Document:

exv10w8

Exhibit 10.8

FIRST AMENDMENT

TO

RED LION HOTELS CORPORATION

2008 EMPLOYEE STOCK PURCHASE PLAN

     THIS FIRST AMENDMENT is adopted effective as of January 1, 2010 (the “Amendment
Date”), by RED LION HOTELS CORPORATION, a Washington corporation (the “Company”).

RECITALS

     A. The Company has adopted the Red Lion Hotels Corporation 2008 Employee Stock
Purchase Plan (the “Plan”).

     B. The Company desires to amend the Plan in certain respects.

     NOW, THEREFORE, the Plan is hereby amended as follows:

     1. Section 9.2 of the Plan is hereby amended by adding the following at the end
thereof:

In addition, the maximum number of shares of Common Stock that a Participant may
purchase during any Purchase Period under the Plan is 10,000.

     2. Except as amended hereby, the Plan shall remain in full force and effect.

     IN WITNESS WHEREOF, this First Amendment has been executed as of the Amendment
Date.

	 	 	 	 	 
	RED LION HOTELS CORPORATION

 
	 
	 	By  	/s/ Anupam Narayan
 	 
	 	 	Anupam Narayan 	 
	 	 	President and Chief Executive Officerexv10w10

	 	 	 	 	 

Exhibit 10.10

Summary Sheet for Director Compensation and Executive Cash

Compensation and Performance Criteria Under Executive

Officers Variable Pay Plan

March 11, 2010

Director Compensation

The Company pays its Chairman of the Board an annual retainer of $70,000, and it pays or reimburses
him for the cost of his office space that has a rental value of approximately $13,000 per year. The
Company pays each of its other non-employee directors an annual retainer of $30,000. The chair of
the Audit Committee receives an additional annual fee of $20,000. The chairs of each of the
Compensation Committee and the Nominating and Corporate Governance Committee receive an additional
annual fee of $15,000. Non-chair members of these committees receive an additional $5,000 annual
fee for each committee on which they serve. All director fees are payable in advance in equal
quarterly installments, and beginning in April 2009, are paid via shares of the Company’s common
stock based on the closing market price on the regularly scheduled quarterly payment date.

In line with the Company’s operating strategy, and as with all salaried employees, including senior
management, the Company’s Directors accepted a 5% reduction in quarterly fees beginning the second
quarter of 2009.

In addition to annual fees, each non-employee director is entitled to receive, at or following each
Company annual meeting, a grant of stock of the Company valued at $25,000.

In addition to the annual fees and stock grants, it is the Company’s policy to reimburse directors
for their out-of-pocket expenses incurred in connection with their service on the Board and its
committees.

The Company’s President and Chief Executive Officer is separately compensated outside of his
employment agreement for service as a director on the same basis and under the same terms and
conditions as the Company’s non-employee directors.

Executive Cash Compensation

The following table sets forth the 2010 base salary of each of the Company’s executive officers:

	 	 	 	 	 
	 	 	2010 Base
	 	 	Salary
	Jon E. Eliassen
	 	$	360,000	 
	President and Chief Executive Officer
	 	 	 	 
	 
	 	 	 	 
	George H. Schweitzer (1)
	 	$	210,000	 
	Executive Vice President and Chief Operating Officer, Hotel Operations
	 	 	 	 
	 
	 	 	 	 
	Thomas L. McKeirnan (1)
	 	$	209,000	 
	Senior Vice President, General Counsel, and Secretary
	 	 	 	 
	 
	 	 	 	 
	Anthony F. Dombrowik (1)
	 	$	175,000	 
	Senior Vice President, Chief Financial Officer
	 	 	 	 

 

			
	(1)	 	In line with the Company’s operating strategy, the nominal base salaries shown above for these
executive officers will be subject to a 5% reduction during 2010 as they were during 2009.

 

 

2010 Performance Criteria Under Executive Officers Variable Pay Plan

On February 9, 2010, the Compensation Committee of the Company’s Board of Directors
established 2010 performance goals for certain of the Company’s named executive officers
under the Company’s Executive Officers Variable Pay Plan (Mr. Eliassen does not
participate in this plan). Measured as a percentage of their 2010 base salaries, the
target and maximum variable pay available to these officers for achievement of these
goals in 2010 is as follows:

	 	 	 	 	 	 	 	 	 
	 	 	Variable Pay as Percentage
	 	 	of 2010 Base Salary
	 	 	Target	 	Maximum
	George H. Schweitzer
	 	 	30	%	 	 	50	%
	Thomas L. McKeirnan
	 	 	30	%	 	 	50	%
	Anthony F. Dombrowik
	 	 	30	%	 	 	50	%exv10w16

Exhibit 10.16

RED LION HOTELS

CORPORATION

January 29, 2010

Anupam Narayan

2124 S. Rockwood Blvd.

Spokane, Washington 99203

Dear Mr. Narayan:

As you requested, this letter will confirm that Red Lion Hotels Corporation has agreed to the
arrangement set out in the email message from Bruce Bjerke to Lara Hemingway on January 28, 2010, a
copy of which is attached. As part of those terms, the company has agreed that the exercise date
for the 80,000 vested options that were granted to you on November 22, 2004, at an exercise price
of $5.10, will be extended to July 30, 2010. We have also agreed that your $720,000 severance
payment, together with the $7,693.15 prorated bonus, will be paid to you July 14, 2010.

