Document:

Exhibit
10.7

 

	
  Montpelier Re Holdings Ltd.

  	
   

  	
  KVO Capital Management, LLC

  
	
  94 Pitts Bay Road

  	
   

  	
  33 S. Main Street

  
	
  Pembroke HM 08

  	
   

  	
  Suite 3

  
	
  Bermuda

  	
   

  	
  Hanover, NH 03755

  

 

July 28, 2010

 

Re:  Termination
of Consulting Agreement

 

Montpelier Re Holdings Ltd. (“Montpelier”) and KVO
Capital Management, LLC (“KVO”) entered into a Consulting Agreement dated as of
April 1, 2008 (the “Agreement”). 
Montpelier and KVO hereby agree to terminate the Agreement on the terms
set forth in this letter agreement.

 

Concurrently with the execution of this letter
agreement, Montpelier will pay KVO a Consulting Fee for July 2010 as
calculated pursuant to the Agreement.  No
further Consulting Fees will be paid.

 

Concurrently with the execution of this letter
agreement, Montpelier will pay KVO the out of pocket legal fees and
disbursements incurred by KVO, by KVO Capital Partners, L.P., and by KVO
Capital Offshore Fund, Ltd., for United States and Cayman Islands legal
counsel, up to a maximum of $30,000 in the aggregate, associated with the
drafting of:  (i) this letter
agreement; (ii) the side letter agreement to be executed in connection
with the Subscription Agreement referenced below; (iii) the Third
Amendment to Investment Management Agreement; and (iv) the amendments to
the Confidential Private Placement Memoranda of KVO Capital Partners, L.P. and
KVO Capital Offshore Fund, Ltd.

 

The Agreement will terminate concurrently with the
execution of the Third Amendment to Investment Management Agreement and the
execution of the Subscription Agreement and side letter agreement wherein
Montpelier agrees to invest $25 million into the Fund (as defined in the side
letter agreement), each dated concurrently with this letter agreement.  Neither Montpelier nor KVO shall have any
further obligations under the Agreement following its termination.  For avoidance of doubt, Montpelier shall not
be obligated to pay KVO any Pro-Rated Performance Fee or Termination Fee
pursuant to Section 4 of the Agreement. 
For the avoidance of doubt, KVO waives any entitlement it may have to
the Performance Fee described in Section 3(b) of the Agreement.

 

 

IN WITNESS WHEREOF, the parties hereto have executed
this letter agreement as of the day and year set forth above.

 

	
   

  	
  MONTPELIER RE HOLDINGS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ CHRISTOPHER L. HARRIS

  
	
   

  	
   

  
	
   

  	
  Name: Christopher L. Harris

  
	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  KVO CAPITAL MANAGEMENT, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KERNAN V. OBERTING

  
	
   

  	
   

  
	
   

  	
  Name: Kernan V. Oberting

  
	
   

  	
  Title: Managing MemberExhibit No. 10.2

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (this “Agreement”),
dated as of August 4, 2010 (the “Effective Date”),
is entered into by and among Sunstone Hotel Investors, Inc., a Maryland
corporation (“Sunstone”),  Sunstone
Hotel Partnership, LLC, a Delaware limited liability company (the “Operating Partnership”),  and Kenneth E.
Cruse (the “Executive”).

 

WHEREAS,
Sunstone and the Operating Partnership (collectively, the “Company”)
desire to employ the Executive and to enter into an agreement embodying the
terms of such employment; and

 

WHEREAS,
the Executive desires to accept employment with the Company, subject to the
terms and conditions of this Agreement.

 

NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                       Employment
Period. Subject to the provisions for earlier termination hereinafter
provided, the Executive’s employment hereunder shall be for a term (the “Employment Period”) commencing on the Effective Date and
ending on the third anniversary of the Effective Date (the “Initial  Termination Date”);
provided, however, that this Agreement shall be automatically
extended for three additional years on the Initial Termination Date and on each
subsequent third anniversary of the Initial Termination Date, unless either the
Executive or the Company elects not to so extend the term of the Agreement by
notifying the other party, in writing, of such election not less than ninety
(90) days prior to the last day of the term as then in effect.  For the avoidance of doubt, non-renewal of
the Agreement pursuant to the proviso contained in the preceding sentence shall
not constitute a termination without Cause or for Good Reason (each as defined
below).

 

2.                                       Terms of
Employment.

 

(a)                                  Position and
Duties.

 

(i)                                     During the
Employment Period, the Executive shall serve as Executive Vice President and
Chief Financial Officer of Sunstone and the Operating Partnership and shall
perform such employment duties as are usual and customary for such positions
and such other duties as the Company shall from time to time reasonably assign
to the Executive.  The Executive shall
report directly to the Chief Executive Officer of the Company.

 

(ii)                                  During the
Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote substantially
all of his business time, energy, skill and best efforts to the performance of
his duties hereunder in a manner that will faithfully and diligently further
the business and interests of the Company. 
Notwithstanding the foregoing, during the Employment Period it shall not
be a violation of this Agreement for the Executive to (A) serve on
corporate, civic or charitable boards or committees consistent with the Company’s
conflicts of interests policies and corporate governance guidelines in effect
from time to time and, with respect to service with a for-profit entity, with
the written consent of the Company’s Chief Executive Officer, (B) deliver
lectures or fulfill speaking engagements or (C) manage his personal
investments, so long as such activities do not interfere with the performance
of the Executive’s responsibilities as an executive officer of the Company.

 

 

(iii)                               The Executive
agrees that he will not take personal advantage of any business opportunity
that arises during his employment by the Company and which may be of benefit to
the Company.

 

(b)                                 Compensation.

 

(i)                                     Base Salary.  During the Employment Period, the Executive
shall receive a base salary (the “Base Salary”)
of Three Hundred Fifty Thousand Dollars ($350,000) per annum.  The Base Salary shall be paid in installments
at such intervals as the Company pays executive salaries generally, but not
less often than monthly.  During the
Employment Period, the Base Salary shall be reviewed at least annually for
possible increase (but not decrease) in the Company’s sole discretion, as
determined by the compensation committee (the “Compensation
Committee”) of the Board of Directors of the Company (the “Board”).  The term “Base
Salary” as utilized in this Agreement shall refer to Base Salary as so
adjusted.  Any increase in Base Salary
shall not serve to limit or reduce any other obligation to the Executive under
this Agreement.

 

(ii)                                  Annual Bonus.  In addition to the Base Salary, the Executive
shall be eligible to earn, for each calendar year ending during the Employment
Period, an annual cash performance bonus (an “Annual Bonus”)
under the Company’s bonus plan or plans applicable to senior executives.  The amount of any Annual Bonus and the
performance goals applicable to such Annual Bonus for the relevant year shall
be determined in accordance with the terms and conditions of said bonus plan as
in effect from time to time with the following targets: (1) threshold
target equal to 50% of Base Salary; (2) mid-point target equal to 75% of
Base Salary ( “Target Annual Bonus”);
(3) high target equal to 125% of Base Salary; and (4) superior
(maximum) target equal to 150% of Base Salary; provided, however,
that no minimum bonus is guaranteed and any bonus may equal zero in any given
year.  The Annual Bonus payable, if any,
in respect of any calendar year performance period shall be paid no later than
the March 15 immediately following such calendar year performance
period.  The terms and conditions of any
such bonus plan shall be determined by the Compensation Committee in its sole
discretion.

 

(iii)                               Equity Awards. During the
Employment Period, the Executive shall be eligible to earn equity awards under
the Company’s long-term incentive plan, subject to vesting and other conditions
determined by the Compensation Committee, in its sole discretion.  The form, amount and terms of equity awards,
if any, shall be determined by the Compensation Committee in accordance with
the terms and conditions of plans as in effect from time to time with the
following targets: (1) threshold target equal to 100% of Base Salary;
(2) mid-point target equal to 150% of Base Salary; (3) high target
equal to 200% of Base Salary; and (4) superior (maximum) target equal to
250% of Base Salary; provided, however, that no minimum equity
award is guaranteed and any award may equal zero in any given year.

