Document:

Exhibit 10.10

 

PAYMENT AGREEMENT

 

THIS PAYMENT AGREEMENT (this “Agreement”) is entered into
as of December 30, 2005, by and between CNL HOTELS &
RESORTS, INC. (f/k/a CNL Hospitality Properties, Inc.), a
Maryland corporation (the “Company”), and CNL HOSPITALITY
CORP., a Florida corporation (the “Advisor”).  Capitalized terms used but not defined herein
shall have the meanings ascribed to such terms in that certain Advisory
Agreement, dated as of April 1, 2004, between the Company and the Advisor
(the “Advisory Agreement”).

 

W  I  T  N  E
S  S  E  T  H:

 

WHEREAS,
the Company and the Advisor entered into the Advisory Agreement, pursuant to
which the Advisor provides the Company with certain advisory services relating
to, among other things, acquisition and financing transactions; and

 

WHEREAS, the
Company and the Advisor entered into that certain Renewal Agreement, dated as
of March 31, 2005, as amended by the First Amendment to Renewal Agreement,
dated as of June 30, 2005, the Second Amendment to Renewal Agreement, dated
as of July 29, 2005, the Third Amendment to Renewal Agreement, dated as of
August 30, 2005, the Fourth Amendment to Renewal Agreement, dated as of September 29,
2005, the Fifth Amendment to Renewal Agreement, dated as of October 31,
2005, and the Sixth Amendment to Renewal Agreement, dated as of November 30,
2005 (collectively, the “Original Renewal Agreement”), pursuant to
which, among other things, the Advisory Agreement was amended and renewed for
an additional one-year term; and

 

WHEREAS,
the payment of Acquisition Fees (as specifically set forth and enumerated in Section 9(b) of
the Advisory Agreement (the “Acquisition Fees”)) by the Company to the
Advisor under the Advisory Agreement and the Amended Advisory Agreement (as
defined herein) have been deferred, pursuant to the terms of the Agreement and
Plan of Merger, dated as of April 29, 2004, as amended as of June 17,
2004, by and among the Company, the Advisor, CNL Hospitality Properties
Acquisition Corp., CNL Real Estate Group, Inc., Five Arrows Realty
Securities II, LLC, the Stockholders (as defined therein), and CNL Financial
Group, Inc. (the “Merger Agreement”), and the initial claim by the
Advisor for such fees (which will have been deferred through and including December 31,
2005) aggregates $82.7 million (the “Payable Fees”); and

 

WHEREAS,
the Independent Directors of the Board of Directors of the Company (the “Independent
Directors”) have reviewed the Payable Fees (the “Initial
Claim”) and have been in discussions with the Advisor regarding a negotiated
determination of the amount of the Payable Fees in accordance with the terms of
the Advisory Agreement and the Company’s Articles of Amendment and Restatement,
as amended; and

 

WHEREAS,
the Independent Directors and the Advisor, after negotiation, have agreed to
settle the amount of Payable Fees payable by the Company to the Advisor in an
amount less

 

 

than the Initial Claim upon the terms and conditions
provided herein in full satisfaction, release and discharge of the Payable
Fees; and 

 

WHEREAS,
the Independent Directors have received the opinion of Houlihan Lokey &
Zukin Financial Advisors, Inc., that the amount of the Payment (as defined
herein) is fair to the Company and the stockholders of the Company from a
financial point of view; and

 

WHEREAS,
the Company and the Advisor have determined to reduce the percentage of Total
Proceeds payable to the Advisor pursuant to the Advisory Agreement, and in
connection therewith, are entering into an Amended and Restated Renewal
Agreement of even date herewith (the “Amended and Restated Renewal
Agreement,” which, collectively with the Advisory Agreement, shall be
referred to herein as the “Amended Advisory Agreement”);

 

WHEREAS,
the Independent Directors have unanimously approved this Agreement and the
Amended and Restated Renewal Agreement; and

 

NOW,
THEREFORE, in consideration of the premises and mutual
agreements, covenants and provisions contained herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto agree as follows:

 

1.             Payment.  The Company shall pay the Advisor
an aggregate of $37,000,000 as follows:  (i) $10,000,000
in cash to be paid by the Company to the Advisor on the date hereof by wire
transfer of immediately available funds, and (ii) the issuance and
delivery by the Company to the Advisor of a promissory note made by the Company
to the Advisor in the original principal amount of $27,000,000 in the form
attached hereto as Exhibit A (the “Note”), to be delivered
by the Company to the Advisor on the date hereof (collectively, the “Payment”).  The Company shall pay any documentary stamp
tax with respect to the issuance and delivery of the Note to the extent
required.

 

2.             Payable Fees.  The Advisor hereby acknowledges
and agrees that (i) the Payment shall be in full satisfaction and payment
of all its rights and interests with respect to the Payable Fees and (ii) there
are no other unpaid Acquisition Fees which have been incurred by the Company or
earned by the Advisor on or prior to December 31, 2005, other than the
Payable Fees.  

 

3.             Waiver of Acquisition Fees and Asset Management
Fees.  The Advisor hereby acknowledges and agrees (i) to
irrevocably waive the right to payment of any Acquisition Fees and Asset
Management Fees (as enumerated in Section 9(a) of the Amended
Advisory Agreement) payable by the Company to the Advisor under the Amended
Advisory Agreement for the period from and including January 1, 2006
through and including June 30, 2006 (collectively, the “Relinquished
Fees”) and (ii) that the mutual agreements, covenants and provisions
contained in this Agreement shall be in full satisfaction and payment of all of
its rights and interests with respect to the Relinquished Fees.  Except for the Payment with respect to
Payable Fees as set forth in paragraph 1 and paragraph 2 and the waiver of the
Relinquished Fees as set forth in paragraph 3, all other advisory fees under
the Amended Advisory Agreement, including, without limitation, Development
Fees, incurred by the Company and earned by the

 

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Advisor shall be payable in
accordance with the terms and conditions of the Amended Advisory Agreement.