Regards,

/s/ Anthony F. Dombrowik

Anthony F. Dombrowik

Senior Vice President, Chief Financial Officer

Agreed:

	 	 	 
	/s/ Anupam Narayan

	 	January 29, 2010
	 	 	 
	Anupam Narayan
	 	 

BLH Building · 201 W. North River Drive · Spokane, WA 99201 · 509-459-6100 · Fax 509-325-7324 · redlion.com

 

 

From: Bjerke, Bruce

Sent: Thursday, January 28, 2010 3:06 PM

To: ‘Lara L Hemingway’

Cc: Andrew J. Schultheis; Michael F Nienstedt

Subject: RE: Narayan

Lara, Andrew and Mike

We are in agreement. Red Lion has accepted the proposal described in my message to you below,
with Lara’s corrections, also noted below. I have attached an updated and corrected spreadsheet with
the revised calculations.

Red Lion calculates the value of the restricted stock at $407,806.56 based on the $4.83 per share
closing price on 1/13/10, and
calculates the tax on that as follows: $113,671.24 made up of FIT of $101,951.64; SS of $5,806.40;
and Medicare of $5,913.

We will proceed to implement these arrangements tomorrow on this basis.

I’m glad we were able to work through this. Thank you for your curtesy and cooperation.

Bruce

Bruce Bjerke | Davis Wright Tremaine LLP 
Partner

1201 Third Avenue, Suite 2200 | Seattle, WA 98101

Tel: (206) 757-8071 | Fax: (206) 757-7071

Email: brucebjerke@dwt.com | Website: www.dwt.com

Anchorage | Bellevue | Los Angeles | New York | Portland | San Francisco | Seattle | Shanghai |
Washington, D.C.

From: Lara L Hemingway [mailto:LLH@witherspoonkelley.com]

Sent: Thursday, January 28, 2010 10:01 AM

To: Bjerke, Bruce

Cc: Andrew J. Schultheis; Michael F Nienstedt

Subject: Re: Narayan

Bruce,

Thank you for your summary.

We verified with Anupam the details you review in your 6 points and have a couple of comments.
With respect to #5, it should reflect a payment date of 7/14/10, to push the payment out 6 months
and one day from the date of termination (this is the date that is reflected on the spreadsheet of
payment calculations). Also with respect to #3, we would like to verify that pursuant to the
language in the employment agreement providing for immediate vesting of restricted stock upon a
without cause

 

 

termination, that the vesting date of 1/13/10 will be used for calculating the income inclusion on
the payment date of 1/29/10, as provided in 1.83-1(a)(1). Additionally, Anupma would like to pay
the withholding on the restricted stock in cash and will submit payment to the Company tomorrow as
soon as they inform him of the proper amount.

Please let us know if there are further questions or comments with respect to this email or
any other aspect of the proposed terms you have outlined.

Best Regards,

Lara L. Hemingway, J.D., LL.M.

Witherspoon, Kelley, Davenport & Toole, P.S.

422 W. Riverside Avenue, Suite 1100

Spokane, Washington 99201

(509) 624-5265

llh@wkdtlaw.com

fax: 509-458-2728

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, please be
advised that any U.S. tax advice contained in this communication (including any attachments) is not
intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose
of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or
recommending to another party any transaction or matter addressed herein.

Confidentiality Notice: The information contained in this email and any accompanying attachment(s)
is
intended only for the use of the intended recipient and may be confidential and/or privileged. If
any reader
of this communication is not the intended recipient, unauthorized use, disclosure or copying is
strictly
prohibited, and may be unlawful. If you have received this communication in error, please
immediately
notify the sender by return email, and delete the original message and all copies from your system.

Thank you.

— “Bjerke, Bruce” <BruceBjerke@dwt.com> wrote: —

To: <ajs@witherspoonkelley.com>, <llh@witherspoonkelley.com>, <mfn@witherspoonkelley.com>

From: “Bjerke, Bruce” <BruceBjerke@dwt.com>

Date: 01/27/2010 02:57PM

Subject: Narayan

Andrew, Mike and Lara

I will be speaking with RL first thing in the morning, and want to confirm that i have details
right when i review the proposal with them.

