Document:

exv4wcwiii

Exhibit 4(c)(iii)

UK Employment Agreement

between

Six Continents Limited

as Company

and

Mr. Richard Solomons

as Executive

relating to

the employment of the Executive with the Company

 

 

CONTENTS

	 	 	 	 	 	 	 

	1.
	 	Appointment	 	 	4	 
	 
	 	 	 	 	 	 
	2.
	 	Duties and Powers	 	 	5	 
	 
	 	 	 	 	 	 
	3.
	 	Mobility	 	 	5	 
	 
	 	 	 	 	 	 
	4.
	 	Remuneration	 	 	6	 
	 
	 	 	 	 	 	 
	5.
	 	Short Term Incentive Schemes	 	 	6	 
	 
	 	 	 	 	 	 
	6.
	 	Long Term Incentive and Share Schemes	 	 	6	 
	 
	 	 	 	 	 	 
	7.
	 	Expenses and Gratuities	 	 	6	 
	 
	 	 	 	 	 	 
	8.
	 	Professional Subscriptions	 	 	7	 
	 
	 	 	 	 	 	 
	9.
	 	Company Car	 	 	7	 
	 
	 	 	 	 	 	 
	10.
	 	Holidays	 	 	7	 
	 
	 	 	 	 	 	 
	11.
	 	Sickness and Incapacity	 	 	8	 
	 
	 	 	 	 	 	 
	12.
	 	Notification of absence	 	 	8	 
	 
	 	 	 	 	 	 
	13.
	 	Pension	 	 	9	 
	 
	 	 	 	 	 	 
	14.
	 	Private Medical Insurance	 	 	9	 
	 
	 	 	 	 	 	 
	15.
	 	Location / Assignment Specific Benefits	 	 	9	 
	 
	 	 	 	 	 	 
	16.
	 	Exclusive Service	 	 	9	 
	 
	 	 	 	 	 	 
	17.
	 	Inventions, Designs, Copyright and other Intellectual Property	 	 	10	 
	 
	 	 	 	 	 	 
	18.
	 	Confidentiality	 	 	12	 
	 
	 	 	 	 	 	 
	19.
	 	Restrictive Covenants	 	 	12	 
	 
	 	 	 	 	 	 
	20.
	 	Notification of Restrictions	 	 	12	 
	 
	 	 	 	 	 	 
	21.
	 	Directorships	 	 	13	 
	 
	 	 	 	 	 	 
	22.
	 	Garden Leave	 	 	13	 
	 
	 	 	 	 	 	 
	23.
	 	Termination	 	 	15	 
	 
	 	 	 	 	 	 
	24.
	 	Return of Property	 	 	17	 
	 
	 	 	 	 	 	 
	25.
	 	Disciplinary and Grievance Procedure	 	 	17	 
	 
	 	 	 	 	 	 
	26.
	 	Data Protection	 	 	17	 
	 
	 	 	 	 	 	 
	27.
	 	Notices	 	 	17	 

2

 

	 	 	 	 	 	 	 

	28.
	 	Assignment	 	 	17	 
	 
	 	 	 	 	 	 
	29.
	 	Third Party Rights	 	 	18	 
	 
	 	 	 	 	 	 
	30.
	 	Law and jurisdiction	 	 	18	 
	 
	 	 	 	 	 	 
	31.
	 	Prior Agreements and other employment-related conditions	 	 	18	 
	 
	 	 	 	 	 	 
	32.
	 	Collective Agreements	 	 	18	 
	 
	 	 	 	 	 	 
	33.
	 	Severability	 	 	18	 
	 
	 	 	 	 	 	 
	34.
	 	Interpretation	 	 	19	 
	 
	 	 	 	 	 	 
	 
	 	Schedule 1	 	 	21	 

3

 

THIS AGREEMENT is dated 16 MARCH 2011 and made

BETWEEN:

	(1)	 	Six Continents Limited (the “Company”), registered in England and Wales as company number
913450 and having its registered office at Broadwater Park Denham, Buckinghamshire UB9 5HR;
and
	 
	(2)	 	Mr. Richard Solomons (the “Executive”), of [address].

THE PARTIES AGREE THAT:

	1.	 	Appointment
	 
	1.1	 	The Company employs the Executive and the Executive agrees to serve the Company and any other
Group Company or Group Companies as required by the Board or any person authorised by the
Board for the purpose, in the capacity of Chief Executive Officer. The Executive’s reward
band is 1.
	 
	1.2	 	This Agreement commences on 1 July 2011 and shall continue (subject to termination as
provided for below) unless and until terminated by either party giving to the other not less
than the following notice period in writing, expiring at any time:

	 	a)	 	notice period from the Company to the Executive: 52 weeks;
	 
	 	b)	 	notice period from the Executive to the Company: 26 weeks.

	1.3	 	The Executive’s period of continuous employment with the Group commenced on 29 June 1992.
	 
	1.4	 	The Executive warrants that:

	 	1.4.1	 	the Executive is not prevented from performing the Executive’s duties in
accordance with the terms of this agreement by any obligation or duty owed to any other
party, whether contractual or otherwise; and
	 
	 	1.4.2	 	the Executive is not and has not been subject to any prohibition, censure,
criticism or disciplinary sanction by any professional, regulatory or other body or
authority which would prevent the Executive from performing any duties under this
agreement.

	1.5	 	Employment is conditional upon satisfaction of the following conditions, if required by the
Company:

	 	(a)	 	the Executive undergoing a medical examination with a medical practitioner
nominated by the Company, the results of which are satisfactory to the Company; and
	 
	 	(b)	 	the Executive providing to the Company copies or other verification of all
academic, professional or other business qualifications notified to the Company.

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	2.	 	Duties and Powers 
	 
	2.1	 	The Executive shall exercise such powers, perform such duties (if any) and comply with such
reasonable and lawful directions in relation to the business of the Company or any other Group
Company as the Board or any person authorised by the Board may, from time to time, confer upon
or assign or give to him.
	 
	2.2	 	The Executive shall, during the continuance of this Agreement (unless prevented by ill health
or accident or as otherwise agreed by the Board in writing), devote substantially the whole of
the Executive’s working time and attention and abilities to the Business and shall use the
Executive’s reasonable endeavours to promote and protect the general interests and welfare of
the Company, the Group and any other Group Company to which the Executive may, from time to
time, render the Executive’s services under this Agreement.
	 
	2.3	 	The Executive shall work normal business hours which are 35 hours per week and such
additional hours as may be necessary in the performance of the Executive’s obligations under
this Agreement. The nature of the Executive’s job is such that the Executive is largely able
to prioritise tasks, determine the time and effort the Executive devotes to those tasks and
when the Executive does them. To the extent the Executive therefore determines the
Executive’s working hours outside normal business hours, the additional hours will not count
as working time towards the weekly working time limit of 48 hours on average. No overtime will
be paid with respect to any hours worked by the Executive outside normal business hours.
	 
	2.5	 	The Executive will, as soon as reasonably practicable disclose to the Board full details of
any wrongdoing by any employee or officer of any Group Company (including the Executive) where
that wrongdoing is material to that employee’s employment by the relevant company or to the
interests or reputation of any Group Company.
	 
	3.	 	Mobility
	 
	3.1	 	The Executive’s principal place of work is Broadwater Park Denham, Buckinghamshire, UB9 5HR.
The Executive’s principal place of work may be in such place or places within the United
Kingdom as the Company shall reasonably require. Should the Company wish the Executive to
relocate outside of the UK such relocation shall be the subject of agreement between the
Company and the Executive.
	 
	3.2	 	The Executive may be required to travel both inside and outside the United Kingdom on the
business of the Company or any Group Company in the proper performance of the Executive’s
duties from time to time.

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	4.	 	Remuneration
	 
	4.1	 	The Company shall pay to the Executive a salary at the annual rate of GBP £700,000. Such
salary shall be payable not less frequently than every month on a date which will be no later
than the last day of the month and shall be deemed to accrue from day to day. Such salary
shall include any director’s fees payable to the Executive. The Company shall be entitled to
procure payment of the salary for administrative reasons by another Group Company.
	 
	4.2	 	The salary payable to the Executive pursuant to clause 4.1 shall be subject to review in
accordance with the Company’s practice from time to time but there shall be no obligation on
the Company to increase such salary.
	 
	4.3	 	The Company shall be entitled at any time to deduct from the Executive’s remuneration (which
includes salary, salary supplement, any bonus, holiday or other pay) any sums owing to it or
to any other Group Company (including but not limited to any advance of a cash float to cover
business expenses, any advance of pay, holiday pay relating to holiday taken in excess of
entitlement) by the Executive to which deduction the Executive expressly hereby consents.
	 
	5.	 	Short Term Incentive Schemes
	 
	5.1	 	The Executive will be invited to participate in the Company’s or any Group Company (as
appropriate) discretionary incentive scheme or schemes, subject to the rules of such relevant
scheme(s). Details of the current applicable scheme(s) will be provided to the Executive.
Awards are determined in accordance with the rules of the applicable scheme.
	 
	5.2	 	Subject to the Company’s obligations in 5.1, the Company reserves the right, in its absolute
discretion, to vary the terms and/or any targets and/or level of bonus opportunity and/or
bonus payable, under any incentive scheme from time to time in operation. Any bonus paid is
not pensionable and is subject to deductions for tax and social security contributions.
	 
	6.	 	Long Term Incentive and Share Schemes
	 
	6.1	 	The Executive will be invited to participate in such long term incentive schemes including
share option or other share ownership schemes as the Company or the Group may operate from
time to time and which are applicable to employees in the Executive’s reward band, subject to
the rules of the relevant scheme(s). Details of any current applicable scheme(s) will be
provided to the Executive. Awards are determined in accordance with the rules of the
applicable scheme.
	 