 

4.             Release by the Company.  The
Company, for itself, each of its subsidiaries and Affiliates, successors and
assigns, and any of their respective past, present and future employees,
agents, representatives, attorneys, officers, directors, stockholders and
trustees (collectively the “Company Releasing Parties”), does hereby
fully, finally and forever remise, release and discharge (the “Company
Release”) the Advisor, its subsidiaries and Affiliates, successors and
assigns, and any of their respective past, present and future employees,
agents, representatives, attorneys, officers, directors, stockholders and
trustees (collectively the “Company Released Parties”), from any and all
actions, causes and rights of action, counterclaims, suits, debts, dues, sums
of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts,
controversies, damages, special damages, judgments, expenses, executions,
liens, claims of liens, claims of costs, penalties, attorneys’ fees, or any
other compensation, recovery or relief, on account of any liability,
obligation, demand or cause of action of whatever nature (collectively, “Losses”)
relating to, arising out of or in connection with any claim that the Company
should have settled the Payable Fees and the Relinquished Fees for an amount
less than the Payment, whether at law, in equity or otherwise, whether
currently outstanding or arising subsequent hereto (including as a result of
newly enacted laws or regulations), known or unknown, contingent or absolute,
suspected or unsuspected, disclosed or undisclosed, hidden or concealed, disputed
or undisputed, liquidated or unliquidated, matured or unmatured and whether or
not accrued, and whether or not asserted or assertable in law, equity or
otherwise, for, upon or by reason of any act, omission, negligence or other
matter, cause or thing whatsoever from the beginning of the world until the
date hereof, which any of the Company Releasing Parties ever had or may have
had, now have, or hereafter can, shall or may have against any of the Company
Released Parties for, upon or by reason of any act, omission or other matter,
cause or thing whatsoever, in whatever capacity, from the beginning of the
world until the date hereof; and each of the Company Releasing Parties hereby
agrees that it shall not make any claim, demand or cause of action that the
Company should have settled the Payable Fees and the Relinquished Fees for an
amount less than the Payment, or challenging the validity, legality, binding
nature or enforceability of the Company Release.  Notwithstanding the foregoing or any other
provision of this Agreement, nothing in this Agreement shall be deemed to
constitute a release or discharge of the Advisor from its obligations under
this Agreement, the Advisory Agreement, the Original Renewal Agreement, the
Amended Advisory Agreement, the Amended and Restated Renewal Agreement or the
Merger Agreement not specifically contemplated by the Company Release.

 

5.             Release by the Advisor.  The
Advisor, for itself, each of its subsidiaries and Affiliates, successors and
assigns, and any of their respective past, present and future employees,
agents, representatives, attorneys, officers, directors, stockholders and
trustees (collectively the “Advisor Releasing Parties”), does hereby
fully, finally and forever remise, release and discharge (the “Advisor Release”)
the Company, its subsidiaries and Affiliates, successors and assigns, and of
any of their respective past, present, and future employees, agents,
representatives, attorneys, officers, directors, stockholders and trustees
(collectively the “Advisor Released Parties”), from any and all Losses
relating to, arising out of or in connection with any claim that the Advisor
was entitled, owed or had any rights with respect to Payable Fees and
Relinquished Fees for an amount in excess of the Payment, whether at law, in
equity or otherwise, whether currently outstanding or arising subsequent hereto
(including as a result of newly enacted laws or

 

3

 

regulations), known or unknown,
contingent or absolute, suspected or unsuspected, disclosed or undisclosed,
hidden or concealed, disputed or undisputed, liquidated or unliquidated,
matured or unmatured and whether or not accrued, and whether or not asserted or
assertable in law, equity or otherwise, for, upon or by reason of any act,
omission, negligence or other matter, cause or thing whatsoever from the
beginning of the world until the date hereof, which any of the Advisor
Releasing Parties ever had or may have had, now have, or hereafter can, shall
or may have against any of the Advisor Released Parties for, upon or by reason
of any act, omission or other matter, cause or thing whatsoever, in whatever
capacity, from the beginning of the world until the date hereof; and each of
the Advisor Releasing Parties hereby agrees that it shall not make any claim,
demand or cause of action that the Advisor was entitled, owed or had any rights
with respect to Payable Fees and Relinquished Fees for an amount in excess of
the Payment, or challenging the validity, legality, binding nature or
enforceability of the Advisor Release. 
Notwithstanding the foregoing or any other provision of this Agreement,
nothing in this Agreement shall be deemed to constitute a release or discharge
of the Company from its obligations under this Agreement, the Advisory
Agreement, the Amended Advisory Agreement, the Amended and Restated Renewal
Agreement or the Merger Agreement not specifically contemplated by the Advisor
Release.

 

6.             Representations and Warranties.  Each of
the Company and the Advisor hereby represents and warrants to the other party
that:

 

(a)           it is a
corporation duly organized, validly existing and in good standing under the
laws of the state of its incorporation, with full corporate power and authority
to execute and deliver this Agreement, perform its obligations hereunder and
consummate the transactions contemplated hereby;

 

(b)           The
execution and delivery of this Agreement by it, and the performance of its
obligations hereunder, have been duly and validly authorized by all necessary corporate
action, no other action on its part being necessary.  This Agreement has been duly and validly
executed and delivered by such party and constitutes the legal, valid and
binding obligation of such party, enforceable against such party in accordance
with its terms; and

 

(c)           Neither
the execution and delivery of this Agreement, nor the consummation of the
transactions contemplated hereby, will (i) conflict with, or result in a
breach of any provision of, such party’s certificate of incorporation or by-laws,
(ii) violate, or conflict with, or result in a breach of any provision of,
or constitute a default (or an event which, with the giving of notice, the
passage of time or otherwise, would constitute a default) under, or entitle any
person (with the giving of notice, the passage of time or otherwise) to
terminate, accelerate, modify or call a default under, or result in the
creation of any lien or other encumbrance upon any of such party’s properties
or assets under, any of the terms, conditions or provisions of any note, bond,
mortgage, indenture, deed of trust, license, contract, undertaking, agreement,
lease, arrangement or understanding or other instrument or obligation to which
such party is a party, (iii) violate any order, writ, injunction or decree,
or statute, rule or regulation applicable to such party or any of its
properties or assets or (iv) require any action, consent or approval of,
or review by, or registration or filing by such party or any of its Affiliates
with, any third party or any governmental authority prior to effectiveness
hereof.

 

4

 

7.             Indemnification.

 

(a)           The
Company agrees to indemnify and hold the Company Released Parties, or any of
them, harmless from any and all Losses incurred by any such Company Released
Party, to the extent arising out of or resulting from any inaccuracy in or
breach of any of the representations and warranties of the Company hereunder
set forth in paragraph 6.

 

(b)           The
Advisor agrees to indemnify and hold the Advisor Released Parties, or any of
them, harmless from any and all Losses incurred by any such Advisor Released
Party, to the extent arising out of or resulting from any inaccuracy in or
breach of any of the representations and warranties of the Advisor hereunder
set forth in paragraph 6.

