Document:

Exhibit

Exhibit 10.69

Dated ___ April 2017

LIVANOVA PLC

Vivid Sehgal

 SETTLEMENT AGREEMENT

WITHOUT PREJUDICE AND SUBJECT TO CONTRACT
THIS AGREEMENT is made on ___ April 2017
BETWEEN
		
	(1)
	LIVANOVA PLC, a company registered in England with registered number 09451374 and having its registered office at 20 Eastbourne Terrace, London W2 6LG, England (the “Company”); and

		
	(2)
	VIVID SEHGAL, residing at 35 Kent Avenue, Ealing, London W13 8BE, England (the “Executive”).

BACKGROUND
		
	(A)
	The Executive’s employment with the Company will terminate on 31 May 2017; 

		
	(B)
	The Executive believes he has the Claims (as that term is defined below) arising out of the termination of his employment or otherwise;

		
	(C)
	The parties have entered into this Agreement for the purposes of recording and implementing the terms that they have agreed as full and final settlement of the Claims and any and all other claims that the Executive has and/or may have against the Company and any Group Company (as defined below) whether or not they are or could be in the contemplation of the parties at the date of this Agreement; 

		
	(D)
	The parties agree that the conditions regulating settlement agreements under the Acts (as defined below) are satisfied by this Agreement; and

		
	(E)
	The Company is entering into this Agreement for itself and for all Group Companies, and is duly authorised to do so in that respect.

IT IS AGREED as follows:
		
	1.
	Definitions and interpretation

		
	1.
	Definitions

In this Agreement, unless the context otherwise requires:
	
		
	“the Acts”
	means the Employment Rights Act 1996 section 203(3) and the Equality Act 2010, section 147

	“Claims”
	means the claims that the Executive believes that he has against the Company or any Group Company or against any of its or their respective shareholders, officers, employees or agents, being:
for breach of contract arising out of his employment, or termination of the employment, or otherwise;
for unfair dismissal under the Employment Rights Act 1996;
in relation to unauthorized deductions from wages;
for discrimination, harassment or victimisation on the grounds of age, sex, race or nationality or any other unlawful ground, pursuant to the Equality Act 2010;
for breach of contract or any other rights to or in respect of shares or other securities or securities based incentives in the Company or any Group Company; 
for unlawful detriment under the Employment Rights Act 1996; and 
under the Public Interest Disclosure Act 1998.

	“Compensation Committee”
	means the duly appointed compensation committee of the board of directors of the Company

	“Group”
	means the Company, any presently existing or future holding company or undertaking of the Company and any presently existing or future subsidiaries and subsidiary undertakings of the Company or such holding company or undertaking (and the words “subsidiary” and “holding company” shall have the meanings given to them in section 1159 in the Companies Act 2006)

	“Group Company”
	means any company within the Group

	“Schedule”
	means a schedule to this Agreement

	“Termination Date”
	means the 31 May 2017 

		
	2.
	Interpretation and Construction

Save to the extent that the context or the express provisions of this Agreement require otherwise, in this Agreement:
		
	(a)
	words importing the singular shall include the plural and vice versa;

		
	(b)
	words importing any gender shall include all other genders;

		
	(c)
	references to any statute or statutory provision (including any subordinate legislation) include any statute or statutory provision which amends, extends, consolidates or replaces the same, or which has been amended, extended, consolidated or replaced by the same, and shall include any orders, regulations, instruments or other subordinate legislation made under the relevant statute or statutory provision; 

		
	(d)
	references to a “person” includes any individual, firm, company, corporation, body corporate, government, state or agency of state, trust or foundation, or any association, partnership or unincorporated body (whether or not having separate legal personality) or two or more of the foregoing;

		
	(e)
	general words shall not be given a restrictive meaning because they are followed by words which are particular examples of the acts, matters or things covered by the general words and “including”, “include” and “in particular” shall be construed without limitation; and

		
	(f)
	the words “other” and “otherwise” shall not be construed eiusdem generis with any foregoing words where a wider construction is possible.

		
	3.
	Headings

The headings in this Agreement are included for convenience only and shall be ignored in construing the Agreement.

		
	2.
	Termination of Employment and offices

		
	1.
	The employment of the Executive with the Company will terminate on the Termination Date. Up to and including the Termination Date, the Executive will continue to be bound by his current service agreement and his duties will include working to deliver a smooth transition to any successor as Chief Financial Officer of the Company appointed prior to the Termination Date.  The Company acknowledges that the Executive has already made holiday arrangements for the last two weeks of May and confirms that he will not be required to change those.

		
	2.
	The Executive will immediately deliver to the Company the letter of resignation in terms of the draft letter set out at Schedule 1 confirming his resignation from his employment and from all directorships and other offices which the Executive holds in the Company and the Group.

		
	3.
	The Executive will do all such acts and things as the Company may require to effect his resignation from all offices to which the Executive was appointed in connection with or by reason of his employment by or appointment with the Company or any Group Company, including all trusteeships.