	6.2	 	Subject to the Company’s obligations in 6.1, the Company reserves the right, in its absolute
discretion, to vary the terms of any such scheme or to withdraw any such scheme without
providing replacement. Any payment made under this clause is not pensionable and is subject to
deductions for tax and social security contributions.
	 
	7.	 	Expenses and Gratuities
	 
	7.1	 	In accordance with Company policy the Company shall pay or refund to the Executive all
reasonable travelling, entertainment and other similar out of pocket expenses properly and
wholly incurred by the Executive in the proper performance of the Executive’s duties subject
to production by the Executive of such evidence of such expenses as the Company may require.
If the Executive is provided with a company credit card or charge

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	 	 	card, the Executive shall use it only for such expenses as the Executive is entitled under
this sub-clause to have reimbursed by the Company.

	7.2	 	The Executive shall at all times comply with Company policies in force from time to time
regarding acceptance of gifts, gratuities and/or benefits.
	 
	8.	 	Professional Subscriptions
	 
	8.1	 	In accordance with and subject to Company policy, and upon prior approval, the Company shall
pay for up to two subscriptions to recognised professional bodies where membership of such
professional body is directly related to and required in relation to the Executive’s job from
time to time or the Executive’s normal professional skill.
	 
	9.	 	Company Car
	 
	9.1	 	In accordance with and subject to the rules of the Company Car policy for employees in the
reward band which applies to the Executive, the Company shall, at its option, either:

(a) make available to the Executive a motor car (“the Car”) for the Executive’s use or;

(b) pay the Executive a taxable, non-pensionable car allowance at a level to be determined
by the Company. The allowance will be paid monthly in arrears in the same manner as the
Executive’s salary.

	9.2	 	A copy of the relevant car policy shall be provided to the Executive and the Executive is
required to comply with its rules from time to time. The Company reserves the right, in its
reasonable discretion, to vary the rules and/or standard of car and/or level of car allowance
available to employees in the Executive reward band which applies to the Executive.
	 
	10.	 	Holidays
	 
	10.1	 	The Company’s holiday year is 1 January to 31 December (the “Holiday Year”).
	 
	10.2	 	In addition to public holidays, the Executive shall be entitled to paid holiday in each
Holiday Year in accordance with the stated policy for the Executive’s reward band in the
principal place of work, to be taken at times to be agreed with the Company in advance.
Subject to clause 10.3, no payment will be made for holidays not taken in the Holiday Year in
which they arise although the Executive may carry forward any unused holiday from one Holiday
Year to the next, subject to a maximum of 5 days to be carried forward into the following
Holiday Year.
	 
	10.3	 	Upon termination of this Agreement the Executive shall be entitled to payment in lieu of any
untaken outstanding holiday entitlement in the Holiday Year during which the Executive’s
employment terminates, which entitlement shall accrue on a pro-rata monthly basis.
	 
	10.4	 	Upon termination of the Executive’s employment under this Agreement, the Company shall be
entitled to deduct from any sum owed by the Company to the Executive a sum representing
overpayment of salary with respect to holiday which the Executive has taken in excess of the
Executive’s accrued holiday entitlement calculated on a pro-rata monthly basis as at the date
of the termination of the Executive’s employment and the Executive

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	 	 	hereby authorises the Company to make such deduction.

	10.5	 	The Company shall be entitled to require the Executive to take all or any part of any accrued
untaken holiday entitlement during the period of notice to terminate the Executive’s
employment (including, for the avoidance of doubt, during any period of garden leave pursuant
to clause 22).
	 
	11.	 	Sickness and Incapacity 
	 
	11.1	 	When the Executive is absent from work and unable to perform the Executive’s duties under
this Agreement satisfactorily by reason of any injury, illness or other incapacity and subject
to compliance with clause 12, the Executive shall be entitled to receive the Executive’s full
salary and other contractual benefits for up to the first 26 weeks of any such absence and
thereafter the Executive shall receive half the Executive’s salary.
	 
	11.2	 	Any salary payable pursuant to this clause shall be inclusive of the amount of any benefit or
statutory sick pay to which the Executive may be entitled during the period of such inability
under any Social Security scheme or statutory sick pay scheme for the time being in force.
	 
	11.3	 	The Company may submit the Executive to a medical examination by a doctor appointed by the
Company, at the expense of the Company, at any time during the continuance of this Agreement,
whether or not the Executive is absent by reason of sickness, injury or other incapacity. The
Executive consents to the Company’s Chairman or General Counsel, from time to time, obtaining
a copy of the Executive’s medical records from the Executive’s GP or Consultant in
circumstances where the Company deems such a step to be required. The Executive further agrees
that the Executive shall authorise the medical practitioner and the Company’s Chairman or
General Counsel to discuss further any matters arising from such medical report, diagnosis or
prognosis to the extent relevant to the Executive’s employment or the performance of the
Executive’s duties and the Company shall disclose the content of all such communications to
the Executive.
	 
	11.4	 	If the Executive is absent from work by reason of injuries sustained wholly or partly as a
result of actionable negligence, nuisance or breach of any statutory duty on the part of any
third party other than the Company or any Group Company, the Executive shall promptly inform
the Executive’s line manager of that fact and the Company in its discretion may require the
Executive to take all reasonable steps to recover from such third party or its insurers
compensation including sums paid to the Executive by the Company under this clause in respect
of such absence. Any such sums (which are paid to the Executive by the Company on that basis)
shall in turn be repaid by the Executive if and to the extent that the Executive recovers
compensation for loss of earnings from that third party or its insurers by legal action or
otherwise less any reasonable costs incurred in recovering any such compensation.
	 
	12.	 	Notification of Absence
	 
	12.1	 	If the Executive is unable to come to work for any reason and the Executive’s absence has not
previously been authorised by the Company, the Executive must notify the Company as soon as
practicable and in accordance with the stated policy for the Executive’s reward band in the
principal place of work.

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	13.	 	Pension
	 
	13.1	 	The Company operates various pension schemes. The Executive may be a member of the
applicable pension scheme as determined by the Executive’s start date with the Company and the
Executive’s reward band (“the Scheme”) at the applicable level and subject to the terms of the
trust deed and rules governing the Scheme from time to time, including, without limitation,
any powers of alteration and discontinuance. The Executive’s membership of the Scheme shall
be in substitution for, and shall operate to the exclusion of, any agreement or representation
whether written or oral in relation to pension entitlement made with or to the Executive by
any person on behalf of the Company or any Group Company at any time prior to the date of this
Agreement.
	 
	14.	 	Private Medical Insurance
	 
	14.1	 	The Executive, the Executive’s spouse and any dependent unmarried children under age 21 (or
25 if in full time education), as the case may be, will to the extent eligible (as determined
by the Executive’s reward band and any applicable scheme rules), be entitled to participate in
and receive benefits under the private medical insurance plan made available by the Company
(and any other schemes which the Company may provide from time to time) subject to the rules
or insurance policies constituting such schemes from time to time.
	 
	14.2	 	A copy of the relevant private medical insurance plan shall be provided to the Executive and
the Executive is required to comply with its rules from time to time. The Company reserves
the right, in exercising its discretion reasonably, to vary the plan including, without
limitation, withdrawal or suspension.
	 
	14.3	 	In the event that the Executive claims under any insurance scheme referred to in sub-clause
14.1 and such claim is rejected by the insurer, the Company shall not be obliged to issue
proceedings in relation to such claim.
	 
	15.	 	Location / Assignment Specific Benefits
	 
	15.1	 	In the event that any special terms apply to the Executive, these are as set out in the
Executive’s Offer Letter.
	 
	16.	 	Exclusive Service 
	 
	16.1	 	The Executive will devote substantially the whole of the Executive’s working time, attention
and skill to the Employment. It is envisaged that the Executive may take up an external
non-executive directorship during the Employment, such position to be subject to Board
approval.
	 
	16.2	 	At the request of the Company, the Executive will disclose promptly in writing to the Company
all the Executive’s outside business interests (for example, office holdings or
directorships).
	 
	16.3	 	Without prejudice to clause 16.1 above, and subject to clause 16.4 below, during the
Employment the Executive will not be directly or indirectly engaged or concerned in the
conduct of any activity which is similar to or competes with any activity carried on by any
Group Company (except as a representative of the Company or with the written consent of the
Board) nor make preparations to be engaged or interested either directly or indirectly in any
business or occupation which is similar to or competes with any activity carried on by any
Group Company.

9

 

	16.4	 	The Executive may not without written consent of the Board hold or be interested in
investments which amount to more than five percent of the issued investments of any class of
any one company whether or not those investments are listed or quoted on any recognised Stock
Exchange or dealt in on the Alternative Investments Market.
	 
	17.	 	Inventions, Designs, Copyright and other Intellectual Property 
	 
	17.1	 	The Executive acknowledges that:

	 	(i)	 	the Executive may make Inventions in the course of the Employment, whether in
the Executive’s normal or other specifically assigned duties; and
	 
	 	(ii)	 	the Executive has a special obligation to further the interests of the Group as
a whole and of each Group Company.

	17.2	 	If the Executive makes or is involved in making an Invention during the Employment, the
Executive will promptly inform the Company. The Executive will give the Company sufficient
details of any Invention to allow the Company to assess the Invention and to decide whether
the Invention belongs to the Company. The Company will treat any Invention which is notified
to it under this clause 17, but which does not belong to the Company, as confidential.