 

(iv)                              Incentive,
Savings and Retirement Plans.  During the Employment Period, the Executive
shall be eligible to participate in all other incentive plans, practices, policies
and programs, and all savings and retirement plans, policies and programs, in
each case that are applicable generally to senior executives of the Company.

 

(v)                                 Welfare Benefit
Plans.  During the Employment Period,
the Executive and the Executive’s eligible family members shall be eligible for
participation in the welfare benefit plans, practices, policies and programs
(including, if applicable, medical, dental, 

 

2

 

vision, disability, employee
life, group life and accidental death insurance plans and programs) maintained
by the Company for its senior executives.

 

(vi)                              Business
Expenses.  During the
Employment Period, the Executive shall be entitled to receive prompt
reimbursement for all reasonable business expenses incurred by the Executive in
accordance with the policies, practices and procedures of the Company provided
to senior executives of the Company.

 

(vii)                           Fringe Benefits.  During the Employment Period, the Executive
shall be entitled to such fringe benefits and perquisites as are provided by
the Company to its senior executives from time to time, in accordance with the
policies, practices and procedures of the Company.

 

(viii)                        Vacation.  During the Employment Period, the Executive
shall be entitled to paid vacation in accordance with the plans, policies,
programs and practices of the Company applicable to its senior executives.

 

3.                                       Termination of
Employment.

 

(a)                                  Death or
Disability.  The
Executive’s employment shall terminate upon the Executive’s death or Disability
during the Employment Period.  For
purposes of this Agreement, “Disability”
means the Executive’s inability by reason of permanent physical or mental
illness to fulfill his obligations hereunder for 120 consecutive days or on a total
of 180 days in any 12-month period which, in the reasonable opinion of an
independent physician selected by the Company or its insurers and reasonably
acceptable to the Executive or the Executive’s legal representative, renders
the Executive unable to perform the essential functions of his job, even after
reasonable accommodations are made by the Company.  The Company is not, however, required to make
unreasonable accommodations for the Executive or accommodations that would
create an undue hardship on the Company. 
For purposes of clarity, this provision is not intended to, and does
not, alter or affect any and all rights the Executive has to avail himself of
leaves of absence in accordance with Company policies applicable to senior
executives and/or his rights under applicable disability and leave of absences
laws, including, without limitation, the Americans with Disabilities Act, the
Family and Medical Leave Act, the California Fair Employment and Housing Act,
and the California Family Rights Act.

 

(b)                                 Cause.  The Company may terminate the Executive’s
employment during the Employment Period for Cause or without Cause.  For purposes of this Agreement, “Cause” shall mean the occurrence of one or more of the
following events:

 

(i)                                     The Executive’s
continued and willful failure to perform or gross negligence in performing his
duties owed to the Company, which is not cured within fifteen (15) days
following a written notice being delivered to the Executive, which notice
specifies such failure or negligence;

 

(ii)                                  The Executive’s
willful commission of an act of fraud or material dishonesty in the performance
of his duties, the nature of which, and the support for which, shall be
provided to the Executive in writing;

 

(iii)                               The indictment
of the Executive, conviction of the Executive, or entry by the Executive of a
guilty or no contest plea to any felony or any other felony or misdemeanor
involving moral turpitude;

 

3

 

(iv)                              Any material
breach by the Executive of his fiduciary duty or duty of loyalty to the
Company; or

 

(v)                                 The Executive’s
material breach of any of the provisions of this Agreement, or any other
written agreement between the Executive and the Company, which is not cured
within fifteen (15) days following written notice thereof from the Company.

 

(c)                                  Good Reason.  The Executive’s employment may be terminated
by the Executive for Good Reason or by the Executive without Good Reason.  For purposes of this Agreement, “Good Reason” shall mean the occurrence of any one or more of
the following events without the Executive’s prior written consent:

 

(i)                                     A material
reduction in the Executive’s title, duties, authority, responsibilities,
reporting relationships, or the assignment to the Executive of any duties materially
inconsistent with the Executive’s position, title, authority, duties, or
responsibilities;

 

(ii)                                  The Company’s
reduction of the Executive’s annual Base Salary, bonus opportunity, or equity
award opportunity as in effect or as may be increased from time to time;

 

(iii)                               The relocation
of the Company’s headquarters to a location more than thirty five (35) miles
from the Company’s current headquarters in San Clemente, California; provided,
however, if the Company moves to Aliso Viejo, California, within 12 months from
the Effective Date, then such relocation of the Company’s headquarters must be
more than thirty five (35) miles from such location in Aliso Viejo, California,
in order to constitute Good Reason; or

 

(iv)                              The Company’s
material breach of its obligations under this Agreement.

 

For
purposes of this Agreement, a termination of employment by the Executive shall
not be deemed to be for Good Reason unless (A) the Executive gives the
Company written notice describing the event or events which are the basis for
such termination within 90 days after the event or events occur, (B) such
grounds for termination (if susceptible to correction) are not corrected by the
Company within 30 days of the Company’s receipt of such notice, and (C) the
Executive terminates his employment no later than 30 days after the Executive
provides notice to the Company in accordance with clause (A) of this
paragraph.

 

(d)                                 Notice of
Termination.  Any
termination other than due to death shall be communicated by Notice of Termination
to the other parties hereto given in accordance with Section 10(c) of
this Agreement.  For purposes of this
Agreement, a “Notice of Termination” means a
written notice which (i) indicates the specific termination provision in
this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated, and
(iii) if the Date of Termination (as defined below) is other than the date
of receipt of such notice, specifies the termination date (which date shall be
not more than thirty (30) days after the giving of such notice).  The failure by the Executive or the Company
to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
the Executive or the Company, respectively, hereunder or preclude the Executive
or the Company, respectively, from asserting such fact or circumstance in
enforcing the Executive’s or the Company’s rights hereunder.

 

4

 

(e)                                  Date of
Termination.  “Date of Termination” means (i) if the Executive’s
employment is terminated by the Company other than due to the Executive’s death
or Disability, the date of receipt of the Notice of Termination or any later
date specified therein (which date shall not be more than thirty (30) days
after the giving of such notice), as the case may be, (ii) if the
Executive’s employment is terminated by the Executive other than due to the
Executive’s death or Disability, the Date of Termination shall be the thirtieth
day after the date on which the Executive notifies the Company of such
termination, unless otherwise agreed by the Company and the Executive, and (iii) if
the Executive’s employment is terminated by reason of death or Disability, the
Date of Termination shall be the date of death or Disability of the Executive
is determined as described in Section 3(a) of this Agreement, as the
case may be.  Notwithstanding the
foregoing, with respect to any payments that become payable to the Executive in
connection with his termination of employment with the Company, including
without limitation any Severance Payments, Date of Termination means the date
on which the Executive experiences a “separation from service” within the
meaning of Section 409A (as defined below).

 

4.                                       Obligations of
the Company Upon Termination.

 

(a)                                  Without Cause
or For Good Reason.  If, during
the Employment Period, the Company shall terminate the Executive’s employment
without Cause or the Executive shall terminate his employment for Good Reason
(whether or not in connection with a Change in Control (as defined below)):

 

(i)                                     The Executive
shall be paid in two lump sum payments the amounts set forth in (A) and (B) below
(other than vested benefits, which shall be paid as and when due under the
terms of the applicable plan or program) and outstanding equity awards shall
vest as set forth in (C) below: (A) the Executive’s earned but unpaid
Base Salary, accrued but unpaid vacation pay through the Date of Termination,
any vested amounts due to the Executive under any plan, program or policy of
the Company and any Annual Bonus required to be paid to the Executive pursuant to
Section 2(b)(ii) above for any fiscal year of the Company that ends
on or before the Date of Termination, to the extent not previously paid (if
any), plus an amount equal to a pro rata share of the Target Annual Bonus
determined by multiplying the Target Annual Bonus by a fraction the numerator
of which is the number of days elapsed in the year through the Date of
Termination and the denominator of which is 365 (together, the “Accrued Obligations”), (B) an amount (the “Severance Amount”) equal to two (2) times the sum of (x) the
Base Salary in effect on the Date of Termination (but in no event less than the
Base Salary set forth in Section 2(b)(i) above) plus (y) the
greater of (xx) the Target Annual Bonus and (yy) the actual Annual Bonus
paid to the Executive in respect of the last full calendar year immediately
preceding the Date of Termination, and (C) all outstanding stock options,
restricted stock units and other equity awards granted to the Executive under
any of the Company’s equity incentive plans (or awards substituted therefor
covering the securities of a successor company) shall become immediately vested
and, as applicable, exercisable in full (the “Vesting
Acceleration”). The Accrued Obligations shall be paid when due under
applicable law and, subject to Section 10(e) below, the
Severance Amount shall be paid on the sixtieth (60th) day after the Date of Termination (or, if not a
business day, on the first business day following such sixtieth (60th) day).