		
	3.
	PaymentS

		
	1.
	Subject to compliance by the Executive with the terms of this Agreement, the Company will (without admission of liability) pay to the Executive the following sums (the “Severance Payments”): 

		
	(a)
	£239,067 as a payment in lieu of notice comprising four months of base salary, supplemental pension contribution and auto allowance and five months of 2017 target bonus; and  (the “PILON”);

		
	(b)
	provision of seven months of supplemental health insurance coverage (1 June 2017 through 31 December 2017) at a cost of approximately £42,000; and

		
	(c)
	£100 in respect of the undertakings given in Clause 10.

		
	2.
	The Company shall pay the PILON in a single payment no later than 30 June 2017.  No Severance Payments will be paid prior to the Company’s receipt of this Agreement duly executed by the Executive and his solicitor.

		
	3.
	The Severance Payments set out above are gross amounts and will be made after deduction of all payments or deductions required by law or owed by the Executive to the Company or any Group Company, including tax due on any benefits or payments made or to be made to the Executive in respect of his employment with the Company.

		
	4.
	Following the production of an appropriate copy VAT invoice identifying the Company as third party payor, the Company shall pay to the Adviser (as defined in clause 13(b)) up to a maximum of £10,000 in respect of the Executive's legal expenses incurred only in connection with the termination of his employment.

		
	4.
	Taxation

		
	1.
	The Company understands that the Severance Payments under Clauses 3.1(a) and 3.1(d) (together the “Taxable Amount”) will be subject to deduction by the Company of tax at the appropriate rate and employee’s National Insurance contributions before payment is made to the Executive. The Company will account to HMRC for the tax and National Insurance contributions deducted. 

		
	2.
	The Executive will be responsible and liable for the payment of any tax and employee’s National Insurance contributions and any social security contributions and other employment related taxes wherever in the world arising (including any interest, penalties, costs and expenses) due in respect of the Severance Payments and the benefits and incentives (if any) set out in this Agreement (excluding the tax and National Insurance contributions deducted by the Company from the Taxable Amount) (the “Additional Tax”). The Executive will indemnify the Company and each Group Company and keep them indemnified on a continuing basis against all and any liability for Additional Tax that the Company or any Group Company may incur.  No payment of Additional Tax will be made to HMRC or other relevant tax authority without first particulars of the proposed payment being given to the Executive so that he is given the opportunity, at his own expense, to dispute any such payment or liability with HMRC or other relevant authority. 

		
	5.
	Payment of Accrued Sums and Expenses

		
	1.
	The Company will pay the Executive his basic salary and continue to provide any contractual benefits in respect of the period up to the Termination Date and pay in lieu of unused days of holiday which have accrued up to the Termination Date.   For the purposes of calculating unused holiday, the Company acknowledges that the Executive has carried over 6 days from his 2016 annual holiday entitlement.  The sums will be paid via payroll in the normal way and will be paid after deduction of tax and National Insurance contributions.

		
	2.
	The Executive will submit his final expenses claim made up to the Termination Date within 10 days after the Termination Date.  The Company will reimburse the Executive for all expenses reasonably incurred in the proper performance of his duties in accordance with Company guidelines.

		
	3.
	Notwithstanding the termination of his employment, the Executive will continue to be eligible to receive a payment under the Company’s annual discretionary bonus plan (the “Bonus Plan”) in respect of the 2016 bonus year. The amount of any bonus will be calculated by reference to the same percentage of the target amount used to calculate the bonus awarded to other executives under the Bonus Plan.  Any payment of bonus under the Bonus Plan will be paid in 2017 at the same time that bonus payments are made to other executives under the Bonus Plan.

		
	6.
	share incentives 

		
	1.
	The Compensation Committee has determined, in accordance with its power under the LivaNova Plc 2015 Incentive Award Plan, that the 5,208 RSUs of the Executive’s RSUs granted pursuant to his award agreement dated 11 March 2016 that would have vested on 11 March 2018 shall vest on the Termination Date.

		
	2.
	All other RSU and SAR awards (or other awards that are linked to shares in the Company or any Group Company) granted to the Executive and not vested as of the Termination Date will lapse on that date.

		
	7.
	Warranties

		
	1.
	The Executive warrants that:

		
	(a)
	he has not raised any legal proceedings against the Company or any Group Company or against any of its or their respective shareholders, officers, employees or agents; and

		
	(b)
	other than the Claims, as of the date of this Agreement, he has no further or outstanding claims or rights of action, being any further or outstanding claims or rights of action, whether under statute or common law (including contractual, tortious or other claims) and whether before an Employment Tribunal, court or otherwise and whether in the UK or any other jurisdiction in the world against the Company or any Group Company or any of its or their respective shareholders, officers, employees or agents including in respect of or arising out of his employment, or the holding of any office with or investment in the Company or any Group Company or the termination of that employment or office (such claims or rights of action referred to as “Further Claims”). 