 

8.             Confidentiality.  Subject to the following
sentence, each party will treat any other party’s confidential information
obtained from any source or as a result of this Agreement, the Advisory
Agreement, the Original Renewal Agreement, the Amended Advisory Agreement and
the Amended and Restated Renewal Agreement (including, without limitation, the
negotiations of the parties in connection therewith) as confidential and will
not disclose such information to any person, firm or enterprise, or use
(directly or indirectly) any such information for its own benefit or the
benefit of any other party except to such party’s advisors, unless authorized
in writing by the party that owns the confidential information, and even then,
agrees to limit access to and disclosure of such confidential information on a “need
to know” basis only to others who have agreed in writing to be bound by similar
confidentiality obligations. 
Notwithstanding the foregoing, the parties may disclose confidential
information as required by a court of competent jurisdiction, governmental
authority or regulatory agency; provided that the disclosing party must:
(i) use reasonable efforts to maintain the confidential nature of such
confidential information, including but not limited to providing such
disclosure under seal and/or pursuant to a protective order; and (ii) provide
reasonable advance written notice of such required disclosure to the party that
owns such confidential information. 
Notwithstanding the foregoing, the Advisor acknowledges and agrees that
the Company may be required to disclose this Agreement in connection with its
reporting obligations under the rules and regulations of the Securities
and Exchange Commission.

 

9.             Notices.  All notices and other
communications under this Agreement shall be dated and in writing and shall be
deemed given (a) when delivered personally by hand (with written
confirmation of receipt), (b) when sent by facsimile (with written
confirmation of transmission) or (c) one business day following the day
sent by overnight courier (with written confirmation of receipt), in each case
at the following addresses and facsimile numbers (or to such other address or
facsimile number as a party may have specified by written notice given to the
other party pursuant to this provision):

 

If to the Company, to:

 

CNL Hotels &
Resorts, Inc.

450 South Orange Avenue

 

5

 

Orlando, Florida 32801

Facsimile: (407) 648-0398

Attn:  Greerson G. McMullen, Esq.

 

If to the Advisor, to:

 

CNL Hospitality Corp.

450 South Orange Avenue

Orlando, Florida 32801

Facsimile:  (407) 843-4444

Attn:  Timothy Manor, Esq.

 

10.           Miscellaneous.  (a)  The parties hereto
acknowledge that they have completely read, fully understand, and voluntarily
accept the terms of this Agreement, having been advised by their own
independent counsel of the scope and legal effect hereof.  This Agreement was prepared by all
signatories hereto and in case of ambiguity shall not be construed more
strongly against one than against the other.

 

(b)           This
Agreement shall be deemed to be a contract made under the laws of the State of
Florida and shall be governed by, and construed in accordance with, the laws of
the State of Florida, without regard to the principles of conflicts of law
thereof.  The parties hereby irrevocably
consent to the jurisdiction of all courts (state and federal) sitting in the
State of Florida in connection with any claim, action or proceeding relating to
or in connection with this Agreement, and hereby waive any defense of forum
non  conveniens or other such claim or defense in respect of the
lodging of any such claim, action or proceeding in any such court.  

 

(c)           This
Agreement shall be binding upon and inure to the benefit of the parties hereto,
their respective heirs, legal representatives, successors and assigns. 

 

(d)           If any
term or other provision of this Agreement is invalid, illegal or incapable of
being enforced by any rule of law or public policy, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and
effect.   Upon such determination by a
court or tribunal of competent jurisdiction that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible to the fullest extent permitted by
applicable law in an acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the extent possible.

 

(e)           Neither
party shall by any act delay, indulgence, omission or otherwise be deemed to
have waived any right or remedy hereunder or with respect to a breach by the
other parties hereto of any of the terms and conditions hereof.  No failure to exercise, nor any delay in
exercising, on the part of either party, any right, power or privilege
hereunder shall operate as a waiver thereof. 
No single or partial exercise of any right, power or privilege hereunder
shall preclude any other or further exercise thereof or the exercise of any
other right, power of privilege.  A
waiver by either party of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which such party would
otherwise have on any future occasion.

 

6

 

(f)            The
rights and remedies provided herein are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies existing at
law or in equity or otherwise.

 

(g)           The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.  Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without
limitation.”  The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement unless the context otherwise requires.  The definitions contained in this Agreement
are applicable to the singular as well as the plural forms of such terms and to
the masculine as well as to the feminine and neuter genders of such term.

 

(h)           Any
provision of this Agreement may be amended or waived if, and only if, such
amendment or waiver is in writing and signed, in the case of an amendment, by
the parties hereto, or in the case of a waiver, by the party against whom the
waiver is to be effective.

 

(i)            This
Agreement, along with the Amended Advisory Agreement, contains the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements and understandings oral or written
(including, without limitation, the Preliminary Term Sheet executed by the
parties on December 8, 2005), with respect to such matters.  Notwithstanding the foregoing, the Advisor
and the Company acknowledge that (1) Section 8.13 of the Merger Agreement,
among various parties including the Advisor and the Company, has provisions
which are currently binding on the Advisor and the Company, and to the extent Section 8.13
of the Merger Agreement is inconsistent with the terms and conditions of this Agreement,
this Agreement shall supersede Section 8.13 and (2) there shall be no
deferral of advisory fees under the Amended Advisory Agreement after the date
hereof unless agreed to in writing by the Company and the Advisor.

 

(j)            This
Agreement and any amendment hereto may be executed by the parties hereto in one
or more counterparts, each of which shall be deemed to be an original as to the
party whose signature appears thereon, and all of which shall together
constitute one and the same instrument. 
This Agreement shall become binding when one or more counterparts
hereof, individually or taken together, shall bear the signatures of all of the
parties reflected as signatories.

 

7

 

IN
WITNESS WHEREOF, each of the undersigned has caused this
Agreement to be executed on its behalf by a duly authorized officer as of the
date first above written.

 

	
   

  	
  CNL
  HOTELS & RESORTS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark E.
  Patten

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark E. Patten

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice
  President and

  
	
   

  	
   

  	
   

  	
  Chief Accounting
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  CNL HOSPITALITY
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James M. Seneff, Jr.

  	
   

  
	
   

  	
   

  	
  Name: James M.
  Seneff, Jr.

  
	
   

  	
   

  	
  Title:   Chairman

  
						

 

8

 

EXHIBIT A

 

PROMISSORY NOTE

 

9

 

COPY

 

THIS PROMISSORY NOTE HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT
BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT
COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE
FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM.

 

PROMISSORY NOTE

 

	
  $27,000,000

  	
   

  	
  Issuance Date:
  December 30, 2005

  

 

FOR VALUE
RECEIVED, the undersigned, CNL HOTELS &
RESORTS, INC., a Maryland corporation (the “Maker”), hereby promises
to pay CNL HOSPITALITY CORP., a Florida
corporation (the “Payee”), the principal sum of Twenty-Seven Million
($27,000,000) Dollars, together with interest on the outstanding principal
balance hereunder accrued from the date hereof at the fixed simple rate of six
percent (6%) per annum.  All payments of
principal and/or interest shall be paid as set forth below, and each such
payment shall be made in lawful money of the United States of America by wire
transfer of immediately available funds to such account as shall have been
designated by the Payee in advance of the subject payment date.