 

(ii)                                  For a period of
eighteen (18) months following the Termination Date, the Company shall, at the
Company’s sole expense, continue to provide the Executive and the Executive’s
eligible family members with group health insurance coverage at least equal to
that which would have been provided to them if the Executive’s employment 

 

5

 

had not been terminated,
based on the Executive’s applicable elections in effect on the Termination Date
(or at the Company’s election, pay the applicable COBRA premium for such
coverage) (the “Continuation Benefits”); provided,
however, that if the Executive becomes re-employed with another employer
and is eligible to receive group health insurance coverage under another
employer’s plans, the Company’s obligations under this Section 4(a)(ii) shall
be reduced to the extent comparable coverage is actually available to the
Executive and the Executive’s eligible family members, and any such eligibility
shall be reported promptly by the Executive to the Company, but in any event
within fifteen (15) days after such eligibility begins.  Notwithstanding the foregoing, if during the
period of Continuation Benefits, any plan pursuant to which such benefits are
to be provided ceases to be exempt from the application of Section 409A under
Treasury Regulation Section 1.409A-1(a)(5), then an amount equal to each
such remaining premium shall thereafter be paid to the Executive as currently
taxable compensation in substantially equal monthly installments over the
remainder of the Continuation Benefits period.

 

(iii)                               Notwithstanding
anything herein to the contrary, it shall be a condition to the Executive’s
right to receive any of the Severance Amount, the Vesting Acceleration and/or
the Continuation Benefits that the Executive timely execute, deliver to the
Company and not revoke a release of claims in substantially the form attached
hereto as Exhibit A.

 

(b)                                 Death or
Disability. If the Executive’s employment is terminated by
reason of the Executive’s death or Disability during the Employment Period:

 

(i) The Accrued Obligations shall be paid to
the Executive’s estate or beneficiaries or to the Executive, as applicable, in
cash within 30 days of the Date of Termination;

 

(ii) 100% of the Executive’s annual Base
Salary, as in effect on the Date of Termination, shall be paid to the Executive’s
estate or beneficiaries or to the Executive, as applicable, in cash within 30
days of the Date of Termination;

 

(iii) Notwithstanding anything to the contrary
in any award agreement, outstanding stock options, restricted stock units and
other equity awards granted to the Executive under any of the Company’s equity
incentive plans (or awards substituted therefor covering the securities of a
successor company) shall immediately vest, but only to the extent such
outstanding awards were scheduled to vest within the twelve (12) month period
immediately following the Date of Termination; and

 

(iv) For a period of eighteen (18) months
following the Date of Termination, the Executive and the Executive’s eligible
family members shall continue to be provided, at the Company’s sole expense,
with group health insurance coverage at least equal to that which would have
been provided to them if the Executive’s employment had not been terminated (or
at the Company’s election, pay the applicable COBRA premium for such coverage);
provided, however, that if the Executive becomes re-employed with
another employer and is eligible to receive group health insurance coverage
under another employer’s plans, the Company’s obligations under this Section 4(c)(iv) shall
be reduced to the extent comparable coverage is actually available to the
Executive and the Executive’s eligible family members, and any such coverage
shall be reported by the Executive to the Company.

 

6

 

(c)                                  Other Terminations.  If the Executive’s employment with the
Company terminates for any reason other than those described in Sections 4(a) and
(b) above, the Company shall pay to the Executive the Accrued
Obligations in accordance with Section 4(a) above and shall
have no further obligations to the Executive under this Agreement.

 

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

 

(i)                                     Any transaction
or event resulting in the beneficial ownership of voting securities, directly
or indirectly, by any “person” or “group” (as those terms are defined in Sections
3(a)(9), 13(d), and 14(d) of the Securities Exchange Act
of 1934 (“Exchange Act”) and the rules thereunder)
having “beneficial ownership “ (as determined pursuant to Rule 13d-3 under
the Exchange Act) of securities entitled to vote generally in the election of
directors (“voting securities”) of Sunstone
that represent greater than 50% of the combined voting power of Sunstone’s then
outstanding voting securities (unless the Executive has beneficial ownership of
at least 50% of such voting securities), other than any transaction or event
resulting in the beneficial ownership of securities:

 

(A)                              By a trustee or
other fiduciary holding securities under any employee benefit plan (or related
trust) sponsored or maintained by Sunstone or any person controlled by Sunstone
or by any employee benefit plan (or related trust) sponsored or maintained by Sunstone
or any person controlled by Sunstone, or

 

(B)                                By Sunstone or
a corporation owned, directly or indirectly, by the stockholders of Sunstone in
substantially the same proportions as their ownership of the stock of Sunstone,
or

 

(C)                                Pursuant to a
transaction described in clause (iii) below that would not be a Change in
Control under clause (iii);

 

(ii)                                  Individuals
who, as of the Effective Date, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of
the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election by Sunstone’s
stockholders, or nomination for election by the Board, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an election contest with respect to
the election or removal of directors or other solicitation of proxies or
consents by or on behalf of a person other than the Board;

 

(iii)                               The
consummation by Sunstone (whether directly involving Sunstone or indirectly
involving Sunstone through one or more intermediaries) of (x) a merger,
consolidation, reorganization, or business combination or (y) a sale or
other disposition of all or substantially all of Sunstone’s assets or (z) the
acquisition of assets or stock of another entity, in each case, other than a transaction,

 

(A)                              which results
in Sunstone’s voting securities outstanding immediately before the transaction
continuing to represent (either by remaining outstanding or by being converted
into voting securities of Sunstone or the person that, as a result of the
transaction, controls, directly or indirectly, 

 

7

 

Sunstone or owns, directly
or indirectly, all or substantially all of Sunstone’s assets or otherwise
succeeds to the business of Sunstone (Sunstone or such person, the “Successor Entity”)) directly or indirectly, greater than 50%
of the combined voting power of the Successor Entity’s outstanding voting
securities immediately after the transaction, and

 

(B)                                after which no
person or group beneficially owns voting securities representing greater than
50% of the combined voting power of the Successor Entity; provided, however,
that no person or group shall be treated for purposes of this clause (B) as
beneficially owning greater than 50% of the combined voting power of the
Successor Entity solely as a result of the voting power held in Sunstone prior
to the consummation of the transaction; or

 

(iv)                              The approval by
Sunstone’s stockholders of a liquidation or dissolution of Sunstone.

 

For
purposes of clause (i) above, the calculation of voting power shall be
made as if the date of the acquisition were a record date for a vote of
Sunstone’s stockholders, and for purposes of clause (iii) above, the
calculation of voting power shall be made as if the date of the consummation of
the transaction were a record date for a vote of Sunstone’s stockholders.

