Document:

Exhibit

Exhibit 10.2
July 19, 2018

Mr. Lance Rosenzweig
Re:    Employment Offer as President and Global Chief Executive Officer
Dear Lance:
CSP Alpha Midco Pte Ltd. (“CSP Midco”), is pleased to offer you the position of President and Global Chief Executive Officer of StarTek, Inc., a Delaware corporation (the “Company”, and with its affiliates, the “Company Group”), reporting to the Board of Directors of the Company (the “Board”), effective immediately following the consummation of the transactions contemplated by the Transaction Agreement dated March 14, 2018,  by and among the Company, CSP Midco, and CSP Alpha Holdings Parent Pte Ltd. as amended by that certain First Amendment to Transaction Agreement, dated as of July 3, 2018 (as may be further amended from time to time, the “Transaction Agreement”), subject to approval of this letter agreement (this “Agreement”) by the Board and contingent upon satisfaction of the pre-employment conditions set forth below and your acceptance of this Agreement (the date on which your employment becomes effective, the “Start Date”).  This Agreement will be effective immediately prior to, and only if, the transactions contemplated by the Transaction Agreement are consummated. If the transactions contemplated by the Transaction Agreement are not consummated or are abandoned, this Agreement will be void ab initio. 
This Agreement sets forth the terms and conditions of your employment with the Company from the Start Date through the termination of your employment with the Company as President and Global Chief Executive Officer (the “Term”).  As of the Start Date, your  special advisor agreement with CSP Alpha Holdings Parent Pte Ltd., dated December 1, 2017, (your “Special Advisor Agreement”), will terminate and be superseded in all respects by this Agreement.  Please understand that this offer may be revoked in writing by the Company at any time prior to your written acceptance of the offer and will expire immediately prior to the consummation of the transactions contemplated by the Transaction Agreement if not accepted prior thereto.
1.Responsibilities; Duties.  During the Term, you will serve as the President and Global Chief Executive Officer of the Company.  You will have the duties, authorities and responsibilities commensurate with the duties, authorities and responsibilities of chief executive officers of similarly sized companies, and such other duties, authorities and responsibilities as the Board may designate from time to time that are not inconsistent with your position as President and Global Chief Executive Officer of the Company.  You are required to faithfully and conscientiously perform your duties and to diligently observe all your obligations to the Company Group.  You agree to devote your full business time and efforts, energy and skill to your employment with the Company Group, and you agree to apply all your skill and experience to the performance of your duties and advancing the Company Group’s interests. You will perform these duties at such place or places as previously mutually agreed between you and the Company.  During your employment with the Company Group, you may not perform services as an employee, independent contractor, or consultant of any other organization and you will not assist any other person or organization in competing with the Company Group or in preparing to engage in competition with the business or proposed business of the Company Group, including any of its subsidiaries.  Any other outside business relationships you engage in, including holding a position on the board of directors of another public or private company, should be made known to the Company’s General Counsel in writing and approved by the Board or an authorized committee thereof.  Nothing herein will prevent you from serving on the boards of directors of those companies fully disclosed to CSP Midco on Schedule A.  You will comply with, and be bound by, the Company Group’s operating policies, procedures, employment policies, and practices from time to time in effect during your employment.  You will be appointed as a member of the Board effective as of the Start Date, and during the Term, the Company will cause you to be nominated as, and CSP Midco will take all reasonable action to cause you to be, a member of the Board at each annual meeting of stockholders of the Company at which your Board seat is up for re-election.

2.Compensation.  In consideration for rendering services to the Company Group during the Term and fulfilling your obligations under this Agreement, you will be eligible to receive the benefits set forth in this Agreement.

a.Base Salary.  During the Term, in this exempt full-time position, you will earn an annualized base salary of $600,000 (your “Base Salary”).  Your Base Salary will be payable pursuant to the Company’s regular payroll policy and timing, but not less frequently than monthly.  Your Base Salary will be subject to annual review by the Board (or an authorized committee thereof), and may be increased, but not decreased below its then current level (other than as a result of reduction in compensation affecting executives of the Company generally), from time to time by the Board.

b.Annual Bonus.  For each year during the Term, you will be eligible to participate in the Company’s annual incentive bonus plan with a target bonus of 100% of your Base Salary (your “Target Bonus”), which, for 2018, will be prorated from your Start Date. The actual annual bonus amount paid (your “Annual Bonus”) will be determined 

in the sole and absolute discretion of the Board or an authorized committee thereof based on pre-established performance measures determined by the Board (or an authorized committee thereof) in good faith consultation with you.  The Annual Bonus will be subject to the terms and conditions of any applicable bonus or incentive compensation plan that the Company adopts.  Nothing hereunder will be construed or interpreted as a guarantee for you to receive any bonuses or incentive compensation. Except as set forth in Section 5(a), the Annual Bonus will be paid in the calendar year following the year with respect to which the performance of the Annual Bonus relates at the same time as bonuses are payable to other employees pursuant to the terms of the Company’s annual incentive bonus plan.

c.Business Expenses.  The Company will, upon submission and approval of written statements and bills in accordance with the then regular procedures of the Company, pay or reimburse you for any and all necessary, customary and usual expenses incurred by you for or on behalf of the Company Group in the normal course of business, as determined to be appropriate by the Company.  It is your responsibility to review and comply with the Company’s business expense reimbursement policies.  Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement is determined to be subject to Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”), the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year will not affect the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses), in no event will any expenses be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses, and in no event will any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

d.Special Advisor Agreement Payment.  As soon as practicable following the Start Date, the Company will pay you a one-time bonus of $250,000 in accordance with and in satisfaction of the Company’s obligation to provide a bonus upon a successful completion of an acquisition under your Special Advisor Agreement.   In addition, the Company will pay you all amounts earned and accrued prior to the Start Date under the Special Advisor Agreement. For the avoidance of doubt, any such payment (including the $250,000 bonus) will only be made so long as they are not duplicative and no such payment has already been made under the Special Advisor Agreement.

3.Employee Benefits.  You will be eligible to participate in the employee benefit plans and programs maintained, or established, by the Company including, but not limited to, paid time off, group health benefits, life insurance, dental plan, 401(k) and other benefits made available generally to executives of the Company, subject to eligibility requirements and the applicable terms and conditions of the plan or program in question and the determination of any committee administering such plan or program.  You will be entitled to four weeks of vacation each calendar year during the Term.

4.Equity Grant.  Contingent upon the commencement of your employment on the Start Date, promptly following the Start Date, the Company will grant you an equity award (the “Option Award”) in the form of non-qualified stock options with respect to 584,000 shares of Company common stock with each option having a strike price equal to the fair market value of a share on the date of grant. The Option Award will be subject to vesting in equal quarterly installments over three years following the Start Date, subject to your continued employment with the Company on the applicable vesting dates.  The Option Award will be subject to Board approval and the terms of the StarTek, Inc. 2008 Equity Incentive Plan, as amended and restated June 14, 2016 (the “Equity Plan”) or, if the Option Award is granted outside of the Equity Plan in the Board’s discretion, the shareholder approval requirements of the New York Stock Exchange. CSP Midco will take all reasonable action to cause the Board to approve the Option Award. Except in connection with a Change in Control as set forth in the immediately following sentence, if either party provides to the other party a Termination Notice (as defined below), then any portion of the Option Award that is unvested as of the date of such Termination Notice will be forfeited by you and terminate immediately and be of no further force or effect.   If your employment is terminated by the Company without Cause (as defined below) or by you for Good Reason (as defined below) within 90 days before or 12 months after the occurrence of a Change in Control (as defined below), the Option Award will become 100% vested upon the later of (i) the date of such termination or (ii) the date of the Change in Control.   A “Change in Control” shall mean when CSP Alpha Holdings Parent Pte Ltd. (1) ceases to be the largest shareholder of the Company or (2) ceases to own a minimum of 20% of the outstanding shares of the Company.  The Option Award will be subject to the terms of an Option Award agreement between you and the Company that is consistent with the terms of this Agreement.  You understand that issuing the Option Award described in this Agreement is expressly contingent on receipt by the Company of a fully executed Option Award agreement, execution copies of which will be separately provided to you promptly following grant by the Company and which must be signed by you to be effective.