 

1.             Payments of
Principal and Interest.

 

(a)           The principal of this
Note, together with all unpaid accrued interest hereunder, shall be due and
payable as follows:  (i) $15,000,000
in principal on January 31, 2006, and (ii) $12,000,000 in principal
on January 31, 2007 (the “Note Payment Dates”).

 

(b)           Accrued
interest on the unpaid principal balance of this Note shall be payable in
arrears on each of the Note Payment Dates. 
All interest hereunder shall be computed on the basis of a year of 360
days, and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).  Any principal and, to the extent legally
permitted, interest hereunder which is not paid when due under this Note shall
accrue interest at the rate provided above plus 600 basis points until such
overdue principal or interest has been paid in full.

 

(c)           In
the event that any scheduled payment date hereunder is a day on which banks in
the State of Florida are required or authorized to be closed, then the payment
that would be due on such day shall instead be due and payable on the next day
which is not such a non-banking day, with additional interest for such delay at
the rate then in effect hereunder.

 

(d)           Time is of the essence
with respect to the Maker’s payment obligations hereunder.

 

2.             Prepayment.

 

The Maker shall have the right to prepay, without penalty, at any time
or times after the date hereof, all or any portion of the outstanding principal
balance of this Note, together with interest on the amount of principal
prepaid, accrued to the date of prepayment.

 

10

 

3.             Events of Default.

 

The
following are Events of Default hereunder:

 

(a)           Any
failure by the Maker to pay when due all or any principal or interest
hereunder; or

 

(b)           If
the Maker (i) admits in writing its inability to pay generally its debts
as they mature, or (ii) makes a general assignment for the benefit of
creditors, or (iii) is adjudicated a bankrupt or insolvent, or (iv) files
a voluntary petition in bankruptcy or reorganization, or (v) takes
advantage, as against its creditors, of any bankruptcy or reorganization law of
the United States of America or any state or subdivision thereof now or
hereafter in effect, or (vi) has a petition or proceeding filed against it
under any provision of any bankruptcy or reorganization law or statute of the
United States of America or any state or subdivision thereof, which petition or
proceeding is consented to by the Maker or is not dismissed within sixty (60)
days after the date of the commencement thereof, (vii) has a receiver,
liquidator, trustee, custodian, conservator, sequestrator or other such person
appointed by any court to take charge of its affairs or assets or business and
such appointment is consented to by the Maker or is not vacated or discharged
within sixty (60) days thereafter, or (viii) takes any action in
furtherance of any of the foregoing; or

 

(c)           Any
liquidation, dissolution or winding up of the Maker or its business.

 

4.             Remedies on
Default.

 

If any Event of Default shall occur and be continuing after notice by
Payee of the Event of Default, and Maker fails to cure such Event of Default
within 15 days after Payee mails such notice (except for an Event of Default
under Section 3(b) above, the occurrence of which shall automatically
effect acceleration hereunder), the Payee shall, in addition to any and all
other available rights and remedies, have the right, at its option, (a) to
declare the entire unpaid principal balance of this Note, together with all
accrued interest hereunder, to be immediately due and payable, and (b) to
pursue any and all available remedies for the collection of such principal and
interest, including but not limited to the exercise of all rights and remedies
against the Maker.

 

5.             Certain Waivers.

 

Except as otherwise expressly provided in this Note, the Maker hereby
waives diligence, demand, presentment for payment, protest, dishonor,
nonpayment, default, and notice of any and all of the foregoing.  The Maker hereby expressly agrees that this
Note, or any payment hereunder, may be extended, modified or subordinated (by
forbearance or otherwise) from time to time, without in any way affecting the
liability of the Maker.  The Maker hereby
further waives the benefit of any exemption under any insolvency laws.

 

6.             Assignment.

 

This Note shall be binding upon, inure to the benefit of and be
enforceable by any successor in interest to the Payee; provided, however, that the Payee shall not directly or
indirectly assign any of its rights under this Note without the prior written
consent of the Maker.

 

11

 

Notwithstanding
the foregoing, the Payee shall be entitled to assign this Note or portion
thereof to one or more of its stockholders, their affiliates or a trust or
similar entity created by one or more stockholders (each, a “Successor Payee”).  In the event of such assignment, the Payee
shall deliver to the Maker, along with this Note, a written instrument
effecting such assignment in form and substance reasonably satisfactory to the
Maker, which instrument shall specify the amount of principal assigned to each Successor
Payee.  The Maker shall promptly
thereafter deliver replacement Notes to each Successor Payee in accordance with
the Payee’s instructions.

 

7.             Waivers and
Amendments.

 

Neither any provision of this Note nor any performance hereunder may be
amended or waived orally, but only by an agreement in writing and signed by the
party against whom enforcement of any waiver, change, modification or discharge
is sought.

 

8.             Cumulative
Remedies.

 

No right or remedy conferred upon the Payee under this Note is intended
to be exclusive of any other right or remedy contained herein or in any
instrument or document delivered in connection herewith, and every such right
or remedy shall be cumulative, may be exercised singly or concurrently, and
shall be in addition to every other such right or remedy contained herein
and/or now or hereafter existing at law or in equity or otherwise.

 

9.             Waivers; Course of
Dealing.

 

No course of dealing between the Maker and the Payee, or any failure or
delay on the part of the Payee in exercising any rights or remedies, or any
single or partial exercise of any rights or remedies, shall operate as a waiver
or preclude the exercise of any other rights or remedies available to the
Payee.

 

10.           Governing Law;
Consent to Jurisdiction; Waiver of Jury Trial.

 

This Note shall be deemed to be a contract made under the laws of the
State of Florida and shall be governed by, and construed in accordance with,
the laws of the State of Florida, without regard to the principles of conflicts
of law thereof.  The Maker hereby
irrevocably consents to the jurisdiction of all courts (state and federal)
sitting in the State of Florida in connection with any claim, action or
proceeding relating to or for the collection or enforcement of this Note, and
hereby waives any defense of forum  non  conveniens or other
such claim or defense in respect of the lodging of any such claim, action or
proceeding in any such court.  THE MAKER
HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING UNDER OR IN RESPECT OF OR FOR ENFORCEMENT OF THIS NOTE.

 

11.           Collection Costs.

 

In the event that the Payee shall, after the occurrence of an Event of
Default, turn this Note over to an attorney for collection, the Maker shall
further be liable for and shall pay to the Payee all collection costs and
expenses incurred by the Payee, including reasonable attorneys’ fees and
expenses; and the Payee may take judgment for all such amounts in addition to
all other sums due hereunder.

 

12

 

IN WITNESS WHEREOF, the Maker has caused this instrument to be duly
executed as of the date first set forth above.

