Document:

Exhibit 10.07A

 Exhibit 10.07A 
  
 AGREEMENT AND RELEASE 
  
 This Agreement and Release (“Agreement”) dated as of February 9, 2007 (“Agreement Date”), is made by and between Joseph Squeri
(“Employee“) and Choice Hotels International, Inc. (“Choice“). 
  
 RECITALS 
  
 A. Choice and
Employee are parties to an Employment Agreement dated June 3, 1999 (“Employment Agreement”), the term of which expires June 3, 2008; and 
  
 B. Choice and Employee have determined to terminate Employee‘s status as an employee of Choice; and 
  
 C. In order to avoid uncertainty or dispute as to the rights and
responsibilities of Choice and Employee in connection with Employee‘s termination of employment the parties desire to terminate the Employment Agreement, except as specifically provided herein, and enter into this Agreement. 
  
 NOW, THEREFORE, in consideration of the promises contained in this Agreement,
and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree: 
  
 1. Termination of Employment Agreement. Except as otherwise specifically provided herein, the Employment Agreement is hereby terminated.

  
 2. Employee‘s Employment. Employee will cease to
serve as an executive officer of Choice as of the Agreement Date. Employee’s employment will terminate on March 31, 2007 (“Severance Date“). 
  

(a) From the Agreement Date through the Severance Date, Employee will be available as needed by Choice and report to Choice’s Chief Executive
Officer. During this period, Employee will remain a full-time employee and will maintain a direct dial telephone number, e-mail access and secretarial support, but will not be required to maintain regular office hours. In performing any duties for
Choice during this period, Employee will perform them in a professional and timely manner. Furthermore, during this period, Employee will refrain from any conduct that is disruptive of or damaging to its operations, finances or reputation. Finally,
during this period and through the Termination Date (as defined below), Employee will provide reasonable cooperation to Choice on transitional matters with respect to information about which he has knowledge. On or before the Severance Date,
Employee will return all Choice property and all copies, excerpts or summaries of such property, in his possession, custody or control. Employee shall not serve as an employee of any other person or entity prior to the Severance Date. 
  
 (b) From the Agreement Date through the Severance Date, Employee will be
entitled to receive salary and benefits at the levels provided him immediately prior to the Agreement Date, less standard deductions, payable in installments and otherwise in accordance with Choice’s normal payroll practices, except that
Employee will not be entitled to any new grant of equity-based compensation. Employee will continue to participate and vest in the Choice employee benefit plans and programs in which he participated immediately prior to the Agreement Date, including
the Choice Hotels International, Inc. Amended and Restated Supplemental Executive Retirement Plan, and will continue to vest in previously granted stock options and restricted stock. Employee will be paid his full fiscal year 2006 bonus, paid out in
accordance with the terms of his 2006 Officer Management Incentive Plan and at the time that bonuses are paid to Choice executives generally. For the avoidance of doubt, Employee’s annual salary rate, currently estimated 2006 bonus amount,
monthly automobile allowance and flexible perquisite supplemental payment amount and Employee’s outstanding options and restricted stock are set forth on Exhibit A to this Agreement. 

 3. Final Paycheck and Benefits. On the next regular payday following the Severance Date, Choice
will pay Employee for all earned but unpaid salary and vacation pay as of the Severance Date, less customary withholding for federal, state, and local taxes. 
  
 4. Payments and Benefits Through the Termination Date. Choice hereby agrees to provide Employee the payments and benefits provided for in and
subject to the terms and conditions of Section 7(b) of the Employment Agreement, as follows: 
  
 (a) From the Severance Date through June 3, 2008 (“Termination Date”), Employee will be entitled to receive salary, monthly automobile
allowance and flexible perquisite supplemental payments at the levels set forth on Exhibit A, less standard deductions, payable in installments and otherwise in accordance with Choice’s normal payroll practices; provided, however, that the
payments due for the period from April 1, 2007 through September 30, 2007 shall be paid in a lump sum on October 1, 2007 to the extent necessary to avoid a violation of Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code“). 
  
 (b) Employee shall be entitled
to receive a bonus for fiscal year 2007 calculated based on actual payout on the EPS portion of the bonus as determined for all Company officers for 2007, with a target of 65% of the annual base salary amount set forth on Exhibit A (no individual
performance adjustment), and payable at such time as Choice’s other officers are paid their fiscal year 2007 bonus (but in no event earlier than January 1, 2008 or later than March 15, 2008). 
  
 (c) From the Severance Date through the Termination Date, all stock options
and restricted stock awards outstanding on the Severance Date shall continue to vest and be exercisable. Such outstanding awards are set forth on Exhibit A. Employee acknowledges that he shall not be entitled to new stock option, restricted stock
unit or restricted stock grants after the Agreement Date. All stock options (whether vested or unvested) that are unexercised as of June 3, 2008 shall terminate on that date and shall no longer be exercisable. Restricted stock units subject to
performance-based vesting conditions shall be forfeited in accordance with their terms as of April 1, 2007 because all performance periods end after June 3, 2008. 
  
 (d) Except as otherwise specifically stated in this Agreement, the Severance Date shall be the date of Employee’s
termination of employment with Choice without cause for purposes of determining Employee’s rights under the terms of any qualified or non-qualified savings, pension, deferred compensation, insurance and health or welfare benefit plan; provided,
however, that in all events benefits under such plans shall be adjusted to the extent necessary to comply with Section 409A of the Code. From the Severance Date through the Termination Date, Employee shall be entitled to receive medical and
dental benefits to the same extent and at the same cost (if any) to Employee as applicable from time-to-time to senior executives of the Company and Employee shall be entitled to convert long-term disability and life insurance benefits to individual
coverage at his own cost pursuant to the terms of such benefits. Employee shall be eligible to elect COBRA health continuation benefits effective as of the Termination Date pursuant to Choice‘s health benefit plans then in effect. Employee's
nonqualified deferred compensation balances (his balance under the Executive Deferred Compensation Plan is set forth on Exhibit A) shall be paid to Employee pursuant to the terms of the applicable nonqualified deferred compensation plans.