		
	2.
	The Executive warrants as a strict condition to payment under this Agreement that there are no circumstances of which he is aware or of which he ought to be aware which could constitute a repudiatory breach by him of his contract of employment which would entitle or have entitled the Company to terminate his employment without notice.

		
	3.
	The Company warrants that as at the date of this Agreement it is not aware of any claims or circumstances giving rise to any claims against the Executive personally relating to the period in which he was an employee of the Company.

		
	8.
	Settlement

		
	1.
	Subject to clause 8.3, the Executive accepts the terms of this Agreement in full and final settlement of the Claims and all and any Further Claims, whether such claims are known or unknown to the parties and whether or not they are or could be in the contemplation of the parties at the date of this Agreement, which are waived and released in full.  The Company accepts the terms of this Agreement in full and final settlement of any claims it or any Group Company has or may have, known or unknown, arising out of the Executive’s services to the Company or any Group Company.

		
	2.
	The Executive undertakes not to institute or pursue any proceedings against the Company or any Group Company or against any of its or their respective shareholders, officers, employees or agents before an Employment Tribunal, court or any other judicial body anywhere in the world in respect of the Claims or for any remedy arising from any Further Claims.

		
	3.
	The Executive does not waive his right to bring a claim for accrued rights under any pension scheme or damages for latent personal injuries and/or any latent industrial disease arising out of the course of his employment with the Company and/or the Group that are currently unknown to him.  The Executive warrants that he is not aware of having any such personal injuries.  These exceptions are the only claims which have not been settled by this Agreement.

		
	4.
	Subject to the terms of Clause 8.3, if any other claim emerges in law or in fact anywhere in the world based on anything done or omitted to be done during the period of the Executive’s employment by the Company which was not previously known or foreseeable by the Executive, then the Executive agrees that there should 

be no recourse to any remedy for the claim against the Company or any Group Company.  The Executive acknowledges and accepts that in agreeing to the level of the Severance Payments he has taken into account that he has waived the right to pursue any such claims, whether foreseeable or not previously known, against the Company or any Group Company.
		
	9.
	Acknowledgement 

The Executive acknowledges that the Company has entered into this Agreement and made the Severance Payments in reliance on the warranties and the undertakings given by him in Clause 7 and Clause 8 respectively.  In the event of any breach by the Executive of any of those warranties or undertakings, the Severance Payments shall be repaid by him to the Company immediately and shall be recoverable by the Company as a debt.
		
	10.
	Confidentiality 

		
	1.
	The Executive agrees he continues to owe a duty of confidentiality to the Company and to the Group after the Termination Date.

		
	2.
	The Executive undertakes not to do any act or thing that might reasonably be expected would damage the business, interests or reputation of the Company or any Group Company and will not make or publish or cause to be made or published to anyone in any circumstances any disparaging remarks concerning the Company or any Group Company or any of its or their respective shareholders, officers, employees or agents.  

		
	3.
	Neither the Company nor any Group Company will authorise anyone to make or publish or cause to be made or published to anyone any statement or do any act or thing which it or they might reasonably expect would damage the interests or reputation of the Executive.

		
	4.
	The Executive acknowledges and agrees that whilst the consideration paid pursuant to Clause 3.1(d) represents valuable consideration it does not amount to an estimate of or cap on the loss or damage which the Company or any Group Company would suffer were the Executive to breach any of the obligations set out in this Clause.

		
	11.
	INDEMNIFICATION

		
	1.
	In September 2015, the Company and the Executive entered into a deed of indemnity ("the Deed") relating to acts and omissions of the Executive while employed by the Company.  The Deed shall continue in full force and effect according to its terms notwithstanding the termination of the Executive's employment and directorship.

		
	2.
	The Company will, for a period of not less than six calendar years following the Termination Date, maintain directors’ and officers’ insurance for the benefit of the Executive in respect of those liabilities which he incurred as a director or officer of the Company or any Group Company and for which such insurance is normally available.

		
	12.
	Delivery Up

		
	1.
	The Executive will return to the Company’s premises on or before the Termination Date all books, documents, papers, data (including copies or extracts and whether in printed or electronic format), materials, credit cards, keys, security cards or other property of or relating to the business of the Company or the Group or its or their respective clients or suppliers.  The Executive shall be entitled to retain for his personal use his company-assigned iPhone, iPad, and Surface Pro laptop computer, in each case without a company-paid wireless service plan.

		
	2.
	The Executive confirms that he will not, after the Termination Date, retain any confidential information relating to the Company or the Group, whether stored in electronic format or otherwise, except as may be retained with the express consent of the Company.