 

	
   

  	
  CNL
  HOTELS & RESORTS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Mark E.
  Patten

  
	
   

  	
   

  	
  Title: Senior
  Vice President and Chief

  
	
   

  	
   

  	
   

  	
  Accounting
  Officer

  
						

 

13Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

                THIS AGREEMENT,
made and entered into as of December 1, 2005 (the “Effective Date”), by and
between ATP Oil & Gas Corporation (the “Company” or “ATP”) and Pauline H. van der
Sman-Archer (the “Executive”);

 

WITNESSETH
THAT:

 

                WHEREAS,
the Executive currently serves as the Company’s Vice President, Administration; and

 

                WHEREAS, the
Company and Executive desire to enter into this Agreement pertaining to the
continued employment of the Executive by the Company;

 

                NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth below and other
good and valuable consideration, the receipt of which is hereby acknowledged,
the Executive and the Company hereby agree as follows:

 

                1.             Performance of Services. The
Executive’s employment with the Company shall be subject to the following:

 

(a)                                  Subject to the terms of this Agreement,
the Company hereby agrees to employ the Executive as its Vice President, Administration
during the Agreement Term (as defined below) and the Executive hereby agrees to
remain in the employ of the Company during the Agreement Term.

 

(b)                                 The Executive agrees that he shall
perform his duties faithfully and efficiently subject to the direction of the
Company President.  The Executive’s
duties shall include providing services for both the Company and its Affiliates
(as used herein, Company shall mean and include the Company and all of its
Affiliates); provided, that the Executive shall not, without his consent, be
assigned tasks that would interfere or be inconsistent with those of Vice President, Administration.  The Executive will have such authority,
power, responsibilities and duties as are traditional and inherent to his
position at ATP (and the undertakings applicable to his position) and necessary
to carry out his responsibilities and the duties required of him hereunder.

 

(c)                                  Notwithstanding the foregoing provisions
of this paragraph 1, during the Agreement Term the Executive may devote
reasonable time to activities other than those required under this Agreement,
including activities involving professional, charitable, educational, religious
and similar types of organizations, speaking engagements, membership on the
boards of directors of other profit or not-for-profit organizations, and similar
activities, to the extent that such other activities do not, in the judgment of
the Company President, inhibit or prohibit the performance of the Executive’s
duties under this Agreement or conflict in any material way with the Company’s
business.  The Executive will make
periodic reports as requested by the Company President indicating the nature of
activities falling within this provision.

 

 

 

(d)                                 Subject to the terms of this Agreement,
the Executive shall not be required to perform services under this Agreement
during any period that he is Disabled (as defined in paragraph 3(b)).

 

(e)                                  The “Agreement Term” shall be the period
beginning on the Effective Date and ending on November 30, 2008.  On each anniversary of the Effective Date,
this Agreement shall automatically be extended for an additional one-year
period, unless either party to this Agreement provides notice of non-renewal to
the other party at least 6 months before any anniversary of the Effective
Date.  The term “Agreement Term” shall
also include any renewal period under the foregoing provisions of this
paragraph 1(e).

 

(f)                                    For purposes of this Agreement, the term “Affiliate”
shall mean any corporation, partnership, joint venture or other entity in which
at least a fifty percent interest in such entity is owned, directly or
indirectly, by the Company (or a successor to the Company).

 

                2.             Compensation and Benefits.  Subject to the terms of this Agreement,
during the Agreement Term while the Executive is employed by the Company, the
Company shall compensate him for his services as follows:

 

(a)                                  Base Salary.  The
Executive shall receive base salary equal to the annual rate currently paid to
the Executive at the time of execution of this Agreement, payable in
substantially equal monthly or more frequent installments.  The Executive’s Salary shall be reviewed
periodically to determine whether a change in the amount of Salary is
appropriate.

 

(b)                                 Annual Bonus. The Executive shall be eligible to
participate in an annual bonus plan.

 

(c)                                  Restricted Stock Award. 
As of the Effective Date, the Executive shall be awarded 6,935 shares of
common stock of the Company (“Restricted Stock”) under the Company’s 2000 Stock
Option Plan (“Stock Option Plan”).  Such
Restricted Stock award shall be subject to the terms and conditions of the
Stock Option Plan.  Except as otherwise
specifically provided in this Agreement, the Stock Option Plan, or the
restricted stock agreement evidencing the award, such shares of Restricted
Stock shall be forfeited if the Executive’s Date of Termination occurs prior to
the date such shares of Restricted Stock become vested.  The Restricted Stock shall vest with respect
to 50% of the shares awarded on the first anniversary of the Effective Date,
and shall vest with respect to an additional 25% of the shares awarded on each
of the second and third anniversaries of the Effective Date.

 

(d)                                 Other Benefits. 
The Executive shall be eligible to participate in any and all employee
benefit plans maintained by the Company from time to time.

 

(e)                                  Perquisites. 
The Executive shall be entitled to no less than the perquisites provided
by the Company to its senior executive officers.

 

2

 

(f)                                    Salary.  For purposes
of this Agreement, “Salary” shall mean Base Salary, Annual Bonus, Restricted
Stock Award and other benefits and perquisites as they are described in
subsections (a) through (e) of Section 2 of this Agreement.

 

                3.             Termination.  The Executive’s employment with the Company
during the Agreement Term may be terminated under the following circumstances.

 

(a)           Death.  The Executive’s employment hereunder shall
terminate upon his death.

 

(b)                                 Disability.  If the
Executive becomes Disabled, the Company may terminate his employment with the
Company.  For purposes of this Agreement,
the Executive shall be deemed to be “Disabled” if (i) he is eligible for
disability benefits under the Company’s long term disability plan, or (ii) he
has a physical or mental disability which renders him incapable, after
reasonable accommodation, of performing substantially all of his duties
hereunder for a period of 180 days (which need not be consecutive) in any
12-month period.  The Executive shall
choose the physician with the Company’s consent, which shall not be
unreasonably withheld.

 

(c)                                  Cause.  The Company
may terminate the Executive’s employment hereunder immediately and at any time
for Cause by written notice to the Executive detailing the basis for the Cause
termination.  For purposes of this
Agreement, “Cause” means in the reasonable judgment of the Company President (i)
willful misconduct by the Executive which is demonstrably, materially and
intentionally injurious to the Company, monetarily or otherwise, (ii) the
engaging by the Executive in egregious misconduct involving fiduciary or
financial responsibilities to the extent that his creditability and reputation
no longer conforms to the standard of senior executives of the Company, or
(iii) the commission by the Executive of a material act of dishonesty or breach
of trust resulting or intending to result in material personal benefit or
material enrichment to the Executive at the expense of the Company.  For purposes of this provision, no act or
failure to act shall be deemed “willful” unless done or omitted to be done not
in good faith and without reasonable belief that such action or omission was in
the best interest of the Company.