  
 (e) From the Severance Date through the Termination Date,
Choice will pay all premiums for the supplemental executive life insurance that is owned by Employee and is in force as of the Agreement Date. 
  
 (f) Employee may retain his home computer provided by Choice, provided that Employee shall bring such computer to Choice‘s premises as soon as
reasonably possible following the Agreement Date so that Choice may remove all licensed software from such computer. 
  
 5. Deductions. Choice may deduct from the payments otherwise provided for in Section 4(a) any deductions for medical, dental and insurance
benefits to the same extent and at the same cost to Employee (if any) as 

  

 2 

 
applicable from time-to-time to senior executives of the Company, and Employee consents to the customary deductions for such benefits from the payments under
Section 4(a). Choice will stop optional deductions for items such as retirement plans with Employee’s last paycheck for regular hours worked through the Severance Date. 
  
 6. Unemployment Benefits. Employee agrees that Employee is not entitled to any unemployment benefits, and that
Employee does not intend to seek any unemployment benefits, through the Termination Date. Choice will not contest Employee’s claim for unemployment benefits after the Termination Date ends. 
  
 7. Offset. Employee shall not be required to mitigate damages but
nevertheless shall be entitled to pursue other employment, and Choice shall be entitled to receive as an offset and thereby reduce the salary and bonus payments provided for in Section 4(a) and (b) of this Agreement by the amount received
by Employee from any other active employment between the Severance Date and the Termination Date. As a condition to Employee receiving the salary and bonus payments provided for in Section 4(a) and (b) of this Agreement from Choice,
Employee agrees to permit verification of his employment records and income tax returns by an independent attorney or accountant, selected by Choice but reasonably acceptable to Employee, who agrees to preserve the confidentiality of the information
disclosed by Employee except to the extent required to permit Choice to verify the amount received by Employee from other active employment. For purposes of this Section 7, the amount received by Employee shall mean any amount of salary or
bonus (but not including any equity-based compensation) paid, earned or accrued for service during the period between the Severance Date and the Termination Date and shall include unemployment insurance benefits, social security insurance or other
like amounts payable during periods of unemployment regardless of when actually received by Employee. 
  
 8. Mutual Release. 
  
 (a) Employee agrees, in consideration for the benefits and agreements provided under this Agreement, to irrevocably and unconditionally release Choice,
Choice Hotels International Services Corp., and each of their respective officers, directors, shareholders, employees, agents, insurers, lawyers, representatives, employee welfare benefit plans and pension or deferred compensation plans under
Section 401 of the Code, and their trustees, administrators and other fiduciaries; and all persons acting by, through, under or in concert with them, or any of them (collectively “Choice Releasees”), of and from any and all manner of
action or actions, cause or causes of action, in law or equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, grievances, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or
contingent, which Employee now has or may later have against the Choice Releasees, or any one of them, by reason of any matter, cause, or thing from the beginning of time to the Effective Date of this Agreement arising out of, based on, or relating
to the hire, employment, termination, or remuneration of Employee or any other matter (“Choice Claims“). The Choice Claims that Employee is releasing include, but are not limited to, a release of any rights or claims Employee may have
under the Age Discrimination in Employment Act, which prohibits age discrimination in employment; Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment based on race, color, national origin, religion or sex; the
Civil Rights Act of 1991; the Equal Pay Act, which prohibits paying men and women unequal pay for equal work; the Americans with Disabilities Act; the Family and Medical Leave Act; and any other federal, state or local laws or regulations
prohibiting employment discrimination, harassment or retaliation. Employee also releases Choice Claims for breach of contract, wrongful discharge, compensation and benefits, expenses, bonuses, or any other employee rights or benefits, or any other
actions sounding in tort or contract relating to Employee’s employment and termination from Choice. This Agreement covers both Choice Claims Employee knows about and those Employee may not know about except for any Choice Claim of which
Employee is unaware as of the date hereof due to Choice‘s fraud or active concealment. Employee assumes the risk of any and all unknown Choice Claims that may exist at the time Employee signs this Agreement, and Employee agrees that this
Agreement shall apply to any and all known and unknown Choice Claims that are released hereby. Employee further agrees to execute on the Severance Date a release in the form of Exhibit B. This release does not apply to claims for breach of this
Agreement and/or the payment of amounts or provision of benefits pursuant to this Agreement. 
  

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 (b) Choice agrees, in consideration for the undertakings and agreements provided under this Agreement, to
irrevocably and unconditionally release Employee and his heirs and beneficiaries (collectively “Employee Releasees”), of and from any and all manner of action or actions, cause or causes of action, in law or equity, suits, debts, liens,
contracts, agreements, promises, liability, claims, demands, grievances, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent, which Choice now has or may later have against the Employee Releasees, or any
one of them, by reason of any matter, cause, or thing from the beginning of time to the Effective Date of this Agreement (or, if the Employee executes the Release attached as Exhibit B and does not revoke such Release, through the date of such
Release) arising out of, based on, or relating to the employment of employee (“Employee Claims“), except for any Employee Claims relating to Employee‘s fraud, willful misconduct, or violation of law or which Employee has actively
concealed. Choice assumes the risk of any and all unknown Employee Claims that may exist at the time Choice signs this Agreement, and Choice agrees that this Agreement shall apply to any and all known and unknown Employee Claims that are released
hereby. This release does not apply to claims for breach of this Agreement. 
  
 9. Lawsuits. To the fullest extent permitted by law, Employee and Choice each promise never to file a lawsuit, claim, administrative proceeding or agency action (collectively “Lawsuit”) asserting any
Employee Claims or Choice Claims that are released in this Agreement, and further agrees that they shall not have the right to recover any monetary relief with respect to Employee Claims or Choice Claims that might be asserted by others on their
behalves. Each party agrees to withdraw with prejudice all Lawsuits, if any, that such party has filed against any Choice Releasee or Employee Releasee with any agency or court. Each party further agrees not to assist any other person in bringing
any Lawsuit against any Choice Releasee or Employee Releasee, unless compelled to do so pursuant to a valid court order or subpoena. Employee agrees to assist Choice in any Lawsuit arising from circumstances that took place during Employee’s
employment, to the extent reasonably necessary to protect Choice’s interests and at Choice’s reasonable expense. 
  