		
	13.
	Statutory settlement

This Agreement is made in compliance with the Acts which have been satisfied both generally and in the following particulars:
		
	(a)
	the Executive confirms that he has received independent legal advice on the terms and effect of this Agreement, and in particular its effect on his ability to pursue his rights before an Employment Tribunal or court;

		
	(b)
	the said legal advice has been given to the Executive by Jane Fielding whose address is Gowling WLG(UK) LLP, Two Snow Hill, Birmingham B4 6WR (the Adviser); and

		
	(c)
	the Adviser has confirmed to the Executive that she is a qualified solicitor holding a current practising certificate and in respect of whom there is in force a policy of professional indemnity insurance covering the risk of a claim against her and the said firm in respect of loss arising in consequence of the said 

advice and by signing the Certificate attached to this Agreement also confirms that she complies with the Acts.
		
	14.
	SERVICE AGREEMENT 

		
	1.
	The Executive confirms that all clauses in his terms and conditions of employment with the Company that are described as applying after the termination of his employment including the restrictions set out in Clauses 15, 16 and 19, will continue to apply to him.

		
	15.
	counterparts

This Agreement may be executed in any number of counterparts, including facsimiles, each of which is an original and all of which together evidence the same agreement.
		
	16.
	Governing Law and Jurisdiction

		
	1.
	This Agreement is governed and to be construed in accordance with English law and any dispute is subject to the exclusive jurisdiction of the English courts.

		
	2.
	Any Group Company may enjoy the benefit of and enforce the terms of this Agreement in accordance with the provisions of the Contracts (Rights of Third Parties) Act 1999.

The “without prejudice” and “subject to contract” nature of this document shall cease to apply once executed by the parties.

		
	Schedule 1
	 - RESIGNATION

Damien McDonald
LivaNova plc
20 Eastbourne Terrace
London, England 
W2 6LG

[ Date]
Dear Damien:

LivaNova plc (the “Company”)I hereby resign with effect from 31 May 2017 as an employee and from all other offices which I hold in any Group Company. 

Yours faithfully

Vivid Sehgal    

		
	Schedule 2
	 - CERTIFICATE OF INDEPENDENT LEGAL ADVISER

I Jane Fielding of Gowling WLG (UK) LLP whose address is Two Snow Hill, Birmingham B4 6WR confirm that I gave independent legal advice to Vivid Sehgal as to the terms and effect of the Agreement to which this certificate is attached (including the effect of Clauses 7, 8 and 9 in particular its effect on his ability to pursue his rights before a Court or Employment Tribunal.

I confirm that I am a solicitor of the Senior Courts holding a current practising certificate and that the statutory requirements relating to settlement agreements and compromise agreements set out in the Acts (as defined in the Agreement) have been met.  Further, that there was in force at the time I gave the advice referred to above a policy of insurance covering the risk of a claim by Vivid Sehgal in respect of any loss arising in consequence of that advice.
Signed:  
Dated: 
IN WITNESS of which this Agreement has been executed and delivered as a deed on the first date written above.
		
	EXECUTED as a Deed
	_________________________________

		
	by LIVANOVA PLC
	Damien McDonald

acting by Damien McDonald,
Chief Executive Officer

in the presence of:

Witness’s
		
	Signature:
	_________________________________

		
	Full Name:
	_________________________________

		
	Address:
	_________________________________

_________________________________
_________________________________

EXECUTED as a Deed
By VIVID SEHGAL
		
	 
	_________________________________

in the presence of:

Witness’s
		
	Signature:
	_________________________________

		
	Full Name:
	_________________________________

		
	Address:
	_________________________________

_________________________________
_________________________________pk-ex101_93.htm

Exhibit 10.1

 

Park Hotels & Resorts Inc.

Executive Severance Plan

 

The Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Park Hotels & Resorts Inc. (the “Company”) has adopted this Executive Severance Plan (the “Plan”), effective as of April 27, 2017. Capitalized terms not otherwise defined in the Plan shall have the meanings set forth in Exhibit A hereto.  

 

	
1.
	
Participation. Employees at the Senior Vice President level and above who are designated for participation in the Plan by the Committee from time to time shall participate in the Plan (collectively, the “Participants”).  

 

	
2.
	
Administration.  The Plan shall be administered by the Committee, which shall have authority, subject to the express provisions of the Plan, to interpret the Plan and make all other determinations necessary or advisable for the administration of the Plan. All decisions, interpretations and other actions of the Committee shall be final, conclusive and binding on all parties.

 

	
3.
	
Term and Amendment. The Committee may amend or terminate the Plan at any time and for any reason, provided that (i) six months’ prior notice to affected Participants will be required for any termination or amendment that materially and adversely affects the rights of such Participants, and (ii) no termination or amendment will materially and adversely affect the rights of any Participant whose employment terminated prior to the date of such amendment or termination.

 

	
4.
	
Termination without Cause or for Good Reason.  Upon a Participant’s termination of employment by the Company without Cause or by the Participant for Good Reason, the Participant shall be entitled to receive the Accrued Rights.  In addition, and subject to the terms and conditions of Section 8, the Participant shall be eligible to receive the benefits set forth below. 