5.Termination of Employment.  

a.Your employment with the Company will be on an “at will” basis, meaning that either you or the Company may terminate your employment at any time and for any reason or no reason without further obligation or 

liability, except to the extent required by law with respect to final payment of accrued wages; provided that, unless otherwise provided herein, either party will be required to give the other party at least six months’ advance written notice of any termination of the employment relationship (the “Termination Notice”). The six-month period following the Termination Notice is referred to herein as the “Notice Period”. Notwithstanding anything herein to the contrary, the Company or you may terminate your employment immediately; provided, however, you will be entitled to (i) payment of any Annual Bonus for any calendar year completed prior to the date of the Termination Notice that has not yet been paid as of the date of termination of employment, such amounts to be based on actual performance, (ii) for the remainder of the Notice Period (A) payment of your then current Base Salary and (B) a monthly amount equal to the monthly amount of the COBRA continuation coverage premium under the Company’s group medical plans as in effect from time to time less the amount of your portion of the premium as if you were an active employee, and (iii) a lump-sum payment equal to 50% of your Target Bonus payable on the 60th day following your termination of employment, unless you are terminated with Cause by the Company or you deliver to the Company a Termination Notice without Good Reason in which case the Company may terminate you immediately and without payment except for the Accrued Benefits; provided, however, any continued payments and retention of payments stemming from Sections 5(a) will be subject to your delivery of an executed general release of claims in a form acceptable to the Company within 21 days (or 45 days, if required under applicable law) after presentation thereof by the Company to you (which presentation by the Company will be made no later than promptly following the your termination of employment), which is not subsequently revoked.    Further, your continued employment as well as your participation in any benefit programs does not assure you of continuing employment with the Company.  The Company also reserves the right to modify or amend the terms of its benefit plans at any time for any reason.  Upon termination of your employment, you will be entitled to the compensation and benefits described in this Section 5 and will have no further rights to any compensation or any other benefits from the Company Group.

b.“Cause” means:  (i) your willful material misconduct with respect to any material aspect of the business of the Company; (ii) conviction of, or pleading of guilty or nolo contendere to, a felony or any crime involving moral turpitude; (iii) your performance of any material act of theft, fraud or malfeasance in connection with the performance of your duties to the Company; (iv) a material breach of this Agreement or a material violation of the Company’s code of conduct or other material policy; (v) your willful failure to obey the lawful orders of the Board; or (vi) your commission of any act of dishonesty or moral turpitude which is, or is reasonably likely to be, materially detrimental to the Company, provided, however, that you will not be deemed to have terminated for Cause in the case of clauses (i), (iii), (iv), or (v) if such failure or breach, to the extent capable of cure, is corrected prior to the expiration of the ten-day period following delivery to you of the Company’s written notice of its intention to terminate your employment for Cause.

c. “Good Reason” means the occurrence of any of the following events: (i) a material reduction in your Base Salary or Target Bonus that materially diminishes the aggregate value of your compensation and benefits, unless a reduction is made as a result of reduction in compensation affecting executives of the Company generally; (ii) a material diminution in your title, duties, authorities or responsibilities taken as a whole (other than temporarily while physically or mentally incapacitated or as required by applicable law); or (iii) a material breach by the Company of this Agreement or any equity award agreement, including, without limitation, the removal of you from the Board by the Company (other than for Cause) or the failure to nominate you to serve on the Board.  You will provide the Company with a written notice detailing the specific circumstances alleged to constitute Good Reason within 60 days after the first occurrence of such circumstances, and the Company will have 30 days following receipt of such notice to cure such circumstances in all material respects; provided, that, if the Company fails to remedy such condition within the 30-day cure period, the 30th day will be the deemed effective date of your Termination Notice and the start of the Notice Period. 

d. “Accrued Benefits” means: (i) any unpaid Base Salary through the date of termination, payable within 30 days following termination; (ii) reimbursement for any unreimbursed business expenses incurred through the date of termination within 30 days following termination; (iii) any accrued but unused vacation time in accordance with Company policy; (iv) and any unreimbursed Business Expenses in accordance with Section 2(c).

6.Section 280G.  If any of the payments or benefits received or to be received by you (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein as the “280G Payments”) constitute “parachute payments” within the meaning of Section 280G of the Code and would be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then prior to making the 280G Payments, a calculation will be made comparing (i) the Net Benefit (as defined below) to you of the 280G Payments after payment of the Excise Tax to (ii) the Net Benefit to you if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to the Excise Tax. “Net Benefit” means the present value of the 280G Payments net of all federal, state, local, foreign income, employment, and excise taxes. Any reduction made pursuant to this Section 6 will be made in a manner determined by the Company that is consistent with the 

requirements of Section 409A.  All calculations and determinations under this Section 6 will be made by an independent accounting firm or independent tax counsel appointed by the Company (the “Tax Counsel”) whose determinations will be conclusive and binding on the Company and you for all purposes. For purposes of making the calculations and determinations required by this Section 6, the Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Company and you will furnish the Tax Counsel with such information and documents as the Tax Counsel may reasonably request in order to make its determinations under this Section 6. The Company will bear all costs the Tax Counsel may reasonably incur in connection with its services. 

7.Confidential Information.

a.You will not, at any time, directly or indirectly, disclose to any person, entity or other organization or appropriate for your own use or the use of others any Confidential Information, except as otherwise required by applicable law and in accordance with this Section 7.  For purposes of this Agreement, “Confidential Information” means information concerning the business or financial affairs of the Company Group that has not been disclosed publicly by the Company, including the terms and provisions of this Agreement and includes, without limitation, customer lists of the Company Group, its respective trade secrets and technological know-how, information about (or provided by) any customer or supplier or prospective or former customer or supplier that is not widely and publicly known, information concerning the business or financial affairs of the Company Group, including books and records, commitments, procedures, plans and prospectuses, strategies, or current or prospective transactions or business, pricing information and any other “inside information.” You understand that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used.  In the event you believe you are, or have reason to believe you will be, required by any applicable law, discovery request and/or legal process to disclose any Confidential Information, you will provide the Company with written notice as provided in Section 16 as soon as practicable and, if possible, given the date of your receipt of such discovery request and/or legal process, no less than five business days prior to any such disclosure.  In such an event, you will disclose only that portion of the Confidential Information which, based on the advice of your legal counsel, is legally required to be disclosed and will exercise reasonable efforts to provide that the receiving party will agree to treat such Confidential Information as confidential to the extent possible (and permitted under applicable law) in respect of the applicable proceeding or process and the Company will be given an opportunity to review the Confidential Information prior to the disclosure thereof, if permitted under applicable law. Your obligations under this Section 7 will not apply to any information that:  (i) is available to the general public or is generally available within the relevant business or industry other than as a result of your violation of this Section 7; (ii) is or becomes available to you from a third-party source provided that such third-party source is not bound by a confidentiality agreement or any other obligation of confidentiality; or (iii) is approved for release by written authorization of the Company.

b.The confidentiality covenants contained in this Section 7 have no temporal, geographical or territorial restriction.

c.You acknowledge that all documents (including computer records, facsimiles and emails) and materials created, received or transmitted in connection with your employment with the Company Group, or using the facilities of the Company Group, are the property of the Company Group and subject to inspection by the Company, at any time.  Upon termination of your employment relationship, you will promptly supply to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data and any other tangible product or document which has been produced by, received by or otherwise submitted to you during or, to the extent related to your employment with the Company Group, prior to your employment with the Company Group, and any copies thereof in your (or capable of being reduced to your) possession. You may retain your rolodex and similar address books, provided that such items include only contact information.  To the extent that you are provided with a cell phone number by the Company during employment, the Company will cooperate with you in transferring such cell phone number to your individual name following termination.

d.Notwithstanding the foregoing, nothing contained herein is intended to prevent you from disclosing information to the extent required by law or exercising your rights under Section 16(d).

8.Restrictive Covenants.  You understand that the nature of your position gives you access to and knowledge of Confidential Information and places you in a position of trust and confidence with the Company Group.  You further understand and acknowledge that the Company’s ability to reserve these for the exclusive knowledge and use of the Company Group is of great competitive importance and commercial value to the Company Group, and that improper use or disclosure by you is likely to result in unfair or unlawful competitive activity.

a.Non-Competition.  Because of the Company Group’s legitimate business interest as described herein and the good and valuable consideration offered to you, during the Term and for the Notice Period (for the avoidance of doubt, whether running concurrently with the Term or after), and in the case of your delivery of a Termination Notice to the Company not for Good Reason, the 12-month period beginning on the last day of the Term (together, the “Restricted Period”), you agree and covenant not to engage in Prohibited Activity within all geographies in which the Company Group does business or, to your knowledge, proposes to do business. The Company will have the right, but not the obligation, to extend the Restricted Period by up to two consecutive six-month increments upon notice to you at least 15 days prior to each such extension. Any such extension will be accompanied by payment of (i) for the length of such extension period (A) payment of your then current Base Salary and (B) a monthly amount equal to the monthly amount of the COBRA continuation coverage premium under the Company’s group medical plans as in effect from time to time less the amount of your portion of the premium as if you were an active employee, each at the amount in effect on the last day of the Term and (ii) a payment of an amount equal to a pro-rata portion of your Annual Bonus based on actual results (determined by multiplying the amount of such bonus which would be due for the applicable full fiscal year by a fraction, the numerator of which is the number of days during the extension period and the denominator of which is 365), each paid in accordance with the regular payroll practices of the Company, as may be in effect from time to time, during the period of such extension (the “Restricted Period Payments”); provided, however, any continued payment and retention of such Restricted Period Payments will be subject to your delivery of an executed general release of claims in a form acceptable to the Company within 21 days (or 45 days, if required under applicable law) after presentation thereof by the Company to you (which presentation by the Company will be made no later than promptly following the extension of the Restricted Period), which is not subsequently revoked

(i)For purposes of this Section 8, “Prohibited Activity” is activity in which you contribute your knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, employee, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity to an entity engaged in the same or similar business as the Company Group, including those engaged in the business of business process outsourcing services or any other business conducted by the Company Group or, to your knowledge, proposed to be conducted by the Company Group. Prohibited Activity includes activity that may require or inevitably requires disclosure of trade secrets, proprietary information or Confidential Information. Prohibited Activity also includes contacting (including but not limited to e-mail, regular mail, express mail, telephone, fax, and instant message), attempting to contact, or meeting with the Company Group’s current, former or prospective customers for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company Group. 