 

6.                                       Full Settlement.  The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others.  In no event shall
the Executive be obligated to seek other employment or take any other action by
way of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and except as expressly provided, such amounts
shall not be reduced whether or not the Executive obtains other
employment.  If any party to this
Agreement institutes any action, suit, counterclaim, appeal, arbitration or
mediation for any relief against another party, declaratory or otherwise
(collectively, an “Action”), to
enforce the terms hereof or to declare rights hereunder, then the Prevailing
Party in such Action shall be entitled to recover from the other party all
costs and expenses of the Action, including reasonable attorneys’ fees and
costs (at the Prevailing Party’s attorneys’ then-prevailing rates) incurred in
bringing and prosecuting or defending such Action and/or enforcing any
judgment, order, ruling or award (collectively, a “Decision”)
granted therein, all of which shall be deemed to have accrued on the
commencement of such Action and shall be paid whether or not such Action is
prosecuted to a Decision.  Any Decision
entered in such Action shall contain a specific provision providing for the
recovery of attorneys’ fees and costs incurred in enforcing such Decision.  A court or arbitrator shall fix the amount of
reasonable attorneys’ fees and costs upon the request of either party.  Any judgment or order entered in any final
judgment shall contain a specific provision providing for the recovery of all
costs and expenses of suit, including reasonable attorneys’ fees and expert
fees and costs incurred in enforcing, perfecting and executing such
judgment.  For the purposes of this
paragraph, costs shall include, without limitation, in addition to costs
incurred in prosecution or defense of the underlying action, reasonable
attorneys’ fees, costs, expenses and expert fees and costs incurred in the
following:  (a) post-judgment
motions and collection actions; (b) contempt proceedings; (c) garnishment,
levy, debtor and third party examinations; (d) discovery; (e) bankruptcy
litigation; and (f) appeals of any order or judgment.  “Prevailing Party”
within the meaning of this Section includes, without limitation, a party
who agrees to dismiss an Action (excluding an Action instituted in
contravention of the requirements of Section 10(b) below) in
consideration for the other party’s payment of the amounts allegedly due or
performance of the covenants allegedly breached, or obtains substantially the
relief sought by such party.  If the
Executive is the Prevailing Party, the 

 

8

 

Company shall provide payment of such costs and
expenses to the Executive by December 31 of the year in which the right to
payment is established.

 

7.                                       Successors.

 

(a)                                  This Agreement
is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive otherwise than by will or the
laws of descent and distribution.  This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives.

 

(b)                                 This Agreement
shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

 

(c)                                  The Company
will require any successor (whether direct or indirect, by purchase merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. 
As used in this Agreement, “Company” shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

 

8.                                       Payment of
Financial Obligations.  The
payment or provision to the Executive by the Company of any remuneration,
benefits or other financial obligations pursuant to this Agreement shall be
allocated to the Operating Partnership, Sunstone, Sunstone Hotel TRS Lessee, Inc.
and, if applicable, any of their respective subsidiaries and/or affiliates in
accordance with any employee sharing and expense allocation agreement, by and
between Sunstone and the Operating Partnership, as in effect from time to time.

 

9.                                       Indemnification
Agreement.  The Company
and the Executive agree to execute, concurrently herewith, the Indemnification
Agreement attached hereto as Exhibit B (the “Indemnification
Agreement).  The parties
acknowledge and agree that the Indemnification Agreement shall supersede in its
entirety and replace the Indemnification Agreement previously entered into
between the Executive and the Company, dated as of December, 2006.

 

10.                                 Miscellaneous.

 

(a)                                  Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of California, without reference
to principles of conflict of laws.  The
captions of this Agreement are not part of the provisions hereof and shall have
no force or effect.  This Agreement may
not be amended or modified otherwise than by a written agreement executed by
the parties hereto or their respective successors and legal representatives.

 

(b)                                 Arbitration.  To the fullest extent allowed by law, any
controversy, claim or dispute between the Executive and the Company (and/or any
of its owners, directors, officers, employees, affiliates, or agents) relating
to or arising out of the Executive’s employment or the cessation of that
employment will be submitted to final and binding arbitration in the county in
which the Executive worked for determination by one arbitrator with hotel industry
experience in accordance with the American Arbitration Association’s (“AAA”) National Rules for the Resolution of Employment
Disputes, as the exclusive remedy for such controversy, claim or dispute.  In any such arbitration, the parties may
conduct discovery in accordance with the applicable rules of the
arbitration forum, except that the arbitrator shall have the authority to 

 

9

 

order and permit discovery as the arbitrator may
deem necessary and appropriate in accordance with applicable state or federal
discovery statutes.  The arbitrator shall
issue a reasoned, written decision, and shall have full authority to award all
remedies which would be available in court. 
The parties shall share the filing fees required for the arbitration,
provided that the Executive shall not be required to pay an amount in excess of
the lesser of the filing fees required by a federal or state court with
jurisdiction.  The Company shall pay the
arbitrator’s fees and any AAA administrative expenses.  Any judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction
thereof.  Possible disputes covered by
the above include (but are not limited to) unpaid wages, breach of contract,
torts, violation of public policy, discrimination, harassment, or any other
employment-related claims under laws including but not limited to, Title VII of
the Civil Rights Act of 1964, the Americans With Disabilities Act, the Age
Discrimination in Employment Act, the California Fair Employment and Housing
Act, the California Labor Code, and any other statutes or laws relating to an
employee’s relationship with his/her employer, regardless of whether such
dispute is initiated by the Executive or the Company.  Thus, this bilateral arbitration agreement
applies to any and all claims that the Company may have against the Executive,
including but not limited to, claims for misappropriation of Company property,
disclosure of proprietary information or trade secrets, interference with
contract, trade libel, gross negligence, or any other claim for alleged
wrongful conduct or breach of the duty of loyalty by the Executive.  However, notwithstanding anything to the
contrary contained herein, Company and the Executive shall have their
respective rights to seek and obtain injunctive relief with respect to any
controversy, claim or dispute to the extent permitted by law.  Claims for workers’ compensation benefits and
unemployment insurance (or any other claims where mandatory arbitration is
prohibited by law) are not covered by this arbitration agreement, and such
claims may be presented by either the Executive or the Company to the
appropriate court or government agency. 
BY AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH THE EXECUTIVE
AND THE COMPANY GIVE UP ALL RIGHTS TO TRIAL BY JURY.  This arbitration agreement is to be construed
as broadly as is permissible under applicable law.

 

(c)                                  Notices.  All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other
party or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 

If
to the Executive:  at the
Executive’s most recent address on the records of the Company.

 

If
to Sunstone or the Operating Partnership:

 

Sunstone
Hotel Investors, Inc.

903 Calle Amanecer, Suite 100

San Clemente, CA 92673

Attn:  Corporate Secretary

 

with
a copy to:

 

Latham &
Watkins

335 South Grand Ave.

Los Angeles, California 90071

Attn:  Steven Stokdyk, Esq.

 

10

 

or
to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice
and communications shall be effective when actually received by the addressee.

 

(d)           Sarbanes-Oxley Act of 2002.  Notwithstanding anything herein to the
contrary, if the Company determines, in its good faith judgment, that any
transfer or deemed transfer of funds hereunder is likely to be construed as a
personal loan prohibited by Section 13(k) of the Exchange Act and the
rules and regulations promulgated thereunder, then such transfer or deemed
transfer shall not be made to the extent necessary or appropriate so as not to
violate the Exchange Act and the rules and regulations promulgated
thereunder.

