Document:

Exhibit
10.8

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is
made and entered March 10, 2004 (the “Effective Date”), by and between
Hospitality Properties Trust, a Maryland real estate investment trust (the
“Company”), and John G. Murray (“Indemnitee”).

 

WHEREAS Indemnitee currently serves as an officer of the Company and may, in
connection therewith, be subjected to claims, suits or proceedings arising from
such service; and

 

WHEREAS, as an inducement to Indemnitee to continue to
serve as such officer, the
Company has agreed to indemnify and to advance expenses and costs incurred by
Indemnitee in connection with any such claims, suits or proceedings, to the
fullest extent permitted by law as hereinafter provided; and

 

NOW, THEREFORE, in consideration of the premises and
the covenants contained herein, the Company and Indemnitee do hereby covenant
and agree as follows:

 

Section 1.               Definitions.  For purposes of this Agreement:

 

(a)           “Change
in Control” means a change in control of the Company occurring after the
Effective Date of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item
on any similar schedule or form) promulgated under the Securities Exchange Act
of 1934, as amended (the “Act”), whether or not the Company is then subject to
such reporting requirement; provided, however, that, without limitation, such a
Change in Control shall be deemed to have occurred if after the Effective Date
(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Act)
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of the Company representing 10% or more of the combined voting power
in the election of trustees of the Company’s then outstanding securities
without the prior approval of at least two-thirds of the members of the Board
of Trustees in office immediately prior to such person attaining such
percentage interest; (ii) there occurs a proxy contest, or the Company is a
party to a merger, consolidation, sale of assets, plan of liquidation or other
reorganization not approved by at least two-thirds of the members of the Board
of Trustees then in office, as a consequence of which members of the Board of
Trustees in office immediately prior to such transaction or event constitute
less than a majority of the Board of Trustees thereafter; or (iii) during any
period of two consecutive years, other than as a result of an event described
in clause (a)(ii) of this Section 1, individuals who at the beginning of such
period constituted the Board of Trustees (including for this purpose any new
trustee whose election or nomination for election by the Company’s shareholders
was approved by a vote of at least two-thirds of the trustees then still in
office

 

1

 

who were trustees at the beginning of such period) cease for any reason
to constitute at least a majority of the Board of Trustees.

 

(b)           “Corporate
Status” means the status of a person who is or was a director, trustee, officer
or agent of the Company.

 

(c)           “Disinterested
Trustee” means a trustee of the Company who is not and was not a party to the
Proceeding in respect of which indemnification is sought by Indemnitee.

 

(d)           “Expenses”
means all expenses, including, but not limited to, all reasonable attorneys’
fees, retainers, court costs, transcript costs, fees of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, or being or
preparing to be a witness in a Proceeding.

 

(e)           “Independent
Counsel” means a law firm, or a member of a law firm, that is retained by
Indemnitee and is not serving as counsel to the Company.

 

(f)            “Proceeding”
means any threatened, pending or completed action, suit, arbitration, alternate
dispute resolution mechanism, investigation, administrative hearing or any
other proceeding, whether civil, criminal, administrative or investigative
(including on appeal), except one initiated by an Indemnitee pursuant to Section
9.

 

Section 2.               Indemnification
- General.  The Company shall
indemnify, and advance Expenses to, Indemnitee (a) as provided in this
Agreement and (b) otherwise to the fullest extent permitted by Maryland law in
effect on the date hereof and as amended from time to time; provided, however,
that no change in Maryland law shall have the effect of reducing the benefits
available to Indemnitee hereunder based on Maryland law as in effect on the
date hereof.  The rights of Indemnitee
provided in this Section 2 shall include, without limitation, the rights
set forth in the other sections of this Agreement, including any additional
indemnification permitted by Section 2-418(g) of the Maryland General
Corporation Law (“MGCL”), as applicable to a Maryland real estate investment
trust by virtue of Section 8-301(15) of the Maryland REIT Law.

 

Section 3.               Proceedings
Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of
indemnification provided in this Section 3 if, by reason of his
Corporate Status, he is, or is threatened to be, made a party to any
threatened, pending, or completed Proceeding, other than a Proceeding by or in
the right of the Company.  Pursuant to
this Section 3, Indemnitee shall be indemnified against all judgments,
penalties, fines and amounts paid in settlement and all Expenses incurred by
him or on his behalf in connection with a Proceeding by reason of Indemnitee’s
Corporate Status unless it is established that (i) the act or omission of
Indemnitee was material to the matter giving rise to the Proceeding and (a) was
committed in bad faith or (b) was the result of active and deliberate
dishonesty, (ii) Indemnitee actually received an improper personal benefit in
money, property or services, or (iii) in the case of any criminal Proceeding,
Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

Section 4.               Proceedings
by or in the Right of the Company. 
Indemnitee shall be entitled to the rights of indemnification provided
in this Section 4 if, by reason of his Corporate Status, he is, or is
threatened to be, made a party to any threatened, pending or completed
Proceeding brought by or in the right of the Company to procure a judgment in
its favor.  Pursuant to this Section 4,
Indemnitee shall be indemnified against all amounts paid in settlement and all
Expenses incurred by him or on his behalf in connection with such Proceeding
unless it is established that (i) the act or omission of Indemnitee was
material to the matter giving rise to such a Proceeding and (a) was committed
in bad faith or (b) was the result of active and deliberate dishonesty or (ii)
Indemnitee actually received an improper personal benefit in money, property or
services.

 

2

 

Section 5.               Indemnification
for Expenses of a Party Who is Partly Successful.  Without limitation on Section 3 and Section
4, if Indemnitee is not wholly successful in any Proceeding covered by this
Agreement, but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee under this Section 5 for all Expenses incurred by
him or on his behalf in connection with each successfully resolved claim, issue
or matter, allocated on a reasonable and proportionate basis.  For purposes of this Section and without
limitation, the termination of any claim, issue or matter in such a Proceeding
by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter.

 

Section 6.               Advance
of Expenses.  The Company shall
advance all Expenses incurred by or on behalf of Indemnitee in connection with
any Proceeding to which Indemnitee is, or is threatened to be, made a party or
a witness, within ten days after the receipt by the Company of a statement or
statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably
evidence the Expenses incurred by Indemnitee and shall include or be preceded
or accompanied by a written affirmation by Indemnitee of Indemnitee’s good
faith belief that the standard of conduct necessary for indemnification by the
Company as authorized by law and by this Agreement has been met and a written
undertaking by or on behalf of Indemnitee, in substantially the form attached
hereto as Exhibit A or in such form as may be required under applicable
law as in effect at the time of the execution thereof, to reimburse the portion
of any Expenses advanced to Indemnitee relating to claims, issues or matters in
the Proceeding as to which it shall ultimately be established that the standard
of conduct has not been met and which have not been successfully resolved as
described in Section 5.  To the
extent that Expenses advanced to Indemnitee do not relate to a specific claim,
issue or matter in the Proceeding, such Expenses shall be allocated on a
reasonable and proportionate basis.  The
undertaking required by this Section 6 shall be an unlimited general obligation
by or on behalf of Indemnitee and shall be accepted without reference to
Indemnitee’s financial ability to repay such advanced Expenses and without any
requirement to post security therefor.

 

Section 7.               Procedure
for Determination of Entitlement to Indemnification.

 

(a)           To
obtain indemnification under this Agreement, Indemnitee shall submit to the
Company a written request, including such documentation and information as is
reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification.  The Secretary of the Company shall, promptly
upon receipt of such a request for indemnification, advise the Board of Trustees
in writing that Indemnitee has requested indemnification.

 

(b)           Upon
written request by Indemnitee for indemnification pursuant to the first
sentence of Section 7(a) hereof, a determination, if required by
applicable law, with respect to Indemnitee’s entitlement thereto shall promptly
be made in the specific case: (i) if a Change in Control shall have occurred,
by Independent Counsel in a written opinion to the Board of Trustees, a copy of
which shall be delivered to Indemnitee; or (ii) if a Change of Control shall
not have occurred or if after a Change of Control Indemnitee shall so request,
(A) by the Board of Trustees (or a duly authorized committee thereof) by a
majority vote of a quorum consisting of Disinterested Trustees (as herein
defined), or (B) if a quorum of the Board of Trustees consisting of
Disinterested Trustees is not obtainable or, even if obtainable, such quorum of
Disinterested Trustees so directs, by Independent Counsel in a written opinion
to the Board of Trustees, a copy of which shall be delivered to Indemnitee, or
(C) if so directed by a majority of the members of the Board of Trustees, by
the shareholders of the Company; and, if it is so determined that Indemnitee is
entitled to indemnification, payment to Indemnitee shall be made within ten
days after such determination. 
Indemnitee shall cooperate with the person, persons or entity making
such determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance
request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. 
Any Expenses incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company shall indemnify and hold Indemnitee harmless
therefrom.

 

3

 

Section 8.               Presumptions
and Effect of Certain Proceedings.

 

(a)           In
making a determination with respect to entitlement to indemnification
hereunder, the person or persons or entity making such determination shall
presume that Indemnitee is entitled to indemnification under this Agreement if
Indemnitee has submitted a request for indemnification in accordance with Section
7(a) of this Agreement, and the Company shall have the burden of proof to
overcome that presumption in connection with the making of any determination
contrary to that presumption.