(ii)Nothing herein will prohibit you from purchasing or owning less than three percent of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that you are not a controlling person of, or a member of a group that controls, such corporation.

(iii)This Section 8 does not, in any way, restrict or impede you from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order.  You will promptly provide written notice of any such order to the Company’s General Counsel.

b.Non-Solicitation of Customers.  During the Term and for the 18-month period beginning on the last day of the Term, you agree and covenant, not to directly or indirectly solicit, attempt to solicit, seek to obtain business from, or in any other way encourage the alteration, limitation or cessation of a business relationship with the Company Group of, any person or entity who is or has been a customer, distributor, licensee or similar business relation of the Company Group as of or within the one year prior to the last day of the Term. 

c.Non-Solicitation of Employees.  During the Term and for the 18-month period beginning on the last day of the Term, you agree and covenant, except in the furtherance of your duties hereunder, not to directly or indirectly solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the Company Group, or any person who has been an employee of the Company Group within 12 months prior to the last day of the Term. Notwithstanding the foregoing, the provisions of this Section 8 will not be violated by (i) general advertising or solicitation not specifically targeted at Company-related persons or entities or (ii) your serving as a reference upon request for any employee of the Company Group. 

d.Non-Disparagement.  You agree and covenant that you will not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company Group  or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors and other associated third parties. The Company will direct members of the Board and the executive officers of the Company not to make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning you. This Section 8(d) does not, in any way, restrict or impede you or any member of the Board or executive officers of the Company from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order.  You will promptly provide written notice of any such order to the Company’s General Counsel. 

e.Acknowledgement.  You acknowledge and agree that the services to be rendered by you to the Company Group are of a special and unique character; that you will obtain knowledge and skill relevant to the Company Group’s industry, methods of doing business and marketing strategies by virtue of your employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interest of the Company Group.  You further acknowledge that the amount of your compensation reflects, in part, your obligations and the Company Group’s rights under Section 7, Section 8, and Section 9 of this Agreement; that you have no expectation of any additional compensation, royalties or other payment of any kind not otherwise referenced herein in connection herewith; and that you will not be subject to undue hardship by reason of your full compliance with the terms and conditions of Section 7, Section 8, and Section 9 of this Agreement or the Company Group’s enforcement thereof.

f.Remedies.  In the event of a breach or threatened breach by you of Section 7, Section 8, or Section 9 of this Agreement, you hereby consent and agree that the Company Group will be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief will be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief.

g.Blue Pencil. Notwithstanding anything herein to the contrary, if a court of competent jurisdiction deems the duration or the geographic scope of any of the provisions of Section 8 unenforceable, the other provisions of Section 8 will nevertheless stand and the duration and/or geographic scope set forth herein will be deemed to be the longest period and/or greatest size permissible by law under the circumstances, and the parties hereto agree that such court will reduce the time period and/or geographic scope to permissible duration or size.  

9.Proprietary Rights.

a.Work Product.  You acknowledge and agree that all right, title, and interest in and to all writings, works of authorship, technology, inventions, discoveries, processes, techniques, methods, ideas, concepts, research, proposals, materials, and all other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived, or reduced to practice by you individually or jointly with others during the period of your employment by the Company Group and relate in any way to the business or contemplated business, products, activities, research, or development of the Company Group or result from any work performed by you for the Company Group (in each case, regardless of when or where prepared or whose equipment or other resources is used in preparing the same), all rights and claims related to the foregoing, and all printed, physical and electronic copies, and other tangible embodiments thereof (collectively, “Work Product”), as well as any and all rights in and to US and foreign (a) patents, patent disclosures and inventions (whether patentable or not), (b) trademarks, service marks, trade dress, trade names, logos, corporate names, and domain names, and other similar designations of source or origin, together with the goodwill symbolized by any of the foregoing, (c) copyrights and copyrightable works (including computer programs), mask works, and rights in data and databases, (d) trade secrets, know-how, and other confidential information, and (e) all other intellectual property rights, in each case whether registered or unregistered and including all registrations and applications for, and renewals and extensions of, such rights, all improvements thereto and all similar or equivalent rights or forms of protection in any part of the world (collectively, “Intellectual Property Rights”), will be the sole and exclusive property of the Company Group.

b.For purposes of this Agreement, Work Product includes, but is not limited to, Company Group information, including plans, publications, research, strategies, techniques, agreements, documents, contracts, terms of agreements, negotiations, know-how, computer programs, computer applications, software design, web design, work 

in process, databases, manuals, results, developments, reports, graphics, drawings, sketches, market studies, formulae, notes, communications, algorithms, product plans, product designs, styles, models, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications, customer information, client information, customer lists, client lists, manufacturing information, marketing information, advertising information, and sales information.

c.Work Made for Hire.  You acknowledge that, by reason of being employed by the Company Group at the relevant times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is “work made for hire” as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company Group.  To the extent that the foregoing does not apply, you hereby irrevocably assign to the Company Group, for no additional consideration, your entire right, title, and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue, counterclaim, and recover for all past, present, and future infringement, misappropriation, or dilution thereof, and all rights corresponding thereto throughout the world.  Nothing contained in this Agreement will be construed to reduce or limit the Company Group’s rights, title, or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Company Group would have had in the absence of this Agreement.

d.Further Assurances; Power of Attorney.  During and after your employment, you agree to reasonably cooperate with the Company Group to (a) apply for, obtain, perfect, and transfer to the Company Group the Work Product as well as any and all Intellectual Property Rights in the Work Product in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including, without limitation, giving testimony and executing and delivering to the Company Group any and all applications, oaths, declarations, affidavits, waivers, assignments, and other documents and instruments as requested by the Company Group. You hereby irrevocably grant the Company Group power of attorney to execute and deliver any such documents on your behalf in your name and to do all other lawfully permitted acts to transfer the Work Product to the Company Group and further the transfer, prosecution, issuance, and maintenance of all Intellectual Property Rights therein, to the full extent permitted by law, if you do not promptly cooperate with the Company Group’s request (without limiting the rights the Company Group has in such circumstances by operation of law). The power of attorney is coupled with an interest and will not be affected by your subsequent incapacity.

e.No License.  You understand that this Agreement does not, and will not be construed to, grant you any license or right of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information, materials, software, or other tools made available to you by the Company Group.

10.No Conflicting Obligations.  You understand and agree that by accepting this offer of employment, you represent to CSP Midco that performance of your duties to the Company Group and the terms of this Agreement will not breach any other agreement (written or oral) to which you are a party (including without limitation, with current or past employers) and that you have not, and will not during the term of your employment with the Company Group, enter into any oral or written agreement which may result in a conflict of interest or may otherwise be in conflict with any of the provisions of this Agreement or the Company Group’s policies.  You are not to bring with you to the Company Group, or use or disclose to any person associated with the Company Group, any confidential or proprietary information belonging to any former employer or other person or entity with respect to which you owe an obligation of confidentiality under any agreement or otherwise.  The Company Group does not need and will not use such information.  Also, we expect you to abide by any obligations to refrain from soliciting any person employed by or otherwise associated with any former employer and suggest that you refrain from having any contact with such persons until such time as any non-solicitation obligation expires.  To the extent that you are bound by any such obligations, you must inform the Company’s General Counsel immediately prior to accepting this Agreement.