 

(e)           Section 409A. 
The parties agree that this Agreement is intended to comply with the
requirements of Section 409A of the Code and the regulations promulgated
thereunder (“Section 409A”) or an
exemption from Section 409A.  In the
event that after execution of this Agreement, the Company or the Executive
determines that any compensation or benefits provided hereunder may not be
exempt from or compliant with Section 409A, such party shall promptly
notify the other party of the basis for its determination.  The parties agree to renegotiate in good faith
the terms of this Agreement if it is mutually determined that this Agreement as
structured would have adverse tax consequences to the Executive.  For purposes of this Agreement, each amount
to be paid or benefit to be provided hereunder shall be construed as a separate
identified payment for purposes of Section 409A.  With respect to any reimbursement of expenses
of, or any provision of in-kind benefits to, the Executive, as specified under
this Agreement, such reimbursement of expenses or provision of in-kind benefits
shall be subject to the following conditions: 
(i) the expenses eligible for reimbursement or the amount of
in-kind benefits provided in one taxable year shall not affect the expenses
eligible for reimbursement or the amount of in-kind benefits provided in any
other taxable year, except for any medical reimbursement arrangement providing
for the reimbursement of expenses referred to in Section 105(b) of
the Code; (ii) the reimbursement of an eligible expense shall be made no
later than the end of the year after the year in which such expense was
incurred; and (iii) the right to reimbursement or in-kind benefits shall
not be subject to liquidation or exchange for another benefit.  Notwithstanding anything to the contrary in
this Agreement,  no compensation or
benefits payable in connection with a “separation from service” (within the
meaning of Section 409A), including without limitation any Severance  Payments, shall be paid to the Executive
during the 6-month period following his “separation from service” to the extent
that the Company reasonably determines that the Executive is a “specified
employee” at the time of such “separation from service” and that paying such
amounts at the time or times indicated in this Agreement would be a prohibited
distribution under Internal Revenue Code Section 409A(a)(2)(b)(i).  If the payment of any such amounts is delayed
as a result of the previous sentence, then on the first business day following
the end of such 6-month period (or such earlier date upon which such amount can
be paid under Section 409A without being subject to such additional taxes,
including as a result of the Executive’s death), the Company shall pay to the
Executive a lump-sum amount equal to the cumulative amount that would have
otherwise been payable to the Executive during such 6-month period, without
interest thereon.

 

(f)            Severability. 
The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.  If any provision or term
hereof is deemed to have exceeded applicable legal authority or shall be in
conflict with applicable legal limitations, such provision shall be reformed
and rewritten as necessary to achieve consistency with such applicable law.

 

11

 

(g)           Withholding. 
The Company may withhold from any amounts payable under this Agreement
such federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

 

(h)           No Waiver.  The Executive’s or the Company’s failure to
insist upon strict compliance with any provision of this Agreement or the
failure to assert any right the Executive or the Company may have hereunder
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

 

(i)            Employment At-Will.  The Executive acknowledges that his
employment with the Company is “at-will” for all purposes and, subject to the
termination and severance obligations contained in Sections 3 and 4 above, the
Executive hereby agrees that the Company may dismiss him and terminate his
employment with the Company at any time, with or without Cause.  Inclusion under any benefit plan or
compensation arrangement will not give the Executive any right or claim to any
benefit hereunder except to the extent such right has become fixed under the
express terms of this Agreement.

 

(j)            Entire
Agreement.  As of the Effective Date,
this Agreement, together with the Indemnification Agreement, constitutes the
final, complete and exclusive agreement between the Executive and the Company
with respect to the subject matter hereof and replaces and supersedes any and
all other agreements, offers or promises, whether oral or written, made to the
Executive by the Company, including without limitation, the Change in Control
Agreement by and among Sunstone Hotel Investors, Inc. and the Executive,
dated February 15, 2007.

 

(k)           Representations
and Warranties.  The Executive
represents and warrants to the Company that (i) this Agreement is valid
and binding upon and enforceable against him in accordance with its terms, (ii) the
Executive is not bound by or subject to any contractual or other obligation
that would be violated by his execution or performance of this Agreement,
including, but not limited to, any non-competition agreement presently in
effect, and (iii) the Executive is not subject to any pending or, to the
Executive’s knowledge, threatened claim, action, judgment, order, or investigation
that could adversely affect his ability to perform his obligations under this
Agreement or the business reputation of the Company.  The Executive has not entered into, and
agrees that he will not enter into, any agreement either written or oral in
conflict herewith.

 

(l)            Consultation
with Counsel.  The Executive
acknowledges that he has had a full and complete opportunity to consult with
counsel and other advisors of his own choosing concerning the terms,
enforceability and implications of this Agreement, and that the Company has not
made any representations or warranties to the Executive concerning the terms,
enforceability or implications of this Agreement other than as reflected in
this Agreement.

 

(m)          Counterparts.  This Agreement may be executed simultaneously
in two counterparts, each of which shall be deemed an original but which
together shall constitute one and the same instrument.

 

[signatures follow next page]

 

12

 

IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and,
pursuant to the authorization from the Board, the Company has caused these
presents to be executed in its name on its behalf, all as of the day and year
first above written.

 

 

	
  EXECUTIVE:

  	
   

  	
  SUNSTONE
  HOTEL INVESTORS, INC.,  

  a
  Maryland corporation

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Kenneth E. Cruse 

  	
   

  	
  By:
  

  	
  /s/
  Arthur L. Buser, Jr. 

  
	
  Kenneth E. Cruse

  	
   

  	
   

  	
  Name:

  	
  Arthur
  L. Buser, Jr.

  
	
   

  	
   

  	
   

  	
  Its:

  	
  President
  and CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUNSTONE
  HOTEL PARTNERSHIP, LLC,

  
	
   

  	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sunstone
  Hotel Investors, Inc.  

  
	
   

  	
   

  	
   

  	
  Its:
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Arthur L. Buser, Jr. 

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Arthur
  L. Buser, Jr. 

  
	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
  President
  and CEO

  

 

13

 

EXHIBIT A

 

TO EMPLOYMENT AGREEMENT

 

GENERAL RELEASE

 

For
a valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of Sunstone Hotel Investors, Inc.,
a Maryland corporation, Sunstone Operating Partnership, LLC, a Delaware limited
liability company and each of their partners, subsidiaries, associates,
affiliates, successors, heirs, assigns, agents, directors, officers, employees,
representatives, lawyers, insurers, and all persons acting by, through, under
or in concert with them, or any of them, of and from any and all manner of
action or actions, cause or causes of action, in law or in equity, suits,
debts, liens, contracts, agreements, promises, liability, claims, demands,
damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever,
known or unknown, fixed or contingent (hereinafter called “Claims”),
which the undersigned now has or may have against the Releasees, or any of
them, by reason of any matter, cause, or thing whatsoever from the beginning of
time to the date hereof.  The Claims
released herein include, without limiting the generality of the foregoing, any
Claims in any way arising out of, based upon, or related to the employment or
termination of employment of the undersigned by the Releasees, or any of them;
any alleged breach of any express or implied contract of employment; any
alleged torts or other alleged legal restrictions on Releasee’s right to
terminate the employment of the undersigned; and any alleged violation of any
federal, state or local statute or ordinance including, without limitation,
Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment
Act, the Americans With Disabilities Act, and the California Fair Employment
and Housing Act.

 

THE
UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS
FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

 

“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.”

 

THE
UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY
RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR
COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

IN
ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE
UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

 

(A)          HE
HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

 

(B)           HE
HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

 

A-1

 

(C)           HE
HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND
THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION
PERIOD.

 

The
undersigned represents and warrants that there has been no assignment or other
transfer of any interest in any Claim which he may have against Releasees, or
any of them, and the undersigned agrees to indemnify and hold Releasees, and
each of them, harmless from any liability, Claims, demands, damages, costs,
expenses and attorneys’ fees incurred by Releasees, or any of them, as the
result of any such assignment or transfer or any rights or Claims under any
such assignment or transfer.  It is the
intention of the parties that this indemnity does not require payment as a
condition precedent to recovery by the Releasees against the undersigned under
this indemnity.

 

The
undersigned agrees that if he hereafter commences any suit arising out of,
based upon, or relating to any of the Claims released hereunder or in any
manner asserts against Releasees, or any of them, any of the Claims released
hereunder, then the undersigned agrees to pay to Releasees, and each of them,
in addition to any other damages caused to Releasees thereby, all attorneys’
fees incurred by Releasees in defending or otherwise responding to said suit or
Claim.

 

The
undersigned further understands and agrees that neither the payment of any sum
of money nor the execution of this Release shall constitute or be construed as
an admission of any liability whatsoever by the Releasees, or any of them, who
have consistently taken the position that they have no liability whatsoever to
the undersigned.

 

IN
WITNESS WHEREOF, the undersigned has executed this Release this 4th day of August, 2010.