 10. Non-Disclosure of Business Information, Works for Hire, Non-Solicitation, Non-Disparagement. 
  
 (a) Employee recognizes and acknowledges that Choice‘s and
affiliates‘ present and prospective clients, franchises, management contracts, acquisitions and personnel, as they may exist from time to time, are valuable, special and unique assets of Choice‘s business. Throughout the term of this
Agreement and for a period of one (1) year after the Termination Date, except as required by applicable law, Employee shall not directly or indirectly, or cause others to, make use of or disclose to others any information relating to the
business of Choice that has not otherwise been made public, including but not limited to Choice‘s present or prospective clients, franchises, management contracts, acquisitions, present or prospective operating and development plans, training
manuals, training policies and procedures, trade secrets, pricing information, contact lists, strategic plans or strategies, operating data or Choice policies. Employee acknowledges that any ideas, concepts, methods of operation, processes, programs
or other materials (including training manuals, policies and procedures) which Employee conceived, created, developed or wrote while employed by Choice (“Works”) are subject to the non-disclosure provisions of this Section and that such
Works constitute works made for hire and in all circumstances shall be and remain the sole and exclusive property of Choice whether or not protectable under any laws, including patent, trademark, copyright or trade secret laws.  

 
 (b) Throughout the term of this Agreement and for a period of one
(1) year after the Termination Date, Employee agrees not to solicit for employment or contract for services with, directly or indirectly, on his behalf or on behalf of any other person or entity, any person employed by Choice, or its
subsidiaries or affiliates during such period, unless Choice consents in writing. In the event of an actual or threatened breach by Employee of the provisions of this paragraph, Choice shall be entitled to injunctive relief restraining Employee from
committing such breach or threatened breach. Nothing herein stated shall be construed as preventing Choice from pursuing any other remedies available to Choice for such breach or threatened breach, including the recovery of damages from Employee.

  
 (c) Employee agrees not to make derogatory remarks about any
Choice Releasee. Choice agrees that it will not, and it will take appropriate steps to provide that its executives and directors in their capacity on behalf of Choice do not, make any derogatory remarks about Employee. 
  

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 11. No Admission. Each party agrees that this Agreement is not an admission of guilt or wrongdoing
by the Choice Releasees or the Employee Releasee, and each party acknowledges that the Choice Releasees and the Employee Releasees do not believe or admit that they have taken any improper action or done anything wrong. Employee acknowledges that
Employee has not suffered any wrongful treatment by any Choice Releasee. 
  
 12. No Waiver. By signing this Agreement, neither party waives or releases its right to enforce this Agreement. If either party files a Lawsuit against any Choice Releasee or Employee Releasee with regard to
the subject matter of this Agreement, Employee and Choice agree that the non-prevailing party will reimburse the costs, including reasonable attorneys’ fees, incurred by the prevailing party in such Lawsuit. 
  
 13. Remedies for Breach of Section 10. In the event of
Employee’s actual or threatened breach of Section 10, Choice, in addition to all other rights, shall be entitled to an injunction restraining Employee therefrom. Nothing herein shall be construed as prohibiting Choice from pursuing any
other available remedy for such breach or threatened breach, including the recovery of damages. This provision shall remain in full force and effect notwithstanding if Employee should claim that Choice violated any terms of this Agreement.

  
 14. Breach. 
  
 (a) If Employee breaches this Agreement and files a Lawsuit against any
Choice Releasee on Claims that Employee released in this Agreement, and Employee is not the prevailing party, Employee agrees to pay for all costs incurred by the Choice Releasee, including reasonable attorneys‘ fees, in defending against
Employee’s Lawsuit. Employee further agrees not to assist any other person in bringing any Lawsuit against any Choice Releasee, unless compelled to do so pursuant to a valid subpoena or court order. If Employee breaches the promises in this
Agreement, Choice will terminate all payments or benefits that are otherwise payable to Employee under Sections 4 and 7 above. 
  
 (b) If Choice breaches this Agreement and files a Lawsuit against any Employee Releasee on Claims that Choice released in this Agreement, and Choice is
not the prevailing party, Choice agrees to pay for all costs incurred by the Employee Releasee, including reasonable attorneys‘ fees, in defending against Choice’s Lawsuit. Choice further agrees not to assist any other person in bringing
any Lawsuit against any Employee Releasee, unless compelled to do so pursuant to a valid subpoena or court order. 
  
 15. Governing Law/Arbitration. This Agreement is governed by Maryland law, without regard to the principles of conflicts of laws. Except as
specified in Section 13 hereof, any controversy or claim arising out of this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its National Rules for the Resolution of
Employment Disputes, and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof. There shall be one arbitrator who shall be appointed by the respective parties or, failing agreement, by the
American Arbitration Association. The arbitration shall be held in Choice‘s corporate offices in Silver Spring, Maryland. The parties shall reasonably cooperate to obtain a judgment from the arbitrator as soon as possible after a demand for
arbitration is made by either party. Except as provided in Section 13, the award of the arbitrator shall be the sole and exclusive remedy of the parties and shall be enforceable in any court of competent jurisdiction in Montgomery
County, Maryland. The prevailing party shall be entitled to an award of reasonable attorney’s fees but no party shall be entitled to punitive damages hereunder. 
  
 16. Binding Effect. Employee agrees and acknowledges this Agreement binds Employee’s heirs, administrators,
representatives, executors, successors, and assigns, and will inure to the benefit of all Choice Releasees and their respective heirs, administrators, representatives, executors, successors, and assigns. Choice agrees and acknowledges this Agreement
binds Choice‘s successors and assigns. 
  
 17.
Severability. Any invalidity, in whole or in part, of any provision of this Agreement shall not affect the validity of any other of its provisions. 
  