 

(d)                                 Good Reason. 
The Executive may terminate his employment hereunder for Good Reason,
provided that he gives the Company notice of such Good Reason within a
reasonable period (but, except as provided below, in no event more than 30
days) after he has knowledge of the events giving rise to the Good Reason and
the Company fails to correct such events within a reasonable period (but in no
event more than 30 days) after receiving such notice from the Executive.  “Good Reason” means, without the Executive’s
consent, (i) assigning duties to the Executive that are inconsistent in any
substantial respect with the position, authority, or responsibilities
associated with the office of Vice President, Administration, (ii) the
failure by the Company to pay the Executive any portion of his current
compensation within ten (10) business days of the date such compensation is
due, and (iii) the failure by the Company to continue any incentive
compensation plan in which the Executive participates which is material to his
compensation, unless an equitable substitute plan or alternative plan is made
available to the Executive.

 

3

 

(e)                                  Termination by Executive. 
The Executive may terminate his employment hereunder at any time for any
reason by giving the Company prior written notice not less than 30 days prior
to such termination.  Any termination
pursuant to this paragraph 3(e) shall preclude a later claim that such
termination was for Good Reason.

 

(f)                                    Mutual Agreement. 
This Agreement may be terminated at any time by mutual written agreement
of the parties.

 

(g)                                 Termination by the Company without Cause. 
The Company may terminate the Executive’s employment hereunder at any
time for any reason by giving the Executive written notice of such termination;
provided, however, termination by the Company shall be deemed to have occurred
under this paragraph 3(g) only if such termination by the Company is not
pursuant to paragraph 3(b), 3(c) or 3(f).

 

(h)                                 Date of Termination.  “Date
of Termination” means the last day that the Executive is employed by the
Company under the terms of this Agreement, provided that his employment is
terminated in accordance with one of the foregoing provisions of this paragraph
3.

 

                4.             Rights Upon Termination.   The Executive’s right to payments and
benefits under this Agreement for periods after his Date of Termination shall
be determined in accordance with the following provisions of this paragraph 4:

 

(a)                                  If the Executive’s Date of Termination
occurs during the Agreement Term for any reason, the Company shall pay to the
Executive:

 

                                                (i)            The
Executive’s Salary for the period ending on the Date of Termination.

 

(ii)                                  Payment for unused vacation days, as
determined in accordance with Company policy in effect from time to time.

 

(iii)                               Any other payments or benefits to be
provided to the Executive by the Company pursuant to any employee benefit plans
or arrangements adopted by the Company, to the extent such payments and
benefits are earned and vested as of the Date of Termination, or are required
by law to be offered for periods following the Executive’s Date of Termination.

 

                                                The amounts payable under clauses (i) and
(ii) above shall be paid in a lump sum as soon as practicable, but no later
than 10 days, following such Date of Termination.  Any amounts payable under clause (iii) above
shall be paid in accordance with the terms of the applicable plan or
arrangement.

 

(b)                                 If the Executive’s Date of Termination
occurs under paragraph 3(a) (relating to death) or paragraph 3(b) (relating to
being Disabled), then in addition to the amounts payable in accordance with
paragraph 4(a), the Executive will be entitled to:

 

4

 

(i)                                     a pro rata bonus payment for the fiscal
year in which such Date of Termination occurs, if such bonus will be paid to
all employees, which shall be an amount equal to the product of:

 

(A)                              the bonus the Executive would have
received for the fiscal year which includes his Date of Termination if he had
remained employed by the Company until the end of such year,

 

                                                                Multiplied
by

 

(B)                                a fraction, the numerator of which is the
number of days in the fiscal year preceding the Executive’s Date of Termination
and the denominator of which is 365.

 

Such pro rata bonus shall
be payable in a lump sum payment as soon as practicable, but no later than 10
days, following the Date of Termination.

 

(ii)                                  Immediate vesting in outstanding
Restricted Stock awarded in accordance with paragraph 2(c).

 

(c)                                  If the Executive’s Date of Termination
occurs under paragraph 3(d) (relating to termination by the Executive for Good
Reason) or paragraph 3(g) (relating to non-Cause termination by the Company),
then in addition to the amounts payable under paragraph 4(a), the Executive
shall be entitled to:

 

(i)                                     An amount equal to the Salary that the
Executive would have received if he had remained employed by the Company until
the end of the Agreement Term, at the rate in effect as of his Date of
Termination.

 

(ii)                                  A pro rata bonus payment for the year in
which the Date of Termination occurs, determined using the method described in
paragraph 4(b).

 

(iii)                               Immediate vesting in outstanding
Restricted Stock awarded in accordance with paragraph 2(c).

 

(iv)                              One year of continued medical, dental,
life and disability benefits, for the Executive, his spouse and eligible
dependents, at the same cost and under the same terms as active employees. In
the event that the Executive’s continued participation in any such plan,
program, or arrangement of the Company is prohibited by law or the terms of the
plan or contract, the Company will arrange to provide Executive with benefits
substantially similar to those which Executive would have been entitled to
receive under such plan, program, or arrangement for such period on a basis
which provides Executive with no additional after tax cost.

 

5

 

                                                The amount payable under clauses (i) and
(ii) above shall be paid in a lump sum cash payment as soon as practicable
following the Executive’s Date of Termination, but in no event later than 10
days thereafter.

 

                5.             Payments on Change in Control.  In the event of a Change in Control (defined
below), the Executive shall be entitled to full and immediate vesting in the
Restricted Stock awarded under paragraph 2(c).

 

If the Executive’s Date of Termination occurs on or
within 12 months after a Change in Control, then the Executive shall also be
entitled to:

 

(a)                                  An amount equal to 1.5
times the Executive’s Salary.  Such amount shall be paid in a
lump sum cash payment within five (5) business days of the Date of Termination;
and

 

(b)                                 the applicable
benefits provided in paragraph 4; provided, however, the Salary payable under subparagraph (a) above shall be in
lieu of any Salary payable under paragraph 4(c)(i) (relating to Salary through
end of contract term for non-Cause involuntary termination and termination for
Good Reason), if applicable.