 

	
 
	
(a)
	
The Company shall make a cash payment to the Participant equal to the product of the severance multiple set forth in the table below and the Participant’s Severance Basis, payable in a single lump sum as provided under Section 8.

 

		
	
Level
	
Severance Multiple

	
Executive Vice President
	
2.0x

	
Senior Vice President serving on Executive Committee
	
1.5x

	
Senior Vice President not serving on Executive Committee
	
1.0x

 

The “Severance Basis” is equal to the sum of (x) the Participant’s annual base salary in effect immediately prior to termination and (y) the Participant’s average annual bonus for the most recent two fiscal years, or, if the Participant was eligible to receive an annual bonus for only one year prior to termination, the bonus paid, if any, for such year.  If the Participant was not eligible to receive an annual bonus for the year prior to termination, then (x) the Participant’s “Severance Basis” is equal to the Participant’s annual base salary in effect immediately prior to termination and (y) the Participant shall remain eligible to receive an annual bonus for the year of termination (prorated, if applicable, for the actual period of service during such year), payable on the date such annual bonuses are paid to executives generally.

 

	
 
	
(b)
	
The Participant’s outstanding equity and equity-based awards shall be treated in the manner set forth in the Company’s 2017 Omnibus Incentive Plan (the “2017 Plan”) (or any successor plan) and the applicable award agreements issued thereunder (provided, however, that a Participant’s termination of employment for Good Reason shall be treated as a termination by the Company without Cause under the 2017 Plan (or any successor plan) and the award agreements issued thereunder).

 

	
 
	
(c)
	
Subject to the Participant’s timely election of COBRA coverage under the Company’s group health plan, the Company shall pay on the Participant’s behalf, on the first regularly scheduled payroll date of each month during the 12-month period following the Participant’s date of termination (the “Coverage Period”), an amount equal to the difference between the monthly COBRA premium cost and the monthly contribution paid by similarly situated active Company executives for the same coverage. The payments described in this clause (c) shall cease earlier than the expiration of the Coverage Period if the Participant becomes eligible to receive group health coverage from another employer or ceases to be eligible to receive COBRA coverage.

 

	
5.
	
Termination for Cause or without Good Reason. If a Participant’s employment is terminated by the Company for Cause or by the Participant without Good Reason, the Participant shall be entitled to receive the Accrued Rights and the Participant’s outstanding 

		
equity and equity-based awards shall be treated in the manner set forth in the 2017 Plan (or any successor plan) and the applicable award agreements issued thereunder.  The Participant shall not be eligible to receive any other benefits in connection with such termination.

 

	
6.
	
Termination by Death or Disability. If a Participant’s employment terminates due to death or Disability, the Participant shall be entitled to receive the Accrued Rights and an annual bonus for the fiscal year of termination pursuant to the terms of the Company’s Executive Short-Term incentive Program (the “STIP”), and the Participant’s outstanding equity and equity-based awards shall be treated in the manner set forth in the 2017 Plan (or any successor plan) and the applicable award agreements issued thereunder. The Participant shall not be eligible to receive any other benefits in connection with such termination.

 

	
7.
	
Non-Compete/Non-Solicit. During a Participant’s employment with the Company or its Affiliates (the “Employment Term”) and for 12 months following the date the Participant ceases to be employed by the Company or any of its Affiliates (the “Restricted Period”), the Participant shall not, whether on the Participant’s own behalf or on behalf of or in conjunction with any other Person, directly or indirectly solicit, pursue or interfere with (i) the business of any then current or prospective client or customer with whom the Participant (or his or her direct reports) had personal dealings or involvement during the one-year period preceding the Participant’s termination of employment, (ii) any business or investment opportunity with which the Participant (or his or her direct reports) had personal dealings or involvement during the one-year period preceding the Participant’s termination of employment, or (iii) business relationships between the members of the Company Group and any of their hotel managers, business partners, clients, customers, suppliers, partners, members or investors. 

 

In addition, during the Restricted Period, the Participant shall not directly or indirectly (i) provide services to a Competitor, (ii) enter the employ of a Competitor, or (iii) acquire a financial interest in or otherwise become actively involved with a Competitor as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant. Notwithstanding the foregoing, the Participant may directly or indirectly own, solely as an investment, securities of a Competitor which is publicly traded if the Participant (i) is not a controlling Person of, or a member of a group which controls, such Person and (ii) does not directly or indirectly own 2% or more of any class of securities of such Person.

During the Restricted Period, the Participant will not directly or indirectly (i) solicit or encourage any employee of the Company Group to leave the employment of the Company Group or (ii) hire any such employee of the Company Group. 

 

The term (i) “Business” shall mean the business of owning (but not the business of operating, managing and/or franchising) hotel properties and (ii) “Competitor” shall mean any publicly-traded real estate investment trust engaged primarily in the Business (including, but not limited to, Host Hotels & Resorts, Inc., LaSalle Hotel Properties, Pebblebrook Hotel Trust, Sunstone Hotel Investors, Inc., Chesapeake Lodging Trust, Diamondrock Hospitality Company, RLJ Lodging Trust and Ryman Hospitality Properties, Inc.).