 

 

	
   

  	
   

  	
  /s/
  Kenneth E. Cruse

  
	
   

  	
   

  	
  Kenneth
  E. Cruse

  

 

A-2

 

EXHIBIT B

 

INDEMNIFICATION AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT is made and entered into this 4th day of August, 2010 (the “Agreement”),
by and between Sunstone Hotel Investors, Inc., a Maryland corporation (the
“Company”), and Kenneth E. Cruse (“Indemnitee”).

 

WHEREAS,
at the request of the Company, Indemnitee currently serves as an officer
of the Company and may, therefore, be subjected to claims, suits or proceedings
arising as a result of his service; and

 

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

 

WHEREAS,
the parties by this Agreement desire to set forth their agreement regarding
indemnification and advance of expenses;

 

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

 

Section 1.
Definitions. For purposes of this Agreement:

 

(a)                                  “Change in Control”
means a Change in Control as defined in the Employment Agreement attached to
this Agreement.

 

(b)                                 “Corporate Status”
means the status of a person who is or was a director, trustee, officer,
employee or agent of the Company or of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise (each, an “Enterprise”)
for which such person is or was serving at the request of the Company.

 

(c)                                  “Disinterested Director”
means a director of the Company who is not and was not a party to the
Proceeding in respect of which indemnification or advance of Expenses is sought
by Indemnitee.

 

(d)                                 “Effective Date”
means the date set forth in the first paragraph of this Agreement.

 

(e)                                  “Expenses” shall
include all reasonable and out-of-pocket attorneys’ fees, retainers, court
costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, and all other disbursements or expenses of the types
customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, or being or preparing to be a witness in a  Proceeding. Expenses shall also include
Expenses incurred in connection with any appeal resulting from any Proceeding,
including without limitation the premiums, security for, and other costs
relating to any cost bond, supersede as bond or other appeal bond or its
equivalent.

 

B-1

 

(f)                                    “Independent Counsel”
means a law firm, or a member of a law firm, that is experienced in matters of
corporation law and neither is, nor in the past five years has been, retained
to represent: (i) the Company or Indemnitee in any matter material to
either such party (other than with respect to matters concerning Indemnitee
under this Agreement or of other indemnitees under similar agreements), or
(ii) any other party to or witness in the Proceeding giving rise to a
claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. If a Change of Control has not
occurred, Independent Counsel shall be selected by the Board of Directors,
with the approval of Indemnitee, which approval will not be unreasonably
withheld. If a Change of Control has occurred, Independent Counsel shall
be selected by Indemnitee.

 

(g)                                 “Proceeding” includes
any threatened, pending or completed action, suit, arbitration, alternate
dispute resolution mechanism, investigation, administrative hearing or any
other proceeding, whether civil, criminal, administrative or investigative
(including on appeal), except one pending or completed on or before the
Effective Date, unless otherwise specifically agreed in writing by the Company
and Indemnitee.

 

(h)                                 Reference to “fines” shall
include any excise tax assessed with respect to any employee benefit plan
(other than excise taxes imposed under Internal Revenue Code Section 4999);
references to “serving at the request of the Company” shall include any service
as an officer, director, committee member or official which imposes duties on,
or involves services by, such officer, with respect to an employee benefit
plan, its participants or beneficiaries; and action taken or omitted to be
taken by Indemnitee with respect to an employer benefit plan in the performance
of Indemnitee’s duties for a purpose reasonably believed to be in the best
interests of the participants and beneficiaries of an employee benefit plan
shall be deemed to be a purpose that is” “not opposed to the best interests of
the Company” as referred to in this Agreement.

 

Section 2.
Services by Indemnitee. Indemnitee will serve as an officer of the
Company. However, this Agreement shall not impose any obligation on Indemnitee
or the Company to continue Indemnitee’s service to the Company beyond any
period otherwise required by law or by other agreements or commitments of the
parties, if any, provided that this Agreement shall continue in force after
such time as Indemnitee has ceased to serve as an officer of the Company and
Indemnitee will retain all rights provided under this Agreement after such
time.

 

Section 3.
Indemnification - General. The Company shall indemnify, and advance
Expenses to, Indemnitee (a) as provided in this Agreement and
(b) otherwise to the maximum extent permitted by Maryland law in effect on
the date hereof and as amended from time to time; provided, however, that no
change in Maryland law shall have the effect of reducing the benefits available
to Indemnitee hereunder based on Maryland law as in effect on the date hereof.
The rights of Indemnitee provided in this Section 3 shall include, without
limitation, the rights set forth in the other sections of this Agreement,
including any additional indemnification permitted by Section 2-418 of the
Maryland General Corporation Law (“MGCL”), the charter or bylaws of the
Company, a resolution of stockholders or directors, another agreement or
otherwise.

 

Section 4.
Proceedings Other Than Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this
Section 4 if, by reason of his Corporate Status, he is, or is threatened
to be, made a party to or a witness in any threatened, 

 

B-2

 

pending,
or completed Proceeding, other than a Proceeding by or in the right of the
Company. Pursuant to this Section 4, Indemnitee shall be indemnified
against all judgments, penalties, fines and amounts paid in settlement and all
Expenses actually and reasonably incurred by him or on his behalf in connection
with a Proceeding by reason of his Corporate Status unless it is established
that (i) the act or omission of Indemnitee was material to the matter
giving rise to the Proceeding and (a) was committed in bad faith or
(b) was the result of active and deliberate dishonesty,
(ii) Indemnitee actually received an improper personal benefit in money,
property or services, or (iii) in the case of any criminal Proceeding, Indemnitee
had reasonable cause to believe that his conduct was unlawful.

 

Section 5.
Proceedings by or in the Right of the Company. Indemnitee shall be
entitled to the rights of indemnification provided in this Section 5 if,
by reason of his Corporate Status, he is, or is threatened to be, made a party
to or a witness in any threatened, pending or completed Proceeding brought by
or in the right of the Company to procure a judgment in its favor. Pursuant to
this Section 5, Indemnitee shall be indemnified against all amounts
paid in settlement and all Expenses actually and reasonably incurred by him or
on his behalf in connection with such Proceeding unless it is established that
(i) the act or omission of Indemnitee was material to the matter giving
rise to such a Proceeding and (a) was committed in bad faith or
(b) was the result of active and deliberate dishonesty or
(ii) Indemnitee actually received an improper personal benefit in money,
property or services.

 

Section 6.
Court-Ordered Indemnification. Notwithstanding any other provision of
this Agreement, a court of appropriate jurisdiction, upon application of
Indemnitee and such notice as the court shall require, may order
indemnification in the following circumstances:

 

(a)                                  if it determines Indemnitee
is entitled to reimbursement under Section 2-418(d)(1) of the MGCL,
the court shall order indemnification, in which case Indemnitee shall be
entitled to recover the expenses of securing such reimbursement; or

 

(b)                                 if it determines that
Indemnitee is fairly and reasonably entitled to indemnification in view of all
the relevant circumstances, whether or not Indemnitee (i) has met the
standards of conduct set forth in Section 2-418(b) of the MGCL or
(ii) has been adjudged liable for receipt of an improper personal benefit
under Section 2-418(c) of the MGCL, the court may order such
indemnification as the court shall deem proper. However, indemnification with
respect to any Proceeding by or in the right of the Company or in which
liability shall have been adjudged in the circumstances described in
Section 2-418(c) of the MGCL shall be limited to Expenses actually
and reasonably incurred by him or on his behalf in connection with a
Proceeding.

 

Section 7.
Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, and without limiting any
such provision, to the extent that Indemnitee is, by reason of his Corporate
Status, made a party to and is successful, on the merits or otherwise, in the
defense of any Proceeding, he shall be indemnified for all Expenses actually
and reasonably incurred by him or on his behalf in connection therewith. If
Indemnitee is not wholly successful in such Proceeding but is successful, on
the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify Indemnitee under this
Section 7 for all Expenses actually and reasonably incurred by him or on
his behalf in connection with each successfully resolved claim, issue or
matter, allocated on a reasonable and proportionate basis. For purposes of this
Section and without limitation, the termination of any claim, issue or
matter 

 

B-3

 

in
such a Proceeding by dismissal, with or without prejudice, shall be deemed to
be a successful result as to such claim, issue or matter.