 5 

  
 18. Period for Review and Consideration. Employee has 21 days from the date Employee receives this Agreement to review and consider this document before signing it. Employee may use as much of this 21 day
period as Employee wishes before signing this Agreement. Choice encourages Employee to consult with an attorney at his own expense (subject to Section 20 of this Agreement) before signing this Agreement; whether to do so is Employee’s
decision. If Employee wishes to sign this Agreement, Employee must deliver both fully executed originals of this Agreement to Choice Hotels International, Inc., 10750 Columbia Pike, Silver Spring, Maryland 20901, Attention: General Counsel, no later
than the close of business on the 21st day after Employee receives this Agreement. Employee’s failure to
deliver timely the executed Agreement will nullify the Agreement. 
  
 19. Revocation of Agreement. Employee may revoke this Agreement within 7 days after signing it (“Revocation Period”). If Employee wishes to revoke this Agreement after signing it, Employee must deliver a written notice of
revocation to Choice Hotels International, Inc., 10750 Columbia Pike, Silver Spring, Maryland 20901, Attention: General Counsel. Choice must receive this revocation no later than the close of business on the 7th day after Employee signs this
Agreement. If Employee revokes this Agreement, it shall not be effective or enforceable. Thus, this Agreement will not become effective or enforceable until such date that Employee signs the Agreement and allows the Revocation Period to
expire without revoking his signature (“Effective Date”). 
  
 20. Payment of Legal Fees. Choice shall directly pay (or, if desired by Employee, reimburse Employee) for legal fees incurred by Employee in connection with the negotiation of this Agreement, subject to a maximum amount of Twenty
Thousand Dollars ($20,000). 
  
 21. Section 409A. If
final guidance interpreting Section 409A of the Code is issued by the Internal Revenue Service before October 1, 2007, the parties agree to discuss the impact of such final guidance on (i) the six-month delay in payments reflected in
Section 4(a) hereof and to modify that provision to eliminate such delay to the extent consistent with such guidance, (ii) amounts and benefits set forth in Section 4(d) hereof and any other amounts payable to Employee, and
(iii) the Employee‘s ability to further defer the payment to a subsequent year of amounts subject to Section 409A of the Code that otherwise would be payable in 2007 under the terms of the Executive Deferred Compensation Plan.

  
 22. Tax Withholding. All amounts payable hereunder
shall be subject to all applicable federal, state and local tax withholdings. 
  
 23. Entire Agreement. This Agreement represents the entire agreement of the parties, and supersedes all other agreements, discussions or understandings, concerning its subject matter. The Employment Agreement
is hereby terminated and of no further force or effect. This Agreement may only be modified by a written document signed by both parties. 
  
 EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS HAD AN OPPORTUNITY TO REVIEW AND CONSIDER THIS AGREEMENT WITH AN ATTORNEY, AND THAT EMPLOYEE HAS HAD SUFFICIENT
TIME TO CONSIDER IT. AFTER SUCH CAREFUL CONSIDERATION, EMPLOYEE KNOWINGLY AND VOLUNTARILY ENTERS INTO THIS AGREEMENT WITH FULL UNDERSTANDING OF ITS MEANING AND EFFECT. 
  

							
	Employee	 	 	 	 Choice Hotels International, Inc.
 a
Delaware corporation

				
	 /s/ Joseph Squeri

	 	 	 	By:	 	 /s/ Charles A. Ledsinger, Jr.

	Joseph Squeri	 	 	 	 Name:
 Title:
	 	 Charles A. Ledsinger, Jr.
 Vice Chairman and Chief
Executive Officer

  

 6 

 Exhibit A 
  

Annual Salary Rate:    $433,000 
  
 Currently Estimated 2006 Bonus Amount:    $434,736 
  
 Monthly Automobile Allowance:    $12,500 
  
 Flexible Perquisite Supplemental Payment Amount:    $15,000 
  

Balance under the Executive Deferred Compensation Plan as of January 29, 2007:    $1,938,240.07 (fully vested) 
  
 Outstanding Options and Restricted Stock: 
  

						
	 Stock Option Grants

	 Grant
 Date
	  	Shares
Granted	  	 
 	Grant
Price
	   2/7/02
	  	6,470	  	$	10.5825
	   2/7/02
	  	55,530	  	$	10.5825
	 4/29/02
	  	30,000	  	$	12.9925
	 2/10/03
	  	7,690	  	$	10.1975
	 2/10/03
	  	67,310	  	$	10.1975
	 2/14/05
	  	30,000	  	$	29.9200
	 2/14/05
	  	10,000	  	$	29.9200
	 2/12/06
	  	23,731	  	$	48.7500
	 2/12/06
	  	2,369	  	$	48.7500
			
	 Restricted Stock Grants
	  	 	  	 	 
	 Grant
 Date
	  	Shares
Granted	  	 	 
	   1/2/04
	  	20,000	  	 	 
	   2/9/04
	  	21,200	  	 	 
	   5/3/05
	  	20,000	  	 	 
	   2/13/06
	  	16,410	  	 	 

 Exhibit B 
  

Release 
  
 In consideration of certain benefits and mutual promises set forth in the Agreement and Release dated February 9, 2007 (“Agreement”), Joseph Squeri
(“Employee”) hereby agrees as follows: 
  