 

If a judicial determination is made by a court of competent jurisdiction that the restriction contained in this Section 7 is unenforceable against a Participant, the provisions of this Section 7 shall not be rendered void but shall be deemed amended to apply as to the maximum extent as such court may judicially determine or indicate to be enforceable.  Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Section 7 is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein. 

 

	
8.
	
Conditions to Severance. Notwithstanding any provision herein to the contrary, the payment of any amount or provision of any benefit pursuant to Sections 4, 5 or 6 of the Plan (other than the Accrued Rights) (collectively, the “Severance Benefits”) to a Participant shall be conditioned upon (i) the Participant’s compliance with the obligations set forth in Section 7 hereof and (ii) the Participant’s execution, delivery to the Company and non-revocation of a release of claims in a form acceptable to the Company (the “Release Agreement”) (and the expiration of any revocation period contained in such Release Agreement) within 60 days following the date of the Participant’s termination of employment or such shorter period as the Company may provide (such expiration date, the “Release Effective Date”).  If the Participant fails to execute the Release Agreement in such a timely manner so as to permit any revocation period to expire prior to the end of such 60-day (or shorter) period, or timely revokes his or her acceptance of such release following its execution, the Participant shall not be entitled to any of the Severance Benefits.  The Company shall pay or commence providing the Severance Benefits within 10 days following the Release Effective Date; provided, however, that, to the extent that any of the Severance Benefits constitutes “nonqualified deferred compensation” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the 60th day following the date of the Participant’s termination of employment hereunder, but for the condition on executing the Release Agreement, shall not be made until the first regularly scheduled payroll date whose cutoff date follows such 60th day, after which any remaining Severance Benefits shall thereafter be provided to the Participant according to the applicable schedule set forth herein.

 

	
9.
	
Other Severance Benefits/Previous Plans. Participants shall not be entitled to receive any severance payments or benefits from the Company or any of its Affiliates upon a termination of employment, except as set forth in the Plan or as may be approved by the Committee in its discretion.  This Plan supersedes any and all prior severance plans or arrangements to which any Participant is subject (including the Hilton Worldwide Holdings Inc. 2013 Executive Severance Plan, as amended), all of which are hereby terminated as to the Participants.

 

	
10.
	
Dispute Resolution/Attorneys’ Fees. Any dispute arising as to the parties’ rights and obligations hereunder shall be resolved by binding arbitration in accordance with the rules of The McCammon Group.  Such arbitration shall take place in Northern Virginia.  The arbitrator shall be empowered to decide the arbitrability of all disputes and shall apply the substantive federal, state, or local law and statute of limitations governing any dispute submitted under the applicable rules.  In ruling on any dispute submitted to arbitration, the arbitrator shall have the authority to award only such remedies or forms of relief as are provided for under the substantive law governing such dispute.  The arbitrator shall issue a written decision that shall include the essential findings and conclusions on which the decision is based (a standard award).  Each party consents to the jurisdiction of the courts of the Commonwealth of Virginia for injunctive, specific enforcement or other relief in aid of the arbitration proceedings or to enforce judgment of the award in such arbitration proceeding, but not otherwise.  The award entered by the arbitrator shall be final and binding and shall not be appealable.  The fact, circumstances, and outcome of the arbitration shall be confidential to the maximum extent allowed by law.  The Company shall bear all fees and costs unique to the arbitration forum (e.g., filing fees, transcript costs and arbitrator’s fees).  The parties shall be responsible for their own attorneys’ fees and costs.

 

	
11.
	
Successors.  This Plan shall inure to the benefit of and shall be binding upon the Company and its successors and assigns. Any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume and agree to perform the obligations of the Company under this Plan.  The Plan shall inure to the benefit of and be enforceable by each Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, legatees or other beneficiaries. If a Participant shall die while any amount remains payable to such Participant hereunder, all such amounts shall be paid to the executors, personal representatives or administrators of such Participant’s estate. 

 

	
12.
	
No Right to Continued Service.  Nothing contained in the Plan shall (i) confer upon any Participant any right to continue as an employee of the Company, (ii) constitute any contract of employment or agreement to continue employment for any particular period, or (iii) interfere in any way with the right of the Company to terminate a service relationship with any Participant, with or without Cause.

 

	
13.
	
No Duty to Mitigate.  A Participant shall not be required to mitigate the amount of any payment or benefit provided pursuant to the Plan, nor shall the amount of any such payment or benefits be reduced by any compensation that the Participant receives from any other source, except as set forth in Section 4(c).

 

	
14.
	
Withholding/Section 280G and 409A Matters.  The Company shall have the authority and right to withhold an amount sufficient to satisfy federal, state, local and foreign taxes required by law to be withheld with respect to any payments or benefits under the Plan. The provisions with respect to Sections 280G and 409A of the Code on Exhibit B are incorporated into the Plan as if fully set forth herein.