 

(b)           The
termination of any Proceeding by judgment, order, settlement, conviction, a
plea of nolo contendere or its equivalent, or an entry of an order of
probation prior to judgment, does not create a presumption that Indemnitee did
not meet the requisite standard of conduct described herein for
indemnification.

 

Section 9.               Remedies
of Indemnitee.

 

(a)           If
(i) a determination is made pursuant to Section 7 that Indemnitee is not
entitled to indemnification under this Agreement, (ii) advance of Expenses is
not timely made pursuant to Section 6, (iii) no determination of
entitlement to indemnification shall have been made pursuant to Section 7(b)
within 30 days after receipt by
the Company of the request for indemnification, (iv) payment of indemnification
is not made pursuant to Section 5 within ten days after receipt by the
Company of a written request therefor, or (v) payment of indemnification is not
made within ten days after a determination has been made that Indemnitee is
entitled to indemnification, Indemnitee shall be entitled to an adjudication in
an appropriate court of the State of Maryland, or in any other court of
competent jurisdiction, of his entitlement to such indemnification or advance
of Expenses.  Alternatively, Indemnitee,
at his option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the commercial Arbitration Rules of the American
Arbitration Association.  Indemnitee
shall commence such proceeding seeking an adjudication or an award in
arbitration within 180 days following the date on which Indemnitee first has
the right to commence such proceeding pursuant to this Section 9(a); provided,
however, that the foregoing clause shall not apply in respect of a
proceeding brought by Indemnitee to enforce his rights under Section 5.

 

(b)           In
any judicial proceeding or arbitration commenced pursuant to this Section 9,
the Company shall have the burden of proving that Indemnitee is not entitled to
indemnification or advance of Expenses, as the case may be.

 

(c)           If
a determination shall have been made pursuant to Section 7(b) that
Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding or arbitration commenced pursuant to
this Section 9, absent a misstatement by Indemnitee of a material fact,
or an omission of a material fact necessary to make Indemnitee’s statement not
materially misleading, in connection with the request for indemnification.

 

(d)           In
the event that Indemnitee, pursuant to this Section 9, seeks a judicial
adjudication of or an award in arbitration to enforce his rights under, or to
recover damages for breach of, this Agreement, Indemnitee shall be entitled to
recover from the Company, and shall be indemnified by the Company for, any and
all Expenses incurred by him in such judicial adjudication or arbitration.  If it shall be determined in such judicial adjudication
or arbitration that Indemnitee is entitled to receive part but not all of the
indemnification or advance of Expenses sought, the Expenses incurred by
Indemnitee in connection with such judicial adjudication or arbitration shall
be appropriately prorated.

 

Section 10.             Defense
of the Underlying Proceeding.

 

(a)           Indemnitee
shall notify the Company promptly upon being served with or receiving any
summons, citation, subpoena, complaint, indictment, information, notice,
request or other document relating to any Proceeding which may result in the
right to indemnification or the advance of Expenses hereunder; provided,
however, that the failure to give any such notice shall not disqualify
Indemnitee from

 

4

 

the right, or otherwise affect in any manner any right of Indemnitee,
to indemnification or the advance of Expenses under this Agreement unless the
Company’s ability to defend in such Proceeding or to obtain proceeds under any
insurance policy is materially and adversely prejudiced thereby, and then only
to the extent the Company is thereby actually so prejudiced.

 

(b)           Subject
to the provisions of the last sentence of this Section 10(b) and of Section
10(c) below, the Company shall have the right to defend Indemnitee in any
Proceeding which may give rise to indemnification hereunder; provided, however,
that the Company shall notify Indemnitee of any such decision to defend within
15 calendar days following receipt of notice of any such Proceeding under Section
10(a) above.  The Company shall not,
without the prior written consent of Indemnitee, which shall not be
unreasonably withheld or delayed, consent to the entry of any judgment against
Indemnitee or enter into any settlement or compromise which (i) includes an
admission of fault of Indemnitee or (ii) does not include, as an unconditional
term thereof, the full release of Indemnitee from all liability in respect of
such Proceeding, which release shall be in form and substance reasonably
satisfactory to Indemnitee.  This Section
10(b) shall not apply to a Proceeding brought by Indemnitee under Section
9 above or Section 14.

 

(c)           Notwithstanding
the provisions of Section 10(b), if in a Proceeding to which Indemnitee
is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably
concludes, based upon an opinion of counsel approved by the Company, which
approval shall not be unreasonably withheld, that he may have separate defenses
or counterclaims to assert with respect to any issue which may not be
consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably
concludes, based upon an opinion of counsel approved by the Company, which
approval shall not be unreasonably withheld, that an actual or apparent
conflict of interest or potential conflict of interest exists between
Indemnitee and the Company, or (iii) the Company fails to assume the defense of
such Proceeding in a timely manner, Indemnitee shall be entitled to be
represented by separate legal counsel of Indemnitee’s choice, subject to the
prior approval of the Company, which shall not be unreasonably withheld, at the
expense of the Company.  In addition, if
the Company fails to comply with any of its obligations under this Agreement or
in the event that the Company or any other person takes any action to declare
this Agreement void or unenforceable, or institutes any Proceeding to deny or
to recover from Indemnitee the benefits intended to be provided to Indemnitee
hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s
choice, subject to the prior approval of the Company, which shall not be
unreasonably withheld, at the expense of the Company (subject to Section
9(d)), to represent Indemnitee in connection with any such matter.

 

Section 11.             Non-Exclusivity;
Survival of Rights.

 

(a)           The
rights of indemnification and advance of Expenses as provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may at
any time be entitled under applicable law, the Declaration of Trust or Bylaws
of the Company, any agreement or a resolution of the shareholders entitled to
vote generally in the election of trustees or of the Board of Trustees, or
otherwise.  No amendment, alteration or
repeal of this Agreement or of any provision hereof shall limit or restrict any
right of Indemnitee under this Agreement in respect of any action taken or
omitted by such Indemnitee in his Corporate Status prior to such amendment,
alteration or repeal.

 

(b)           In
the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all papers required and take all action necessary to secure
such rights, including execution of such documents as are necessary to enable
the Company to bring suit to enforce such rights.

 

(c)           The
Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

 

5

 

Section 12.             Duration
of Agreement; Binding Effect.

 

(a)           This
Agreement shall continue until and terminate ten years after the date that
Indemnitee shall have ceased to serve as a director, trustee, officer,
employee, or agent of the Company or of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise which
Indemnitee served at the request of the Company; provided, however,
that the rights of Indemnitee hereunder shall continue until the final
termination of any Proceeding then pending in respect of which Indemnitee is
granted rights of indemnification or advance of Expenses hereunder and of any
proceeding commenced by Indemnitee pursuant to Section 9 relating
thereto.

 

(b)           The
indemnification and advance of Expenses provided by, or granted pursuant to,
this Agreement shall be binding upon and be enforceable by the parties hereto
and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Company), shall continue as
to an Indemnitee who has ceased to be a director, trustee, officer, employee or
agent of the Company or of any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise which such person is or was
serving at the written request of the Company, and shall inure to the benefit
of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and
administrators and other legal representatives.

 

(c)           The
Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a
substantial part, of the business and/or assets of the Company, by written
agreement in form and substance satisfactory to Indemnitee, expressly to assume
and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken
place.

 

Section 13.             Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, each portion of
any section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable that is not itself invalid, illegal or unenforceable)
shall not in any way be affected or impaired thereby; and (b) to the fullest
extent possible, the provisions of this Agreement (including, without
limitation, each portion of any section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall be construed so as to give effect to
the intent manifested thereby.

 

Section 14.             Limitation
and Exception to Right of Indemnification or Advance of Expenses.  Notwithstanding any other provision of this
Agreement, (a) any indemnification or advance of Expenses to which Indemnitee
is otherwise entitled under the terms of this Agreement shall be made only to
the extent such indemnification or advance of Expenses does not conflict with
applicable Maryland law and (b) Indemnitee shall not be entitled to
indemnification or advance of Expenses under this Agreement with respect to any
Proceeding brought by Indemnitee, unless (i) the Proceeding is brought to enforce
indemnification under this Agreement or otherwise or (ii) the Company’s Bylaws,
as amended, the Declaration of Trust, a resolution of the shareholders entitled
to vote generally in the election of trustees or of the Board of Trustees or an
agreement approved by the Board of Trustees to which the Company is a party
expressly provide otherwise.

 

Section 15.             Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same Agreement.  One such counterpart signed by the party
against whom enforceability is sought shall be sufficient to evidence the
existence of this Agreement.

 

6

 

Section 16.             Headings.  The headings of the paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

Section 17.             Modification
and Waiver.  No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. 
No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

 

Section 18.             Notices.  Any notice, report or other communication
required or permitted to be given hereunder shall be in writing unless some
other method of giving such notice, report or other communication is accepted
by the party to whom it is given, and shall be given by being delivered at the
following addresses to the parties hereto:

 

(a)           If
to Indemnitee, to:  The address set forth
on the signature page hereto.