“Invention” means any invention within the meaning of the Patents Act 1977 relating to or
capable of being used in the business of any Group Company as carried on from time to time.

	17.3	 	If an Invention belongs to the Company, the Executive will act as a trustee for the Company
in relation to that Invention and will, at the request and expense of the Company, do
everything necessary to:

	 	(i)	 	vest all right, title and interest in the Invention in the Company or its
nominee;
	 
	 	(ii)	 	secure full patent or other appropriate protection for the Invention anywhere
in the world; and
	 
	 	(iii)	 	defend the Company’s or its nominee’s rights in the Invention and assist with
enforcement anywhere in the world.

	17.4	 	If the Executive creates or is involved in creating any Work during the Employment, the
Executive will promptly give the Company full details of it.
	 
	 	 	“Work” means any idea; method; discovery; computer programme; semiconductor chip layout;
database; drawing; literary work; product, packaging or other design; trade or service mark;
logo; domain name or other work (whether registrable or not and whether a copyright
work or not) which is not an Invention and which the Executive creates or is involved
in creating:

	 	(i)	 	in connection with the Executive’s Employment; or
	 
	 	(ii)	 	relating to or capable of being used in those aspects of the businesses of the
Group Companies in which the Executive is involved from time to time.

	17.5	 	The Executive will, at the request and expense of the Company, do everything necessary to:

10

 

	 	(i)	 	assign to the Company to the extent allowed by law, or will assign, all the
Executive’s right, title and interest in any current or future Work (whether now
existing or brought into being in the future);
	 
	 	(ii)	 	act as a trustee for the Company in relation to all such Works; and
	 
	 	(iii)	 	 

	 	(a)	 	vest all right, title and interest in any Work in the Company or
its nominee;
	 
	 	(b)	 	secure full registered or unregistered protection for any Work
anywhere in the world; and
	 
	 	(c)	 	defend the Company’s or its nominee’s rights in any Work and
assist with enforcement anywhere in the world.

	17.6	 	If the Executive generates any Information or is involved in generating any Information
during the Employment the Executive will promptly give to the Company full details of it and
the Executive acknowledges that such Information belongs to the Company.
	 
	 	 	“Information” means any idea, method or information, which is not an Invention or Work,
generated by the Executive either:

	 	(i)	 	in the course of the Executive’s Employment; or
	 
	 	(ii)	 	outside the course of the Executive’s Employment but relating to the business,
finance or affairs of any Group Company.

	17.7	 	If the Executive becomes aware of any infringement or suspected infringement of any
intellectual property right in any Invention, Work or Information the Executive will promptly
notify the Company in writing.
	 
	17.8	 	The Executive will not copy, disclose or make use of any Invention, Work or Information
without the Company’s prior written consent except to comply with this clause 17 or as
necessary for the proper performance of the Executive’s duties.
	 
	17.9	 	The Executive acknowledges that for the purpose of the Copyright and Rights in Databases
Regulations 1997 (as from time to time amended, extended or re-enacted) the Company shall be
treated as the maker of any such databases, where such database is created by the Executive
during the Employment.
	 
	17.10	 	So far as permitted by law the Executive irrevocably waives any rights the Executive may
have under Chapter IV (Moral Rights) of Part 1 of the Copyright, Designs and Patents Act 1988
and any foreign corresponding rights in respect of all Works.
	 
	17.11	 	Rights and obligations under this clause 17 will continue after the termination of this
Agreement in respect of all Inventions, Works and Information made or obtained during the
Employment and will be binding on the personal representatives of the Executive.
	 
	17.12	 	The Executive agrees that the Executive will not by the Executive’s acts or omissions do
anything which would or might prejudice the rights of any Group Company under this clause 17.
	 
	17.13	 	Except as necessary or desirable in the performance of the Executive’s duties, the Executive
will not make copies of any computer files belonging to any Group Company or

11

 

	 	 	their service providers and will not introduce any of the Executive’s own computer files
into any computer used by any Group Company.

	18.	 	Confidentiality
	 
	18.1	 	As Confidential Information will from time to time become known to the Executive, the Company
considers and the Executive acknowledges that the following restraints are necessary for the
reasonable protection by the Company of its business or the business of the Group, the
customers and trade connections thereof or their respective affairs.
	 
	18.2	 	The Executive shall not at any time, either during the continuance of or for a period of five
years after the termination of the Executive’s employment with the Company, use, disclose or
communicate to any person whatsoever any Confidential Information or any Trade Secrets of
which the Executive has or may have become possessed during the Executive’s employment with
the Company or supply the names or addresses of any clients, customers, suppliers or agents of
the Company or any Group Company to any person except in the proper course of the Business or
as authorised in writing by the Board or as ordered by a Court of competent jurisdiction or as
required to be disclosed by any law, regulation, governmental or other official body.
	 
	18.3	 	The Executive shall not at any time during the continuance of the Executive’s employment with
the Company make, otherwise than for the benefit of the Company or any Group Company, any
notes or memoranda relating to any matter within the scope of the Business or concerning any
of the dealings or affairs of the Company or any Group Company.
	 
	18.4	 	The Executive shall use the Executive’s best endeavours during the continuance of the
Employment to prevent the publication, disclosure or misuse of any Confidential Information
and shall not remove, nor authorise others to remove, from the premises of the Company or of
any Group Company any Confidential Information except to the extent strictly necessary for the
proper performance of the Executive’s or the other person’s duties to the Company or any Group
Company.
	 
	18.5	 	The Executive shall promptly disclose to the Company full details of any knowledge or
suspicion the Executive has (whether during or after the Employment) of any actual, threatened
or pending publication, disclosure or misuse by any person (including the Executive) of any
Confidential Information and shall provide all reasonable assistance and co-operation (at the
Company’s expense) as the Company may request in connection with any action or proceedings it
may take or contemplate in respect of any such publication, disclosure or misuse.
	 
	18.6	 	This clause 18 is without prejudice to the Executive’s equitable duty of confidence.
	 
	18.7	 	Nothing in this Agreement shall preclude the Executive from making a protected disclosure in
accordance with the provisions set out in the Employment Rights Act 1996 which should be made
in accordance with the Company’s Disclosure Procedure.
	 
	19.	 	Restrictive Covenants 
	 
	19.1	 	The provisions of Schedule 1 shall take effect as though part of this Agreement.
	 
	20.	 	Notification of Restrictions
	 
	20.1	 	The Executive agrees that, in the event of the Executive receiving from any person an

12

 

offer of employment (whether oral or
in writing and whether accepted or
not) either during the continuance of
this Agreement or during the
continuance in force of all or any of
the restrictions set out in Schedule 1
of this Agreement, without prejudice
to the Executive’s obligations in
relation to confidentiality, the
Executive will provide to the person
making the offer details of the
substance of the restrictions
contained in clauses 18 and Schedule 1.

	21	 	Directorships

	21.1	 	The Executive shall accept appointment as a director of the Company and of any such Group
Company or other company as the Company may reasonably require in connection with the
Executive’s appointment under this Agreement and the Executive shall resign without claim for
compensation from office as a director of any such company (other than the Company or IHG) at
any time on request by the Company, which resignation shall not affect the continuance in any
way of this Agreement. The Executive shall immediately account to the Company for any
director’s fees or other emoluments, remuneration or payments either receivable or received by
the Executive by virtue of the Executive’s holding office as such director (or waive any right
to the same if so required by the Company).
	 
	21.2	 	Upon the termination of the Executive’s employment with the Company however arising and for
whatsoever reason the Executive shall, upon the request of the Board, resign without claim for
compensation (but without prejudice to any claim the Executive may have for damages for breach
of this Agreement) from:

	 	(a)	 	office as a director of the Company or of any Group Company or of any other
company in which the Executive holds a directorship at the Company’s request; and
	 
	 	(b)	 	from all offices held by the Executive in any or all of such companies; and
	 
	 	(c)	 	all trusteeships held by the Executive of any pension scheme or other trusts
established by the Company, any Group Company or any other company with whom the
Executive has had dealings as a consequence of the Executive’s employment by the
Company.

	21.3	 	Should the Executive fail to resign from office as a director or from any other office or
trusteeship in accordance with clauses 21.1 or 21.2, either during the Executive’s
employment, when so requested by the Company, or on its termination, the Company is hereby
irrevocably authorised to appoint a person in the Executive’s name and on the Executive’s
behalf to execute any documents and to do all things required to give effect to the
resignation.
	 
	21.4	 	Save with the prior agreement in writing of the Company, the Executive shall not, during the
continuance of this Agreement, resign from any office as a director of the Company, any Group
Company or of any other company in which the Executive holds a directorship at the Company’s
request or do anything that would cause the Executive to be disqualified from continuing to
act as a director.
	 
	22	 	Garden Leave
	 
	22.1	 	At any time after the Executive gives notice to terminate the Employment, the Employer gives
notice to terminate the Employment as a result of the Executive’s breach of contract or gross
misconduct, or if the Executive resigns without giving due notice and the Company does not
accept the Executive’s resignation, the Company may, at its absolute

13

 

	 	 	discretion, require the Executive to take a period of absence called garden leave (the
“Garden Leave Period”). The Garden Leave Period will be no longer than the applicable notice
period.

	22.2	 	The Company may require that the Executive will not, without prior written consent of the
Board, during the Garden Leave Period:

	 	22.2.1	 	enter or attend the premises of the Company or any other Group Company; or
	 
	 	22.2.2	 	contact or have any communication with any customer or client of the Company or any
other Group Company in relation to the business of the Company or any other Group
Company (other than purely social contact); or
	 
	 	22.2.3	 	contact or have any communication with any employee, officer, director, agent or
consultant of the Company or any other Group Company in relation to the business of the
Company or any other Group Company (other than purely social contact); or
	 
	 	22.2.4	 	remain or become involved in any aspect of the business of the Company or any other
Group Company except as required by such companies.

