Document:

Exhibit 10.78

 

*** CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS

DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED

SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER 17

C.F.R. SECTIONS 200.80(B)(4) AND 240.24b-2.

 

May 11, 2004

 

 

Mr. Roger Durst

Bruker-AXS Inc.

5465 E. Cheryl Parkway

Madison, WI  53711

 

RE:          Worldwide Distribution and Strategic Alliance
Agreement dated July 24, 2003 (the “Agreement”)

 

Dear Roger:

 

This letter will confirm our agreement to amend the above stated
Agreement.  Capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the
Agreement.  The parties agree as follows:

 

1.             The functional specifications for the CF
Software will be those identified in Appendix A ([...***...]) affixed to this
letter.  BAXS agrees to review the CF
Software, or any interim release of it, as soon as it is made available by DPI
and, within 3 business days of such availability by DPI, BAXS shall identify any
functional deficiencies (identified under normal and intended operating
conditions) in the CF Software.  The
parties acting reasonably shall agree upon a “punch list” of functional
deficiencies, if any, and DPI shall correct them.  DPI shall notify upon the correction of the
“punch list” items, at which time BAXS shall have a further 3 days to review
the “punch list” corrections.  Upon all
“punch list” items being corrected to meet the functional specifications, the
CF Software shall be deemed accepted by BAXS in full satisfaction of all
Agreement requirements.  The first BAXS
evaluation of CF Software [...***...] is scheduled for the week of [...***...]
at DPI’s offices in San Diego.

 

2.             Within [...***...] of this letter, BAXS
shall provide DPI a firm purchase order(s) for the delivery of [...***...]  CF-400 units.  Such purchase order(s) shall require delivery
of the CF-400 units to BAXS, or a BAXS designated customer, no later than
[...***...].  Upon acceptance of the CF
Software in accordance with paragraph 1 above, and provided such acceptance
occurs on or prior to [...***...], BAXS shall provide DPI a further binding
purchase order(s) for no less than [...***...] CF-400 units requiring delivery
no later than [...***...].

 

3.             Upon acceptance of the CF Software in
accordance with paragraph 1 above, BAXS shall provide DPI further binding
purchase orders for no less than [...***...] CF-400 units requiring delivery no
later than [...***...] and no less than [...***...] CF-400 units requiring
delivery no later than [...***...] and a forecast by [...***...] for units
requiring delivery in [...***...].

 

4.             BAXS shall provide DPI a firm purchase
order for delivery of a [...***...] CF-400 unit with delivery required on or
prior to [...***...].  DPI shall transfer
such unit to BAXS at a price of [...***...].

 

 

***Confidential Treatment Requested

 

 

5.             With the exception of the [...***...]
CF-400 unit describe in paragraph 5, all CF-400 units requiring delivery in
calendar year 2004 shall be transferred by DPI to BAXS in accordance with the
pricing schedule affixed to this letter agreement.

 

6.             Crystal Resolve Software.  [...***...] of this accessory product is
described in Appendix B and it will be provided to BAXS for evaluation of the
same time as CF Software [...***...]. 
The evaluation of Crystal Resolve Software will follow the same protocol
as CF Software [...***...] but the acceptance of Crystal Resolve will be a
separate and independent event, and it will not be in any way linked to the
acceptance of Crystal Farm or its operating software as a product.

 

7.             The specifications, prices and delivery of
any future software product expanding CF Software [...***...] or CR Software
[...***...] will be agreed to in good faith by the parties and documented in
writing prior to becoming part of this agreement.

 

Except as expressly set forth herein, all other terms of the Agreement
shall remain in effect.

 

Roger, we firmly believe that BAXS and DPI are excellent strategic
partners with the capability of dominating in this market area.  We are committed to working with you in the
continued development of this product line based on sound business principles
that benefit both BAXS and DPI.  Please
indicate your acceptance of the terms of this Letter by signing and dating in
the area indicated below and return one original to us.