 

(b)           If
to the Company to:

 

Hospitality
Properties Trust

400 Centre Street

Newton,
Massachusetts 02458

Attn:  Secretary

 

or to such other address
as may have been furnished to Indemnitee by the Company or to the Company by
Indemnitee, as the case may be.

 

Section 19.             Governing Law.  The parties agree that this Agreement shall
be governed by, and construed and enforced in accordance with, the laws of the
State of Maryland, without regard to its conflicts of laws rules.

 

[SIGNATURE PAGE FOLLOWS]

 

7

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the day and year first above written.

 

	
  ATTEST:

  	
  HOSPITALITY PROPERTIES
  TRUST

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/Jennifer B. Clark

  	
   

  	
  By:

  	
  /s/Mark L. Kleifges

  	
  (SEAL)

  
	
   

  	
   

  	
  Name: Mark L. Kleifges

  	
   

  
	
   

  	
   

  	
  Title: Treasurer and
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  INDEMNITEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/Elizabeth A. Tober

  	
   

  	
  /s/John G. Murray

  	
   

  
	
   

  	
  Name:  John G. Murray

  	
   

  
	
   

  	
  Address: [Address
  Omitted]

  	
   

  
					

 

8

 

EXHIBIT A

 

FORM OF UNDERTAKING TO
REPAY EXPENSES ADVANCED

 

The Board of Trustees of
Hospitality Properties Trust

 

Re:  Undertaking to Repay Expenses Advanced

 

Ladies and Gentlemen:

 

This undertaking is being provided pursuant to that
certain Indemnification Agreement dated
                           ,
2004, by and between Hospitality Properties Trust (the “Company”) and the
undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I
am entitled to advance of expenses in connection with [Description
of Proceeding] (the “Proceeding”).

 

Terms used herein and not otherwise defined shall have
the meanings specified in the Indemnification Agreement.

 

I am subject to the Proceeding by reason of my
Corporate Status or by reason of alleged actions or omissions by me in such
capacity.  I hereby affirm that at all
times, insofar as I was involved as [a trustee]  [an officer] of the Company, in any of the facts or events
giving rise to the Proceeding, I (1) acted in good faith and honestly, (2) did
not receive any improper personal benefit in money, property or services and
(3) in the case of any criminal proceeding, had no reasonable cause to believe
that any act or omission by me was unlawful.

 

In consideration of the advance of expenses by the
Company for reasonable attorney’s fees and related expenses incurred by me in
connection with the Proceeding (the “Advanced Expenses”), I hereby agree that
if, in connection with the Proceeding, it is established that (1) an act or
omission by me was material to the matter giving rise to the Proceeding and (a)
was committed in bad faith or (b) was the result of active and deliberate
dishonesty or (2) I actually received an improper personal benefit in money,
property or services or (3) in the case of any criminal proceeding, I had
reasonable cause to believe that the act or omission was unlawful, then I shall
promptly reimburse the portion of the Advanced Expenses relating to the claims,
issues or matters in the Proceeding as to which the foregoing findings have been
established and which have not been successfully resolved as described in Section
5 of the Indemnification Agreement. 
To the extent that Advanced Expenses do not relate to a specific claim,
issue or matter in the Proceeding, I agree that such Expenses shall be
allocated on a reasonable and proportionate basis.

 

IN WITNESS WHEREOF, I
have executed this Affirmation and Undertaking on this
       day of
                                 ,
200   .

 

 

WITNESS:

 

	
   

  	
   

  	
   

  	
  (SEAL)

  

 

9

 

Schedule to Exhibit 10.8

 

The following individuals are parties to
Indemnification Agreements with the Company which are substantially identical
in all material respects to the representative Indemnification Agreement filed
herewith and are dated as of the respective dates listed below.  The other
Indemnification Agreements are omitted pursuant to Instruction 2 to Item 601 of
Regulation S-K.

 

	
  Name of Signatory

  	
   

  	
  Date

  
	
  Frank J. Bailey

  	
   

  	
  March 10, 2004

  
	
  Ethan S. Bornstein

  	
   

  	
  March 10, 2004

  
	
  John L. Harrington

  	
   

  	
  March 10, 2004

  
	
  Mark L. Kleifges

  	
   

  	
  March 10, 2004

  
	
  William A. Lamkin

  	
   

  	
  January 11, 2007

  
	
  John G. Murray

  	
   

  	
  March 10, 2004

  
	
  Adam D. Portnoy

  	
   

  	
  January 11, 2007

  
	
  Barry M. Portnoy

  	
   

  	
  March 10, 2004

  
	
  William J. Sheehan

  	
   

  	
  May 7, 2004

  

 

10Exhibit 10.1

 

ALSTON & BIRD LLP

John Latham

1201 W. Peachtree Street

Atlanta, Georgia
30309-3424

Telephone:  (404) 881-7915

Facsimile:  (404) 881-7777

john.latham@alston.com

 

Dimitri J. Nionakis

950 F Street NW

Washington, DC  20004

Telephone:  (202) 756-3158

Facsimile:  (202) 654-4948

dimitri.nionakis@alston.com

 

ATTORNEYS FOR THE SPECIAL

LITIGATION COMMITTEE OF

THE BOARD OF DIRECTORS OF

THE CHEESECAKE FACTORY
INC.

 

[Additional counsel
listed on

signature pages]

 

 

UNITED STATES DISTRICT COURT

 

CENTRAL DISTRICT OF CALIFORNIA

 

WESTERN DIVISION

 

	
  In Re THE
  CHEESECAKE FACTORY 

  	
  )

  	
   

  	
  Case
  No. CV-06-6234 ABC (MANx) 

  
	
  INCORPORATED
  DERIVATIVE 

  	
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  LITIGATION 

  	
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  STIPULATION
  OF SETTLEMENT  

  
	
   

  	
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  Date:    March 31, 2008  

  
	
   

  	
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  Time:   10 a.m.

  
	
   

  	
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  Ctrm:    680  

  
	
   

  	
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  Judge:   Hon. Audrey B. Collins

  
	
   

  	
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  This
  Document Relates To:

  	
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  ALL ACTIONS

  	
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1

 

This Stipulation of Settlement dated as of February 11, 2008 (“the
Stipulation”) is made and entered into by and among the following Settling
Parties (as defined further in Section IV.1.16 hereof): (i) the
Representative Plaintiffs (as defined in Section IV.1.12) on behalf of
themselves and derivatively on behalf of The Cheesecake Factory Incorporated (“The
Cheesecake Factory” or “the Company”), by and through their counsel of record
in the Actions (as hereafter defined); and (ii) the Defendants identified
below, by and through their respective counsel of record in the Actions.  The Stipulation is intended by the Settling
Parties to fully, finally, and forever resolve, discharge, and settle the
Released Claims (as defined below in Section IV.1.10), upon and subject to
the terms and conditions hereof.

 

I.                                         THE
LITIGATION

 

The Cheesecake Factory, through its wholly-owned subsidiaries, operates
over one hundred full-service restaurants in the United States under the name
The Cheesecake Factory or Grand Lux Café, and also operates two bakery
production facilities.  The Cheesecake
Factory was founded in 1992, and its principal executive offices are located in
Calabasas Hills, California.

 

This shareholder derivative action (the “Federal Action”) asserts
claims on behalf of nominal defendant The Cheesecake Factory against certain
members of its Board of Directors (“Board”) and certain top officers arising
out of their alleged misconduct relating to The Cheesecake Factory’s stock
options dating practices.  In addition to
nominal defendant The Cheesecake Factory, the Defendants include David Overton,
Michael Dixon, Max S. Byfuglin, Peter J. D’Amelio, Cheryl M. Slomann, Debby R.
Zurzolo, Gerald W. Deitchle, Thomas L. Gregory, Jerome Kransdorf, Karl L.
Matthies, Michael Nahkunst, Linda Candioty, and Wayne White (together, “the
Individual Defendants”).

 

The
Complaint in the Federal Action generally alleges that the Defendants granted,
received, and concealed backdated stock options from 1997 to 2004.  The 

 

2

 

Complaint
further alleges that from 1997 to 2006, certain Individual Defendants were
involved in preparing annual reports and proxy statements containing material
overstatements of income and earnings due to the improper accounting for option
expense.  In addition, the Complaint
alleges that certain of the Individual Defendants engaged in unlawful insider
trading based upon their alleged knowledge of material nonpublic information
regarding the backdated options. 
Finally, the Complaint claims that, due to Individual Defendants’
alleged conduct, The Cheesecake Factory was forced to undertake a costly
internal investigation and respond to an informal inquiry by the SEC (“SEC
Inquiry”).

 

In
addition to this Federal Action, a separate group of plaintiffs brought several
parallel derivative actions based on many of the same factual allegations in
the Superior Court for the State of California asserting violations of
California law, which have all been consolidated in Department 309 of the Los
Angeles Superior Court and are identified by Lead Case No. BC355953 (the “State
Action”).  The plaintiffs in the State
Action have agreed to the terms of this Stipulation as evidenced by their
signature below and agree to be bound by the Judgment described in Section IV.1.6
below and all parties to this Stipulation agree to entry of an order by this
Court allowing the plaintiffs in the State Action to intervene under Rule 24(b) of
the Federal Rules of Civil Procedure for the limited purpose of being
bound by the terms of this Stipulation and the Judgment to be entered hereon.  The instant action and the State Action are
collectively referred to herein as the “Actions.”