	22.3	 	During the Garden Leave period the Company may require the Executive:

	 	22.3.1	 	to comply with the provisions of clause 24, save that the Executive will not be
required to return the Executive’s Company car; and
	 
	 	22.3.2	 	to immediately resign from any directorship, trusteeships or other offices which the
Executive holds in the Company, any other Group Company or any other company where such
directorship or other office is held as a consequence or requirement of the Employment,
unless the Executive is required to perform duties to which any such directorship,
trusteeship or other office relates in which case the Executive may retain such
directorships, trusteeships or other offices while those duties are ongoing. The
Executive hereby irrevocably appoints the Company to be the Executive’s attorney to
execute any instrument and do anything in the Executive’s name and on behalf of the
Executive to effect the Executive’s resignation if the Executive fails to do so in
accordance with this clause 22.3.2.

	22.4	 	During the Garden Leave Period, the Executive will be entitled to receive the Executive’s
salary and all benefits in accordance with the terms of this Agreement.
	 
	22.5	 	At the end of the Garden Leave Period, the Company may, at its sole and absolute discretion,
pay the Executive salary in lieu of the balance of any period of notice (less any deductions
the Company is required by law to make).
	 
	22.6	 	During the Garden Leave Period:

	 	22.6.1	 	the Executive shall provide such assistance as the Company or any Group Company may
require to effect an orderly handover of the Executive’s responsibilities to any
individual or individuals appointed by the Company or any Group Company to take over
the Executive’s role or responsibilities;
	 
	 	22.6.2	 	the Executive shall be available to deal with requests for information, provide
assistance, be available for meetings and to advise on matters relating to work

14

 

	 	 	 	(unless the Company has agreed that the Executive may be unavailable for a period);
and

	 	22.6.3	 	the Company may appoint another person to carry out the Executive’s duties in
substitution for the Executive.

	22.7	 	All duties of the Employment (whether express or implied), shall continue throughout the
Garden Leave Period (in particular the duty of fidelity) save as expressly varied by this
clause 22. The Executive agrees that the exercise by the Company of its rights pursuant to
this clause 22 shall not entitle the Executive to claim that the Executive has been
constructively dismissed.
	 
	23	 	Termination 
	 
	23.1	 	This Agreement and the Executive’s employment with the Company hereunder may be terminated
immediately by the Company without prior notice if the Executive at any time:

	 	(a)	 	commits any act of gross misconduct or other repudiatory breach of contract; or
	 
	 	(b)	 	without reasonable excuse and with prior written warning, repeats or continues
any gross misconduct in the discharge of the Executive’s duties or other breach of
contract (not falling within 23.1(a) above); or
	 
	 	(c)	 	has a bankruptcy order made against the Executive or if the Executive makes any
arrangement or composition with the Executive’s creditors or has an interim order made
against the Executive pursuant to Section 252 of the Insolvency Act 1986; or
	 
	 	(d)	 	is convicted of any criminal offence other than an offence which, in the
reasonable opinion of the Board, does not affect the Executive’s position as an
employee of the Company (bearing in mind the nature of the duties in which the
Executive is engaged and the capacity in which the Executive is employed); or
	 
	 	(e)	 	by the Executive’s actions or omissions, brings the name or reputation of the
Company or any Group Company into serious disrepute or prejudices the interests of the
business of the Company or any other Group Company.

	 	 	Any delay by the Company in exercising such right to termination shall not constitute a
waiver thereof.
	 
	23.2	 	In the event of termination pursuant to clause 23.1, the Company shall not be obliged to make
any further payment to the Executive beyond the amount of any remuneration and payment in lieu
of outstanding untaken holiday entitlement actually accrued up to and including the date of
such termination and the Company shall be entitled to deduct from such remuneration any sums
owing to it or to any other Group Company (including but not limited to any advance of a cash
float to cover business expenses, any advance of pay, holiday pay relating to holiday taken in
excess of accrued entitlement) by the Executive to which deduction the Executive expressly
hereby consents.
	 
	23.3	 	In the event of the termination of the Employment of the Executive for whatever reason and
whether by notice or in any other manner whatsoever, the Executive agrees that the Executive
will not at any time after such termination represent the Executive as still having any
connection with the Company or any Group Company save as a former employee for the purpose of
communicating with prospective employers or complying with any applicable statutory
requirements.

15

 

	23.4	 	In the event that the Executive is incapacitated by ill health, accident or any other
incapacity from performing the Executive’s duties under this Agreement for a period of 39
weeks or more (whether consecutive or not) in any continuous period of 2 years, then the
Company may terminate this Agreement by giving to the Executive six months notice, in writing
expiring at any time (whether or not the Executive remains incapacitated from performing the
Executive’s duties under this Agreement) provided always that the Executive shall receive all
benefits lawfully due to the Executive under this Agreement calculated up to the effective
date of termination of employment and, subject to the Company being satisfied by medical
opinion, that the provisions for early retirement due to ill health contained in the
InterContinental Hotels Group Executive Pension Plan (“the Plan”) shall apply (for so long as
such provisions remain within the Plan or the Plan remains in existence).
	 
	23.5	 	As an alternative to serving notice pursuant to clause 1.2 or 23.4 (and subject to the early
retirement condition at 23.4) and without prejudice to the provisions of clauses 23.1 and
23.2, the Company may, make a payment to the Executive in lieu of notice equal to the basic
salary to which the Executive would have been entitled during the period of notice at the rate
applying at the date of termination (less deductions for income tax and national insurance
contributions and any other deductions the Company is required by law to make). Where the
Company uses such discretion, this agreement will terminate upon payment to the Executive of
such sum.
	 
	23.6	 	Once notice has been given, either by the Company or the Executive pursuant to clause 1.2 or
23.4, the Company may, in its absolute discretion, at any time during such notice make a
payment in lieu of any unexpired period of notice equal to the basic salary to which the
Executive would have been entitled during the period of notice at the rate applying at the
date of termination (less deductions for income tax and national insurance contributions and
any other deductions the Company is required by law to make) and the Agreement will terminate
immediately thereafter.
	 
	23.7	 	In the event of termination of the Agreement, all or any payments under any applicable
incentive schemes will be calculated and payable in accordance with the rules of the
respective schemes.

16

 

	24	 	Return of Property 
	 
	24.1	 	Immediately on request following notice of termination being served by either the Company or
the Executive and in any event upon the termination of the Executive’s employment with the
Company for whatsoever cause, the Executive shall immediately deliver up to the Company or its
authorised representative any property of the Company or any other Group Company which may be
in the Executive’s possession, custody or under the Executive’s control, including, without
limitation, the car, the car keys, laptop, mobile telephone, electronic organiser, wireless
devices, minutes, memoranda, correspondence, notes, records, reports, sketches, plans or other
documents or writing (which shall include information recorded or stored in writing or on
magnetic tape or disk or otherwise recorded or stored for reproduction whether by mechanical
or electronic means and whether or not such reproduction will result in a permanent record
being made) and any copies thereof, whether or not the property was originally supplied to the
Executive by the Company or any other Group Company.
	 
	24.2	 	If so requested, the Executive shall provide to the Company a signed statement confirming
that the Executive has fully complied with clause 24.1.
	 
	25	 	Disciplinary and Grievance Procedure 
	 
	25.1	 	The Executive’s employment is subject to the disciplinary and grievance rules and procedures
of the Company from time to time. The Company’s disciplinary and grievance procedures do not
form part of the Executive’s contractual terms and conditions of employment.
	 
	26	 	Data Protection
	 
	26.1	 	The Executive consents to the Company and any other Group Company holding and processing,
both electronically and manually, the data it collects in relation to the Executive, in the
course of the Executive’s employment, for the purposes of the Company’s administration and
management of its employees and its business and for compliance with applicable procedures,
laws and regulations and to the transfer, storage and processing by the Company or any other
agent of such data outside the European Economic Area, in particular to and in the United
States and any other country in which the Company or any other Group Company has offices.
	 
	27	 	Notices
	 
	27.1	 	Any notice to be given under this Agreement shall be given in writing and may be sent,
addressed in the case of the Company to its registered office for the time being and in the
case of the Executive to the Executive at the Executive’s last known place of residence or
given personally and any notice sent by post shall be deemed to have been served at the
expiration of 48 hours after the same was posted.
	 
	28	 	Assignment
	 
	28.1	 	The benefit of each agreement and obligation of the Executive under this Agreement may be
assigned to and enforced by all successors or assigns for the time being carrying on the
Business and such agreements and obligations shall operate and remain binding notwithstanding
the termination of the employment of the Executive.

17

 

	29	 	Third Party Rights
	 
	 	 	To the extent permitted by law, no person other than the parties to this agreement and any
Group Company shall have the right to enforce any term of this agreement under the Contracts
(Rights of Third Parties) Act 1999. For the avoidance of doubt, save as expressly provided
in this clause the application of the Contracts (Rights of Third Parties) Act 1999 is
specifically excluded from this agreement, although this does not affect any other right or
remedy of any third party which exists or is available other than under this Act.
	 
	30	 	Law and Jurisdiction
	 
	30.1	 	English law
	 
	 	 	This Agreement shall be governed by, and construed in accordance with, English law.
	 