11.General Obligations.  As an employee, you will be expected to adhere to the Company Group’s standards of professionalism, loyalty, integrity, honesty, reliability and respect for all.  Please note that the Company is an equal opportunity employer.  The Company Group does not permit, and will not tolerate, the unlawful discrimination or harassment of any employees, applicants, consultants, or related third parties on the basis of sex, gender, gender identity, gender expression, sex stereotype, transgender status, race, color, religion or religious creed, age, national origin or ancestry, marital status, military or protected veteran status, immigration status, mental or physical disability or medical condition, genetic information, sexual orientation, pregnancy, childbirth or related medical condition, or any other status protected by applicable law.  Any questions regarding this EEO statement should be directed to Human Resources.  You will also be required to review, understand, and comply with all other generally applicable employment policies that the Company Group may adopt from time to time.

12.Termination Obligations.

a.Upon termination of your employment with the Company for any reason, you will resign in writing (or be deemed to have resigned) from all other offices and directorships then held with the Company or any member of the Company Group, unless otherwise agreed with the Company.

b.Following the termination of your employment with the Company for any reason, you will reasonably cooperate with the Company Group in all matters relating to the winding up of pending work on behalf of the Company Group and the orderly transfer of duties, responsibilities, and knowledge to such persons as the Company Group may designate.  You will also reasonably cooperate in the defense of any action brought by any third party against the Company Group.  The Company will pay you for your time incurred to comply with this provision at a reasonable per diem or per hour rate as to be mutually determined between you and the Company.

13.Section 409A.

a.General Compliance.  This Agreement is intended to comply with Section 409A or an exemption thereunder and will be construed and administered in accordance with Section 409A.  Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption.  Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral will be excluded from Section 409A to the maximum extent possible.  For purposes of Section 409A, each installment payment provided under this Agreement will be treated as a separate payment.  Any payments to be made under this Agreement upon a termination of employment will be made only upon a “separation from service” under Section 409A.  Notwithstanding the foregoing, the Company Group makes no representations that the payments and benefits provided under this Agreement comply with Section 409A, and in no event will the Company Group be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by you on account of non-compliance with Section 409A. 

b.Specified Employees.  Notwithstanding any other provision of this Agreement, if any payment or benefit provided to you in connection with your termination of employment is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A and you are determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i), then such payment or benefit will not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date or, if earlier, on your death (the “Specified Employee Payment Date”). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date will be paid to you in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments will be paid without delay in accordance with their original schedule.

14.Indemnification/Liability Insurance.  The Company hereby agrees to indemnify you and hold you harmless to the fullest extent permitted by law against and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including advancement of reasonable attorney’s fees), losses, and damages resulting from your good faith performance of your duties and obligations with the Company Group.  The Company will cover you under directors’ and officers’ liability insurance both during and, while potential liability exists, after the term of this Agreement in the same amount and to the same extent as the Company covers its other officers and directors.  The obligations in this Section 14 will survive the termination of your employment with the Company.

15.Legal Fees.  Within 30 days upon presentation of appropriate documentation, the Company will pay directly or reimburse you for reasonable legal fees and costs incurred in connection with negotiating and reviewing this letter and any related documents or matters, not to exceed fifteen thousand dollars ($15,000).   

16.Miscellaneous Terms.

a.Entire Agreement.  This Agreement sets forth the entire terms of your employment with the Company Group and supersedes any prior representations or agreements, whether written or oral.

b.Right to Work.  For purposes of federal immigration law, you will be required to provide to CSP Midco documentary evidence of your identity and eligibility for employment in the United States.  Such documentation must be provided to us within three days following your Start Date, or our employment relationship with you may be terminated and this Agreement will be void.

c.Verification of Information.  By accepting this Agreement, you warrant that all information provided by you is true and correct to the best of your knowledge, and you expressly release all parties from any and all liability 

for damages that may result from obtaining, furnishing, collecting or verifying such information, as well as from the use of or disclosure of such information by the Company Group or its agents.

d.Permitted Disclosures and Actions.  Notwithstanding any other provision of this Agreement to the contrary, nothing in this Agreement prohibits or restricts you or the Company Group from (i) initiating communications directly with, cooperating with, providing relevant information to, or otherwise assisting in an investigation by (A) the Securities and Exchange Commission (the “SEC”), or any other governmental, regulatory, or legislative body) regarding a possible violation of any federal law relating to fraud or any SEC rule or regulation; or (B) the EEOC or any other governmental authority with responsibility for the administration of fair employment practices laws regarding a possible violation of such laws; (ii) responding to any inquiry from any such governmental, regulatory, or legislative body or official or governmental authority; or (iii) participating, cooperating, testifying, or otherwise assisting in any governmental action, investigation, or proceeding relating to a possible violation of any such law, rule or regulation.  Federal law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.

e.Recoupment Policy.  All incentive compensation provided by the Company Group pursuant to this Agreement or otherwise will be subject to any applicable recoupment or clawback policy that is adopted by the Board or an authorized committee thereof from time to time, subject to applicable law.

f.Withholding.  All payments hereunder will be subject to withholding of applicable federal, state and local income and employment taxes and other deductions.

g.Governing Law.  This Agreement will be governed by the laws of Delaware, without regard to its conflict of laws provisions.  Any action or proceeding by either of the parties to enforce this Agreement will be brought only in a state or federal court located in the state of Delaware, county of New Castle.  The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue and each of the parties hereto hereby irrevocably waives any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement.

h.Amendment.  This Agreement may not be modified or amended except by an express written approval of the Board and you.

i.Assignment.  This Agreement provides for personal services, and as such will not be assignable by you.  This Agreement will be assignable by the Company to any of its affiliates, successors or acquirer of substantially all of its assets without your consent.

j.Severability.  Nothing contained in this Agreement will be construed as requiring the commission of any act contrary to law, and wherever there is any conflict between any provision of this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, the latter will prevail, but in such event, any provision of this Agreement thus affected will be curtailed and limited only to the extent necessary to bring it within the requirements of the law.  In the event that any part, article, paragraph or clause of this Agreement will be held to be indefinite or invalid, the entire Agreement will not fail on account thereof, and the balance of this Agreement will continue in full force and effect.

k.Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

l.Waiver.  Failure or delay of either party to insist upon compliance with any provision hereof will not operate as, and is not to be construed as, a waiver or amendment of such provision or the right of the aggrieved party to insist upon compliance with such provision or to take remedial steps to recover damages or other relief for noncompliance.  Any express waiver of any provision of this Agreement will not operate and is not to be construed as a waiver of any subsequent breach, whether occurring under similar or dissimilar circumstances.

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

If to the Company:
StarTek, Inc.
8200 E. Maplewood Ave., Suite 100
Greenwood Village, Colorado 80111
Attn:  Board of Directors

If to you:
[Redacted]
with a copy (which shall not constitute notice) to:

Proskauer Rose LLP
2049 Century Park East, Suite 3200
Los Angeles, California 90067
Attention:  Colleen Hart
Email:  chart@proskauer.com

n.Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed an original but all of which will together constitute one and the same instrument.

[Signature Page Follows]

We are all delighted to be able to extend you this offer and look forward to working with you.  To indicate your acceptance of CSP Midco’s offer, please sign and date this Agreement in the space provided below and return it to me, prior to the expiration date specified in the opening paragraph of this Agreement.
Very truly yours,
CSP Midco

By: /s/ Mukesh Sharda
Name: Mukesh Sharda        
Title: Director

ACCEPTED AND AGREED:
I have read this offer and agree to accept the terms of this Agreement.
Lance Rosenzweig
/s/ Lance Rosenzweig    
Signature
July 19, 2018    
Date

Schedule A

		
	1.
	Boingo Wireless

		
	2.
	Quality Systems, Inc.Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made this 16th day of July, 2018, by RLJ Lodging Trust, a Maryland real estate investment trust (the “Company”) and RLJ Lodging Trust, L.P., (the “Operating Partnership”) a Delaware limited partnership, each with its principal place of business at 3 Bethesda Metro Center, Suite 1000, Bethesda, MD 20814, and Sean Mahoney, residing at the address on file with the Company (the “Executive”).

 

WHEREAS, the Company is the sole general partner of the Operating Partnership; and

 

WHEREAS, the Executive and the Company desire to enter into the Agreement to reflect the Executive’s executive capacities in the Company’s business and provide for the Company’s and Operating Partnership’s employment of the Executive;

 

WHEREAS, the Agreement will be effective upon the date set forth above;

 

WHEREAS, the allocation of the rights and obligations between the Company and the Operating Partnership shall be determined by separate agreement of those parties; and

 

WHEREAS, for purposes of this Agreement, the term “Company” shall be understood to include the Operating Partnership, unless the context otherwise requires.

 

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties agree as follows:

 

1.                                      Term of Employment

 

(a)                                 The Company hereby employs the Executive, and the Executive hereby accepts such employment with the Company, upon the terms and conditions set forth in this Agreement for the period next described (the “Employment Period”).  Unless terminated earlier pursuant to Section 5, the Executive’s employment pursuant to this Agreement shall be for a term commencing on the date of this Agreement (the “Commencement Date”) and ending on the third anniversary of the Commencement Date (the “Initial Term”).  If not previously terminated in accordance with this Agreement, the Employment Period shall be extended for an additional twelve (12) month period immediately following the Initial Term  (such extension, the “Renewal Term”), unless the Company or the Executive provides written notice to the contrary at least sixty (60) days before the last day of the Initial Term.