 

On January 4, 2007, The Cheesecake Factory’s Board formed a
Special Litigation Committee consisting of an outside director, David Klock,
Ph.D., to advise the Board regarding the disposition of the derivative claims
in the Actions.  In October 2007,
the Special Litigation Committee completed its investigation and concluded that
a settlement of the Actions was in the best interests of the Company.

 

3

 

II.                                 DEFENDANTS’
DENIALS OF WRONGDOING AND LIABILITY

 

Defendants expressly have
denied and continue to deny all charges of liability against them arising out
of any of the conduct, statements, acts, or omissions alleged, or that could
have been alleged, in the Actions.  The
Individual Defendants assert that, at all relevant times, the Individual
Defendants acted in good faith, and in a manner they reasonably believed to be
in or not opposed to the best interests of The Cheesecake Factory and its
shareholders.  The Individual Defendants
assert that they would ultimately prevail on each and all of the claims and
contentions alleged by the Representative Plaintiffs in the Actions.

 

Nonetheless, the Individual
Defendants have concluded that further conduct of the Actions would be
protracted and expensive, and that it is desirable that the Actions be fully
and finally settled in the manner and upon the terms and conditions set forth
in this Stipulation.  The Individual
Defendants also have taken into account the uncertainty and risks inherent in
any litigation, especially in complex cases like the Actions.  The Individual Defendants have, therefore,
determined that it is desirable and beneficial to The Cheesecake Factory that
the Actions be settled in the manner and upon the terms and conditions set
forth in this Stipulation.

 

III.                             CLAIMS OF THE REPRESENTATIVE
PLAINTIFFS AND BENEFITS    OF SETTLEMENT

 

The Representative Plaintiffs in each of
the Actions believe that the claims asserted in the Actions have merit.
However, counsel for the Representative Plaintiffs recognize and acknowledge
the expense and length of continued proceedings necessary to prosecute the
Actions against the Defendants through trial and through appeals.  Counsel for the Representative Plaintiffs
also have taken into account the uncertain outcome and the risk of any
litigation, especially in complex lawsuits such as the Actions, as well as the
difficulties, expense and delays inherent in such litigation.  Counsel for the Representative Plaintiffs
also are mindful of the inherent problems of proof of and possible defenses to
the claims asserted in the 

 

4

 

Actions.  Counsel for the Representative Plaintiffs
believe, and the Company and Individual Defendants acknowledge, that the
settlement set forth in this Stipulation confers substantial benefits upon The
Cheesecake Factory.  Based on their
evaluation, counsel for the Representative Plaintiffs have determined that the
settlement set forth in the Stipulation is in the best interests of the
Representative Plaintiffs and The Cheesecake Factory.

 

IV.                            TERMS
OF STIPULATION AND AGREEMENT OF SETTLEMENT

 

NOW,
THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among the Representative
Plaintiffs (for themselves and derivatively on behalf of The Cheesecake
Factory) and the Defendants, by and through their respective counsel that,
subject to the approval of the Court in the Federal Action, entry of a Final
Judgment as provided in this Stipulation, and satisfaction of all other
conditions set forth herein, the Actions and the Released Claims shall be
finally and fully compromised, settled and released, and the Actions shall be
dismissed with prejudice, as to all Settling Parties.

 

1.             Definitions

 

The following terms have the meanings specified below:

 

1.1           “Defendants” means nominal party The Cheesecake Factory
and any of its subsidiaries, and the Individual Defendants.

 

1.2           “Effective Date” means the first date by which all of the
events and conditions specified in Section IV.6 of the Stipulation have
been met and have occurred.

 

1.3           “Final” means the later of: (a) the
date of final affirmance on an appeal of the Judgment, the expiration of the
time for a petition for or a denial of such writ of review of the Judgment or,
if such writ is granted, the date of final affirmance of the Judgment following
review pursuant to that grant; or (b) the date of final dismissal of any
appeal from the Judgment or the final dismissal of any proceeding on writ of
review to review the Judgment; or (c) if no appeal is filed, the
expiration 

 

5

 

date for filing of any appeal from the Court’s
Judgment approving the Stipulation substantially in the form of Exhibit A
attached hereto; i.e., thirty (30) days after
entry of the Judgment.

 

1.4           “Independent Director(s)” shall have
the meaning set forth in Section IV.2.2.C.1 below.

 

1.5           “Individual Defendants” means David
Overton, Michael Dixon, Max S. Byfuglin, Peter J. D’Amelio, Cheryl M. Slomann,
Debby R. Zurzolo, Gerald W. Deitchle, Thomas L. Gregory, Jerome Kransdorf, Karl
L. Matthies, Michael Nahkunst, Linda Candioty, and Wayne White.

 

1.6           “Judgment” or “Final Judgment” means
the judgment to be entered by this Court, substantially in the form attached as
Exhibit A.

 

1.7           “Person” means an individual,
corporation, limited liability corporation, professional corporation,
partnership, limited partnership, limited liability partnership, association,
joint stock company, estate, legal representative, trust, unincorporated
association, government or any political subdivision or agency thereof, and any
business or legal entity and their spouses, heirs, predecessors, successors,
representatives, or assignees.

 

1.8           “Plaintiffs’ Settlement Counsel”
means Lead Counsel for the Representative Plaintiffs in the Federal Action:
Darren J. Robbins, Coughlin Stoia Geller Rudman & Robbins LLP, 655
West Broadway, Suite 1900, San Diego, CA92101, and Eric L. Zagar,
Schiffrin & Barroway, LLP, 280 King of Prussia Road, Radnor, PA 19087.

 

1.9           “Related Persons” means The
Cheesecake Factory’s past or present directors, officers, employees,
controlling shareholders, attorneys, accountants, insurers, reinsurers and
co-insurers, legal representatives, predecessors, successors, subsidiaries,
spouses, heirs, any entity in which an Individual Defendant has a controlling
interest, any members of an Individual Defendants’ immediate family, or 

 

6

 

any trust of which any Individual Defendant is the
settlor or which is for the benefit of any Individual Defendant and/or member(s) of
his/her family.

 

1.10         “Released Claims” shall collectively
mean all claims (including “Unknown Claims,” as defined in Section IV.1.17
hereof), demands, rights, actions, liabilities, damages, losses, obligations,
or causes of action, whether known or unknown, contingent or absolute,
suspected or unsuspected, disclosed or undisclosed, hidden or concealed,
matured or unmatured, that have been or could have been asserted through the
Effective Date, by the Representative Plaintiffs or The Cheesecake Factory’s
Shareholders on behalf of The Cheesecake Factory, against the Defendants or
Released Persons, or any of them, that are based upon or related to the acts,
events, facts, statements, omissions, or failures to act which were alleged or
could have been alleged in either or both of the Actions through the Effective
Date.  It is the intent of the Settling
Parties that no action may hereafter be brought or prosecuted derivatively on
behalf of The Cheesecake Factory which arises from or relates to the subject
matter of the Actions.  For the avoidance of doubt, “Released Claims” shall
not include any rights or claims by the Defendants under any policies of
insurance or by the Individual Defendants against The Cheesecake Factory for
indemnification, reimbursement and/or advancement of expenses, relating to the
Actions or SEC Inquiry.

 

1.11         “Released Persons” means each and all
of the Defendants and the Related Persons.

 

1.12         “Representative Plaintiffs” means
Michael Freed, Ralph Kuhns, and Troy Siebels in the instant Federal Action and
John McGee, Norman Rigotti, Gary Cullen and Seymour H. Sachs in the
consolidated State Action.

 

1.13         “Representative Plaintiffs’ Counsel”
means counsel that has appeared for any of the Representative Plaintiffs in the
Actions.

 

1.14         “The Cheesecake Factory Shareholders”
means all record or beneficial owners of The Cheesecake Factory common stock as
of the Effective Date.

 

7

 

1.15         “Settlement” means commencing as of the
Effective Date, the settlement of the Actions as provided in this Stipulation.

 

1.16         “Settling Parties” means, collectively,
each of the Defendants and the Representative Plaintiffs on behalf of
themselves and derivatively on behalf of The Cheesecake Factory.

 

1.17         “Unknown Claims”
means any Released Claim which any Settling Party does not know or suspect to
exist in such party’s favor at the time of the release of the Released Persons
which, if known by such party, might have affected such party’s settlement with
and release of the Released Persons, or might have affected such party’s
decision not to object to this settlement. 
With respect to any and all Released Claims, upon the Effective Date,
the Settling Parties shall expressly waive, and by operation of the Judgment
the Settling Parties and The Cheesecake Factory Shareholders shall have
waived,  the provisions, rights, and
benefits of California Civil Code §1542, which provides:

 

A general release does not
extend to claims which the creditor does not know or suspect to exist in his or
her favor at the time of executing the release, which if known by him or her
must have materially affected his or her 
settlement with the debtor.