	30.2	 	Jurisdiction
	 
	 	 	In relation to any legal action or proceedings arising out of or in connection with
this Agreement (“Proceedings”), each of the parties irrevocably submits to the exclusive
jurisdiction of the English courts and waives any objection to Proceedings in such courts on
the grounds of venue or on the grounds that Proceedings have been brought in an
inappropriate forum.
	 
	31	 	Prior Agreements and other employment-related conditions 
	 
	31.1	 	Without prejudice to the terms of the Offer Letter, such terms being incorporated by
reference herein, this Agreement shall be in substitution for any other subsisting offer
letter, agreement, service agreement or contract of employment or any amendments thereto (oral
or otherwise) made between the Company and the Executive or between any other Group Company
and the Executive and where any inconsistency exists between this Agreement and the Offer
Letter, the terms of the Offer Letter shall prevail.
	 
	31.2	 	The Executive’s employment is subject to the Company’s non-contractual rules, policies and
procedures which apply for the Executive’s location. If there is any conflict between the
non-contractual rules, policies and procedures from time to time and the Executive’s
contractual terms and conditions, the contractual terms and conditions shall prevail.
	 
	31.3	 	The Executive warrants and agrees that the Executive is not entering into this Agreement in
reliance on any representation not expressly set out in this Agreement.
	 
	32	 	Collective Agreements
	 
	32.1	 	There are no collective agreements currently in force which affect directly or indirectly the
terms and conditions of the Executive’s employment.
	 
	33	 	Severability
	 
	33.1	 	If any provision of this Agreement or of a clause hereof, or of any part of Schedule 1 is
determined to be illegal or unenforceable by any court of law or any competent governmental or
other authority, but would be valid if part of their wording were deleted, such clause shall
be severable and enforceable and will apply with such deletion as may be necessary to make it
valid or effective. The parties shall negotiate in good faith to

18

 

replace any such illegal or unenforceable
provisions with suitable substitute
provisions which will maintain as far as
possible the purposes and the effect of
this Agreement.

	34	 	Interpretation
	 
	34.1	 	In this Agreement:
	 
	 	 	“Affiliate” means, in respect of any company, a company which is its subsidiary,
subsidiary undertaking or holding company, or a company which is a subsidiary or subsidiary
undertaking of that holding company.
	 
	 	 	“the Board” means the Board of Directors of IHG or the Directors present at a duly
convened meeting of the Directors at which a quorum is present and acting throughout or a
duly authorised committee of the Board.
	 
	 	 	“the Business” means (taken together) the business of IHG and the business of any
other Group Company with which the Executive is required by the Board under clause 2 to be
concerned.
	 
	 	 	“Confidential Information” means confidential information (which may include
commercially sensitive information) relating to the business of the Company or any Group
Company or any of their respective customers or their affairs and which includes but is not
limited to Trade Secrets, ideas, inventions, business methods, business practices and
processes, finances, prices, costs, financial marketing/development/ manpower plans,
strategy documents or intentions, products/product specifications, confidential
emails/letters/memos, marketing and promotion of products, packages or offers, names and
addresses and other details of suppliers, customers, agents of the Company or any Group
Company, computer systems and software, information relating to employees, know-how or other
matters connected with the products or services manufactured, marketed, provided or obtained
by the Company or any Group Company or their respective customers.
	 
	 	 	“Employment” means the employment governed by this Agreement;
	 
	 	 	“Group” means the Company and any Affiliate of the Company and “Group
Company” shall be construed accordingly.
	 
	 	 	“IHG” means InterContinental Hotels Group PLC.
	 
	 	 	“month” means a calendar month.
	 
	 	 	“Offer Letter” means the letter dated 16 March 2011 from Mr. David Webster setting
out the principal terms of the Employment Agreement.
	 
	 	 	“Trade Secrets” means trade secrets, and information of such a highly confidential
nature as to require the same treatment as trade secrets, of IHG or any Group Company or any
supplier, customer, or agent of the Company or any Group Company.
	 
	34.3	 	In this Agreement, where the context admits:

19

 

	 	(a)	 	words and phrases the definitions of which are contained or referred to in the
Companies Act 2006 shall be construed as having the meanings so attributed to them;
	 
	 	(b)	 	references to any statute or statutory provisions include a reference to those
provisions as amended or re-enacted or as their application is modified by other
provisions from time to time and any reference to a statutory provision shall include
any subordinate legislation made from time to time under that provision;
	 
	 	(c)	 	references to a “person” include any individual, company, body
corporate, corporation sole or aggregate, government, state or agency of a state, firm,
partnership, joint venture, association, organisation or trust (in each case, whether
or not having separate legal personality and irrespective of the jurisdiction in or
under the law of which it was incorporated or exists) and a reference to any of them
shall include a reference to the others;
	 
	 	(d)	 	any reference to “writing” shall include typewriting, printing,
lithography, photography, telex, facsimile and the printed out version of a
communication by electronic mail and other modes of representing or reproducing words
in a legible form;
	 
	 	(e)	 	words denoting the singular shall include the plural and vice versa;
	 
	 	(f)	 	the employment of the Executive are references to the employment by the
Company whether or not during the continuance of this Agreement; and
	 
	 	(g)	 	the masculine gender shall be deemed to include the feminine gender.

	34.4	 	Headings are inserted for convenience only and shall not affect the construction of this
Agreement.

IN WITNESS whereof this Agreement has been entered into the day and year first above written.

	 	 	 	 	 

	SIGNED by

for and on behalf of

the Company

	 	)

)

)
	 	

Name: George St. John Turner

Address: Broadwater Park, Denham, Buckinghamshire UB9 5HR

	 	 	 	 	 	 	 

	SIGNED by the Executive

	 	 	)	 	 	

Name: Mr. Richard Solomons

Address:

20

 

SCHEDULE 1

	1.	 	1.1 In this Schedule 1 the expressions below have the meaning ascribed to them
respectively below:
	 
	 	 	“Competing Enterprise” shall mean (a) any person, corporation, partnership, venture or
other entity (“entity”) which engages either (i) in the business of managing, franchising,
running, leasing, owning or joint venturing at least 50 hotels, or (ii) in the business of
any online booking agency in respect of hotel rooms (“hotel booking”) and in the case of (i)
and (ii) the entity’s shares are publicly traded and such entity has a market capitalisation
of not less than one billion pounds sterling (for these purposes “market capitalisation”
shall be the aggregate market value of the ordinary shares of the entity) and (b) any
Competitor;
	 
	 	 	“Competitor” shall mean any of the following companies and/or any of their holding companies
or subsidiaries from time to time (both as defined in the Companies Act 2006):

	 	(i)	 	Accor SA
	 
	 	(ii)	 	Hilton Worldwide
	 
	 	(iii)	 	Starwood Hotels & Resorts Worldwide, Inc.
	 
	 	(iv)	 	Marriott International, Inc.
	 
	 	(v)	 	Global Hyatt Corporation
	 
	 	(vi)	 	Four Seasons Holdings, Inc.

“Garden Leave Period” has the meaning given in Clause 22 of the Agreement above;

“Key Person” shall mean any person who was a band 4 level or above employee of the Company
or any other Group Company (including for this purpose any General Manager of any hotel
owned or managed by the Company or any other Group Company) and with whom the Executive had
material contact or dealings in performing the duties of the Employment at any time during
the period of 12 months ending on the Termination Date;

“Relevant Period” shall mean the period of six months beginning with the Termination Date
but reduced by one day for each day of a Garden Leave Period;

“Restricted Activities” shall mean executive, managerial, directorial, administrative,
strategic, business development or supervisory responsibilities and activities relating to
any Competing Enterprise;

“Termination Date” shall mean the date on which the Employment terminates.

1.2 The Executive agrees that during the Relevant Period the Executive will not
without the prior written consent of the Company:

	 	(i)	 	become associated with or engage in any Restricted Activities whether as officer,
director, employee, principal, partner, agent, executive, independent contractor or
shareholder (other than as a holder of not in excess of 5% of the outstanding voting
 shares of any publicly traded company) in competition with any business of the Company
or any other Group Company being carried on by the Company or any other Group Company
at the Termination Date but excluding (a) any association or engagement which solely
relates to Restricted Activities which the Executive had not been involved in to a
material extent in the course of the Employment at any time during the period of 12
months ending on the Termination Date,

21

 

	 	 	 	or (b) the Executive’s employment by a unit of a Competing Enterprise which unit is
not itself engaged in hotel ownership, hotel management, hotel franchising, hotel
running, hotel leasing, hotel joint-venturing or hotel booking (as defined above), so
long as the Executive’s duties and responsibilities with respect to such employment
are limited to the business of such unit, or (c) the Executive’s employment by an
entity which includes a Competing Enterprise where such Competing Enterprise produces
revenues that account for less than 5% of the gross revenues of the entity and
performing services for such Competing Enterprise is not a material part of the
Executive’s responsibilities; and

	 	(ii)	 	either on his own behalf or for or with any other person, whether directly or
indirectly, solicit or induce or attempt to solicit or induce any Key Person to leave
the employ of the Company or any other Group Company whether or not such person would
commit any breach of his contract of employment by leaving the service of the Company
or any other Group Company; and
	 
	 	(iii)	 	either on his own behalf or for or with any other person, whether directly or
indirectly, interfere with or try to terminate or reduce the level of supplies (whether
of products and/or services) by a supplier to the Company or any other Group Company
provided the Executive was concerned or involved to a material extent with the supply
of products or services by that supplier to the Company or a Group Company in the
course of the Employment at any time during the 12 months period ending on the
Termination Date.

1.3 The Executive agrees that each of the paragraphs contained in sub-clause 1.2 of
this Schedule 1 constitute an entirely separate and independent covenant on the Executive’s
part and the validity of one paragraph shall not be affected by the validity or
unenforceability of another.