 1.    To
irrevocably and unconditionally release Choice Hotels International, Inc., Choice Hotels International Services Corp., and each of their respective officers, directors, shareholders, employees, agents, insurers, lawyers, representatives, employee
welfare benefit plans and pension or deferred compensation plans under Section 401 of the Code, as amended, and their trustees, administrators and other fiduciaries; and all persons acting by, through, under or in concert with them, or any of
them (collectively “Choice Releasees”), of and from any and all manner of action or actions, cause or causes of action, in law or equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, grievances,
damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent, which Employee now has or may later have against the Choice Releasees, or any one of them, by reason of any matter, cause, or thing from the beginning
of time to the date of this Release arising out of, based on, or relating to the hire, employment, termination, or remuneration of Employee or any other matter ("Claims"). The Claims that Employee is releasing include, but are not limited to, a
release of any rights or claims Employee may have under the Age Discrimination in Employment Act, which prohibits age discrimination in employment; Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment based on
race, color, national origin, religion or sex; the Civil Rights Act of 1991; the Equal Pay Act, which prohibits paying men and women unequal pay for equal work; the Americans with Disabilities Act; the Family and Medical Leave Act; and any other
federal, state or local laws or regulations prohibiting employment discrimination, harassment or retaliation. Employee also releases Claims for breach of contract, wrongful discharge, compensation and benefits, expenses, bonuses, or any other
employee rights or benefits, or any other actions sounding in tort or contract relating to Employee’s employment and termination from Choice. This Agreement covers both Claims Employee knows about and those Employee may not know about. Employee
assumes the risk of any and all unknown Claims that may exist at the time Employee signs this Agreement, and Employee agrees that this Agreement shall apply to any and all known and unknown Claims. This release does not apply to claims for breach of
this Agreement. 
  
 2.    Employee has 21 days from the date Employee receives this Release to review and consider this document before signing it. Employee may use as much of this 21 day period as Employee wishes before signing this
Release. Choice encourages Employee to consult with an attorney at his own expense before signing this Release; whether to do so is Employee’s decision. If Employee wishes to sign this Release, Employee must deliver a fully executed original of
this Release to Choice Hotels International, Inc., 10750 Columbia Pike, Silver Spring, Maryland 20901, General Counsel, no later than the close of business on the 21st day after Employee receives this Release. Employee’s failure to deliver timely the executed Agreement will nullify the Agreement. 
  
 3.    Revocation of Agreement. Employee may revoke this Release
within 7 days after signing it (“Revocation Period”). If Employee wishes to revoke this Release after signing it, Employee must deliver a written notice of revocation to Choice Hotels International, Inc., 10750 Columbia Pike, Silver
Spring, Maryland 20901, Attention: General Counsel. Choice must receive this revocation no later than the close of business on the 7th day after Employee signs this Release. If Employee revokes this Release, it shall also constitute a revocation of
the Agreement and neither it or this Release shall be effective or enforceable.  
  
 EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS HAD AN OPPORTUNITY TO REVIEW AND CONSIDER THIS AGREEMENT WITH AN ATTORNEY, AND THAT EMPLOYEE HAS HAD SUFFICIENT TIME TO CONSIDER IT. AFTER SUCH CAREFUL CONSIDERATION,
EMPLOYEE KNOWINGLY AND VOLUNTARILY ENTERS INTO THIS AGREEMENT WITH FULL UNDERSTANDING OF ITS MEANING AND EFFECT. 
  

	
	
	  
	Joseph Squeri

  

 1EXHIBIT 10.73

 Exhibit 10.73 
 1100 Wilson Boulevard 
 Arlington, Virginia 22209 
 (the “Building”) 
 FIRST AMENDMENT 
 Execution Date: November 30, 2006 
  

					
		 	LANDLORD:	 	Twin Towers II Property Associates, LLC, a Delaware limited liability company, successor in interest to Twin Towers II Associates Limited Partnership
			
		 	TENANT:	 	MCG Capital Corporation, a Delaware corporation
			
		 	EXISTING	 	
		 	PREMISES:	 	A total of 30,008 rentable square feet consisting of: (i) the entirety of the thirty-first (31st) floor of the Building, comprised of 19,787 rentable square feet; and (ii) a portion of the thirtieth (30th) floor of the Building comprised of 10,221 rentable square feet, as shown on the floor plan attached to the Lease as Exhibit A (Sheets 1 and 2)
			
	ORIGINAL	 	DATE OF LEASE:	 	September 24, 2002
	LEASE	 		 	
	DATA	 		 	
			
		 	LEASE EXPIRATION	 	
		 	DATE:	 	February 28, 2013
			
		 	PREVIOUS	 	
		 	LEASE	 	
		 	AMENDMENTS:	 	None
			
		 	FIRST AMENDMENT	 	
		 	ADDITIONAL	 	
		 	PREMISES:	 	A total of 11,554 rentable square feet consisting of: (i) a portion of the twenty-ninth (29th) floor of the Building comprised of 1,988 rentable square feet; and (ii) a portion of the thirtieth (30th) floor of the Building, comprised of 9,566 rentable square feet, substantially as shown on Exhibit A, First Amendment, Sheets 1 and 2, a copy of which is attached hereto

  

 -1- 

 WHEREAS, Tenant desires to lease additional premises from Landlord, to wit, the First Amendment
Additional Premises; 
 WHEREAS, Landlord is willing to lease the First Amendment Additional Premises to Tenant upon the terms and conditions
hereinafter set forth; 
 NOW THEREFORE, the above-described lease (the “Lease”) is hereby amended as follows: 
 1. DEMISE OF THE FIRST AMENDMENT ADDITIONAL PREMISES 
 Landlord hereby demises and leases to Tenant and Tenant hereby hires and takes from Landlord, the First Amendment Additional Premises. Said demise of the First Amendment Additional Premises shall be for a term
commencing as of the First Amendment Additional Premises Lease Commencement Date, as hereinafter defined, and expiring as of February 28, 2013, and shall be upon all of the terms and conditions of the Lease (including, without limitation,
Tenant’s renewal options set forth in Section 38 of the Lease), except as follows: 
 A. The First Amendment Additional Premises
Lease Commencement Date is estimated to be May 1, 2007. If Landlord is delayed delivering possession of the First Amendment Additional Premises due to the holdover or unlawful possession of the First Amendment Additional Premises by the current
tenant of the First Amendment Additional Premises, Landlord shall use reasonable efforts to obtain possession of the First Amendment Premises, and the First Amendment Additional Premises Lease Commencement Date shall be delayed until the date
Landlord delivers possession of the First Amendment Additional Premises to Tenant free from occupancy by the current tenant of the First Amendment Additional Premises. 
 B. Notwithstanding the foregoing, if the First Amendment Additional Premises Lease Commencement Date shall not have occurred on or before the Outside Date, as hereinafter defined, then Tenant shall have the right,
exercisable by a written thirty (30) day termination notice given on or after the Outside Date, to terminate its leasing of the First Amendment Additional Premises. If the First Amendment Additional Premises Lease Commencement Date occurs on or
before the thirtieth (30th) day after Landlord receives such termination notice, Tenant’s termination notice shall be deemed to be void and of no force or effect. If the First Amendment Additional Premises Lease Commencement Date does not
occur on or before such thirtieth (30th) day, the Lease in respect of the First Amendment Additional Premises only shall terminate and shall be of no further force or effect, but the Lease shall remain in full force and effect with respect to
the remainder of the premises. For the purposes hereof, the “Outside Date” shall be defined as October 1, 2007. 
 C. The rent
commencement date in respect of the First Amendment Additional Premises (“First Amendment Additional Premises Rent Commencement Date”) shall be the date which is ninety (90) days after the First Amendment Additional Premises Lease
Commencement Date. 
  