 

The Settling Parties and The Cheesecake Factory Shareholders by
operation of the Judgment shall have expressly waived any and all provisions,
rights, and benefits conferred by any law of any state or territory of the
United States, or principle of common law, which is similar, comparable, or
equivalent to California Civil Code §1542. 
The Settling Parties may hereafter discover facts in addition to or
different from those which such party now knows or believes to be true with respect
to the subject matter of the Released Claims, but the Settling Parties, The
Cheesecake Factory Shareholders, and The Cheesecake Factory, upon the Effective
Date, by operation of the Judgment shall have fully, finally, and forever
settled and released any and all Released Claims, known or unknown, suspected
or 

 

8

 

unsuspected, contingent or
non-contingent, whether or not concealed or hidden, that now exist, or
heretofore have existed, upon any theory of law or equity now existing or
coming into existence in the future, including, but not limited to, conduct
that is negligent, reckless, intentional, with or without malice, or a breach
of any duty, law, or rule, without regard to the subsequent discovery or
existence of such different or additional facts.

 

2.                                      Settlement
of the Derivative Claims

 

2.1                                 Under this
Stipulation and Settlement, the following corporate governance reforms are
designed to improve corporate governance at The Cheesecake Factory, with the
intent of increasing shareholder value.

 

2.2                                 Upon approval
of the Settlement by this Court, and provided that all of the events and
conditions specified in Section IV.6 of the Stipulation have been met and
have occurred, The Cheesecake Factory shall maintain and/or adopt the corporate
governance reforms set forth below within twelve months from the Effective
Date, and these corporate governance reforms will be operative for a four (4) year
period, unless otherwise provided herein.

 

A.                                    Board
Composition

 

1.                            The Cheesecake Factory will increase the size
of its Board of Directors by one additional Independent Director.

 

2.                            Each Committee of the Board of Directors
shall be entitled to engage independent legal, financial or other advisors to assist
them in properly carrying out their duties and responsibilities. These advisors will report directly to the Committee
that engaged them.  It will be permissible
for the same independent advisors to assist more than one Committee.

 

3.                            Each standing Committee
of the Board of Directors shall have a written charter that is made available
to the 

 

9

 

public on The Cheesecake Factory’s  website and that requires the Committee to
meet no fewer than two times per year; however, the Audit Committee shall be required
to meet no fewer than
four times per year.

 

4.                            Without prior approval of the majority of the
Independent Directors, no Independent Director may sit on the board of directors
of more than two additional public companies.

 

5.                            The Independent Directors
shall study and evaluate a potential proposal to the Board of Directors whereby the nominees for
election as members to the Board of Directors 
shall be elected by the affirmative vote of the majority of votes cast
at an annual meeting of shareholders. If The Cheesecake Factory does not change
its by-laws on or before the mailing of the definitive proxy statement related
to the 2009 Annual Meeting of Stockholders, The Cheesecake Factory shall, in
such proxy statement, provide the analysis and conclusion reached by the
Independent Directors as to why the Board of
Directors did not so modify the by-laws.

 

B.                                    Lead
Independent Director

 

1                               The Board of Directors
will maintain the position of Lead Independent Director, who shall be elected annually via secret ballot by a
majority vote of the Independent Directors who shall cast ballots. The Lead
Independent Director shall be responsible for coordinating
the activities of the Independent Directors. 
In addition to the duties of all members of the Board of Directors  (which shall not be limited or diminished by
the Lead

 

10

 

Independent
Director’s role), the specific responsibilities of the Lead Independent
Director are to advise the Chairman of the Board or to undertake the following:

 

a.                                      Determine the appropriate schedule of Board
of Directors meetings after consultation with the Chief Executive
Officer/Chairman and with members of the Board of Directors, as necessary;

 

b.                                     Prepare agendas for the Board of Directors
and Committee meetings after consultation with the Chief Executive
Officer/Chairman;

 

c.                                      Assess the quality, quantity and timeliness
of the flow of information from The Cheesecake Factory’s management that is
necessary for the Independent Directors to effectively
and responsibly perform their duties, including the right of the Lead
Independent Director to specifically request the inclusion of certain material;

 

d.                                      Direct the retention of
consultants who report directly to the Board of Directors;

 

e.                                      Meet annually with the
Corporate Governance Committee to review its compliance with and implementation
of The Cheesecake Factory’s  existing
corporate governance policies and the process by which recommended revisions to
corporate governance policies are submitted to the Board of Directors;

 

f.                                        Meet annually with the Compensation Committee
to review its compliance with and implementation of The Cheesecake Factory’s
policies and procedures for evaluating and undertaking executive and incentive
based 

 

11

 

compensation,
including stock options;

 

g.                                     Coordinate, develop the agenda
for, and moderate executive sessions of the Independent Directors, and act as principal liaison between the
Independent Directors and the Chairman of the Board and/or Chief Executive
Officer on sensitive issues;

 

h.                                     Evaluate, along with members of the
Compensation Committee and all members of the Board of Directors, the Chief
Executive Officer’s performance and meet with the Chief Executive Officer to
discuss the Board’s evaluation;

 

i.                                         Recommend the membership of Committees of the
Board of Directors, as well as the selection of Committee Chairs; and,

 

j.                                         The Lead Independent Director shall have the
authority to retain such counsel or consultants as the Lead Independent
Director deems necessary to perform his or her responsibilities.

 

C.                                    Board Independence

 

1.                                      Two-thirds of the members of the Board of
Directors shall be “Independent Directors” which means that each such member:

 

a.                                      Has not been employed by The Cheesecake
Factory or its subsidiaries or affiliates within the last three calendar years;

 

b.                                     Has not received, during the current calendar
year or any of the three immediately preceding calendar years, remuneration,
other than de minimis remuneration, as a result of
service as,  or compensation paid to an entity 

 

12

 

affiliated
with the individual who serves as (i) an advisor, consultant, or legal
counsel to The Cheesecake Factory  or to
a member of its  senior management and (ii) a
significant customer or supplier of The Cheesecake Factory;

 

c.                                      Has no personal services contract(s) with
The Cheesecake Factory, or with any member of its  senior management;

 

d.                                     Is not a director, trustee or officer with a
not-for-profit entity that receives significant contributions from The
Cheesecake Factory;

 

e.                                      During the current calendar year or any of
the three immediately preceding calendar
years, has not had any business relationship with The Cheesecake Factory for which The Cheesecake Factory has been required to
make disclosure under Regulation SK of the Securities and Exchange
Commission (the “SEC”), other than for service as a director or for which
relationship no more than de minimis remuneration
was received in any one such year; provided, however, that the need to disclose
any relationship that existed prior to a
director joining the Board of Directors shall not in and of itself
render the director non-independent;

 

f.                                        Is not employed by a
public company at which an executive officer of The Cheesecake Factory is a member of such other
company’s compensation committee;

 

g.                                     Has not had any of the relationships
described above, with any controlled affiliate of The Cheesecake Factory;

 

h.                                     Is not a member of the immediate family of
any 

 

13

 

person
who fails to satisfy the criteria described above; and,

 

i.                                         A director is deemed to have received
remuneration (other than as a director, including remuneration provided to a
non-executive Chairman of the Board, Committee
Chairman, or Lead Director) if remuneration, other than de minimis remuneration, was paid by The Cheesecake Factory,
its subsidiaries or affiliates, to any
entity, in which the director has a beneficial ownership interest of 5% or
more, or to an entity by which the director is employed or self-employed other
than as a director. Remuneration is deemed de minimis if
such remuneration is less than $60,000 in any calendar year, or if such
remuneration is paid to an entity, it (i) did not for the calendar year
exceed the lesser of $1 million, or 5% of the gross revenues of the entity; and
(ii) did not directly result in a material
increase in the compensation received by the director from that entity.

 

D.                                    Director Stock Ownership

 

The Cheesecake Factory’s
non-employee directors shall not be eligible to receive any change-in-control
payments or severance arrangements of any kind. For the avoidance of doubt, the
acceleration of stock options and restricted grants shall not be deemed a
payment or severance agreement under this paragraph.

 

E.                                      Director Education

 

Within 24 months of the Effective Date, each
then member of the Board of Directors shall attend a director education 

 

14

 

program through an appropriate college or
university e.g. Stanford Law School Directors College, Vanderbilt Directors
College, Duke University or any other ISS approved director education
program.  All new directors shall be
required to attend a director education program within 12 months of election to
the Board of Directors, unless such individual had already attended such
program within the previous 36 months.

 

F.                                      Shareholder Meetings

 

Absent extraordinary circumstances, each
member of the Board of Directors shall be required to attend each annual
shareholder meeting in person.

 

G.                                    Compensation Practices

 

1.                                      In addition to other applicable legal
requirements, The  Cheesecake Factory
shall implement a plan and require the executives to agree in writing to a
provision whereby they shall disgorge to The Cheesecake Factory the portion of
bonus payments deemed appropriate by the Audit Committee that were directly
predicated upon The Cheesecake Factory’s financial performance if (i) The
Cheesecake Factory is required to prepare an accounting restatement to correct
an accounting error on an interim or annual financial statement filed with the
SEC, due to material noncompliance with any financial reporting requirement
under the federal securities laws, and (ii) such bonus was directly based
on such financial statements.