1.4 The Executive agrees that the Executive will at the request and cost of the Company
enter into a direct agreement or undertaking with any Group Company whereby the Executive
will accept restrictions and provisions corresponding to the restrictions and provisions
contained in sub-clauses 1.2 of this Schedule 1 (or such of them as may be reasonable and
appropriate in the circumstances) in relation to such activities and such areas and for such
a period as such company may reasonably require for the protection of its legitimate
interests but provided that the duration of such restrictions and provisions are no greater
than the Relevant Period.

1.5 The Executive agrees that having regard to the facts and matters set out above the
restrictive covenants contained in this Schedule 1 are necessary for the protection of the
business and confidential information of the Company and other Group Companies.

22exv10w1

Exhibit
10.1

STOCK REPURCHASE AGREEMENT

     This
STOCK REPURCHASE AGREEMENT (this “Agreement”)
is made as of April 11, 2011 (the
“Effective Date”), by and between Ashford Hospitality Trust, Inc., a Maryland corporation (the
“Company”), and Security Capital Preferred Growth Incorporated, a Maryland corporation (the
“Shareholder”).

     Recitals. The Shareholder holds 7,247,865 shares of the Company’s Series B-1
Cumulative Convertible Redeemable Preferred Stock, par value $0.01 per share (the “Preferred
Shares”). The Company and the Shareholder have agreed that the Company shall have the right to
repurchase all or any of the Preferred Shares on the terms and subject to the conditions set forth
in this Agreement. In consideration of the mutual covenants contained in this Agreement, the
parties hereto hereby agree as set forth below.

1. Repurchase Right; Dividend Payments.

(a) Grant of Right. The Shareholder hereby grants to the Company the right to
repurchase all or any number of the Preferred Shares on the terms and subject to the conditions set
forth in this Agreement (the “Repurchase Right”). The Repurchase Right shall be exercisable, at
the option of the Company in its sole discretion, at any time during the five Business Days (as
defined below) immediately following the Effective Date (the “Exercise Period”).

(b) Repurchase Price. The purchase price for each Preferred Share purchased by
the Company pursuant to the Repurchase Right on any Closing Date (as defined below) shall be equal
to the greater of (i) the Volume Weighted Average Price of a share of the common stock, par value
$0.01 per share, of the Company (the “Common Stock”) calculated with respect to such Closing Date
as set forth below and (ii) $10.07 (such greater amount, the “Repurchase Price”). In addition to
the Repurchase Price for each Preferred Share, the Company will pay to the Shareholder at the time
of the consummation of the repurchase of any Preferred Shares repurchased hereunder (each
consummation of a repurchase of Preferred Shares hereunder, a “Closing”), all accumulated but
unpaid dividends payable on each Preferred Share, calculated in accordance with the terms of the
Articles Supplementary (as defined below), so repurchased through, but excluding, the date on which
such Closing occurs (each, a “Closing Date”), including that pro rata portion of the dividends
payable as to the Dividend Period (as defined the Articles Supplementary Establishing and Fixing
the Rights and Preferences of a Series of Preferred Stock of the Company relating to the Preferred
Shares (the “Articles Supplementary”)) in which such Closing Date occurs and which have accumulated
with respect to the portion of such Dividend Period that elapses prior to such Closing Date (the
“Accumulated Dividends”).

     For purposes of this Agreement, “Volume Weighted Average Price” for the Preferred Shares
repurchased on any Closing Date shall mean the number obtained, for the five Trading Days
immediately preceding such Closing Date by dividing (a) the sum of the products of all sales of
Common Stock during such five Trading Day period, of (i) the sale prices per share of Common Stock
as reported on the consolidated transaction reporting system contemplated by Rule 11Aa3-1 under the
Securities Exchange Act of 1934, as amended, times (ii) the number of shares of Common Stock sold
at such prices by (b) the total number of shares of Common Stock sold during such five Trading Day
period. Appropriate adjustments shall be made to the Volume Weighted Average Price to maintain
comparability during any five Trading Day period in the event of any subdivision or combination of
the Common Stock, whether by stock split, stock, dividend, recapitalization, reverse

-1-

 

stock split or otherwise, which occurs during such five Trading Day period. For purposes of this
Agreement, “Trading Day” shall mean any day on which shares of Common Stock are traded on the New
York Stock Exchange (the “NYSE”), or if the Common Stock is not listed or admitted for trading on
the NYSE, the principal national securities exchange on which the Common Stock is listed or
admitted for trading.

(c) Exercise of the Repurchase Right. The Repurchase Right shall be
exercisable by written notice delivered by the Company to the Shareholder (the “Repurchase Notice”)
setting forth the number of the Preferred Shares as to which the Company is exercising the
Repurchase Right and otherwise substantially in the form attached hereto as Exhibit A (the
“Notice Shares”), which notice must be delivered prior to 5:30 p.m., Central time, on the last day
of the Exercise Period. If the Company gives a Repurchase Notice in which it does not exercise the
Repurchase Right to purchase all of the Preferred Shares, the Repurchase Right shall terminate as
to those Preferred Shares as to which the Company does not exercise the Repurchase Right by means
of such Repurchase Notice, which termination shall be effective upon the Shareholder’s receipt of
such Repurchase Notice. If the Company does not give any Repurchase Notice to the Shareholder
prior to 5:30 p.m., Central Time, on the last day of the Exercise Period, the Repurchase Right
shall terminate as to all of the Preferred Shares effective at the end of the Exercise Period.

(d) Establishment of Each Closing Date. The Repurchase Notice, if given, shall
specify the date on which the closing of the repurchase of the Notice Shares shall be scheduled to
occur, which date shall not be less than 30 calendar days nor more than 90 calendar days after the
date of the Repurchase Notice (the “Company-Scheduled Closing Date”); provided, however, that on
any date after the Shareholder’s receipt of the Repurchase Notice and prior to the day immediately
preceding the Company-Scheduled Closing Date, the Shareholder may give a notice to the Company
substantially in the form attached hereto as Exhibit B (each, a “Purchase Price Notice”)
pursuant to which the Shareholder notifies the Company that the Shareholder is electing to
accelerate the consummation of the repurchase by the Company hereunder of that number of Notice
Shares set forth in that Purchase Price Notice to the Business Day next following the date on which
the Company receives such Purchase Price Notice (each such date, an “Accelerated Closing Date”),
but provided, that in no event: (i) may the Shareholder give a Purchase Price Notice to the Company
electing to accelerate the consummation of the repurchase hereunder of less than 500,000 Preferred
Shares on any single Accelerated Closing Date; (ii) shall a Purchase Price Notice be given with
respect to Preferred Shares as to which a prior Purchase Price Notice has been given to the Company
by the Shareholder; or (iii) shall Purchase Price Notices be given by the Shareholder to the
Company with respect to an aggregate number of Preferred Shares exceeding the number of the Notice
Shares. The Closing Date for the repurchase of any Notice Shares as to which no Purchase Price
Notice is given shall be the Company-Scheduled Closing Date.

(e) Number of Notice Shares to be Acquired on a Closing Date. Notwithstanding
anything herein to the contrary, the number of Preferred Shares to be repurchased hereunder on a
Closing Date shall be as follows: (i) if such Closing Date is the Company-Scheduled Closing Date,
the number of Preferred Shares equal to (1) the number of Notice Shares minus (2) the aggregate
number of Notice Shares as to which one or more Purchase Price Notices have previously been given
and (ii) if such Closing Date is an Accelerated Closing Date, the number of Preferred Shares set
forth for repurchase on an Accelerated Closing Date in the Purchase Price Notice given by the
Shareholder to the Company and setting such Accelerated Closing Date; provided, however, that if
the aggregate Repurchase Price for all of the Preferred Shares to be repurchased on any Closing
Date would exceed an aggregate amount equal to the product of (i) $10.07 and (ii) (1) if such
Closing Date is the

-2-

 

Company-Scheduled Closing Date, the number of Preferred Shares equal to (x) the number of Notice
Shares minus (y) the aggregate number of Notice Shares as to which one or more Purchase Price
Notices have previously been given or (2) if such Closing Date is an Accelerated Closing Date, the
number of Preferred Shares set forth for repurchase on an Accelerated Closing Date in the Purchase
Price Notice given by the Shareholder to the Company setting such Accelerated Closing Date (as to
each Closing Date, the “Maximum Repurchase Amount”), the number of the Notice Shares to be
repurchased on that Closing Date shall be the greatest number of whole Preferred Shares having an
aggregate Repurchase Price for that Closing Date equal to or less than the Maximum Repurchase
Amount for such Closing Date. If the number of Preferred Shares repurchased hereunder on any
Closing Date is reduced below the number of Preferred Shares which the Company would be obligated
to repurchase hereunder on such Closing Date if the proviso to the immediately preceding sentence
does not limit the number of Preferred Shares to be repurchased on such Closing Date (the
“Scheduled Number of Shares”), the number of Notice Shares and, as a result, the aggregate number
of Preferred Shares that the Company shall be obligated to repurchase hereunder as a result of
giving the Repurchase Notice, shall be reduced, effective as of such Closing Date, by that number
of Preferred Shares equal to (i) the Scheduled Number of Shares for such Closing Date minus (ii)
the number of Preferred Shares repurchased by the Company hereunder on such Closing Date (as to any
Closing Date, the “Unpurchased Shares”). For avoidance of doubt, the aggregate amount of
Accumulated Dividends to be paid with respect to any Preferred Shares to be repurchased on a
particular Closing Date shall not be included in such calculation of the Maximum Repurchase Amount.