 

	
15.
	
Unfunded Plan.  The Plan is intended to be an “unfunded” plan for severance benefits.  Nothing contained in the Plan shall give a Participant any rights that are greater than those of a general unsecured creditor. 

 

	
16.
	
No Assignment.  Each Participant’s rights under the Plan may not be assigned or transferred in whole or in part, except as set forth in Section 11.   

 

	
17.
	
Governing Law.  The Plan shall be construed and interpreted in accordance with the laws of the State of Delaware without reference to the conflict of laws provisions thereof, to the extent not preempted by federal law, which shall otherwise control.                                                                                                                                                                                   

 

 

 

EXHIBIT A

 

Certain Definitions

 

	
 
	
(a)
	
“Accrued Rights” means (i) all accrued but unpaid base salary through the date of termination of the Participant’s employment, (ii) any accrued but unpaid annual bonus for the prior compensation year required to be paid in accordance with the terms of the STIP, (iii) any unpaid or unreimbursed expenses incurred by the Participant in accordance with Company policy, and (iv) any benefits provided under the Company’s employee benefit plans upon a termination of employment, in accordance with the terms contained therein.

 

	
 
	
(b)
	
“Affiliate” means any Person that directly or indirectly controls, is controlled by or is under common control with the Company. The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities, by contract or otherwise.

 

	
 
	
(c)
	
“Cause” means a good faith determination of the Committee or its designee that (i) there is “cause” to terminate a Participant’s employment or service, as defined in and in accordance with any employment agreement between the Participant and any member of the Company Group or an Affiliate in effect at the time of such termination or (ii) in the absence of any such employment agreement (or the absence of any definition of “Cause” contained therein), any of the following has occurred with respect to a Participant: (A) such Participant has failed to reasonably perform his or her duties to the Service Recipient, or has failed to follow the lawful instructions of the Board or his or her direct superiors, in each case other than as a result of his or her incapacity due to physical or mental illness or injury, in a manner that could reasonably be expected to result in harm (whether financially, reputationally or otherwise) to any member of the Company Group or an Affiliate, following notice by the Company Group or such Affiliate of such failure; (B) such Participant has engaged or is about to engage in conduct harmful (whether financially, reputationally or otherwise) to any member of the Company Group or an Affiliate; (C) such Participant has been convicted of, or pled guilty or no contest to, a felony or any crime involving as a material element fraud or dishonesty; (D) the willful misconduct or gross neglect of such Participant that could reasonably be expected to result in harm (whether financially, reputationally or otherwise) to any member of the Company Group or an Affiliate; (E) the willful violation by such Participant of the written policies of the Service Recipient or any applicable written policies of any member of the Company Group that could reasonably be expected to result in harm (whether financially, reputationally or otherwise) to any member of the Company Group or an Affiliate; (F) such Participant’s fraud or misappropriation, embezzlement or misuse of funds or property belonging to the Company Group or an Affiliate (other than good faith expense account disputes); (G) such Participant’s act of personal dishonesty which involves personal profit in connection with such Participant’s employment or service with the Company Group or an Affiliate, or (H) the willful breach by such Participant of fiduciary duty owed to the Service Recipient.  Any act, or failure to act, based upon prior approval given by the Board or a committee thereof or upon the instructions or with the approval of the Participant’s superior or based upon the advice of counsel for the Company or an Affiliate, shall be conclusively presumed to be done, or omitted to be done, by the Participant in good faith and in the best interests of the Company or an Affiliate.

 

	
 
	
(d)
	
“Company Group” means, collectively, the Company and its Subsidiaries.

 

	
 
	
(e)
	
“Disability” means the Company or an Affiliate having cause to terminate a Participant’s employment or service on account of “disability,” as defined in any then-existing employment, consulting or other similar agreement between the Participant and the Company or an Affiliate or, in the absence of such an employment, consulting or other similar agreement (or the absence of any definition of “Disability” contained therein), a condition entitling the Participant to receive benefits under a long-term disability plan of the Company or an Affiliate, or, in the absence of such a plan, the complete and permanent inability by reason of illness or accident to perform the duties of the occupation at which a Participant was employed or served when such disability commenced. Any determination of whether Disability exists shall be made by the Committee (or its designee) in its sole discretion

 

	
 
	
(f)
	
“Good Reason” means the occurrence of one or more of the following circumstances without the Participant’s written consent, which circumstances are not remedied by the Company within 30 days of its receipt of a written notice from the Participant setting forth in reasonable specificity the circumstances that constitute Good Reason (which written notice must be provided by the Participant within 60 days of the Participant’s knowledge (whether actual or constructive, including, without limitation, knowledge that the Participant would have reasonably obtained after making due and appropriate inquiry) of such circumstances): (x) a material diminution in the Participant’s duties or responsibilities, (y) a material reduction in the 

	
 
		
Participant’s annual base salary or target annual bonus opportunity (other than pursuant to an across-the-board reduction applicable to all similarly situated executives), or (z) the relocation of the Participant’s principal place of employment by more than 50 miles from the Company’s headquarters, or such other place of employment at which the Participant has agreed to be based.  In order for a Participant to terminate his or her employment for Good Reason, the Participant must terminate employment within 30 days of the end of the cure period if the circumstances giving rise to Good Reason have not been cured.