 -2- 

 D. Base Rent in respect of the First Amendment Additional Premises shall be as follows: 
  

										
	 Time Period
	  	Annual Base
Rental Rate Per
Square Foot	  	Annual Base
Rent	  	Monthly
Base Rent
	 First Amendment Additional Premises Lease Commencement Date—First Amendment Additional Premises Rent Commencement Date:
	  	$	-0-	  	$	-0-	  	$	-0-
				
	 First Amendment Additional Premises Rent Commencement Date—2/29/08:
	  	$	42.17	  	$	487,232.16	  	$	40,602.68
				
	 3/1/08—2/28/09:
	  	$	43.65	  	$	504,332.16	  	$	42,027.68
				
	 3/1/09—2/28/10:
	  	$	45.18	  	$	522,009.72	  	$	43,500.81
				
	 3/1/10—2/28/11:
	  	$	46.76	  	$	540,265.08	  	$	45,022.09
				
	 3/1/11—2/29/12:
	  	$	48.40	  	$	559,213.56	  	$	46,601.13
				
	 3/1/12—2/28/13:
	  	$	50.09	  	$	578,739.84	  	$	48,228.32

 E. In the event that any of the provisions of the Lease are inconsistent with this Amendment or
the state of facts contemplated hereby, the provisions of this Amendment shall control. All capitalized terms used herein and not otherwise defined shall have the same meaning as set forth in the Lease. 
 2. CONDITION OF FIRST AMENDMENT ADDITIONAL PREMISES 
 Notwithstanding anything to the contrary herein contained, Tenant shall take the First Amendment Additional Premises “as-is”, in the condition in which the First Amendment Additional Premises are in as of
the First Amendment Additional Premises Lease Commencement Date, without any obligation on the part of Landlord to prepare or construct the First Amendment Additional Premises for Tenant’s occupancy and without any warranty or representation by
Landlord as to the condition of the First Amendment Additional Premises. Notwithstanding the foregoing, Landlord agrees that the building systems serving the First Amendment Additional Premises will be in good working order at the time Landlord
delivers the First Amendment Additional Premises to Tenant hereunder. 
  

 -3- 

 3. LANDLORD’S CONTRIBUTION IN RESPECT OF THE FIRST AMENDMENT ADDITIONAL PREMISES 

A. Landlord shall, in the manner hereinafter set forth, contribute up to One Hundred Fifty Thousand Two Hundred Two and 00/100 Dollars ($150,202.00)
(“Landlord’s Contribution”) towards the cost of leasehold improvements to be installed by Tenant in the First Amendment Additional Premises (“Tenant’s Work”). Tenant’s Work shall be performed in accordance with the
Lease including, without limitation, Section 8 thereof. 
 B. Provided that Tenant is not in default of its obligations under the Lease
at the time that Tenant submits any requisition on account of Landlord’s Contribution, Landlord shall reimburse Tenant for the cost of the work shown on each requisition (as hereinafter defined) submitted by Tenant to Landlord within thirty
(30) days of submission thereof by Tenant to Landlord. For the purposes hereof, a “requisition” shall mean written documentation from Tenant’s contractor showing in reasonable detail the costs of the improvements then installed
by Tenant in the First Amendment Additional Premises. Each requisition shall be accompanied by evidence reasonably satisfactory to Landlord that all work covered by such requisition has been fully paid by Tenant. Tenant shall submit requisition(s)
no more often than monthly. 
 C. Notwithstanding anything to the contrary herein contained: 
 (i) Landlord shall have no obligation to advance funds on account of Landlord’s Contribution unless and until Landlord has received the requisition
in question, together with certifications from Tenant’s architect, certifying that the work shown on the requisition has been performed in accordance with applicable law and in accordance with Tenant’s approved plans. 
 (ii) Landlord shall have no obligation to pay Landlord’s Contribution in respect of any requisition submitted after the date which is eighteen
(18) months after the First Amendment Additional Premises Lease Commencement Date (the “Final Requisition Date”). 
 (iii)
Tenant shall not be entitled to any unused portion of Landlord’s Contribution. Notwithstanding the foregoing, after the Final Requisition Date, provided Tenant has occupied the First Amendment Additional Premises for its business
purposes, Tenant shall be entitled to apply up to $35,000.00 of any unused portion of Landlord’s Contribution towards Tenant’s next installment of Base Rent. 
  

 -4- 

 D. Except for Landlord’s Contribution, Tenant shall bear all other costs of Tenant’s Work.
Landlord shall have no liability or responsibility for any claim, injury or damage alleged to have been caused by the particular materials, whether building standard or non-building standard, selected by Tenant in connection with Tenant’s Work.

