anthony E. Domalski** |
|  |  | **Chief Financial Officer** |
|  | **SOTHERLY HOTELS LP** | **SOTHERLY HOTELS LP** |
|  |  | **by its General Partner,** |
|  |  | **SOTHERLY HOTELS INC.** |
|  | By: | /s/ Anthony E. Domalski |
|  |  | **Anthony E. Domalski** |
|  |  | **Chief Financial Officer** |

---

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## Exhibit 10.1

**FIRST Amendment to Employment Agreement**

This First Amendment to Employment Agreement (the "Amendment") is dated as of January 23, 2023, between Sotherly Hotels Inc., a Maryland corporation (the "Company" or the "Employer"), and Andrew M. Sims (the "Executive") and amends that certain Employment Agreement dated January 1, 2020, between the Company and the Executive (the "Employment Agreement"). The Company and Executive are sometimes collectively referred to herein as the "Parties".

**<u>WITNESSETH</u>**

WHEREAS, the Parties desire to amend the Employment Agreement to modify certain provisions therein.

NOW THEREFORE, in consideration of the agreements contained herein, and intending to be legally bound hereby, the Parties agree as follows:

<u>Section 1.</u> Section 2 of the Employment Agreement is hereby amended to read in its entirety as follows:

<u>Commencement Date; Term</u>. Employment of Executive shall continue on the terms herein from and after the date first set forth above (the "Commencement Date"), and shall continue during the period ending on December 31, 2027, unless terminated prior to such date pursuant to Section 7. Following December 31, 2027, the term of the Agreement shall be extended for an additional year, on each anniversary of the Commencement Date, unless either party gives 180 days prior written notice that the term will not be extended (the "Employment Term"). The Employment Term shall terminate upon any termination of Executive's employment pursuant to Section 7.

<u>Section 2.</u> The following sentence is hereby added to the end of Section 3(c) of the Employment Agreement:

On the date of execution of this Amendment, Executive shall be granted a "Restricted Stock Grant" of 75,000 shares of common stock in the Company. The Restricted Stock Grant shall vest in equal amounts of 15,000 shares of Company common stock over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027. The shares of common stock in the Restricted Stock Grant shall be divisible pro-rata by any forward or reverse splits of the Company's common stock. In the event that Executive's employment is terminated by the Company for Cause or by the Executive without Good Reason, any remaining unvested shares shall be forfeited and canceled.

<u>Section 3.</u> <u>Remainder of Employment Agreement.</u> Except as set forth in this Amendment, the provisions of the Employment Agreement remain in full force and effect without change, amendment, modification or waiver.

<u>Section 4.</u> <u>References.</u> From and after the date of this Amendment, all references to the Employment Agreement shall be deemed to be references to the Employment Agreement as amended by this Amendment.

<u>Section 5.</u> <u>Counterparts.</u> This Amendment may be executed in several facsimile or electronic counterparts, each of which shall be an original and all of which constitute one and the same instrument.

<u>Section 6.</u> <u>Governing Law.</u> This Amendment shall be governed by and construed in accordance with the

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laws of the Commonwealth of Virginia without regard to conflict of laws principles.

<u>Section 7.</u> <u>Necessary Authorization.</u> Each Party represents and warrants that it has the necessary corporate and/or legal authority to enter into this Amendment and that individuals executing this Amendment have been duly authorized to do so and that such execution creates a valid, binding, and legally enforceable obligation of each Party.

[signatures follow on next page]

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**IN WITNESS WHEREOF,** the Parties have caused this Amendment to be executed and delivered as of the date first above written.

SOTHERLY HOTELS INC.

By:_<u>_/s/ David R. Folsom</u>____________

Name: David R. Folsom

Title: President & CEO

EXECUTIVE

By:___<u>/s/ Andrew M. Sims</u>____________

Name: Andrew M. Sims

Title: Chairman

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## Exhibit 10.2

**FIRST Amendment to Employment Agreement**

This First Amendment to Employment Agreement (the "Amendment") is dated as of January 23, 2023, between Sotherly Hotels Inc., a Maryland corporation (the "Company" or the "Employer"), and David R. Folsom (the "Executive") and amends that certain Employment Agreement dated January 1, 2020, between the Company and the Executive (the "Employment Agreement"). The Company and Executive are sometimes collectively referred to herein as the "Parties".

**<u>WITNESSETH</u>**

WHEREAS, the Parties desire to amend the Employment Agreement to modify certain provisions therein.