Here is my understanding of what you have proposed:

1. the spreasheet tony prepared will be corrected to reflect the $360k pre reduction pay rate for
the 13 days of pay and vacation accrual—

     i understand that lara will be sending me her calculations of the amounts later today

2. the spreadsheet will also be corrected to reflect the restricted stock value as the trading
price on january 13, rather than january 20,

     which is the date used for the estimate

 

 

3. the payments (as adjusted for 1 and 2 above) reflected on the spreadsheet as being paid on 1/29
will be paid that date

4. RL will agree to extend the option exercise date for the 80,000 vested options that are in the
money, to a new date of

     july 30, 2010

5. AN will agree that he will be paid the $720,000 in severance payments on July 12, 2010, thereby
removing the 409A issue

6. AN will resign from the board on 1/29/10

please let me know if i have missed or misunderstood anything here

bruce

Bruce Bjerke | Davis Wright Tremaine LLP 

Partner

1201 Third Avenue, Suite 2200 | Seattle, WA 98101

Tel: (206) 757-8071 | Fax: (206) 757-7071

Email: brucebjerke@dwt.com | Website: www.dwt.com

Anchorage | Bellevue | Los Angeles | New York | Portland | San Francisco | Seattle | Shanghai |
Washington, D.C.

 

 

					
	 	 	 	 	 
	Red Lion Hotels Corporation
	 	 	 	Separation Costs Recap

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Employment	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Standard	 	 	Agreement	 	 	Negotiated	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Normal	 	 	Termination	 	 	Related	 	 	Separation	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Course	 	 	Related	 	 	Severance	 	 	Related	 	 	 	Total	 
	Anupam Narayan	 	 	 	 	 	 	 	 	 	Payments	 	 	Payments	 	 	Payments	 	 	Payments	 	 	 	Payments	 
	Current Salary
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Base Salary
	 	$	360,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reduced Salary
	 	$	342,857	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Salary to 1/1/10 (Portion Already Paid on 1/15/10)
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	395.61	 	 	 	 	 	 	 	 	 	 	 	$	395.61	 
	Salary 1/1/10 to 1/13/10 (24 hours) Paid 1/29/10
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	4,153.63	 	 	 	 	 	 	 	 	 	 	 	 	4,153.63	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Medical Through End of January
	 	 	 	 	 	 	 	 	 	 	 	 	 	RLH PAY	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Unpaid Expense Reimbursement	 	 	 	 	 	 	 	 	 	 	 	 	 	Paid Normal Course of Business	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Unpaid Vacation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Earned 1/1/10 4 Weeks or 160 Hours
	 	$	20,768	 	 	 	 	 	 	 	 	 	 	 	20,768.15	 	 	 	 	 	 	 	 	 	 	 	 	20,768.15	 
	$360,000 / 2080 = $173.0679 per Hour
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Assumed 40 Hours Taken so 120 left
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paid 1/29/10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2009 Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	NONE	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Separation Payments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bonus Target 60%
	 	$	216,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pro Rate Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Assumed Separation Date
	 	 	1/13/2010	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Days
	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total in Year
	 	 	365	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pro Rate
	 	 	0.04	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pro Rate Bonus
	 	$	7,693	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7,693.15	 	 	 	 	 	 	 	 	7,693.15	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Severance Pay Calculation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Base Salary
	 	$	360,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2008 Bonus Paid in 2009
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2008 401(k) match pd in 09
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	$	360,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Multiple
	 	 	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	$	720,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	720,000.00	 	 	 	 	 	 	 	 	720,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Medical and Dental
	 	$	858	 	Per mo w/COBRA.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2 Years: Cobra 24 Months
	 	 	24	 	months	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EE and ER portion
	 	$	20,592	 	 	 	 	 	 	 	 	 	 	 	 	 	 	RLH PAY	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ESPP Pay-out 2010
	 	$	1,055	 	 	 	 	 	 	 	 	 	 	 	1,054.94	 	 	 	 	 	 	 	 	 	 	 	 	1,054.94	 
	Legal Expense
	 	$	—	 	Max by Agreement	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 	 	 	 	—	 
	ESPP 2009 Over Contributed
	 	$	3,744	 	 	 	 	 	 	 	 	 	 	 	3,743.68	 	 	 	 	 	 	 	 	 	 	 	 	3,743.68	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ESPP January 2010 Shares Purchased in Normal Course of Business
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Options Accelerating Vesting
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	NONE	 	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RSU Accelerated Vesting (84,432 Unvested RSU x $4.83 price estimate)	 	 	 	 	 	 	 	 	 	 	407,806.56	 	 	 	 	 	 	 	 	407,806.56	 
	Based on 1/13/10 Close Price
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	 	 	 	$	—	 	 	$	30,116.01	 	 	$	1,135,499.71	 	 	$	—	 	 	 	 	1,165,615.72	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amount Deferred under 409(a) to be Paid 7/14/10 in Cash	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	727,693.15	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amount Recognized / Paid 1/29/10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	437,922.57	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recognized in RSU’s 1/13/10	 	 	 	 	 	 	$	407,806.56	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recognized in Cash 1/29/10	 	 	 	 	 	 	 	30,116	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Recognized in Cash 7/14/10	 	 	 	 	 	 	 	727,693	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,165,615.72

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