 

2.                                      The Compensation Committee shall select and
retain an independent compensation consultant to provide advice 

 

15

 

and guidance to the Committee as  needed.  In addition, the consultant shall, at such
times as requested by the Committee, conduct a comparative market study of The Cheesecake Factory’s executive
compensation policies, practices and procedures. This study shall be delivered
to the Compensation Committee for its use in evaluating and revising, if
necessary, the compensation structure for The Cheesecake Factory’s executives.

 

H.                                    Director Stock Ownership
Requirements and Insider Trading Controls

 

The Cheesecake Factory may
not buy stock from any member of the Board of Directors.  Applicable to any stock option grants made
after the Effective Date, any corporate director or Board-appointed officer who
acquires The Cheesecake Factory’s stock through the exercise of a stock  option must retain 33% of the net shares
(after giving effect to the tax effects of such exercise to the individual) so
acquired for at least 9 months or such earlier time as the individual ceases to
be a director or officer of The Cheesecake Factory as a result of death,
disability, illness, resignation, termination or other reason.

 

I.                                         Stock Option
Practices

 

1.                                      All stock option plans
adopted by The Cheesecake Factory shall clearly define the exercise price,
grant date and fair market value of stock. The exercise price or value of any
equity award shall be determined by fair market value of The Cheesecake 

 

16

 

Factory’s stock on the date of grant. The fair
market value of The Cheesecake Factory’s stock shall be the closing price (or
closing bid, if no sales were reported) for a share of The Cheesecake Factory’s
common stock on such day
as quoted by the exchange or over-the-counter market on which the common stock
is listed (or the exchange or market with the greatest trading volume, if
quoted or listed on more than one exchange or market).  If there is no closing sale or closing bid
price, the closing sales or bid price shall be the price on the last preceding
day for which such quotation exists.  If
the common stock is not listed or quoted on an exchange or over-the-counter
market, the Board of Directors or the Compensation Committee shall determine
the fair market value in good faith.

 

2.                                      The date of grant of an option or other
equity award shall be the date on which the Board of Directors or the
Compensation Committee makes the determination granting such option or award.
Determination shall be defined as the approval by the Board of Directors or the
Compensation Committee of all key terms,
which include name of grantee, amount of options or other equity awards
to be granted, vesting schedule and expiration date.

 

3.                                      The substance of the following clauses shall
be included in any current and/or subsequent equity incentive plan, whether
subject to stockholder approval or not:

 

a.                                      “The exercise price for each stock option
grant shall be at least 100% of the fair market value on the date of grant.”

 

b.                                     “The date of grant of a stock option shall,
for all purposes,

 

17

 

be the date on which the Board of Directors or the Compensation
Committee makes the determination granting such option.”  “Determination” shall be defined
as approval by the Board of Directors or the Compensation Committee of all
key terms, which include name of grantee, amount of stock options or other
equity awards to be granted, vesting schedule and expiration date.

 

4.                                      The Cheesecake Factory shall give notice of
the determination to each employee or consultant to whom a stock option is so
granted as soon as reasonably practicable, but in no event shall such notice be
given more than thirty days after the date of such grant.

 

5.                                      Plans shall comply with all legal
requirements for proper disclosure and accounting and shall provide appropriate
documentation for proper disclosure and accounting.

 

6.                                      Authority to grant stock option awards shall
be limited to the full Board of Directors or
the Compensation Committee, consisting of three or more Independent Directors,
and shall not be delegated to any other person or body.

 

7.                                      Stock options and awards shall be granted
only on pre-set dates which dates shall be set by the Compensation Committee
prior to the beginning of the fiscal year in which the grants are to be
made.  Provided, however, stock options
or awards to new hires and promoted employeesshall be granted at the next
regularly scheduled meeting of the Compensation Committee or the Board of
Directors following the employee’s date of employment or promotion.

 

18

 

J.                                      Audit Committee

 

At least annually the Audit Committee shall meet with The Cheesecake
Factory’s Internal Auditor (see below) and its independent auditors to review,
discuss and approve The Cheesecake Factory’s accounting for stock-based
compensation.

 

K.                                    New Officers

 

1.                                   The Cheesecake Factory shall have a full time
compliance officer. The compliance officer will be responsible for oversight of
all SEC filings and other disclosure issues
of The Cheesecake Factory and shall establish appropriate procedures to ensure
proper reporting and compliance. The compliance officer shall report directly
to the General Counsel, with a “dotted line” of reporting to the Audit
Committee, but at least once each year will attend a meeting of the Independent
Directors.

 

2.                                      The Company shall have a full time Internal
Auditor, with experience auditing the financial records of a public company, to
provide continuous internal auditing and oversight functions to The Cheesecake
Factory. The Internal Auditor shall report directly to the Audit Committee,
with a “dotted line” of reporting to the Chief Financial Officer. The Internal
Auditor will provide the Audit Committee with an annual work plan (including staffing and budget) for review and
approval by the Audit Committee. The Internal Auditor will provide
quarterly reports to the Audit Committee 

 

19

 

regarding progress and results on the annual work plan.

 

2.3           This
Court shall retain jurisdiction during the term of this Stipulation to resolve
any disputes between any of the parties in the Actions concerning the  corporate governance reforms set forth in Section IV.2.2
above.

 

2.4           In addition to the corporate governance reforms described
in Section IV.2.2 of the Stipulation, Plaintiffs and Defendants stipulate
and agree to the following terms and conditions of settlement:

 

A.                                    Repayment for Exercise Options

 

1.                                      The following
Defendants shall pay the amounts set forth below to The Cheesecake Factory
within five (5) business days from the Effective Date of this Settlement:

 

a.                                          The sum of Five Hundred Sixteen Thousand
Dollars ($516,000) to be paid by Gerald Deitchle;

 

b.                                         The sum of Three Hundred Ninety Four Thousand
Dollars ($394,000) or stock options with equivalent value (calculated as of the
date of receipt) to be paid or received from David Overton;

 

c.                                          The sum of Ten Thousand Dollars ($10,000) or
stock options with equivalent value (calculated as of the date of receipt) to
be paid or received from each of Thomas Gregory, Wayne White and Jerome
Kransdorf.

 

d.                                         Consistent with Paragraph 7.2 hereof, the
above repayment for exercised options by these individuals is not deemed to be
an admission by them or any Settling Party as to any wrongdoing or as to the
merits of any claim, allegation, or defense. 
Nor is the repayment designed to serve as restitution, disgorgement or
penalty for any alleged wrongdoing.

 

20

 

B.                                    Tender Offer for Unexercised
Options

 

The parties acknowledge that The Cheesecake Factory
initiated a tender offer on February 6, 2007 by which certain misdated
options were exchanged for options bearing the correct measurement date and
that The Cheesecake Factory has eliminated approximately Three Million Four
Hundred Thousand Dollars ($3,400,000) of “excess spread” through the tender
offer. The members of the Board of Directors were aware of the Actions and the
allegations contained therein at the time they decided to initiate the Tender
Offer.

 

2.5                                 After negotiating the terms set forth above,
Representative Plaintiffs and The Cheesecake Factory reached an agreement at arm’s length and in good faith on the
amount of attorneys’ fees, costs and expenses The Cheesecake Factory
will pay to Plaintiffs’ counsel in both of the Actions in connection with the
Settlement (the “Fee and Expense Award”). 
The Cheesecake Factory has agreed to pay a Fee and Expense Award of Two
Million One Hundred Thousand Dollars ($2,100,000) as full and complete
compensation to all of Plaintiffs’ counsels’ services (including reimbursement
for costs and expenses) in the Actions, subject to Court approval of this
settlement. The Fee and Expense Award shall be paid within five business days from the entry of the Order and Final Judgment by
the Court approving the Settlement, pursuant to disbursement instructions to be
furnished by Plaintiffs’ Settlement Counsel, or failing to receive such
instructions then to the trust account of Plaintiffs’ Settlement Counsel.  Upon payment of the Fee and Expense Award as
provided in this Section 2.5, the Defendants shall be discharged from any
further liability for payment of Plaintiffs’ attorneys fees, costs or expenses
in the Actions and any disputes by and among Plaintiffs’ counsel in the Actions
as to division or allocation of the Fee and Expense

 

21

 

Award by and among themselves,
shall be resolved by the Court on noticed motion.  In the event the Order Approving Settlement
is reversed on appeal, the Fee and Expense Award shall be subject to repayment
in accordance with the terms of Section IV.5.1 below.

 

2.6           The Judgment shall
provide that, within five (5) business days from the Judgment being Final,
Plaintiffs’ counsel in the State Action will file a Stipulation for Dismissal,
with prejudice, of the State Court Action to be signed by all parties to that
action (“State Court Stipulation for Dismissal”).  The State Court Stipulation for Dismissal
shall expressly provide that the Plaintiffs in the State Court Action have
intervened in the Federal Action, have joined in the Stipulation, agreed to be
bound by the Final Judgment, and based thereon are dismissing the State Court
Action.

 

2.7           While retaining
their right to deny liability, the Actions are being settled voluntarily by the
Parties to this Stipulation after consultation with their respective legal
counsel.  The releases between the
parties include releases of all counsel in the Actions.

 

2.8           The Board of Directors of The
Cheesecake Factory shall ratify and adopt this Settlement to be effective upon
the Effective Date.