NOW THEREFORE, in consideration of the agreements contained herein, and intending to be legally bound hereby, the Parties agree as follows:

<u>Section 1.</u> Section 2 of the Employment Agreement is hereby amended to read in its entirety as follows:

<u>Commencement Date; Term</u>. Employment of Executive shall continue on the terms herein from and after the date set forth above (the "Commencement Date") and shall continue during the period ending on December 31, 2027, unless terminated prior to such date pursuant to Section 6 hereof. Following December 31, 2027, the term of the Agreement shall be extended for an additional year, on each anniversary of the Commencement Date, unless either party gives 180 days prior written notice that the term will not be extended (the "Employment Term"). The Employment Term shall terminate upon any termination of the Executive's employment pursuant to Section 6 hereof.

<u>Section 2.</u> Paragraphs (ii) and (iii) of Section 3(c) of the Employment Agreement are hereby amended to read in their entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No shares of stock shall vest until the earliest of any of the following occurrences: (1) Executive's death, (2) Executive's Disability (as defined in Section 6(b)), (3) Executive's termination without Cause (as defined in Section 6(c) and 6(d)), (4) Executive's resignation for Good Reason (as defined in Section 6(e)), or (5) December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) If vesting occurs as a result of any of the events described in (1) through (5) in paragraph (ii) above, the full amount of shares shall immediately vest and be delivered to Executive as of the date of the occurrence of such event.

<u>Section 3.</u> Paragraph (v) of Section 3(c) of the Employment Agreement is hereby deleted and held in reserve.

<u>Section 4.</u> The following paragraph (vii) is hereby added to the end of Section 3(c) of the Employment Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii) On the date of execution of this Amendment, Executive shall be granted a "Restricted Stock Grant" of 38,000 shares of common stock in the Company. The Restricted Stock Grant shall vest in equal amounts of 7,600 shares of Company common stock over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027. The shares of common stock in the Restricted Stock Grant shall

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be divisible pro-rata by any forward or reverse splits of the Company's common stock. In the event that Executive's employment is terminated by the Company for Cause or by the Executive without Good Reason, any remaining unvested shares of the Restricted Stock Grant shall be forfeited and canceled.

<u>Section 5.</u> <u>Remainder of Employment Agreement.</u> Except as set forth in this Amendment, the provisions of the Employment Agreement remain in full force and effect without change, amendment, modification or waiver.

<u>Section 6.</u> <u>References.</u> From and after the date of this Amendment, all references to the Employment Agreement shall be deemed to be references to the Employment Agreement as amended by this Amendment.

<u>Section 7.</u> <u>Counterparts.</u> This Amendment may be executed in several facsimile or electronic counterparts, each of which shall be an original and all of which constitute one and the same instrument.

<u>Section 8.</u> <u>Governing Law.</u> This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia without regard to conflict of laws principles.

<u>Section 9.</u> <u>Necessary Authorization.</u> Each Party represents and warrants that it has the necessary corporate and/or legal authority to enter into this Amendment and that individuals executing this Amendment have been duly authorized to do so and that such execution creates a valid, binding, and legally enforceable obligation of each Party.

[signatures follow on next page]

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**IN WITNESS WHEREOF,** the Parties have caused this Amendment to be executed and delivered as of the date first above written.

SOTHERLY HOTELS INC.

By:___<u>/s/ Andrew M. Sims</u>___________

Name: Andrew M. Sims

Title: Chairman

EXECUTIVE

By:___<u>/s/ David R. Folsom</u>_______________

Name: David R. Folsom

Title: President and CEO

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## Exhibit 10.3

**FIRST Amendment to Employment Agreement**

This First Amendment to Employment Agreement (the "Amendment") is dated as of January 23, 2023, between Sotherly Hotels Inc., a Maryland corporation (the "Company" or the "Employer"), and Scott M. Kucinski (the "Executive") and amends that certain Employment Agreement dated January 1, 2020, between the Company and the Executive (the "Employment Agreement"). The Company and Executive are sometimes collectively referred to herein as the "Parties".

**<u>WITNESSETH</u>**

WHEREAS, the Parties desire to amend the Employment Agreement to modify certain provisions therein.

NOW THEREFORE, in consideration of the agreements contained herein, and intending to be legally bound hereby, the Parties agree as follows:

<u>Section 1.</u> Section 2 of the Employment Agreement is hereby amended to read in its entirety as follows:

<u>Commencement Date; Term</u>. Employment of Executive shall continue on the terms herein from and after the date first set forth above (the "Commencement Date"), and shall continue during the period ending on December 31, 2027, unless terminated prior to such date pursuant to Section 7. Following December 31, 2027, the term of the Agreement shall be extended for an additional year, on each anniversary of the Commencement Date, unless either party gives 180 days prior written notice that the term will not be extended (the "Employment Term"). The Employment Term shall terminate upon any termination of Executive's employment pursuant to Section 7.