 

(b)                                 If the parties have failed to extend this Agreement or enter into a new agreement on or before the end of the Initial Term or the Renewal Term, as applicable, the Executive’s employment shall terminate at the end of the applicable term and, notwithstanding anything to the contrary in Section 6(c), the Company’s only obligation to Executive upon such termination will be to accelerate, as of the last day of the applicable term, the vesting of the unvested portion

 

 

of any then-outstanding equity awards subject to time-based vesting and to pay the amounts set forth in Section 6(a); provided, however, that the Company shall not provide the acceleration described in this sentence if: (i) the Agreement was not extended because the Executive provided the written notice to the contrary as described in Section 1(a); or (ii) the parties did not enter into a new agreement because either the Executive declined to enter into the then-standard form executive employment agreement offered to the Executive by the Company or the Executive notified the Company that the Executive did not wish to continue employment with the Company after the applicable term.  Notwithstanding the foregoing or anything else contained in this Agreement to the contrary, if Executive is employed on the last day of the Initial Term or the Renewal Term, as applicable, the Board shall determine the amount of any annual bonus to award Executive for the fiscal year in which the end of such term occurs, based on the criteria set forth in Section 4(b) and pro-rated for the portion of the fiscal year Executive remains employed.  The Company shall pay any such bonus on the date on which the Company’s other employees receive bonuses, regardless of whether Executive is employed by the Company on that date.

 

2.                                      Title; Duties

 

The Executive has been appointed Chief Financial Officer and Executive Vice President as of August 1, 2018.  The Executive shall report to the President and Chief Executive Officer, who shall have the authority to direct, control and supervise the activities of the Executive. The Executive shall perform such services consistent with his position as may be assigned to him from time to time by the Board of Trustees and are consistent with the bylaws of the Company and the Amended and Restated Agreement of Limited Partnership of the Operating Partnership as it may be further amended from time to time, including, but not limited to, managing the affairs of the Company and Operating Partnership.

 

3.                                      Extent of Services

 

The Executive agrees not to engage in any business activities during the Employment Period except those which are for the sole benefit of the Company and its subsidiaries, and to devote his entire business time, attention, skill and effort to the performance of his duties under this Agreement.  Notwithstanding the foregoing, the Executive may, without impairing or otherwise adversely affecting the Executive’s performance of his duties to the Company, (i) engage in personal investments and charitable, professional and civic activities, and (ii) with the prior approval of the Board of Trustees, serve on the boards of directors of corporations other than the Company, provided, however, that no such approval shall be necessary for the Executive’s continued service on any board of directors or board of trustees on which he was serving on the date of this Agreement, all of which have been previously disclosed to the Board of Trustees in writing.  The Executive shall perform his duties to the best of his ability, shall adhere to the Company’s published policies and procedures, and shall use his best efforts to promote the Company’s interests, reputation, business and welfare.

 

4.                                      Compensation and Benefits

 

(a)                                 Salary.  The Company shall pay the Executive a gross base annual salary rate (“Base Salary”) of Five Hundred Twenty Five Thousand Dollars ($525,000.00), commencing on August 1, 2018.  The Base Salary shall be payable in arrears in

 

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approximately equal semi-monthly installments (except that the first and last such semi-monthly installments may be prorated if necessary) on the Company’s regularly scheduled payroll dates, minus such deductions as may be required by law or reasonably requested by the Executive.  The Company’s Compensation Committee (the “Compensation Committee”) shall review his Base Salary annually in conjunction with its regular review of employee salaries and may increase (but not decrease) Executive’s Base Salary as in effect from time to time as the Compensation Committee shall deem appropriate.

 

(b)                                 Annual Bonus.  Commencing with fiscal year 2018, Executive shall be entitled to earn bonuses with respect to each fiscal year (or partial fiscal year), based upon Executive’s and the Company’s achievement of performance objectives set by the Company for each fiscal year of the Employment Period, with a target bonus of 100% of Executive’s Base Salary for such fiscal year (or partial fiscal year).  Any such bonus earned by the Executive shall be paid annually by March 15 of the year following the end of the year for which the bonus was earned.

 

(c)                                  Special Award.

 

(i)                                     Special Restricted Share Award.  Upon or as soon as administratively practicable following the Commencement Date and subject to approval by the Compensation Committee of the Company’s Board of Trustees, the Executive shall be eligible to receive a special award of restricted common shares having a grant date fair market value equal to Two Million Dollars ($2,000,000) (the “Special Award”). Provided the Executive remains continuously employed by the Company from the Commencement Date through the third anniversary of the Commencement Date, the Special Award will vest as follows: Twenty percent (20%) on the first anniversary date of the grant date of the Special Award; thirty percent (30%) on the second anniversary of the grant date of the Special Award; and the remaining fifty percent (50%) on the third anniversary of the grant date of the Special Award.  Except as set forth in Section 6(c) or Section 6(d) below, the unvested portion of the Special Award shall be forfeited as of the date the Executive terminates employment with the Company for Cause or without Good Reason.

 

(d)                                 Option, Restricted Share, Restricted Share Unit and LTIP Unit Grants.  The Executive will be eligible for grants of options to purchase the Company’s common shares of beneficial interest (“common shares”), grants of Company restricted common shares, restricted common share units and long-term incentive units in the Operating Partnership subject to certain time vesting requirements and other conditions set forth in the applicable award agreement.

 

(e)                                  Other Benefits.  The Executive shall be entitled to paid time off and holiday pay in accordance with the Company’s policies in effect from time to time and shall be eligible to participate in such life, health, and disability insurance, pension, deferred compensation and incentive plans, options and awards, performance

 

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bonuses and other benefits as the Company extends, as a matter of policy, to its executive employees.

 

(f)                                   Reimbursement of Business Expenses.  The Company shall reimburse the Executive for all reasonable travel, entertainment and other expenses incurred or paid by the Executive in connection with, or related to, the performance of his duties, responsibilities or services under this Agreement, upon presentation by the Executive of documentation, expense statements, vouchers, and/or such other supporting information as the Company may reasonably request.

 

(g)                                  Timing of Reimbursements.  Any reimbursement under this Agreement that is taxable to the Executive shall be made in no event later than sixty (60) days following the calendar year in which the Executive incurred the expense.

 

5.                                      Termination

 

(a)                                 Termination by the Company for Cause.  The Company may terminate the Executive’s employment under this Agreement at any time for Cause, upon written notice by the Company to the Executive.  For purposes of this Agreement, “Cause” for termination shall mean any of the following: (i) gross negligence or willful misconduct in connection with the performance of duties; (ii) conviction of a felony; (iii) conviction of any other criminal offense involving an act of dishonesty intended to result in substantial personal enrichment of the Executive at the expense of the Company or its subsidiaries; or (iv) material breach of any term of any employment, consulting or other services, confidentiality, intellectual property or non-competition agreements, if any, between the Executive and the Company, which, if such breach is curable, such breach is not cured within fifteen (15) calendar days following the Executive’s receipt of written notice of such breach, with such detail as sufficient to apprise Executive of the nature and extent of such breach.

 

(b)                                 Termination by the Company Without Cause or by the Executive Without Good Reason.  The Company may terminate this Agreement at any time without Cause or the Executive may resign without Good Reason (as defined below), upon giving the other party thirty (30) days’ written notice.  At the Company’s sole discretion, it may substitute thirty (30) days’ Base Salary (or any lesser portion for any shortened period provided) in lieu of notice.  Any Base Salary paid to the Executive in lieu of notice shall not be offset against any entitlement the Executive may have to the Severance Payment pursuant to Section 6(c).  For purposes of this Agreement, the non-renewal of the Employment Period at the end of the Initial Term or the Renewal Term does not constitute termination without Cause or resignation for Good Reason.