 

3.             Releases

 

3.1           Upon the Effective Date, as defined
in Section IV.1.2 hereof, the Representative Plaintiffs, individually and
derivatively on behalf of The Cheesecake Factory Shareholders and by operation
of the Judgment, shall be deemed to have, fully, finally, and forever released,
relinquished, and discharged all Released Claims and any and all claims arising
out of, relating to, or in connection with the settlement or resolution of the
Actions against the Released Persons.

 

3.2           Upon the Effective
Date, as defined in Section IV.1.2 hereof, each of the Released Persons
shall be deemed to have, and by operation of the Judgment shall have, fully,
finally, and forever released, relinquished, and discharged each and all of the
Representative Plaintiffs, and counsel to the Representative Plaintiffs,

 

22

 

from all claims (including Unknown Claims) arising
out of, relating to, or in connection with the institution, prosecution,
assertion, settlement, or resolution of the Actions or the Released Claims.

 

4.             Notice Order and Settlement Hearing

 

4.1           Promptly after execution of this
Stipulation by all parties, the Settling Parties shall submit the Stipulation
together with its Exhibits to the Court and shall jointly request that the
Court enter (i) an order approving the intervention in the Federal Action
of the Plaintiffs in the State Court Action for the limited purpose of filing
this Stipulation and seeking entry of the Judgment, and (ii) entry of an
order (the “Notice Order”), substantially in the form of Exhibit B hereto,
granting approval for publication of the Notice of Settlement of Derivative
Action (the “Notice”), substantially in the form of Exhibit C hereto, to
be published once in Investor’s Business Daily.  The Settling Parties shall also request the
Court to schedule a hearing (the “Settlement Hearing”) to formally consider any
objections that are filed in response to the Notice and approve the Settlement
of the Actions as provided herein.

 

4.2           The Cheesecake
Factory shall be responsible for the costs incurred in connection with
providing the Notice to The Cheesecake Factory Shareholders.  Prior to the Settlement Hearing, Plaintiffs’
Settlement Counsel shall file with the Court an appropriate Declaration with
respect to the preparation and publishing of the Notice.

 

5.             Representative Plaintiffs’
Counsel’s Attorneys’ Fees and Reimbursement of Expenses

 

5.1           If
the Stipulation terminates, or is canceled, or does not become effective for
any reason, or if the Judgment shall be reversed or modified upon appeal,
within five (5) business days after written notice of such event is sent
by counsel for Defendants to Plaintiffs’ Settlement Counsel, the Fees and
Expenses (including interest) shall be refunded to The Cheesecake Factory by
Counsel for the 

 

23

 

Representative Plaintiffs, as referenced in Section IV.2.5 above.  By signing this Stipulation, Plaintiff’s Counsel agrees that its
obligation to refund shall be joint and several.  Each such Representative Plaintiff’s
Counsel’s law firm, as a condition of receiving such Fees and Expenses, on
behalf of itself and each partner and/or shareholder, agrees that the law firm
and its partners and/or shareholders are subject to the jurisdiction of the Court
for the purpose of enforcing the Stipulation.

 

6.             Conditions of Settlement, Effect of Disapproval,
Cancellation, or Termination

 

6.1           The Effective Date of the Stipulation
shall be conditioned on the occurrence of all of the following events:

 

(a)           this Court has entered the Judgment,
or a judgment substantially in the form of Exhibit A attached hereto;

 

(b)           the Judgment has become Final, as
defined in Section IV.1.3, above; and

 

(c)           the State Action is dismissed with
prejudice after entry of the Final Judgment in the instant action, and this
Court has entered an Order that the Representative Plaintiffs in the State
Action are bound by the Judgment in the Federal Action.

 

6.2           If all of the
conditions specified in IV.6.1 are not met, then the Stipulation shall be
terminated subject to Section IV.6.3, unless all parties to this
Stipulation mutually agree in writing to waive or modify any conditions that
are not satisfied and otherwise agree to proceed with the Stipulation.

 

6.3           If the Stipulation
is not approved by this Court, the State Action is not terminated as provided
in Section IV.6.1(c) or the settlement set forth in the Stipulation
is terminated or fails to become effective in accordance with its terms, the
Settling Parties shall be restored to their respective positions in the Actions
as of the earlier of the Effective Date or February 8, 2008.  In such event, the terms and provisions of
the Stipulation, with the exception of Sections IV.1.1-1.16, 5.1, 6.2-

 

24

 

6.3,
7.3-7.12 herein, shall have no further force and effect with respect to the
Settling Parties and shall not be used in the Actions, the SEC Inquiry, or in
any other proceeding for any purpose, and any judgment or order entered by the
Court in accordance with the terms of the Stipulation shall be treated as
vacated, nunc pro tunc.

 

7.             Miscellaneous Provisions

 

7.1           The Settling Parties (a) intend
to consummate this Stipulation; and (b) will cooperate to the extent
reasonably necessary to effectuate and implement all terms and conditions of
the Stipulation and will use their best efforts to accomplish the foregoing
terms and conditions of the Stipulation.

 

7.2           The Settling Parties
intend this Stipulation to be a final and complete resolution of all disputes
between them with respect to the Actions. 
The Stipulation compromises claims that are contested and shall not be
deemed an admission by any Settling Party as to the merits of any claim,
allegation, or defense.  While retaining
their right to deny that the claims advanced in the Actions were meritorious,
Defendants in any statement made to any media representative (whether or not
for attribution) will not deny that the Actions were filed in good faith.  Neither the Representative Plaintiffs, nor
their respective counsel, will issue any press release regarding the
Settlement.  The Judgment will contain a
statement that during the course of the Actions, the parties and their
respective counsel at all times complied with the requirements of the Federal Rules of
Civil Procedure, including Fed. R. Civ. P. 23 and 41 and comparable rules of
the Superior Courts of the State of California.

 

7.3           Neither this
Stipulation nor any act performed or document executed pursuant to or in
furtherance of the Stipulation: (a) is or may be deemed to be or may be
used as an admission of, or evidence of, the validity of any Released Claim, or
of any wrongdoing or liability of the Individual Defendants and/or the Released
Persons; or (b) is or may be deemed to be or may be used as an admission
of, or 

 

25

 

evidence of, any fault or
omission of any of the Individual Defendants and/or the Released Persons in any
civil, criminal, or administrative proceeding in any court, administrative
agency, or other tribunal.  The
Defendants and the Released Persons may file the Stipulation and/or the
Judgment in any action that may be brought against them in any state or federal
court to support a defense or counterclaim based on principles of res judicata, collateral estoppel, release, good faith
settlement, judgment bar or reduction, or any other theory of claim preclusion
or issue preclusion or similar defense or counterclaim.

 

7.4           The Exhibits to this
Stipulation are material and integral parts and are fully incorporated by this
reference.

 

7.5           The Stipulation may
be amended or modified only by a writing signed by or on behalf of all Settling
Parties or their respective successors-in-interest.

 

7.6           This Stipulation and
the attached Exhibits constitute the entire agreement among the parties, and no
representations, warranties, or inducements have been made to any party
concerning the Stipulation or its Exhibits, other than the representations,
warranties, and covenants in such documents. 
Except as otherwise provided, each party shall bear its own costs.

 

7.7           Plaintiffs’
Settlement Counsel are expressly authorized by the Representative Plaintiffs to
take all appropriate action required or permitted to be taken pursuant to the
Stipulation to effectuate its terms and also are expressly authorized to enter
into any modifications or amendments to the Stipulation that they deem
appropriate.

 

7.8           Each counsel or
other Person executing the Stipulation or its Exhibits on behalf of any party
warrants that such Person has the full authority to do so.

 

7.9           The Stipulation may
be executed in one or more counterparts. 
Each executed counterpart shall be deemed to be one and the same
instrument.  A complete set of original
executed counterparts shall be filed with the Court.

 

26

 

7.10         The Stipulation shall
be binding upon, and inure to the benefit of, the successors and assigns of the
parties hereto.

 

7.11         The Court shall
retain jurisdiction to implement and enforce the terms of the Stipulation, and
all parties submit to the jurisdiction of the Court for such purposes.

 

7.12         This Stipulation and
the Exhibits shall be considered to have been negotiated, executed, and
delivered, and to be wholly performed, in the State of California, and the
rights and obligations of the parties to the Stipulation shall be construed and
enforced in accordance with, and governed by, the internal, substantive laws of
the State of California without giving effect to that State’s choice of law
principles.

 

27

 

IN WITNESS WHEREOF, the parties hereto have
caused the Stipulation to be executed, by their duly authorized attorneys as of
the date set forth above.