(f) Conversion of Unpurchased Shares. If as to any Closing Date there are any
Unpurchased Shares, the Shareholder irrevocably elects to exercise, and agrees that it shall be
deemed to have exercised, its conversion right with respect to such Unpurchased Shares in
accordance with and pursuant to the provisions of Section 6 of the Articles Supplementary as of
such Closing Date and such Closing Date shall be deemed to be the Conversion Date (as defined in
Section 6(a) of the Articles Supplementary) as to such Unpurchased Shares. Accumulated Dividends
on the converted Unpurchased Shares shall be paid in accordance with the provisions of the Articles
Supplementary. The Shareholder hereby waives any right to receive, on a Closing Date, a
certificate or certificates representing any shares of Common Stock issuable to the Shareholder by
the Company upon the conversion of any Unpurchased Shares as contemplated in this Agreement and
agrees to have all such shares of Common Stock issuable upon the conversion of Unpurchased Shares
issued in book entry form only, registered in the name of the Shareholder or such other person as
the Shareholder timely designates in writing to the Company.

(g) Closing. On any Closing Date:

     (i) the Shareholder shall deliver to the Company (or, upon written notice from the
Company, to the transfer agent for the Preferred Shares) the stock certificate or
certificates representing (A) those Preferred Shares being repurchased by the Company
pursuant to the Repurchase Right on such Closing Date and (B) those Preferred Shares as to
which the conversion right is deemed exercised as contemplated by Section 1(f) above on such
Closing Date, with each such certificate to be properly endorsed for transfer or accompanied
by an appropriate executed stock power; and

     (ii) the Company shall pay to Shareholder by wire transfer of immediately available
funds an amount equal to the sum of (A) the Repurchase Price and (B) the Accumulated
Dividends multiplied by the number of Preferred Shares being so repurchased

-3-

 

by the Company on such Closing Date together with shares of Common Stock required to be
delivered upon conversion of any Unpurchased Shares as provided in Section 1(f) above.

If the stock certificate or certificates delivered also contain Preferred Shares not being so
repurchased or converted on such Closing Date, the Company shall also issue a new certificate to
the Shareholder representing such number of Preferred Shares not repurchased or converted on such
Closing Date. Regardless of whether any Preferred Share certificate or certificates are delivered
by the Shareholder on a Closing Date, the Preferred Shares to be so repurchased on such Closing
Date shall be deemed repurchased, and the Unpurchased Shares as to such Closing Date shall be
deemed converted on such Closing Date, in each case immediately following satisfaction of the
obligations of the Company to pay the Repurchase Price and Accumulated Dividends with respect to
the repurchased Preferred Shares and to issue shares of Common Stock upon the conversion of any
Unpurchased Shares.

(h) No Assumed Liabilities. The Company does not assume and shall not
otherwise become subject to any liabilities or obligations of the Shareholder relating to any of
the Preferred Shares.

2. Restrictions.

(a) Subject to the provisions of Section 1(f) of this Agreement, the Shareholder agrees
that, during the period commencing on the date on which the Company has given the Repurchase Notice
to the Shareholder and ending on the Company-Scheduled Closing Date, the Shareholder shall not
exercise its conversion rights with respect to that number of Preferred Shares equal to the number
of Notice Shares, and any notice of conversion of the Preferred Shares actually given by the
Shareholder during such period shall be deemed ineffective for all purposes. The Shareholder
acknowledges that it would be unable to perform its obligations under this Agreement if it were to
sell, assign, dispose of, convey or transfer any Preferred Shares as to which the Company has the
Repurchase Right or any interest therein to any person other than the Company.

(b) In order that the Shareholder will be assured of the benefit of this Agreement, the
Company agrees not to exercise its right to redeem the Preferred Shares set forth in Section 5 of
the Articles Supplementary at any time prior to the expiration of the Exercise Period or, if the
Company exercises the Repurchase Right as to any of the Preferred Shares, prior to the
Company-Scheduled Closing Date as to those Preferred Shares to be so repurchased.

(c) The Company shall not be required (i) to transfer on its books any Preferred Shares
which shall have been sold, assigned, disposed of, conveyed or transferred by the Shareholder in
violation of any of the provisions set forth in this Agreement, or (ii) to treat as owner of such
Preferred Shares or to accord the right to vote as such owner or to pay dividends to any transferee
to whom such Preferred Shares shall have been so transferred.

3. Additional Shares or Substituted Securities.

     In the event of any stock dividend, stock split, reverse stock split, recapitalization or
other change affecting the Company’s outstanding Common Stock as a class without receipt of
consideration, or any new, substituted or additional securities or other property (including money
paid other than cash dividends paid in accordance with the terms of the Articles Supplementary),
which is by reason of any such transaction distributed to the Shareholder with respect to Preferred
Shares, such new, substituted or additional securities or other property shall be immediately
subject to this Agreement and the Repurchase Right shall apply equally to such changed or new,
substituted

-4-

 

or additional securities or other property. Appropriate adjustments to reflect the distribution of
such securities or property shall be made to the number of Preferred Shares for all purposes
relating to the Repurchase Right, and the Company may require the establishment of an escrow
account for any property or money (other than cash dividends paid in accordance with the terms of
the Articles Supplementary) distributed with respect to the Preferred Shares covered by the
Company’s Repurchase Right in order to facilitate the exercise of such rights. Appropriate
adjustments shall also be made to the Repurchase Price per share to be paid upon the exercise of
the Repurchase Right in order to reflect the effect of any such transaction upon the Company’s
capital structure; provided, however, that the total price to be paid upon repurchase of any
Preferred Shares, together with any new, substituted or additional securities or other property
distributed with respect to such Preferred Shares, shall remain the same aggregate Repurchase Price
as would have been payable with respect to the Preferred Shares had the new, substituted or
additional securities or other property not been distributed.

4. Representations and Warranties of the Company.

     The Company represents and warrants to the Shareholder as follows:

	 	(i)	 	The Company is a validly existing corporation, organized and in good standing under
the laws of the State of Maryland.
	 
	 	(ii)	 	The Company has no obligation to obtain any consent, approval or authorization
(including from any governmental authority) in connection with its execution, delivery and
performance of this Agreement or its consummation of the transactions provided for herein.
	 
	 	(iii)	 	The Company has full power and authority to execute, deliver and perform this
Agreement, to perform all of its obligations contained herein and to carry out the
transactions contemplated hereby.
	 
	 	(iv)	 	The execution, delivery and performance of the transactions contemplated by this
Agreement will not (A) conflict with, result in any breach of, or constitute a default (nor
constitute any event which with notice, lapse of time, or both would constitute a breach
of, or default) or give to others any rights of termination, amendment, acceleration or
cancellation under (x) any provision of the organization documents of the Company or any
subsidiary of the Company or (y) any provision of any license, indenture, mortgage, deed of
trust, loan or credit agreement or other agreement or instrument to which the Company or
any subsidiary of the Company is a party or by which any of them or their respective assets
or properties may be bound or affected, or under any federal, state, local or foreign law,
regulation or rule or any decree, judgment or order applicable to the Company or any
subsidiary of the Company, except in the case of clause (y) for such breaches or defaults
that, individually or in the aggregate, could not reasonably be expected to have a material
adverse effect on the Company and its subsidiaries taken as a whole; or (B) result in the
creation or imposition of any lien, charge, claim or encumbrance upon any property or asset
of the Company of any subsidiary of the Company.
	 
	 	(v)	 	This Agreement constitutes the valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, except that (i) such enforcement may be
subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights, and (ii) the remedy of specific
performance

-5-

 

	 	 	 	and injunctive and other forms of equitable relief may be subject to equitable defenses
and to the discretion of the court before which any proceeding therefor may be brought.
	 
	 	(vi)	 	There are no actions or suits pending or, to the Company’s knowledge, threatened
against the Company which, if decided adversely to the Company, would have a material
adverse effect on the Company’s ability to perform its duties and obligations under, or to
consummate the transactions contemplated by, this Agreement.

5. Representations and Warranties of the Shareholder.

     The Shareholder represents and warrants to the Company as follows:

	 	(i)	 	The Shareholder is a validly existing corporation, organized and in good standing
under the laws of the State of Maryland.
	 
	 	(ii)	 	The Shareholder has no obligation to obtain any consent, approval or authorization
(including from any governmental authority) in connection with its execution, delivery and
performance of this Agreement or its consummation of the transactions provided for herein.
	 
	 	(iii)	 	The Shareholder has full power and authority to execute, deliver and perform this
Agreement, to perform all of its obligations contained herein and to carry out the
transactions contemplated hereby, and none of such actions will violate, constitute a
default under (or an event which, with notice or lapse of time or both, would constitute a
default under), result in the termination of, accelerate the performance required by, cause
the acceleration of the maturity of any debt or obligation pursuant to, or result in the
creation or imposition of any mortgage, pledge, lien, claim, attachment, encumbrance,
charge, security interest or rights of others (other than pursuant to this Agreement)
(“Security Interest”) upon the Preferred Shares under, any note, bond, mortgage, indenture,
license, agreement, instrument, commitment or other obligation to which the Shareholder is
a party or by which the Shareholder may be bound.
	 
	 	(iv)	 	This Agreement constitutes the valid and binding agreement of the Shareholder,
enforceable against the Shareholder in accordance with its terms, except that (i) such
enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to creditors’ rights, and (ii) the remedy
of specific performance and injunctive and other forms of equitable relief may be subject
to equitable defenses and to the discretion of the court before which any proceeding
therefor may be brought.
	 