 

(c)                                  Termination by Executive for Good Reason.  The Executive may terminate his employment under this Agreement at any time for Good Reason, upon written notice by the Executive to the Company.  For purposes of this Agreement, “Good Reason” for termination shall mean, without the Executive’s consent: (i) the

 

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assignment to the Executive of substantial duties or responsibilities inconsistent with the Executive’s position at the Company, or any other action by the Company which results in a substantial diminution of the Executive’s duties or responsibilities other than any such reduction which is remedied by the Company within thirty (30) days of receipt of written notice thereof from the Executive; (ii) a requirement that the Executive work principally from a location that is thirty (30) miles further from the Executive’s residence than the Company’s address first written above; (iii) a material reduction in the Executive’s aggregate Base Salary and other compensation (including the target bonus amount and retirement plans, welfare plans and fringe benefits) taken as a whole, excluding any reductions caused by the failure to achieve performance targets and excluding any reductions on account of the provisions of this Agreement; or (iv) any material breach by the Company of this Agreement.  Good Reason shall not exist pursuant to any subsection of this Section 5(c) unless (A) the Executive shall have delivered notice to the Board of Trustees within ninety (90) days of the initial occurrence of such event constituting Good Reason, and (B) the Board fails to remedy the circumstances giving rise to the Executive’s notice within thirty (30) days of receipt of notice.  The Executive must terminate his employment under this Section 5(c) at a time agreed reasonably with the Company, but in any event within one hundred fifty (150) days from the initial occurrence of an event constituting Good Reason.  For purposes of Good Reason, the Company shall be defined to include any successor to the Company which has assumed the obligations of the Company through merger, acquisition, stock purchase, asset purchase or otherwise.  For purposes of this Agreement, the non-renewal of the Employment Period at the end of the Initial Term or the Renewal Term does not constitute termination without Cause or resignation for Good Reason.

 

(d)                                 Executive’s Death or Disability.  The Executive’s employment shall terminate immediately upon his death or, upon written notice as set forth below, his Disability.  As used in this Agreement, “Disability” shall mean such physical or mental impairment as would render the Executive unable to perform each of the essential duties of the Executive’s position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last for a continuous period of not less than twelve (12) months.  If the Employment Period is terminated by reason of the Executive’s Disability, either party shall give thirty (30) days’ advance written notice to that effect to the other.

 

(e)                                  Executive’s Retirement.  The Executive’s employment shall terminate upon his Retirement.  As used in this Agreement, “Retirement” shall mean the point in which the Executive has reached the age of sixty-five (65) and has decided to exit the workforce completely.  If the Employment Period is terminated by reason of the Executive’s Retirement, the Executive shall give one hundred eighty (180) days’ advance notice to the effect to the Company.

 

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6.                                      Effect of Termination

 

(a)                                 General.  Regardless of the reason for any termination of this Agreement and subject to this Section 6, the Executive (or the Executive’s estate if the Employment Period ends on account of the Executive’s death) shall be entitled to (i) payment of any unpaid portion of his Base Salary through the effective date of termination; (ii) reimbursement for any outstanding reasonable business expense he has incurred in performing his duties hereunder in accordance with Company policy; (iii) continued insurance benefits to the extent required by law; and (iv) payment of any vested but unpaid rights as may be required independent of this Agreement by the terms of any bonus or other incentive pay or equity plan, or any other employee benefit plan or program of the Company.  Upon termination of this Agreement for any reason, the Executive shall resign from all boards and committees of the Company, its affiliates and its subsidiaries.

 

(b)                                 Termination by the Company for Cause or by Executive Without Good Reason.  If the Company terminates the Executive’s employment for Cause or the Executive terminates his employment without Good Reason, the Executive shall have no rights or claims against the Company except to receive the payments and benefits described in Section 6(a).

 

(c)                                  Termination by the Company Without Cause or by the Executive with Good Reason.  Except as provided in Section 1(b), if during the Employment Period the Company terminates the Executive’s employment without Cause pursuant to Section 5(b), or the Executive terminates employment with Good Reason pursuant to Section 5(c), the Executive shall be entitled to receive, in addition to the items referenced in Section 6(a), the following:

 

(i)                                     a pro rata bonus for the year of termination but, in connection with a termination other than a termination at or after a “Change of Control” (as defined in the RLJ Lodging Trust 2015 Equity Incentive Plan), only to the extent performance goals for the calendar year of termination are achieved, payable at the same time bonuses are paid for such year but in no event later than March 15 of the fiscal year following his termination;

 

(ii)                                  continued payment of his Base Salary, at the rate in effect on his last day of employment (but in no event in an annual amount less than as set forth in Section 4(a)), for a period of twelve (12) months. Such amount shall be paid in approximately equal installments on the Company’s regularly scheduled payroll dates, subject to all legally required payroll deductions and withholdings for sums owed by the Executive to the Company;

 

(iii)                               continued payment by the Company for the Executive’s life and health insurance coverage for twelve (12) months to the same extent that the Company paid for such coverage immediately prior to the termination of the Executive’s employment and subject to the eligibility requirements and other terms and conditions of such insurance coverage.

 

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Notwithstanding the foregoing, (A) if any plan pursuant to which the Company is providing such coverage is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (“Section 409A”) under Treasury Regulation Section 1.409A-1(a)(5), or (B) the Company is otherwise unable to continue to cover the Executive under its group health plans, then, in either case, an amount equal to the monthly plan premium payment shall thereafter be paid to the Executive as currently taxable compensation in substantially equal monthly installments over the twelve (12) month period (or the remaining portion thereof);

 

(iv)                              payment equal to one (1) times the Executive’s target annual bonus for the year of termination. The payment provided for in this paragraph (iv) shall be made in a lump sum on the first anniversary of the date of the Executive’s termination of employment; and

 

(v)                                 vesting as of the last day of his employment in any unvested portion of any equity awards previously granted to the Executive by the Company (including the Special Award); provided, however, that the Company may, in connection with a termination other than a termination at or after a “Change of Control” (as defined in the RLJ Lodging Trust 2015 Equity Incentive Plan) with respect to awards the vesting of which is conditioned on the achievement of performance goals, condition accelerated vesting on the ultimate achievement of the performance goals, in which case such awards shall remain outstanding until certification of achievement of the performance goals, and such awards shall vest or be forfeited as of such certification date based on the level of achievement of the performance goals.

 

None of the benefits described in this Section 6(c) (the “Severance Payment”) will be payable unless the Executive has signed a general release (attached hereto as Exhibit A) within forty-five (45) days of date of termination, which has (and not until it has) become irrevocable, satisfactory to the Company in the reasonable exercise of its discretion, releasing the Company, its affiliates, and its trustees, directors, officers and employees, from any and all claims or potential claims arising from or related to the Executive’s employment or termination of employment.  Any payment conditioned on execution of the general release that was not made because the general release was not signed and had not become irrevocable shall be made within ten (10) days after the general release becomes irrevocable, provided that as to payments and benefits which are subject to Section 409A if the end of the forty-five (45) day plus seven (7) day revocation period occurs in a year subsequent to the year in which the termination of employment occurs, the payments will be made in the subsequent year.  Any payments delayed pursuant to this Section 6(c) shall be paid to the Executive in a

 

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lump sum, and all remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

(d)                                 Termination In the Event of Death, Disability or Retirement.

 

In the event of a termination of employment due to death, Disability or Retirement, the Executive shall be entitled to receive the items referenced in Section 6(a), as well as any performance bonus for that fiscal year and accelerating vesting of equity awards, each as specifically set forth below.

 

(i)                                     If the Executive’s employment terminates because of his death, the unvested portion of any equity awards previously granted to the Executive by the Company (including the Special Award) shall become fully vested as of the date of his death, and the Executive’s estate shall be entitled to receive a pro-rata share of any performance bonus to which he otherwise would have been entitled for the fiscal year in which his death occurs (regardless of whether performance goals for that fiscal year are achieved) payable at the same time bonuses are paid for such year but in no event later than March 15 of the fiscal year following his death.

 

(ii)                                  In the event the Executive’s employment terminates due to his Disability, as of the effective date of the termination notice specified in Section 5(d), the Executive shall vest in any unvested portion of any equity awards previously granted to the Executive by the Company (including the Special Award), and the Executive shall be entitled to receive a pro-rata share of any performance bonus to which he otherwise would have been entitled for the fiscal year in which his Disability occurs (regardless of whether performance goals for that fiscal year are achieved) payable at the same time bonuses are paid for such year but in no event later than March 15 of the fiscal year following his Disability.

 

(iii)                               In the event the Executive’s employment terminates due to his Retirement, the unvested portion of any equity awards previously granted to the Executive by the Company shall be fully vested as of the date of his termination; provided, however, that the Company may, with respect to awards the vesting of which is conditioned on the achievement of performance goals, condition accelerated vesting on the ultimate achievement of the performance goals, in which case such awards shall remain outstanding until certification of achievement of the performance goals, and such awards shall vest or be forfeited as of such certification date based on the level of achievement of the performance goals.  The Executive also shall be entitled to payment of a pro rata portion of any performance bonus for the fiscal year of Executive’s Retirement only to the extent performance goals for that fiscal year are achieved.  The pro rata performance bonus, if any, shall be paid to the Executive at the same time bonuses are paid for such year but in no event later than March 15 of the fiscal year following his Retirement.