 

COUNSEL IN FEDERAL ACTIONS

 

	
  /s/

  	
   

  	
  /s/

  
	
  COUGHLIN
  STOIA GELLER

  RUDMAN &
  ROBBINS LLP

  Darren
  J. Robbins

  Travis
  E. Downs, III

  655
  West Broadway, Suite 1900

  San
  Diego, CA  92101-3301

  Telephone:  (619) 231-1058

  Facsimile:  (619) 231-7423

  	
   

  	
  ROSMAN & GERMAIN LLP

  Daniel L. Germain

  16311 Ventura Boulevard, Suite 1200

  Encino, CA  91436-2152

  Telephone:  (818) 788-0877

  Facsimile:  (818) 788-0885

   

  
	
   

  	
   

  	
  /s/

  
	
  COUGHLIN
  STOIA GELLER

  RUDMAN &
  ROBBINS LLP

  Shawn
  A. Williams

  Monique
  C. Winkler

  Aelish
  M. Baig

  100
  Pine Street, Suite 2600

  San
  Francisco, CA 94111

  Telephone:
  (415) 288-4545

  Facsimile:
  (415) 288-4534

  	
   

  	
  SCHIFFRIN BARROWAY TOPAZ & 

  KESSLER, LLP

  Eric L. Zagar

  Robin Winchester

  280 King of Prussia Road

  Radnor, PA 19087

  Telephone: (610) 667-7706

  Facsimile: (610) 667-7056

   

  
	
   

  	
   

  	
  Co-Lead Counsel for Plaintiffs in

  Consolidated Federal Actions and

  Counsel for Plaintiffs Troy Siebels and

  Ralph Kuhns

  
	
   

  Lead Counsel for Plaintiffs in Consolidated
  Federal Actions

  and Counsel for Plaintiff Michael Freed

   

  	
   

  

 

28

 

	
  /s/

  	
   

  	
  /s/

  
	
  IRELL & MANELLA LLP

  Charles E. Elder

  Kenneth R. Heitz

  David Siegel

  1800 Avenue of the Stars, Suite 900

  Los Angeles, CA  90067-4276

  Telephone:  (310) 277-1010

  Facsimile:  (310) 203-7199

  	
   

  	
  BUCHALTER NEMER

  Michael L. Wachtell

  Keith Bishop

  1000 Wilshire Blvd., Suite 1500

  Los Angeles, CA  90017

  Telephone:  (213) 891-5460

  Facsimile:  (213) 630-5760

   

  
	
   

  	
   

  	
  Counsel
  for The Cheesecake Factory, Inc.

  
	
  Counsel
  for David Overton, Michael J.

  Dixon,
  Max S. Byfuglin, Peter J.

  D’Amelio,
  Cheryl M. Slomann, Debby 

  R.
  Zurzolo, Thomas L. Gregory, 

  Jerome
  I. Kransdorf, Karl L. Matthies, 

  Michael
  Nahdunst, Linda Candioty, 

  Wayne
  H. White, and The Cheesecake 

  Factory, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
  /s/

  
	
  ALSTON & BIRD LLP

  John Latham

  One Atlantic Plaza

  1201 West Peachtree Street

  Atlanta, GA  30309

  Telephone: (404) 881-7915

  Facsimile:  (404) 881-7913

   

  	
   

  	
  SKADDEN ARPS SLATE

  MEAGHER & FLOM LLP

  Richard Marmaro

  330 South Grand Avenue

  Suite 3400

  Los Angeles, CA  90071

  Telephone:  (213) 687-5480

  Facsimile:  (213) 621-5480

  
	
  Dimitri J. Nionakis

  The Atlantic Building

  950 F Street NW

  Washington, DC  20004

  Telephone:  (202) 756-3158

  Facsimile:  (202) 654-4948

   

  	
   

  	
   

  
	
   

  	
  Counsel
  for Gerald Deitchle

   

  
	
   

  	
   

  	
   

  
	
  Counsel
  to Special Litigation

  Committee
  of the Board of Directors of 

  The
  Cheesecake Factory Incorporated

   

  	
   

  	
   

  

 

29

 

COUNSEL IN STATE ACTIONS

 

	
  /s/

  	
   

  	
  /s/

  
	
  SOLTAN & ASSOCIATES

  Venus Soltan

  4220 Von Karmen Avenue, Suite 200

  Newport Beach, CA  92660

  Telephone: (949) 729-3100

  Facsimile:  (949) 729-1527

   

  	
   

  	
  ROBBINS UMEDA & FINK, LLP

  Brian J. Robbins

  Jeffrey P. Fink

  Shane P. Sanders

  610 West Ash Street, Suite 1800

  San Diego, CA  92101

  Telephone:  (619) 525-3990

  Facsimile:  (619) 525-3990

  
	
  /s/

  	
   

  	
   

  
	
  BARRETT, JOHNSTON &

  PARSLEY

  George E. Barrett

  Douglas S. Johnston, Jr.

  Timothy L. Miles

  Laurel A. Johnston

  217 Second Avenue, North

  Nashville, TN  37201

  Telephone: (615) 244-2202

  Facsimile:
  (615) 252-3798

  	
   

  	
   

  
	
  /s/

  
	
  THE
  SHUMAN LAW FIRM

  Kip
  B. Shuman

  801
  East 17th Avenue

  Denver,
  CO 80218

  Telephone:
  (303) 861-3003

  Facsimile:  (303) 830-6920

   

  Counsel
  for Plaintiff Gary Cullen

  
	
   

  	
   

  	
   

  
	
  Counsel
  for Plaintiffs Seymour H. 

  Sachs
  and John McGee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
   

  
	
  ROBBINS UMEDA & FINK, LLP

  Brian J. Robbins

  Jeffrey P. Fink

  Shane P. Sanders

  610 West Ash Street, Suite 1800

  San Diego, CA  92101

  Telephone:  (619) 525-3990

  Facsimile:  (619) 525-3990

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Counsel for Plaintiff Norman Rigotti

  	
   

  	
   

  

 

30

 

PROOF OF SERVICE

 

I am
employed in the County of Los Angeles, State of California.  I am over the age of 18 and not a party to
the within action.  My business address
is 1000 Wilshire Blvd., Suite 1500, Los Angeles, California 90017-2457.

 

On February 27,
2008, I served the foregoing document described as STIPULATION
OF SETTLEMENT (together with Exhibits A, B, and C thereto) on each
interested party, as stated on the attached service list.

 

X                                  (BY MAIL) 
I placed an original of the foregoing document in a sealed envelope
addressed to each interested party, as stated on the attached service
list.  I placed each such envelope, with
postage thereon fully prepaid, for collection and mailing at Buchalter Nemer,
P.C., Los Angeles, California.  I am
readily familiar with Buchalter Nemer, P.C.’s practice for collection and
processing of correspondence for mailing with the United States Postal Service.  Under that practice, the correspondence would
be deposited in the United States Postal Service on that same day in the
ordinary course of business.

 

Executed
on February 27, 2008, at Los Angeles, California.

 

I
declare under penalty of perjury that the foregoing is true and correct.

 

_

	
   

  	
   

  	
   

  	
  Violet Carrera

  
	
   

  	
   

  	
   

  	
  NAME

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/

  
	
   

  	
   

  	
   

  	
  SIGNATURE

  

 

31

 

SERVICE LIST

 

	
  David Siegel

  Kenneth R. Heitz

  Charles E. Elder

  IRELL & MANELLA LLP

  1800 Avenue of the Stars, Suite 900

  Los Angeles, CA 90067

  celder@irell.com

  	
   

  	
  Richard Marmaro

  SKADDEN ARPS SLATE

  MEAGHER & FLOM LLP

  330 South Grand Avenue

  Suite 3400

  Los Angeles, CA  90071

   

  
	
   

  	
   

  	
   

  
	
  Travis E. Downs III.

  Ellen Guiskoff

  COUGHLIN STOIA GELLER

   RUDMAN & ROBBINS LLP

  655 West Broadway, Suite 1900

  San Diego, CA 92101-3301

  travisd@csgrr.com

  	
   

  	
  Shawn A. Williams

  Monique C. Winkler

  Aelish M. Baig

  COUGHLIN STOIA GELLER

  RUDMAN & ROBBINS LLP

  100 Pine Street, Suite 2600

  San Francisco, CA 94111

  
	
   

  	
   

  	
   

  
	
  Eric L. Zagar

  Robin Winchester

  Sandra
  G. Smith

  SCHIFFRIN BARROWAY TOPAZ & KESSLER, LLP

  280 King of Prussia Road

  Radnor, PA 19087

  ezagar@sbtklaw.com

  	
   

  	
  Daniel L. Germain

  ROSMAN & GERMAIN, LLP

  16311
  Ventura Boulevard, Suite 1200

  Encino,
  CA  91436-2152

  germain@lalawyer.com

   

  
	
   

  	
   

  	
   

  
	
  Brian J. Robbins

  Jeffrey P. Fink

  Shane P. Sanders

  ROBBINS UMEDA & FINK, LLP

  610 West Ash Street, Suite 1800

  San Diego, CA  92101

   

  	
   

  	
  George E. Barrett

  Douglas S. Johnston, Jr.

  Timothy L. Miles

  Laurel A. Johnston

  BARRETT, JOHNSTON &

  PARSLEY

  217 Second Avenue, North

  Nashville, TN  37201

   

  
	
   

  	
   

  	
   

  
	
  Venus
  Soltan

  4220 Von Karmen Avenue, Suite 200

  Newport Beach, CA  92660

  	
   

  	
  Kip
  B. Shuman

  THE
  SHUMAN LAW FIRM

  801
  East 17th Avenue

  Denver,
  CO 80218

  

 

32

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