 

                For purposes of
this Agreement, “Change in Control” shall mean the occurrence of one of the
following events:

 

(i)                                     any person, as such term is used in
Sections 13(d) and 14(d) of the Exchange Act (other than (1) the Company, (2)
any trustee or other fiduciary holding securities under an employee benefit
plan of the Company or (3) any corporation owned, directly or indirectly, by
the stockholders of the Company in substantially the same proportions as their
ownership of the common stock of the Company), is or becomes the beneficial
owner (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company (not including the securities
beneficially owned by such person or any securities acquired directly from the
Company or its affiliates) representing more than 25% of the combined voting
power of the Company’s then outstanding voting securities;

 

(ii)                                  during any period of not more than two
consecutive years, individuals who at the beginning of such period constitute
the Board (such board of directors being referred to herein as the Existing
Board), and any new director (other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction
described in clause (i), (iii) or (iv) of this paragraph 5) whose election by
the Existing Board or nomination for election by the Company’s stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved (other than
approval given in connection with an actual or threatened proxy or election
contest), cease for any reason to constitute at least 51% of such Existing
Board;

 

6

 

(iii)                               the stockholders of the Company approve a
merger or consolidation of the Company with any other corporation, other than
(A) a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding without conversion or by being converted into
voting securities of the surviving or parent entity) more than 50% of the
combined voting power of the voting securities of the Company or such surviving
or parent entity outstanding immediately after such merger or consolidation or
(B) a merger or consolidation effected to implement a recapitalization of the
Company (or similar transaction) in which no person (as hereinabove defined)
acquires more than 25% of the combined voting power of the Company’s then
outstanding securities; or

 

(iv)                              the stockholders of the Company approve a
plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of 50% or more of the Company’s assets (or any
transaction having a similar effect).

 

                6.             Make
Whole Payment. If any amount payable to
the Executive by the Company or any subsidiary or affiliate thereof, whether
under this Agreement or otherwise (a “Payment”), is subject to any tax under
section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or
any similar federal or state law (an “Excise Tax”), the Company shall pay to
the Executive an additional amount (the “Make Whole-Amount”) which is
equal to (i) the amount of the Excise Tax, plus (ii) the aggregate amount of
any interest, penalties, fines or additions to any tax which are imposed in
connection with the imposition of such Excise Tax, plus (iii) all income,
excise and other applicable taxes imposed on the Executive under the laws of
any Federal, state or local government or taxing authority by reason of the
payments required under clause (i) and clause (ii) and this clause (iii).

 

(a)                                  For purposes of determining the
Make-Whole Amount, the Executive shall be deemed to be taxed at the
highest marginal rate under all applicable local, state, federal and foreign
income tax laws for the year in which the Make-Whole Amount is paid. The
Make-Whole Amount payable with respect to an Excise Tax shall be paid by
the Company coincident with the Payment with respect to which such Excise Tax
relates.

 

(b)                                 All calculations
under this paragraph 6 shall be made initially by the Company and the Company
shall provide prompt written notice thereof to the Executive to enable the
Executive to timely file all applicable tax returns. Upon request of the
Executive, the Company shall provide the Executive with sufficient tax and
compensation data to enable the Executive or his tax advisor to independently
make the calculations described in subparagraph (a) above and the Company shall
reimburse the Executive for reasonable fees and expenses incurred for any such
verification.

 

(c)                                  If the Executive gives written
notice to the Company of any objection to the results of the Company’s
calculations within 60 days of the Executive’s receipt of written notice
thereof, the dispute shall be referred for determination to tax counsel
selected by the independent auditors of the Company (“Tax Counsel”). The
Company shall pay all fees and expenses of such Tax Counsel. Pending such
determination by Tax Counsel, the 

 

7

 

Company
shall pay the Executive the Make-Whole Amount as determined by it in good
faith. The Company shall pay the Executive any additional amount determined by
Tax Counsel to be due under this paragraph 6 (together with interest thereon at
a rate equal to 120% of the Federal short-term rate determined under
section 1274(d) of the Code) promptly after such determination.

 

(d)                                 The determination by Tax Counsel
shall be conclusive and binding upon all parties unless the Internal Revenue
Service, a court of competent jurisdiction, or such other duly empowered
governmental body or agency (a “Tax Authority”) determines that the Executive
owes a greater or lesser amount of Excise Tax with respect to any Payment than
the amount determined by Tax Counsel.

 

(e)                                  If a Taxing Authority makes a
claim against the Executive which, if successful, would require the Company to
make a payment under this paragraph 6, the Executive agrees to contest the
claim on request of the Company subject to the following conditions:

 

(i)                                     The Executive shall notify the
Company of any such claim within 10 days of becoming aware thereof. In the
event that the Company desires the claim to be contested, it shall promptly
(but in no event more than 30 days after the notice from the Executive or such
shorter time as the Taxing Authority may specify for responding to such claim)
request the Executive to contest the claim. 
The Executive shall not make any payment of any tax which is the subject
of the claim before the Executive has given the notice or during the 30-day
period thereafter unless the Executive receives written instructions from the
Company to make such payment together with an advance of funds sufficient to
make the requested payment plus any amounts payable under this paragraph 6
determined as if such advance were an Excise Tax, in which case the Executive
will act promptly in accordance with such instructions.

 

(ii)                                 If the Company so requests, the
Executive will contest the claim by either paying the tax claimed and suing for
a refund in the appropriate court or contesting the claim in the United States
Tax Court or other appropriate court, as directed by the Company; provided,
however, that any request by the Company for the Executive to pay the tax shall
be accompanied by an advance from the Company to the Executive of funds
sufficient to make the requested payment plus any amounts under this paragraph
6 determined as if such advance were an Excise Tax.  If directed by the Company in writing the
Executive will take all action necessary to compromise or settle the claim, but
in no event will the Executive compromise or settle the claim or cease to
contest the claim without the written consent of the Company; provided,
however, that the Executive may take any such action if the Executive waives in
writing his right to a payment under this paragraph 6 for any amounts payable
in connection with such claim.  The
Executive agrees to cooperate in good faith with the Company in contesting the
claim and to comply with any reasonable request from the Company concerning the
contest of the claim, including the pursuit of administrative remedies, the
appropriate forum for any judicial proceedings, and the legal basis for
contesting the claim.  Upon

 

8

 

request
of the Company, the Executive shall take appropriate appeals of any judgment or
decision that would require the Company to make a payment under this paragraph
6.  Provided that the Executive is in
compliance with the provisions of this section, the Company shall be liable for
and indemnify the Executive against any loss in connection with, and all costs
and expenses, including attorneys, fees, which may be incurred as a result of,
contesting the claim, and shall provide to the Executive within 30 days after
each written request therefor by the Executive cash advances or reimbursement for
all such costs and expenses actually incurred or reasonably expected to be
incurred by the Executive as a result of contesting the claim.

 

(f)                                    Should a Tax
Authority finally determine that an additional Excise Tax is owed, then the
Company shall pay an additional Make-Up Amount to the Executive in a
manner consistent with this paragraph 6 with respect to any additional Excise
Tax and any assessed interest, fines, or penalties.  If any Excise Tax as calculated by the
Company or Tax Counsel, as the case may be, is finally determined by a Tax
Authority to exceed the amount required to be paid under applicable law, then
the Executive shall repay such excess to the Company within 30 days of such
determination; provided that such repayment shall be reduced by the amount of
any taxes paid by the Executive on such excess which is not offset by the tax
benefit attributable to the repayment.