<u>Section 2.</u> The following sentence is hereby added to the end of Section 3(c) of the Employment Agreement:

On the date of execution of the Amendment, Executive shall be granted a "2023 Restricted Stock Grant" of 28,000 shares of common stock in the Company. The 2023 Restricted Stock Grant shall vest in equal amounts of 5,600 shares of Company common stock over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027. The shares of common stock in the 2023 Restricted Stock Grant shall be divisible pro-rata by any forward or reverse splits of the Company's common stock. In the event that Executive's employment is terminated by the Company for Cause or by the Executive without Good Reason, any remaining unvested shares of the 2023 Restricted Stock Grant shall be forfeited and canceled.

<u>Section 3.</u> <u>Remainder of Employment Agreement.</u> Except as set forth in this Amendment, the provisions of the Employment Agreement remain in full force and effect without change, amendment, modification or waiver.

<u>Section 4.</u> <u>References.</u> From and after the date of this Amendment, all references to the Employment Agreement shall be deemed to be references to the Employment Agreement as amended by this Amendment.

<u>Section 5.</u> <u>Counterparts.</u> This Amendment may be executed in several facsimile or electronic counterparts, each of which shall be an original and all of which constitute one and the same instrument.

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<u>Section 6.</u> <u>Governing Law.</u> This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia without regard to conflict of laws principles.

<u>Section 7.</u> <u>Necessary Authorization.</u> Each Party represents and warrants that it has the necessary corporate and/or legal authority to enter into this Amendment and that individuals executing this Amendment have been duly authorized to do so and that such execution creates a valid, binding, and legally enforceable obligation of each Party.

[signatures follow on next page]

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**IN WITNESS WHEREOF,** the Parties have caused this Amendment to be executed and delivered as of the date first above written.

SOTHERLY HOTELS INC.

By:___<u>/s/ David R. Folsom</u>______________

Name: David R. Folsom

Title: President & CEO

EXECUTIVE

By:___<u>/s/ Scott M. Kucinski</u>_____________

Name: Scott M. Kucinski

Title: Executive Vice President and

&nbsp;&nbsp;&nbsp;&nbsp; Chief Operating Officer

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## Exhibit 10.4

**FIRST Amendment to Employment Agreement**

This First Amendment to Employment Agreement (the "Amendment") is dated as of January 23, 2023, between Sotherly Hotels Inc., a Maryland corporation (the "Company" or the "Employer"), and Anthony E. Domalski (the "Executive") and amends that certain Employment Agreement dated January 1, 2018, between the Company and the Executive (the "Employment Agreement"). The Company and Executive are sometimes collectively referred to herein as the "Parties".

**<u>WITNESSETH</u>**

WHEREAS, the Parties desire to amend the Employment Agreement to modify certain provisions therein.

NOW THEREFORE, in consideration of the agreements contained herein, and intending to be legally bound hereby, the Parties agree as follows:

<u>Section 1.</u> Section 2 of the Employment Agreement is hereby amended to read in its entirety as follows:

<u>Commencement Date; Term</u>. Employment of Executive shall continue on the terms herein from and after January 1, 2018 (the "Commencement Date") and shall continue during the period ending on December 31, 2027, unless terminated prior to such date pursuant to Section 6 hereof. Following December 31, 2027, the term of the Agreement shall be extended for an additional year, on each anniversary of the Commencement Date, unless either party gives 180 days prior written notice that the term will not be extended (the "Employment Term"). The Employment Term shall terminate upon any termination of the Executive's employment pursuant to Section 6 hereof.

<u>Section 2.</u> The following sentence is hereby added to the end of Section 3(c) of the Employment Agreement:

On the date of execution of this Amendment, Executive shall be granted a "2023 Restricted Stock Grant" of 34,000 shares of common stock in the Company. The 2023 Restricted Stock Grant shall vest in equal amounts of 6,800 shares of Company common stock over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027. The shares of common stock in the 2023 Restricted Stock Grant shall be divisible pro-rata by any forward or reverse splits of the Company's common stock. In the event that Executive's employment is terminated by the Company for Cause or by the Executive without Good Reason, any remaining unvested shares of the 2023 Restricted Stock Grant shall be forfeited and canceled.

<u>Section 3.</u> <u>Remainder of Employment Agreement.</u> Except as set forth in this Amendment, the provisions of the Employment Agreement remain in full force and effect without change, amendment, modification or waiver.