 

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DISCOVERY PARTNERS INTERNATIONAL, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Riccardo Pigliucci

  	
   

  	
   

  
	
   

  	
   

  	
  Riccardo Pigliucci

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BRUKER AXS INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
  [Name Illegible]

  	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
  5/18/04

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
									

 

***Confidential Treatment Requested

 

 

PRICING SCHEDULE

 

For [...***...]  (through
[...***...]), CF-400 transfer pricing will be as follows:

 

Transfer Price = [...***...]

 

Example pricing is shown in the following table:

 

	
  Bruker
  WW Sales Price

  	
   

  	
  Bruker Margin (%)

  	
   

  	
  Bruker Margin ($ )

  	
   

  	
  DPI Transfer Price

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

Pricing Notes:

 

1.             The new pricing will apply only to stand
alone Crystal Farm sales delivered to 3rd-party clients.  CF-400 units packaged with Bruker X-Ray sales
or not delivered by [...***...] will be transferred to BAXS at [...***...].

 

2.             No [...***...] units will be transferred
by DPI to BAXS at a price of less than [...***...] per unit.

 

3.             The new pricing will be in effect for all
PO’s received through [...***...] for a Bruker client.

 

4.             All sales P.O.s associated with the new
pricing will be followed up with a copy of the Bruker customer invoice.  Under this program, when DPI provides a
CF-400, DPI will bill Bruker for the current contract transfer price of
[...***...].  Upon receiving a copy of
the customer invoice from Bruker, DPI will credit or debit Bruker appropriately
at an adjusted transfer price as determined by the pricing schedule noted
above.

 

***Confidential Treatment Requested

 

 

Appendix A ([...***...])

 

 

Schedule A:  Crystal Navigator Software Features  – 
[...***...]

 

	
  FEATURES

  	
   

  	
  Mandatory

  Function for

  Acceptance

  	
   

  
	
  Crystal Navigator Operating Software

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Additional Web Features:

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Additional Imaging Capabilities:

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Plate types:

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  
	
  [...***...]

  	
   

  	
   

  	
   

  

 

***Confidential Treatment Requested

 

 

Appendix B

 

Crystal Resolve Software

 

The Crystal Resolve Software is a stand-alone accessory software
package additional to the basic Crystal Navigator software delivered with
Crystal Farm.  Crystal Resolve employs
sophisticated algorithms to evaluate images and help the operator prioritize
the Crystal Farm work schedule.  Given
the [...***...] of this [...***...], the Crystal Resolve software will be
developed in stages and [...***...] in order to [...***...] the [...***...]
features.  The first version of Crystal
Resolve is designated as Crystal Resolve [...***...].  This version will be provided to Bruker and
to customers [...***...].

 

Crystal Resolve [...***...] will analyze an entire image and return
values to CF Software that are indicative of the percentage of pixels that
Crystal Resolve considers crystal-like, the percentage of crystals that Crystal
Resolve considers precipitate-like, and an overall measurement of “relative
interest” that can be used to prioritize images.

 

The [...***...] are to provide initial users with a version that will
facilitate confirmation that Crystal Resolve works together with CF Software
and to evaluate the analytical values and rankings computed and returned to CF
Software by Crystal Resolve as compared to routine human observations of the
same images.  These evaluations will be
done using CF Software.  Crystal Resolve
[...***...] speed will [...***...], and if the CF System is fully scheduled,
Crystal Resolve [...***...] may process [...***...] of the images.

 

***Confidential Treatment RequestedExhibit 10.1

 

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

 

 

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.

 

 

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.

 

 

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

 

 

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.

 

 

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.

 

 

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]

 

 

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]

  	
   

  
					

 

 

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)

  

 

 

Schedule to Exhibit 10.1

 

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

  
	
  Arthur G. Koumantzelis

  	
   

  	
  March 10, 2004

  
	
  Gerard M. Martin

  	
   

  	
  March 10, 2004

  
	
  John G. Murray

  	
   

  	
  March 10, 2004

  
	
  Barry M. Portnoy

  	
   

  	
  March 10, 2004

  
	
  William J. Sheehan

  	
   

  	
  May 7, 2004

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]