	 	(v)	 	The Shareholder owns and has, and at each Closing shall convey to the Company, good and
marketable title to the Preferred Shares being repurchased by the Company at such Closing,
free and clear of any and all Security Interests, options and other impositions and
restrictions.
	 
	 	(vi)	 	There are no actions or suits pending or, to the Shareholder’s knowledge, threatened
against the Shareholder, which, if decided adversely to the Shareholder, would have a
material adverse effect on (i) the Preferred Shares or any of the Shareholder’s rights in
the

-6-

 

	 	 	 	Shares or (ii) the Shareholder’s ability to perform its duties and obligations under, or
to consummate the transactions contemplated by, this Agreement.
	 
	 	(vii)	 	The Shareholder acknowledges that it is a sophisticated investor and, as of the
Effective Date, (i) it had received and reviewed or had full access to all of the reports
and other documents filed by the Company with the Securities and Exchange Commission and
all other information of the Company that Shareholder considered necessary or appropriate
to make an informed decision with respect to the sale of the Preferred Shares pursuant to
this Agreement and (ii) it had an opportunity to ask questions and receive answers
regarding the Company’s financial performance and to obtain additional information
necessary to verify any information furnished to Shareholder or to which Shareholder had
access. The Shareholder acknowledges that during the period between the Effective Date
and the time of occurrence of the last Closing, if any, to occur hereunder, the Company may
become aware of material information relating to the Company, its operations, financial
condition and results of operations that will not be available to the Shareholder or
otherwise publicly available and agrees that the Company has, and shall have, no duty or
obligation to the Shareholder to disclose any such information to the Shareholder at or
prior to the time of the last Closing, if any, to occur hereunder, whether in connection
with the exercise of the Repurchase Right by the Company or any exercise by the Shareholder
of its right to set one or more Accelerated Closing Dates.

6. Miscellaneous.

(a) Further Instruments and Actions. The parties agree to execute such further
instruments and to take such further action as may reasonably be necessary to carry out the intent
of this Agreement.

(b) Cancellation of Shares. Following the completion of the transactions
contemplated by Section 1(g) above, (i) the Shareholder shall no longer have any rights as a holder
of such Preferred Shares, (ii) such Preferred Shares shall be deemed purchased or converted, as the
case may be, in accordance with the applicable provisions hereof, and (iii) the Company shall be
deemed the owner and holder of such Preferred Shares repurchased, whether or not the certificates
therefor have been delivered as required by this Agreement.

(c) Governing Law. This Agreement is to be construed in accordance with and
governed by the internal laws of the State of Maryland without giving effect to any choice of law
rule that would cause the application of the laws of any jurisdiction other than the internal laws
of the State of Maryland to the rights and duties of the parties.

(d) Entire Agreement. This Agreement, the documents referenced herein and the
attachments hereto constitute the entire agreement among the parties with respect to the subject
matter hereof and no party shall be liable or bound to any other party in any manner with respect
to the subject matter hereof by any representations, warranties or covenants except as specifically
set forth herein or therein.

(e) Modification. This Agreement may be modified, amended, superseded, or
canceled only by a written instrument signed by each of the Company and the Shareholder, and any of
the terms, covenants, representations, warranties or conditions hereof may be waived only by a
written instrument executed by the party to be bound by any such waiver.

-7-

 

(f) Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

(g) Waiver. The waiver by any of the parties hereto, express or implied, of
any right under this Agreement or with respect to any failure to perform under or breach of this
Agreement by the other party or parties, shall not constitute or be deemed a waiver of any other
right under this Agreement or of any other failure to perform under or breach of this Agreement by
the other party or parties, whether of a similar or dissimilar nature.

(h) Titles and Subtitles. The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or interpreting this
Agreement.

(i) Notices. Any notice under this Agreement shall be in writing and any
written notice or other document shall be deemed to have been given: (i) if hand delivered, on the
date of delivery to the party to whom the notice is being given, (ii) on the third Business Day
after mailing, if the document is mailed by registered mail, (iii) one day after being sent by a
professional or overnight courier of national reputation, if sent for next day delivery or on the
date of delivery, if sent for any other time of delivery or (iv) on the date of transmission if
sent by telecopy or other means of electronic transmission, with receipt confirmed. Any such
notice shall be delivered or addressed to the Company or the Shareholder, as the case may be, at
the address appearing below their signature on the signature page of this Agreement. Failure to
conform to the requirements of this section shall not defeat the effectiveness of notice actually
received by the addressee. For purposes of this Agreement, Business Day shall mean any day of the
week other than a Saturday, Sunday or national holiday on which national banks in Dallas, Texas are
open for business.

(j) Successors and Assigns. The provisions hereof shall inure to the benefit
of, and be binding upon, the parties hereto and their respective successors, assigns, heirs,
executors and administrators and other legal representatives.

(k) Counterparts; Facsimile. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Any signature page delivered by facsimile or telecopy machine shall be binding to the
same extent as an original.

(l) Specific Performance. It is expressly agreed among the parties that money
damages are inadequate to compensate a party to this Agreement if this Agreement were not performed
in accordance with its terms or was otherwise breached, and each party shall be entitled to
specific enforcement of its rights under this Agreement.

The signature page follows.

-8-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set
forth above.

	 	 	 	 	 
	 	ASHFORD HOSPITALITY TRUST, INC.

 	 
	 	By:  	/s/
David A. Brooks	 
	 	Name:  	David A. Brooks	 
	 	Title:  	Vice President	 
	 

Address for Notice:

14185 Dallas Parkway, Suite 1100

Dallas, Texas 75254

Attention: Chief Operating Officer and General

Counsel

Fax Number: 972 490-9605

	 	 	 	 	 
	 	SECURITY CAPITAL PREFERRED GROWTH INCORPORATED

 	 
	 	By:  	/s/
Anthony R. Manno Jr.	 
	 	Name:  	Anthony R. Manno Jr.	 
	 	Title:  	Chairman	 
	 

Address for Notice:

1 Chase Plaza

10 South Dearborn Street, Suite 1400

Chicago, Illinois 60603

Attention: Michael Heller and Genine Dawczak

Fax Number: 312 385-8326

 

 

Exhibit A

Form of Repurchase Notice

REPURCHASE NOTICE

[Date]

Security Capital Preferred Growth Incorporated

1 Chase Plaza

10 South Dearborn Street, Suite 1400

Chicago, Illinois 60603

Attention: Michael Heller and Genine Dawczak

Ladies and Gentlemen:

     Reference
is made to the Stock Repurchase Agreement, dated as of April 11, 2011 (the
“Agreement”), between Ashford Hospitality Trust, Inc. (the “Company”) and Security Capital
Preferred Growth Incorporated (the “Shareholder”). Capitalized terms used herein and not expressly
defined herein shall have the meanings ascribed to them in the Agreement.

     The Company hereby exercises its Repurchase Right to repurchase _____________ of the Preferred
Shares. The Company-Scheduled Closing Date for the repurchase of such Notice Shares shall be
_____________, 2011. The Purchase Price for each of the Notice Shares repurchased on the
Company-Scheduled Closing Date shall be the Volume Weighted Average Price determined over the five
Trading Days immediately preceding such Company-Scheduled Closing Date.

	 	 	 	 	 
	 	Very truly yours,

Ashford Hospitality Trust, Inc.

 	 
	 	By  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

Exhibit B

Form of Purchase Price Notice

PURCHASE PRICE NOTICE

[Date]

Ashford Hospitality Trust

14185 Dallas Parkway, Suite 1100

Dallas, Texas 75254

Attention: Chief Operating Officer and General Counsel

Ladies and Gentlemen:

     Reference
is made to the Stock Repurchase Agreement, dated as of April 11, 2011 (the
“Agreement”), between Ashford Hospitality Trust, Inc. (the “Company”) and Security Capital
Preferred Growth Incorporated (the “Shareholder”). Capitalized terms used herein and not expressly
defined herein shall have the meanings ascribed to them in the Agreement.

     The Shareholder hereby exercises its right to accelerate the Closing Date of the repurchase of
some or all of the Notice Shares to be repurchased by the Company as to _______________ Preferred
Shares (the “Accelerated Shares”). The Accelerated Closing Date as to the repurchase of such
Accelerated Shares shall be the Business Day next following the date on which the Company receives
this Purchase Price Notice, which Accelerated Closing Date the Shareholder anticipates will be
______________, 2011. The Purchase Price for each of the Accelerated Shares repurchased on the
Accelerated Closing Date shall be the Volume Weighted Average Price determined over the five
Trading Days immediately preceding such Accelerated Closing Date, which the Shareholder believes
will be $______ per Accelerated Share (the “Accelerated Purchase Price”). The Shareholder hereby
exercises its conversion right as to all Unpurchased Shares included in the Accelerated Shares in
accordance with the terms of Section 6 of the Articles Supplementary and as contemplated by and in
accordance with Section 1(f) of the Agreement. The Shareholder anticipates there will be _____
Unpurchased Shares on the Accelerated Closing Date established hereby. After the Closing with
respect to the Accelerated Shares, the Shareholder will hold a total of _____________ Preferred
Shares, of which __________ remain Notice Shares.

 

 

     If for any reason the Company believes the Accelerated Closing Date with respect to the
repurchase of the Accelerated Shares will be date other than that noted above, the Accelerated
Purchase Price will be a different Purchase Price other than that noted above, or the number of
Unpurchased Shares on the Accelerated Closing Date established hereby will be a different number
than that noted above, please notify the Shareholder immediately.

	 	 	 	 	 
	 	Very truly yours,

Security Capital Preferred Growth Incorporated

 	 
	 	By  	 	 
	 	Name:  	 	 
	 	Title

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