<u>Section 4.</u> <u>References.</u> From and after the date of this Amendment, all references to the Employment Agreement shall be deemed to be references to the Employment Agreement as amended by this Amendment.

<u>Section 5.</u> <u>Counterparts.</u> This Amendment may be executed in several facsimile or electronic counterparts,

------

each of which shall be an original and all of which constitute one and the same instrument.

<u>Section 6.</u> <u>Governing Law.</u> This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia without regard to conflict of laws principles.

<u>Section 7.</u> <u>Necessary Authorization.</u> Each Party represents and warrants that it has the necessary corporate and/or legal authority to enter into this Amendment and that individuals executing this Amendment have been duly authorized to do so and that such execution creates a valid, binding, and legally enforceable obligation of each Party.

[signatures follow on next page]

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**IN WITNESS WHEREOF,** the Parties have caused this Amendment to be executed and delivered as of the date first above written.

SOTHERLY HOTELS INC.

By:___<u>/s/ David R. Folsom</u>_______________

Name: David R. Folsom

Title: President & CEO

EXECUTIVE

By:___<u>/s/ Anthony E. Domalski</u>___________

Name: Anthony E. Domalski

Title: Secretary and Chief Financial Officer

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## Exhibit 10.5

**SECOND Amendment to Employment Agreement**

This Second Amendment to Employment Agreement (the "Amendment") is dated as of January 23, 2023, between Sotherly Hotels Inc., a Maryland corporation (the "Company" or the "Employer"), and Robert E. Kirkland IV (the "Executive") and amends that certain Employment Agreement dated January 1, 2020, as amended, between the Company and the Executive (the "Employment Agreement"). The Company and Executive are sometimes collectively referred to herein as the "Parties".

**<u>WITNESSETH</u>**

WHEREAS, the Parties desire to amend the Employment Agreement to modify certain provisions therein.

NOW THEREFORE, in consideration of the agreements contained herein, and intending to be legally bound hereby, the Parties agree as follows:

<u>Section 1.</u> Section 2 of the Employment Agreement is hereby amended to read in its entirety as follows:

<u>Commencement Date; Term</u>. Employment of Executive shall continue on the terms herein from and after the date first set forth above (the "Commencement Date"), and shall continue during the period ending on December 31, 2027, unless terminated prior to such date pursuant to Section 7. Following December 31, 2027, the term of the Agreement shall be extended for an additional year, on each anniversary of the Commencement Date, unless either party gives 180 days prior written notice that the term will not be extended (the "Employment Term"). The Employment Term shall terminate upon any termination of Executive's employment pursuant to Section 7.

<u>Section 2.</u> The following sentence is hereby added to the end of Section 3(c) of the Employment Agreement:

On the date of execution of this Amendment, Executive shall be granted a "Restricted Stock Grant" of 17,500 shares of common stock in the Company. The Restricted Stock Grant shall vest in equal amounts of 3,500 shares of Company common stock over a five-year period on March 31 of each year commencing March 31, 2023 and ending March 31, 2027. The shares of common stock in the Restricted Stock Grant shall be divisible pro-rata by any forward or reverse splits of the Company's common stock. In the event that Executive's employment is terminated by the Company for Cause or by the Executive without Good Reason, any remaining unvested shares shall be forfeited and canceled.

<u>Section 3.</u> <u>Remainder of Employment Agreement.</u> Except as set forth in this Amendment, the provisions of the Employment Agreement remain in full force and effect without change, amendment, modification or waiver.

<u>Section 4.</u> <u>References.</u> From and after the date of this Amendment, all references to the Employment Agreement shall be deemed to be references to the Employment Agreement as amended by this Amendment.

<u>Section 5.</u> <u>Counterparts.</u> This Amendment may be executed in several facsimile or electronic counterparts, each of which shall be an original and all of which constitute one and the same instrument.

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<u>Section 6.</u> <u>Governing Law.</u> This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia without regard to conflict of laws principles.

<u>Section 7.</u> <u>Necessary Authorization.</u> Each Party represents and warrants that it has the necessary corporate and/or legal authority to enter into this Amendment and that individuals executing this Amendment have been duly authorized to do so and that such execution creates a valid, binding, and legally enforceable obligation of each Party.

[signatures follow on next page]

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**IN WITNESS WHEREOF,** the Parties have caused this Amendment to be executed and delivered as of the date first above written.

SOTHERLY HOTELS INC.

By:___<u>/s/ David R. Folsom</u>________________

Name: David R. Folsom

Title: President & CEO

EXECUTIVE

By:__<u>/s/</u>_<u>Robert E. Kirkland IV</u>____________

Name: Robert E. Kirkland IV

Title: General Counsel

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