 

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7.                                      Confidentiality

 

(a)                                 Definition of Proprietary Information.  The Executive acknowledges that he may be furnished or may otherwise receive or have access to confidential information which relates to the Company’s past, present or future business activities, strategies, services or products, research and development; financial analysis and data; improvements, inventions, processes, techniques, designs or other technical data; profit margins and other financial information; fee arrangements; compilations for marketing or development; confidential personnel and payroll information; or other information regarding administrative, management, or financial activities of the Company, or of a third party which provided proprietary information to the Company on a confidential basis.  All such information, including in any electronic form, and including any materials or documents containing such information, shall be considered by the Company and the Executive as proprietary and confidential (the “Proprietary Information”).

 

(b)                                 Exclusions.  Notwithstanding the foregoing, Proprietary Information shall not include information in the public domain not as a result of a breach of any duty by the Executive or any other person.

 

(c)                                  Obligations.  The Executive shall maintain the confidentiality of the Proprietary Information and shall not (i) disclose or disseminate the Proprietary Information to any third party, including employees of the Company (or its affiliates) without a legitimate business need to know during the Employment Period; (ii) remove the Proprietary Information from the Company’s premises without a valid business purpose; or (iii) use the Proprietary Information for his own benefit or for the benefit of any third party.  Nothing herein shall prevent the Executive from (A) complying with a valid subpoena or other legal requirement for disclosure of the Proprietary Information, provided that the Executive shall use good faith efforts to notify the Company promptly and in advance of disclosure if he believes that he is under a legal requirement to disclose the Proprietary Information otherwise protected from disclosure under this subsection and if the Executive remains legally compelled to make such disclosure, the Executive may only disclose that portion of the information that the Executive is required to disclose and shall use best efforts to ensure that such information is afforded confidential treatment; (B) disclosing the terms and conditions of this Agreement to the Executive’s spouse or tax, accounting, financial or legal advisors, so long as they agree verbally or in writing to be bound by the obligations of this subsection; or (C) reporting a possible violation of law to a governmental entity or law enforcement, including making a disclosure that is protected under the whistle blower protections of applicable law.

 

(d)                                 Defend Trade Secrets Act.  The Executive hereby acknowledges and understands that an individual may not be held liable under any criminal or civil federal or state trade secret law for disclosure of a trade secret: (i) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law or (ii) in a

 

9

 

complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Additionally, the Executive further acknowledges and understands that an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.

 

(e)                                  Return of Proprietary Information.  The Executive acknowledges and agrees that all the Proprietary Information used or generated during the course of working for the Company is the property of the Company.  The Executive agrees to deliver to the Company all documents and other tangibles containing the Proprietary Information immediately upon termination of his employment.

 

8.                                      Noncompetition

 

(a)                                 Restriction on Competition.  For the period of the Executive’s employment with the Company and for twelve (12) months following the expiration or termination of the Executive’s employment by the Company (the “Restricted Period”), the Executive agrees not to engage, directly or indirectly, as a manager, employee, consultant, partner, principal, agent, representative, or in any other individual or representative capacity in any material business that the Company conducts as of the date of the Executive’s termination of employment, including but not limited to investments primarily in premium-branded, focused-service and compact full-service hotels, where material is defined as fifteen percent (15%) of the gross revenues of the Company based on the most recent quarterly earnings.  Executive further agrees that for the period of the Executive’s employment with the Company and for the Restricted Period, the Executive will not engage, directly or indirectly, as an owner, director, trustee, member, stockholder, or in any other corporate capacity in any material business that the Company conducts as of the date of the Executive’s termination of employment.  Notwithstanding the foregoing, the Executive shall not be deemed to have violated this Section 8(a) solely (i) by reason of his passive ownership of 1% or less of the outstanding stock of any publicly traded corporation or other entity, (ii) by providing legal, accounting or audit services as an employee or partner of a professional services organization or (iii) by providing services to any investment banking or other institution that do not relate to any material business that the Company conducts as of the date of the Executive’s termination of employment.

 

(b)                                 Non-Solicitation of Clients.  During the Restricted Period, the Executive agrees not to solicit, directly or indirectly, on his own behalf or on behalf of any other person(s), any client of the Company to whom the Company had provided services at any time during the Executive’s employment with the Company in any line of business that the Company conducts as of the date of the Executive’s termination of employment or that the Company is actively soliciting, for the purpose of marketing or providing any service competitive with any service then offered by the Company.

 

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(c)                                  Non-Solicitation of Employees.  During the Restricted Period, the Executive agrees that he will not, directly or indirectly, hire or attempt to hire or cause any business, other than an affiliate of the Company, to hire any person who is then or was at any time during the preceding six (6) months an employee of the Company and who is at the time of such hire or attempted hire, or was at the date of such employee’s separation from the Company a vice president, senior vice president or executive vice president or other senior executive employee of the Company.

 

(d)                                 Acknowledgement.  The Executive acknowledges that he will acquire much Proprietary Information concerning the past, present and future business of the Company as the result of his employment, as well as access to the relationships between the Company and its clients and employees.  The Executive further acknowledges that the business of the Company is very competitive and that competition by him in that business during his employment, or after his employment terminates, would severely injure the Company.  The Executive understands and agrees that the restrictions contained in this Section 8 are reasonable and are required for the Company’s legitimate protection, and do not unduly limit his ability to earn a livelihood.

 

(e)                                  Rights and Remedies upon Breach.  The Executive acknowledges and agrees that any breach by him of any of the provisions of Sections 7 and 8 (the “Restrictive Covenants”) would result in irreparable injury and damage for which money damages would not provide an adequate remedy.  Therefore, if the Executive breaches, or threatens to commit a breach of, any of the provisions of the Restrictive Covenants, the Company and its affiliates shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company and its affiliates under law or in equity (including, without limitation, the recovery of damages):

 

(i)            The right and remedy to have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages) by any court of competent jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then continuing, of such covenants; and

 

(ii)           The right and remedy to require the Executive to account for and pay over to the Company and its affiliates all compensation, profits, monies, accruals, increments or other benefits (collectively, “Benefits”) derived or received by him as the result of any transactions constituting a breach of the Restrictive Covenants, and the Executive shall account for and pay over such Benefits to the Company and, if applicable, its affected affiliates.

 

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(f)                                   Without limiting Section 14(k), if any court or other decision-maker of competent jurisdiction determines that any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographical scope of such provision, then, after such determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced.

 

9.                                      Executive Representation

 

The Executive represents and warrants to the Company that he is not now under any obligation of a contractual or other nature to any person, business or other entity which is inconsistent or in conflict with this Agreement or which would prevent him from performing his obligations under this Agreement.

 

10.                               Mediation and Arbitration

 

(a)                                 Except as provided in Section 10(b) and 10(c), any disputes between the Company and the Executive in any way concerning the Executive’s employment, the termination of his employment, this Agreement or its enforcement shall be subject to mediation.  If the Company and the Executive cannot agree upon a mediator, each shall select one name from a list of mediators maintained by any bona fide dispute resolution provider or other private mediator; the two selected shall then choose a third person who will serve as the sole mediator.  The first mediation session shall occur within forty-five (45) calendar days following the notice of a dispute.  If within sixty (60) days of the first mediation session the claim is not resolved, either party may request that the dispute be settled exclusively by arbitration in the State of Maryland by a single arbitrator, selected in the same manner as the mediator, in accordance with the Employment Arbitration Rules of the American Arbitration Association in effect at the time of submission to arbitration.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.  For purposes of entering any judgment upon an award rendered by the arbitrator, any or all of the following courts have jurisdiction:  (i) the United States District Court for the District of Maryland, (ii) any of the courts of the State of Maryland, or (iii) any other court having jurisdiction.  Any service of process or notice requirements in any such proceeding shall be satisfied if the rules of such court relating thereto have been substantially satisfied.  The Company and the Executive waive to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to such jurisdiction and any defense of inconvenient forum.  A judgment upon an award rendered by the arbitrators may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Each party shall bear its or his costs and expenses arising in connection with any arbitration proceeding.

 

(b)                                 Notwithstanding the foregoing, the Company, in its sole discretion, may bring an action in any court of competent jurisdiction to seek injunctive relief and such

 

12

 

other relief as the Company shall elect to enforce the Restrictive Covenants.  If the courts of any one or more of such jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of breadth of scope or otherwise it is the intention of the Company and the Executive that such determination not bar or in any way affect the Company’s right, or the right of any of its affiliates, to the relief provided in Section 8(e) above in the courts of any other jurisdiction within the geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in such other respective jurisdictions, such Restrictive Covenants as they relate to each jurisdiction being, for this purpose, severable, diverse and independent covenants, subject, where appropriate, to the doctrine of res judicata.  The parties hereby agree to waive any right to a trial by jury for any and all disputes hereunder (whether or not relating to the Restrictive Covenants).