 4. SECURITY DEPOSIT 
 Tenant shall, on the First Amendment Additional Premises Lease Commencement Date, pay to Landlord a security deposit of Forty Thousand Six Hundred Two and 68/100 Dollars ($40,602.68) securing Tenant’s obligations under the Lease. In no
event shall said security deposit be deemed to be a prepayment of rent nor shall it be considered a measure of liquidated damages. Tenant agrees that no interest shall accrue on said deposit and that Landlord shall have no obligation to maintain
such deposit in a separate account (i.e. Landlord shall have the right to commingle such deposit with other funds of Landlord). In the event that Tenant shall default in any of its obligations under the Lease, Landlord shall have the right, without
prior notice to Tenant, to apply said deposit (or any portion thereof) towards the cure of any such default and Tenant shall promptly, upon notice from Landlord, pay to Landlord any amount so applied by Landlord in order to restore the full amount
of said deposit. In addition, in the event of a termination based upon the default of Tenant under the Lease, or a rejection of the Lease pursuant to the provisions of the Federal Bankruptcy Code, Landlord shall have the right to apply said security
deposit (from time to time, if necessary) to cover the full amount of damages and other amounts due from Tenant to Landlord under the Lease. Any amounts so applied shall, at Landlord’s election, be applied first to any unpaid rent and other
charges which were due prior to the filing of the petition for protection under the Federal Bankruptcy Code. The application of all or any part of the deposit to any obligation or default of Tenant under the Lease shall not deprive Landlord of any
other rights or remedies Landlord may have nor shall such application by Landlord constitute a waiver by Landlord. Provided that Tenant is not in default of any of its obligations under the Lease at the expiration of the Term of the Lease, Landlord
shall refund to Tenant any portion of said security deposit which Landlord is then holding within sixty (60) days after the expiration of the Term of the Lease. 
 5. PARKING 
 The parties hereby acknowledge that, pursuant to Section 34 of the Lease, Tenant has
the right to purchase sixty-three (63) unreserved Parking Permits in the garage of the Building, five (5) of which unreserved Parking Permits shall be at no charge to Tenant throughout the Term of the Lease. The parties hereby further
acknowledge that, with respect to the First Amendment Additional Premises, Tenant has the right to purchase an additional fifteen (15) unreserved Parking Permits (“Additional Parking Permits”) in the garage of the Building. The
current monthly rate for such Additional Parking Permits is One Hundred Forty and 00/100 Dollars ($140.00) per month per unreserved permit, subject to change from time to time upon reasonable prior notice (which may be by posting such change in the
garage or such other means as the operator of the garage 

  

 -5- 

 
deems appropriate). The use of said Additional Parking Permits shall be upon all of the same terms and conditions set forth in said Section 34 of the
Lease, except that: (i) Tenant shall not be entitled to use any of the Additional Parking Permits as reserved Parking Permits, (ii) none of the Additional Parking Permits shall be free to Tenant, and (iii) Landlord shall not have the
right to allocate any of the Additional Parking Permits to the 1101 Wilson Boulevard parking garage. 
 6. BROKER 
 Landlord and Tenant each represents and warrants to the other that, except as hereinafter set forth, neither of them has employed any broker in procuring
or carrying on any negotiations relating to this First Amendment. Landlord and Tenant shall indemnify and hold each other harmless from any loss, claim or damage relating to the breach of the foregoing representation and warranty. Landlord
recognizes only Monday Properties, as Landlord’s Broker, and only The Staubach Company — Northeast, Inc., as Tenant’s Broker, as brokers with respect to this First Amendment. Landlord agrees to be responsible for the payment of any
leasing commissions owed to Landlord’s Broker, and Landlord’s Broker agrees to be responsible for the payment of any leasing commissions owed to Tenant’s Broker, pursuant to a separate agreement between Landlord’s Broker and
Tenant’s Broker. 
 7. NOTICES 
 For all purposes of the Lease, the notice address for Landlord is as follows: 
 c/o Beacon
Capital Partners, LLC 
 One Federal Street 
 Boston, Massachusetts 02110 
 With a copy to: 
 Goulston & Storrs, P.C. 
 400 Atlantic Avenue 
 Boston, Massachusetts 02110 
 Attention: 1100 Wilson Boulevard 
 8. RIGHT OF FIRST OFFER 
 On the
conditions (which conditions Landlord may waive, at its election, by written notice to Tenant at any time) that Tenant is not in default of its covenants and obligations under the Lease and that MCG Capital Corporation, itself, is occupying at least
sixty percent (60%) of the Premises then demised to Tenant, both at the time that Landlord is required to give Landlord’s Notice, as hereinafter defined, and as of the Lease Commencement Date in respect of the RFO Premises, Tenant shall
have the following right to lease the RFO Premises, as hereinafter defined, when the RFO Premises become available for lease to Tenant, as hereinafter defined, during the term of the Lease. 
  

 -6- 

 A. Definition of RFO Premises 
 “RFO Premises” shall be defined as any area on the twenty-ninth (29th) floor of the Building, when such area becomes available for lease to Tenant, as hereinafter defined, during the Term of
the Lease. For the purposes of this Paragraph 6, the RFO Premises shall be deemed to be “available for lease to Tenant” when Landlord, in its sole judgment, determines that such area will become available for leasing to Tenant. (i.e. when
Landlord determines that (i) the lease of the tenant of the RFO Premises will terminate and such tenant will vacate such RFO Premises, (ii) the rights of all other tenants of the Building who have pre-existing rights to lease such RFO
Premises as of the date of this First Amendment have lapsed unexercised or have been waived, and (iii) Landlord intends to offer such area for lease). In no event shall Tenant have any rights under this Paragraph 6 on or after the date
twelve (12) months prior to the Lease Expiration Date (i.e. Landlord shall have no obligation to give Landlord’s Notice, as hereinafter defined, to Tenant on or after the date twelve (12) months prior to the Lease Expiration Date).