 

	
 
	
(g)
	
“Person” means any individual, corporation, association or other business entity.

 

	
 
	
(h)
	
“Service Recipient” means the member of the Company Group by which the Participant is, or following a termination of employment with the Service Recipient for any reason (including death or Disability) was most recently, principally employed.

 

	
 
	
(i)
	
“Subsidiary” means, with respect to any specified Person: (i) any corporation, association or other business entity of which more than 50% of the total voting power of shares of such entity’s voting securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and (ii) any partnership, limited liability company or any comparable foreign entity (A) the sole general partner (or functional equivalent thereof) or the managing general partner (or functional equivalent thereof) of which is such Person or Subsidiary of such Person or (B) the only general partners (or functional equivalents thereof) of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

 

EXHIBIT B

 

Section 280G and 409A Provisions

 

	
 
	
1.
	
Section 280G. In the event that any payment or benefit received or to be received by a Participant pursuant to the Plan or otherwise (“Payments”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this section, be subject to the excise tax imposed by Section 4999 of the Code, any successor provisions, or any comparable federal, state, local or foreign excise tax (“Excise Tax”), then, subject to the provisions of this Section 1, such Payments shall be either (x) provided in full pursuant to the terms of the Plan or any other applicable agreement, or (y) provided as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax (“Reduced Amount”), whichever of the foregoing amounts, taking into account the applicable federal, state, local and foreign income, employment and other taxes and the Excise Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by the Participant, on an after-tax basis, of the greatest amount of payments and benefits provided for hereunder or otherwise, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax. Unless the Company and the Participant otherwise agree in writing, any determination required under this Plan shall be made by an independent advisor designated by the Company and reasonably acceptable to the Participant (the “Independent Advisor”), whose determination shall be conclusive and binding upon the Participant and the Company for all purposes.  For purposes of making the calculations required under this Plan, the Independent Advisor may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code; provided that the Independent Advisor shall assume that the Participant pays all taxes at the highest marginal rate.  The Company and the Participant shall furnish to the Independent Advisor such information and documents as the Independent Advisor may reasonably request in order to make a determination under this Section 1.  The Company shall bear all costs that the Independent Advisor may incur in connection with any calculations contemplated by this Plan.  The reduction of the Payments payable hereunder, if applicable, shall be made by first reducing the cash payments under Section 4(a), second by reducing the COBRA subsidy under Section 4(c), and lastly by reducing any other Payments in a manner determined by the Company, in consultation with the Participant.

 

	
 
	
2.
	
Section 409A. 

 

	
 
	
(a)
	
General. The Company intends that the payments and benefits provided under the Plan shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code, and the Plan shall be construed in a manner that effectuates this intent.  Neither the Company nor its respective directors, officers, employees or advisers (other than in his or her capacity as a Participant) shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan.  Notwithstanding anything in the Plan to the contrary, the Committee may amend the Plan, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of remaining exempt from or complying with the requirements of Section 409A of the Code and the administrative regulations and rulings promulgated thereunder.  Each payment in a series of payments under the Plan shall be deemed to be a separate payment for purposes of Section 409A of the Code. 

 

	
 
	
(b)
	
Definitional Restrictions. Notwithstanding anything in the Plan to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred Compensation”) would otherwise be payable or distributable under the Plan by reason of the occurrence of a Participant’s separation from service, such Non-Exempt Deferred Compensation will not be payable or distributable to the Participant by reason of such circumstance unless the circumstances giving rise to such separation constitute a “separation from service” under Section 409A of the Code and the applicable regulations. 

 

	
 
	
(c)
	
Six-Month Delay in Certain Circumstances. In the event that, notwithstanding the clear language of the Plan and the intent of the Company, any amount or benefit under this Plan constitutes Non-Exempt Deferred Compensation and is payable or distributable by reason of a Participant’s separation from service during a period in which the Participant qualifies as a “specified employee” (as defined in Section 409A of the Code and the final regulations thereunder), then, subject to any permissible acceleration of payment under Section 409A of the Code: 

 

	
 
	
a.
	
the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following the Participant’s separation from service under the terms of this Plan will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s separation from service (or, if the Participant dies during such period, within 30 days after the Participant’s death) (in either case, the “Required Delay Period”); and

 

	
 
	
b.
	
the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

 

	
 
	
(d)
	
Expense Reimbursements.  To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under the Plan constitutes Non-Exempt Deferred Compensation, (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by the Participant, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year.

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