 

                7.             Mitigation and Set Off.  The Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise.  The
Company shall not be entitled to set off against the amounts payable to the
Executive, any amounts earned by the Executive in other employment after
termination of his employment with the Company, or any amounts which might have
been earned by the Executive had he sought such other employment.

 

                8.             Restrictive Covenants.

 

(a)                                  Noncompetition. 
The Executive covenants and agrees that at all times during the
Executive’s period of employment with the Company, and for one (1) year
thereafter, the Executive will not:

(i.)   Utilize trade secrets acquired or developed
while employed by the Company;

(ii.)  Engage, either directly or indirectly, as an
employee, a partner, agent, manager, officer or director, or by means of any
corporate or other device, in the acquisition and development of marginal oil
and gas fields in the Gulf of Mexico or the North Sea; or

(iii.)  Pursue, either directly or indirectly, either
for himself or in any capacity for any other person, company or corporation,
properties or projects which the Company has evaluated or acquired.

 

(b)                                 Confidentiality. 
The Executive recognizes and acknowledges that the Executive has had and
will continue to have access to various confidential or proprietary information
concerning the Company, corporations affiliated with the Company, and its
clients and third parties doing business with the Company of a special and
unique value which may

 

9

 

include, without limitation, (i) books and records
relating to operation, finance, accounting, sales, personnel and management,
(ii) policies and matters relating particularly to operations such as customer
service requirements, costs of providing service and equipment, operating costs
and pricing matters, and (iii) various trade or business secrets, including
customer lists, route sheets, business opportunities, marketing or business
diversification plans, business development and bidding techniques, methods and
processes, financial data and the like, to the extent not generally known in
the industry (collectively, the “Protected Information”).  Executive therefore covenants and agrees that
Executive will not at any time, either while employed by the Company or
afterwards, knowingly make any independent use of, or knowingly disclose to any
other person or organization (except as authorized by the Company) any of the
Protected Information, provided that (i) while employed by the Company,
Executive may in good faith make disclosures which, in his sole judgment, he
believes are desirable and for the benefit of the Company, and (ii) Executive
may comply with legal process.

 

                9.             Enforcement.  The Executive and the Company acknowledge
that a breach of the provisions herein will cause irreparable damage to the
Executive and the Company, and such damages may be inadequate and/or difficult
to measure.  Therefore, in the event of
breach or threatened breach, the Executive and the Company agree that the
aggrieved party, in addition to remedies otherwise available to it at law or
equity shall be entitled to seek injunctions, both preliminary and permanent,
enjoining or restraining such breach or threatened breach, and the Executive
and the Company hereby consent to the issuance thereof forthwith and without
bond by any court of competent jurisdiction.

 

                10.           Nonalienation.  The interests of the Executive under this
Agreement are not subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment, or garnishment by the
Executor’s creditors or beneficiaries.

 

                11.           Successors.  This Agreement shall be binding upon, and
inure to the benefit of, the Company and its successors and assigns and upon
any person acquiring, whether by merger, consolidation, purchase of assets or
otherwise, all or substantially all of the Company’s assets and business.

 

                12.           Notices.  Notices and all other communications provided
for in this Agreement shall be in writing and shall be delivered personally or
sent by registered or certified mail, return receipt requested, postage
prepaid, or sent by facsimile or prepaid overnight courier to the parties at
the addresses set forth below (or such other addresses as shall be specified by
the parties by like notice):

 

to the Company:

 

                ATP Oil & Gas Corporation

                4600 Post Oak
Place, Suite 203

                Houston,
Texas  77027

                Attn.:  General Counsel

 

10

 

To the Executive:

 

                Pauline
H. van der Sman-Archer

                [Redacted]

                [Redacted]

 

                13.           Severability.  Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law but, if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.  If any part of any
covenant or other provision in this Agreement is determined by a court of law
to be overly broad thereby making the covenant unenforceable, the parties
hereto agree, and it is their desire, that the court shall substitute a
reasonable and judicially enforceable limitation in its place, and that as so
modified the covenant shall be binding upon the parties as if originally set
forth herein.

 

                14.           Waiver of Breach.  No waiver of any party hereto of a breach of
any provision of this Agreement by any other party will operate or be construed
as a waiver of any subsequent breach by such other party.  The failure of any party hereto to take any
action by reason of such breach will not deprive such party of the right to
take action at any time while such breach continues.

 

                15.           Amendment.  This Agreement may be amended or canceled only
by mutual agreement of the parties in writing without the consent of any other
person.  So long as the Executive lives,
no person, other than the parties hereto, shall have any rights under or
interest in this Agreement or the subject matter hereof.

 

                16.           Survival of Agreement.  Except as otherwise expressly provided in
this Agreement, the rights and obligations of the parties to this Agreement
shall survive the termination of the Executive’s employment with the Company.

 

                17.           Entire Agreement.   This Agreement constitutes the entire
agreement between the parties concerning the subject matter hereof and
supersedes all prior and contemporaneous agreements, if any, between the
parties relating to the subject matter hereof.

 

                18.           Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of
Texas without regard to principals of conflict of laws.

 

                19.           Acknowledgement by Executive.  The Executive represents to the Company that
he is knowledgeable and sophisticated as to business matters, including the
subject matter of this Agreement, that he has read this Agreement and that he
understands its terms.  The Executive
acknowledges that, prior to assenting to the terms of this Agreement; he has been
given a reasonable time to review it, to consult with counsel of his choice,
and to negotiate at arm’s-length with the Company as to the contents.  The Executive and the Company agree that the
language used in this Agreement is the language chosen by the parties to
express their mutual

 

11

 

intent, and that no rule of strict construction is to be applied
against any party hereto.  The Executive
and the Company acknowledge that the terms of this agreement, to the extent of
any conflict, including any employment-at-will provisions, supersedes any
provisions contained in the Company Employee Handbook.

 

                IN WITNESS
WHEREOF, the Executive has hereunto set his hand, and the Company has caused
these presents to be executed in its name and on its behalf, as of the date
above first written.

 

	
  EXECUTIVE

  	
   

  	
  ATP OIL & GAS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /S/ PAULINE H. VAN DER
  SMAN-ARCHER

  	
   

  	
  BY

  	
  /S/ T. PAUL
  BULMAHN

  
	
  Pauline H. van der Sman-Archer

  	
   

  	
  Its

  	
  President and Chairman of the Board

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
  December 29, 2005

  	
   

  	
  Date

  	
  December 29, 2005

  
					

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}]]