 B. Exercise of Right to Lease RFO Premises 
 Landlord shall give Tenant written notice (“Landlord’s Notice”) at the time that Landlord determines, as aforesaid, that the RFO Premises will become available for lease to Tenant. Landlord’s
Notice shall set forth: 
 (i) the Lease Commencement Date in respect of the RFO Premises; and 
 (ii) the Base Rent (“Offered Base Rent”) and other terms applicable to the RFO Premises. Tenant shall have the right, exercisable upon written
notice (“Tenant’s Exercise Notice”) given to Landlord on or before the date (“RFO Exercise Date”) ten (10) business days after the receipt of Landlord’s Notice, to lease the RFO Premises. If Tenant fails timely to
give Tenant’s Exercise Notice, Tenant shall have no further right to lease such RFO Premises pursuant to this Paragraph 6. 
 C.
Lease Provisions Applying to RFO Premises 
 The leasing to Tenant of the RFO Premises shall be upon all of the same terms and
conditions of the Lease, except to the extent inconsistent with Landlord’s Notice and except as follows: 
 (1) Lease Commencement
Date 
 The Lease Commencement Date in respect of the RFO Premises shall be the later of: (x) the Estimated Lease Commencement Date
in respect of the RFO Premises as set forth in Landlord’s Notice, or (y) the date that Landlord delivers the RFO Premises to Tenant vacant and in broom-clean condition, free of all movable furniture and equipment. 
  

 -7- 

 (2) Base Rent 
 The Base Rent in respect of the RFO Premises shall be the Offered Base Rent, which shall be based upon the Fair Market Rental Rate as defined in Section 38.E. of the Lease. Said Fair Market Rental Rate shall
include a rent-free period to build out the RFO Premises of thirty (30) days. 
 (3) Condition of RFO Premises 
 Tenant shall take the RFO Premises “as-is” in its then (i.e. as of the date of premises delivery) state of construction, finish, and decoration,
without any obligation on the part of Landlord to construct or prepare the RFO Premises for Tenant’s occupancy and without any obligation on the part of Landlord to provide any Landlord’s Contribution to Tenant on account of Tenant’s
demise of the RFO Premises. 
 D. Execution of Lease Amendments 
 Notwithstanding the fact that Tenant’s exercise of the above-described option to lease the RFO Premises shall irrevocably act to add the RFO Premises
to the Lease without the need for any further documentation, as aforesaid, the parties hereby agree promptly to execute a lease amendment reflecting the addition of the RFO Premises. The execution of such lease amendment shall not be deemed to waive
any of the conditions to Tenant’s exercise of the herein option to lease the RFO Premises, unless otherwise specifically provided in such lease amendment. 
 E. Notwithstanding anything to the contrary herein contained, Tenant’s rights to lease any RFO Premises under this Paragraph 6 shall be subject and subordinate to the rights (whether expansion rights, rights of
first refusal and/or rights of first offer) of any tenant of the Building existing on the Execution Date of this First Amendment. 
 9.
INAPPLICABLE AND DELETED LEASE PROVISIONS 
 A. Sections 1(S) and (T) of the Lease, Sections 3 and 43 of the Lease and Exhibit C
to the Lease shall have no applicability in respect of the First Amendment Additional Premises. 
 B. Whereas the First Amendment Additional
Premises constitutes the first right of refusal space pursuant to Section 39.A. of the Lease (entitled “Expansion”) and the right to negotiate to lease space pursuant to Section 39.B. of the Lease (entitled “Right to
Offer”), said Section 39 of the Lease is hereby deleted and is of no further force or effect. 
  

 -8- 

 C. Any reference to Westfield Realty, Inc. in the Lease is deleted and Monday Properties is substituted
in its place. 
  

 -9- 

 10. ANTI-TERRORISM REPRESENTATIONS 
 Tenant represents and warrants to Landlord that: 
 Tenant is not, and shall not during the term of this Lease become, a person or entity with whom Landlord is restricted from doing business under the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, H.R. 3162, Public Law 107-56 (commonly known as the “USA Patriot Act”) and Executive Order Number 13224 on Terrorism Financing, effective September 24, 2001 and regulations promulgated pursuant
thereto, including, without limitation, persons and entities named on the Office of Foreign Asset Control Specially Designated Nationals and Blocked Persons List (collectively, “Prohibited Persons”); and 
 Tenant is not currently conducting any business or engaged in any transactions or dealings, or otherwise associated with, any Prohibited Persons in
connection with the use or occupancy of the premises; and 
 Tenant will not in the future during the term of this Lease engage in any
transactions or dealings, or be otherwise associated with, any Prohibited Persons in connection with the use or occupancy of the premises. 
 Landlord represents and warrants to Tenant that Landlord does not employ any Prohibited Persons at the Building. 
 11. CONDITION
OF LANDLORD’S EXECUTION 
 The parties hereby acknowledge that Landlord is only willing to execute this First Amendment in the event
that the current tenant of the First Amendment Additional Premises (the “Current Tenant”) agrees to terminate the term of its lease in respect of the First Amendment Additional Premises. Therefore, Landlord shall have the right,
exercisable upon written notice to Tenant, to render this First Amendment void and without further force or effect, unless both of the following events occur: 
 A. Tenant executes and delivers to Landlord this First Amendment; and 
 B. The Current Tenant executes and
delivers to Landlord an agreement, in form and substance acceptable to Landlord, whereby the Current Tenant agrees to terminate the term of its lease in respect of the First Amendment Additional Premises. 
  

 -10- 

 12. As hereby amended, the Lease is ratified, confirmed, and approved in all respects. 
 EXECUTED under seal as of the date first above-written. 
 LANDLORD: 
  

			
	 TWIN TOWERS II PROPERTY ASSOCIATES, LLC,
 a Delaware limited liability company

		
	By:	 	 /s/ Philip J. Brannigan, Jr.

		 	Philip J. Brannigan, Jr.
		 	Managing Director
	
	Date Signed: 12/22/06
	
	TENANT:
	 MCG CAPITAL CORPORATION,
 a Delaware
corporation

		
	By:	 	 /s/ Steven F. Tunney

	Name:	 	Steven F. Tunney
	Title:	 	President and CEO
		 	Hereunto Duly Authorized
	
	Date Signed: 11/21/06

  

 -11-

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