 

Section 8.
Advance of Expenses. Notwithstanding any provision herein to the
contrary, the Company shall advance all Expenses actually and reasonably
incurred by or on behalf of Indemnitee in connection with any Proceeding (other
than a Proceeding brought to enforce indemnification under this Agreement,
applicable law, the Charter or Bylaws of the Company, any agreement or a
resolution of the stockholders entitled to vote generally in the election of
directors or of the Board of Directors) to which Indemnitee is, or is
threatened to be, made a party or a witness, within ten days after the receipt
by the Company of a statement or statements from Indemnitee requesting such
advance or advances from time to time, whether prior to or after final
disposition of such Proceeding. Such statement or statements shall reasonably
evidence the Expenses incurred by Indemnitee and shall include or be preceded
or accompanied by a written affirmation by Indemnitee of Indemnitee’s good
faith belief that the standard of conduct necessary for indemnification by the
Company as authorized by law and by this Agreement has been met and a written
undertaking by or on behalf of Indemnitee, in substantially the form attached
hereto as Exhibit B-1 or in such form as may be required under
applicable law as in effect at the time of the execution thereof, to reimburse
the portion of any Expenses advanced to Indemnitee relating to claims, issues
or matters in the Proceeding as to which it shall ultimately be established
that the standard of conduct has not been met. To the extent that Expenses
advanced to Indemnitee do not relate to a specific claim, issue or matter in
the Proceeding, such Expenses shall be allocated on a reasonable and  proportionate basis. The undertaking required
by this Section 8 shall be an unlimited general obligation by or on behalf
of Indemnitee and shall be accepted without reference to Indemnitee’s financial
ability to repay such advanced Expenses and without any requirement to post
security therefor. Advances shall be unsecured and interest free.

 

Section 9.
Procedure for Determination of Entitlement to Indemnification.

 

(a)                                  To obtain indemnification
under this Agreement, Indemnitee shall submit to the Company a written
request, including therein or therewith such documentation and information as
is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification. The
omission to notify the Company will not relieve the Company from any liability
that it may have to Indemnitee other than under this Agreement. The Secretary
of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board of Directors in writing that Indemnitee has
requested indemnification.

 

(b)                                 Upon written request by
Indemnitee for indemnification pursuant to the first sentence of Section 9(a) hereof,
a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall promptly be made in the specific case: (i) if a
Change in Control shall have occurred, by Independent Counsel in a written
opinion to the Board of Directors, a copy of which shall be delivered to
Indemnitee; or (ii) if a Change of Control shall not have occurred,
(A) by the Board of Directors (or a duly authorized committee thereof) by
a majority vote of a quorum consisting of Disinterested Directors (as herein
defined), or (B) if a quorum of the Board of Directors consisting of
Disinterested Directors is not obtainable or, even if obtainable, such quorum
of Disinterested Directors so directs, by Independent Counsel in a written
opinion to the Board of Directors, a copy of which shall be delivered to
Indemnitee, or (C) if so directed by a majority of the members of the
Board of Directors, by the stockholders of the Company. If it is so determined
that Indemnitee is entitled to indemnification, payment to 

 

B-4

 

Indemnitee
shall be made within ten days after such determination. Indemnitee shall
cooperate with the person, persons or entity making such determination with
respect to Indemnitee’s entitlement to indemnification, including providing to
such person, persons or entity upon reasonable advance request any
documentation or information which is not privileged or otherwise protected
from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination in the discretion of the Board of Directors or
Independent Counsel if retained pursuant to clause (ii)(B) of this
Section 9. Any Expenses actually and reasonably incurred by Indemnitee in
so cooperating with the person, persons or entity making such determination
shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification) and the Company shall indemnify
and hold Indemnitee harmless therefrom.

 

Section 10.
Presumptions and Effect of Certain Proceedings.

 

(a)                                  In making a determination
with respect to entitlement to indemnification hereunder, the person or persons
or entity making such determination shall presume that Indemnitee is entitled
to indemnification under this Agreement if Indemnitee has submitted a request
for indemnification in accordance with Section 9(a) of this
Agreement, and the Company shall have the burden of proof to overcome that
presumption in connection with the making of any determination contrary to that
presumption. Neither the failure of the Company (including by its directors or
independent legal counsel) to have made a determination prior to the
commencement of any action pursuant to this Agreement that indemnification is
proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by the Company (including by its
directors or independent legal counsel) that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a
presumption that Indemnitee has not met the applicable standard of conduct.

 

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

 

(c)                                  Unless Indemnitee has reason
to believe otherwise, for purposes of any determination of good faith, Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on
the records or books of account of the Enterprise, including financial
statements, or on information supplied to Indemnitee by the officers of the
Enterprise in the course of their duties, or on the advice of legal counsel for
the Enterprise or on information or records given or reports made to the
Enterprise by an independent certified public accountant or by an appraiser or
other expert selected with reasonable care by the Enterprise. The provisions of
this Section 10(d) shall not be deemed to be exclusive or to limit in
any way the other circumstances in which the Indemnitee may be deemed to have
met the applicable standard of conduct set forth in this Agreement.

 

(d)                                 The knowledge and/or
actions, or failure to act, of any director, officer, agent or employee of the
Enterprise, excluding the Indemnitee, shall not be imputed to Indemnitee for
purposes of determining the right to indemnification under this Agreement.

 

B-5

 

Section 11.
Remedies of Indemnitee.

 

(a)                                  If (i) a determination
is made pursuant to Section 9 of this Agreement that Indemnitee is not
entitled to indemnification under this Agreement, (ii) advance of Expenses
is not timely made pursuant to Section 8 of this Agreement, (iii) no
determination of entitlement to indemnification shall have been made pursuant
to Section 9(b) of this Agreement within 30 days after receipt by the
Company of the request for indemnification, (iv) payment of
indemnification is not made pursuant to Section 7 of this Agreement within
ten days after receipt by the Company of a written request therefor, or
(v) payment of indemnification is not made within ten days after a
determination has been made that Indemnitee is entitled to indemnification, Indemnitee
shall be entitled to an adjudication in an appropriate court located in the
State of Maryland, or in any other court of competent jurisdiction, of his
entitlement to such indemnification or advance of Expenses. Alternatively, Indemnitee,
at his option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the commercial Arbitration Rules of the American
Arbitration Association. Indemnitee shall commence such proceeding seeking an
adjudication or an award in arbitration within 180 days following the date on
which Indemnitee first has the right to commence such proceeding pursuant to
this Section 11(a); provided, however, that the foregoing clause shall not
apply to a proceeding brought by Indemnitee to enforce his rights under
Section 7 of this Agreement.

 

(b)                                 In any judicial proceeding
or arbitration commenced pursuant to this Section 11 the Company shall
have the burden of proving that Indemnitee is not entitled to indemnification
or advance of Expenses, as the case may be.

 

(c)                                  If a determination shall
have been made pursuant to Section 9(b) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding or arbitration commenced pursuant to
this Section 11, absent a misstatement by Indemnitee of a material fact,
or an omission of a material fact necessary to make Indemnitee’s statement not
materially misleading, in connection with the request for indemnification.

 

(d)                                 In the event that
Indemnitee, pursuant to this Section 11, seeks a judicial adjudication of
or an award in arbitration to enforce his rights under, or to recover damages
for breach of, this Agreement, Indemnitee shall be entitled to recover
from the Company, and shall be indemnified by the Company for, any and all
Expenses actually and reasonably incurred by him in such judicial adjudication
or arbitration. If it shall be determined in such judicial adjudication or
arbitration that Indemnitee is entitled to receive part but not all of the
indemnification or advance of Expenses sought, the Expenses incurred by
Indemnitee in connection with such judicial adjudication or arbitration shall
be appropriately prorated.

 

Section 12.
Defense of the Underlying Proceeding.

 

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

 

B-6

 

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

 

(b)                                 Subject to the provisions of
the last sentence of this Section 12(b) and of Section 12(c) below,
the Company shall have the right to defend Indemnitee in any Proceeding which
may give rise to indemnification hereunder; provided, however, that the Company
shall notify Indemnitee of any such decision to defend within 15 calendar days
following receipt of notice of any such Proceeding under Section 12(a) above.
The Company shall not, without the prior written consent of Indemnitee, which
shall not be unreasonably withheld or delayed, consent to the entry of any
judgment against Indemnitee or enter into any settlement or compromise which
(i) includes an admission of fault of Indemnitee or (ii) does not
include, as an unconditional term thereof, the full release of Indemnitee from
all liability in respect of such Proceeding, which release shall be in form and
substance reasonably satisfactory to Indemnitee. This Section 12(b) shall
not apply to a Proceeding brought by Indemnitee under Section 11 above or
Section 18 below.

 

(c)                                  Notwithstanding the
provisions of Section 12(b) above, if in a Proceeding to which
Indemnitee is a party by reason of Indemnitee’s Corporate Status,
(i) Indemnitee reasonably concludes, based upon an opinion of counsel to
Indemnitee, that he may have separate defenses or counterclaims to assert with
respect to any issue which may not be consistent with other defendants in such
Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of
counsel to Indemnitee, that an actual or apparent conflict of interest or
potential conflict of interest exists between Indemnitee and the Company, or
(iii) if the Company fails to assume the defense of such Proceeding in a
timely manner, Indemnitee shall be entitled to be represented by separate
legal counsel of Indemnitee’s choice, at the expense of the Company. In
addition, if the Company fails to comply with any of its obligations under this
Agreement or in the event that the Company or any other person takes any action
to declare this Agreement void or unenforceable, or institutes any Proceeding
to deny or to recover from Indemnitee the benefits intended to be provided to
Indemnitee hereunder, Indemnitee shall have the right to retain counsel of
Indemnitee’s choice, at the expense of the Company (subject to
Section 11(d)), to represent Indemnitee in connection with any such
matter.

 

Section 13.
Non-Exclusivity; Survival of Rights; Subrogation; Insurance.

 

(a)                                  The rights of
indemnification and advance of Expenses as provided by this Agreement shall not
be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Charter or Bylaws of the Company, any
agreement or a resolution of the stockholders entitled to vote generally in the
election of directors or of the Board of Directors, or otherwise. No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit
or restrict any right of Indemnitee under this Agreement in respect of any
action taken or omitted by such Indemnitee in his Corporate Status prior to
such amendment, alteration or repeal. To the extent that a change in Maryland
law, whether by statute or judicial decision, permits greater indemnification
or advancement of Expenses than would be afforded currently under the Company’s
charter or bylaws or this Agreement, except with respect to suits against the
Company relating to this Agreement, it is the intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
such change. No right or remedy herein conferred is intended to be exclusive of
any other right or remedy, and 

 

B-7

 

every
other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other right or remedy.

 

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

 

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

 

(d)                                 Notwithstanding any other
provision of this Agreement to the contrary, the Company shall not be liable
for indemnification or advance of Expenses in connection with any settlement or
judgment for insider trading or for disgorgement of profits pursuant to
Section 16(b) of the Securities Exchange Act of 1934.

 

Section 14.
Insurance. The Company will use its reasonable best efforts to acquire
directors and officers liability insurance, on terms and conditions deemed
appropriate by the Board of Directors of the Company, with the advice of
counsel, covering Indemnitee or any claim made against Indemnitee for service
as a director or officer of the Company and covering the Company for any
indemnification or advance of Expenses made by the Company to Indemnitee for
any claims made against Indemnitee for service as a director or officer of the
Company. Without in any way limiting any other obligation under this Agreement,
the Company shall indemnify Indemnitee for any payment by Indemnitee arising
out of the amount of any deductible or retention and the amount of any excess
of the aggregate of all judgments, penalties, fines, settlements and reasonable
Expenses actually and reasonably incurred by Indemnitee in connection with a
Proceeding over the coverage of any insurance referred to in the previous
sentence.

 

Section 15.
Indemnification for Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is or may be, by
reason of his Corporate Status, a witness in any Proceeding, whether instituted
by the Company or any other party, and to which Indemnitee is not a party but
in which the Indemnitee receives a subpoena to testify, he shall be advanced
all reasonable Expenses and indemnified against all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith.

 

Section 16.
Duration of Agreement; Binding Effect.

 

(a)                                  This Agreement shall
continue until and terminate ten years after the date that Indemnitee’s
Corporate Status shall have ceased; provided, that the rights of Indemnitee
hereunder shall continue until the final termination of any Proceeding then
pending in respect of which Indemnitee is granted rights of indemnification or
advance of Expenses hereunder and of any proceeding commenced by Indemnitee
pursuant to Section 11 of this Agreement relating thereto.

 

B-8

 

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

 

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

 

Section 17.
Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever:
(a) the validity, legality and enforceability of the remaining provisions
of this Agreement (including, without limitation, each portion of any section
of this Agreement containing any such provision held to be invalid, illegal or
unenforceable that is not itself invalid, illegal or unenforceable) shall not
in any way be affected or impaired thereby; and (b) to the fullest extent
possible, the provisions of this Agreement (including, without limitation, each
portion of any section of this Agreement containing any such provision held to
be invalid, illegal or unenforceable, that is not itself invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested
thereby.

 

Section 18.
Exception to Right of Indemnification or Advance of Expenses.
Notwithstanding any other provision of this Agreement, Indemnitee shall
not be entitled to indemnification or advance of Expenses under this Agreement
with respect to any Proceeding brought by Indemnitee, unless (a) the
Proceeding is brought to enforce indemnification under this Agreement, and then
only to the extent in accordance with and as authorized by Sections 8 and 11 of
this Agreement, or (b) the Company’s Bylaws, as amended, the Charter, a
resolution of the stockholders entitled to vote generally in the election of
directors or of the Board of Directors or an agreement approved by the Board of
Directors to which the Company is a party expressly provide otherwise.

 

Section 19.
Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same Agreement. One such
counterpart signed by the party against whom enforceability is sought shall be
sufficient to evidence the existence of this Agreement.

 

Section 20.
Headings. The headings of the paragraphs of this Agreement are inserted
for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction thereof.

 

Section 21.
Modification and Waiver. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of the
parties hereto. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any 

 

B-9

 

other
provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver.

 

Section 22.
Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
(i) delivered by hand and receipted for by the party to whom said notice
or other communication shall have been directed, or (ii) mailed by
certified or registered mail with postage prepaid, on the third business day
after the date on which it is so mailed:

 

(a)                                  If to Indemnitee, to: The
Indemnitee’s address on the books and records of the Company.

 

(b)                                 If to the Company, to:

 

Sunstone
Hotel Investors, Inc. 

903 Calle Amanecer, Suite 100 

San Clemente, California 92673 

Attn: Secretary

 

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

 

Section 23.
Governing Law. The parties agree that this Agreement shall be governed
by, and construed and enforced in accordance with, the laws of the State of
Maryland, without regard to its conflicts of laws rules.

 

Section 24.
Miscellaneous. Use of the masculine pronoun shall be deemed to include
usage of the feminine pronoun where appropriate.

 

[SIGNATURE PAGE FOLLOWS]

 

B-10

 

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

 

	
  ATTEST:

  	
   

  	
  SUNSTONE
  HOTEL INVESTORS, INC.

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  David R. Sloan

  	
   

  	
  /s/
  Arthur L. Buser, Jr.

  	
   

  
	
   

  	
   

  	
  Name:
  Arthur L. Buser, Jr.

  	
   

  
	
   

  	
   

  	
  Title:
  President and CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  INDEMNITEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Kristen Hoover

  	
   

  	
  /s/ Kenneth E. Cruse

  	
   

  
	
   

  	
   

  	
  Name: Kenneth E. Cruse

  	
   

  

 

B-11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]