 

(c)                                  Notwithstanding the foregoing, the Company or the Executive may bring an action in any court of competent jurisdiction to resolve any dispute under or seek the enforcement of Section 6.

 

11.                               Section 409A.

 

To the extent the Executive would be subject to the additional twenty percent (20%) tax imposed on certain deferred compensation arrangements pursuant to Section 409A, as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such tax and preserve to the maximum extent possible the original intent and economic benefit to the Executive and the Company, and the parties shall promptly execute any amendment reasonably necessary to implement this Section 11.

 

(a)                                 For purposes of Section 409A, the Executive’s right to receive installment payments pursuant to this Agreement including, without limitation, each severance payment and health insurance payment shall be treated as a right to receive a series of separate and distinct payments.

 

(b)                                 The Executive will be deemed to have a date of termination for purposes of determining the timing of any payments or benefits hereunder that are classified as deferred compensation only upon a “separation from service” within the meaning of Section 409A.

 

(c)                                  Notwithstanding any other provision of this Agreement to the contrary, if at the time of the Executive’s separation from service, (i) the Executive is a specified employee (within the meaning of Section 409A and using the identification methodology selected by the Company from time to time), and (ii) the Company makes a good faith determination that an amount payable on account of such separation from service to the Executive constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the six (6) month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A (the “Delay Period”), then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it in a lump sum on the first business day after such six (6) month

 

13

 

period (or upon the Executive’s death, if earlier), together with interest for the period of delay, compounded annually, equal to the prime rate (as published in the Wall Street Journal) in effect as of the dates the payments should otherwise have been provided.  To the extent that any benefits to be provided during the Delay Period are considered deferred compensation under Section 409A provided on account of a “separation from service,” and such benefits are not otherwise exempt from Section 409A, the Executive shall pay the cost of such benefit during the Delay Period, and the Company shall reimburse the Executive, to the extent that such costs would otherwise have been paid by the Company or to the extent that such benefits would otherwise have been provided by the Company at no cost to the Executive, the Company’s share of the cost of such benefits upon expiration of the Delay Period, and any remaining benefits shall be reimbursed or provided by the Company in accordance with the procedures specified herein.

 

(d)                                 (A) Any amount that the Executive is entitled to be reimbursed under this Agreement will be reimbursed to the Executive as promptly as practical and in any event not later than the last day of the calendar year after the calendar year in which the expenses are incurred, (B) any right to reimbursement or in kind benefits will not be subject to liquidation or exchange for another benefit, and (C) the amount of the expenses eligible for reimbursement during any taxable year will not affect the amount of expenses eligible for reimbursement in any other taxable year.

 

(e)                                  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

12.                               Parachute Payment Limitations

 

Notwithstanding any other provision of this Agreement or of any other agreement, contract, or understanding heretofore or hereafter entered into by the Executive and the Company or its affiliates, except an agreement, contract, or understanding hereafter entered into that expressly modifies or excludes application of this Section 12 (the “Other Agreements”), and notwithstanding any formal or informal plan or other arrangement heretofore or hereafter adopted by the Company or any of its affiliates for the direct or indirect compensation of the Executive (including groups or classes of participants or beneficiaries of which the Executive is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Executive (a “Benefit Arrangement”), if the Executive is a “disqualified individual,” as defined in Section 280G(c) of the Code, any right to receive any payment or other benefit under this Agreement shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits to or for Executive under the Agreement, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Executive under this Agreement to be considered a “parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a

 

14

 

“Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Executive from the Company or any of its affiliates under this Agreement, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by Executive without causing any such payment or benefit to be considered a Parachute Payment.  In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this Agreement, in conjunction with all other rights, payments, or benefits to or for the Executive under the Agreement, any Other Agreement or any Benefit Arrangement would cause the Executive to be considered to have received a Parachute Payment under this Agreement that would have the effect of decreasing the after-tax amount received by the Executive as described in clause (ii) of the preceding sentence, then the Executive shall have the right, in the Executive’s sole discretion, to designate those rights, payments, or benefits under this Agreement, any Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the Executive under this Agreement be deemed to be a Parachute Payment; provided, however, that, to the extent any payment or benefit constitutes deferred compensation under Section 409A, in order to comply with Section 409A, the reduction or elimination will be performed in the following order: (A) reduction of cash payments; (B) reduction of COBRA benefits; (C) cancellation of acceleration of vesting on any equity awards for which the exercise price exceeds the then fair market value of the underlying equity; and (D) cancellation of acceleration of vesting of equity awards not covered under (C) above; provided, however that in the event that acceleration of vesting of equity awards is to be cancelled, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of such equity awards, that is, later granted equity awards shall be canceled before earlier granted equity awards.

 

13.                               Clawback Policies

 

The Executive is subject to any recoupment or clawback policies that the Company may implement or maintain at any time regarding incentive-based compensation, which is granted or awarded to Executive on or after the date of this Agreement.  Such policies may include the right to recover incentive-based compensation (including stock options awarded as compensation) awarded or received during the three-year period preceding the date on which the Company is required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement under federal securities laws.  The Executive agrees to amend any awards and agreements entered into on or after the date of this Agreement as the Company may request to reasonably implement to policies.

 

14.                               Miscellaneous

 

(a)                                 Payment of Financial Obligations.   The payment or provision to the Executive by the Company of any remuneration, benefits or other financial obligations pursuant to this Agreement and any indemnification obligations, shall be allocated between the Company and the Operating Partnership by the Compensation Committee based on any reasonable method.

 

(b)                                 Notices.  All notices required or permitted under this Agreement shall be in writing and shall be deemed effective (i) upon personal delivery, (ii) upon deposit

 

15

 

with the United States Postal Service, by registered or certified mail, postage prepaid, or (iii) in the case of facsimile transmission or delivery by nationally recognized overnight delivery service, when received, addressed as follows:

 

(c)                                  If to the Company, to:

 

RLJ Lodging Trust

3 Metro Center

Suite 1100

Bethesda, MD 20814

Attention: Anita Cooke Wells, Senior Vice President, Administration

 

(i)                                     If to the Executive, to:

 

Sean Mahoney

Address on file with the Company

 

or to such other address or addresses as either party shall designate to the other in writing from time to time by like notice.

 

(d)                                 Pronouns.  Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa.

 

(e)                                  Entire Agreement.  This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.

 

(f)                                   Amendment.  This Agreement may be amended or modified only by a written instrument executed by the Company and the Executive.

 

(g)                                  Governing Law.  This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of Maryland, without regard to its conflicts of laws principles.

 

(h)                                 Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including any entity with which or into which the Company may be merged or which may succeed to its assets or business or any entity to which the Company may assign its rights and obligations under this Agreement; provided, however, that the obligations of the Executive are personal and shall not be assigned or delegated by him.

 

(i)                                     Waiver.  No delays or omission by the Company or the Executive in exercising any right under this Agreement shall operate as a waiver of that or any other right.

 

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A waiver or consent by the Company shall not be effective unless consented to by the Operating Partnership and vice versa.  A waiver or consent given by the Company or the Executive on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

 

(j)                                    Captions.  The captions appearing in this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

 

(k)                                 Severability.  In case any provision of this Agreement shall be held by a court or arbitrator with jurisdiction over the parties to this Agreement to be invalid, illegal or otherwise unenforceable, such provision shall be restated to reflect as nearly as possible the original intentions of the parties in accordance with applicable law, and the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

 

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

 

[Signatures appear on following page]

 

17

 

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

 

	
 
    	
RLJ LODGING TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ross H.   Bierkan
    
	
 
    	
Name:
    	
Ross H. Bierkan
    
	
 
    	
Title:
    	
President &   Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
RLJ LODGING TRUST,   L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
RLJ Lodging Trust,   its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ross H.   Bierkan
    
	
 
    	
Name:
    	
Ross H. Bierkan
    
	
 
    	
Title:
    	
President &   Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
/s/ Sean Mahoney
    
	
 
    	
Sean Mahoney
    

 

 

Exhibit A

 

WAIVER AND RELEASE AGREEMENT

 

THIS WAIVER AND RELEASE AGREEMENT (this “Release”) is entered into as of [                        ] (the “Effective Date”), by Sean Mahoney (“Executive”) in consideration of severance pay (the “Severance Payment”) provided to Executive by RLJ Lodging Trust, a Maryland real estate investment trust (the “Company”) and RLJ Lodging Trust, L.P. (together with the Company, the “Company Group”), pursuant to the Employment Agreement by and among the Company Group and Executive (the “Employment Agreement”).

 

1.                                      Waiver and Release.  Subject to the last sentence of the first paragraph of this Section 1, Executive, on his own behalf and on behalf of his heirs, executors, administrators, attorneys and assigns, hereby unconditionally and irrevocably releases, waives and forever discharges the Company Group and each of their affiliates, parents, successors, predecessors, and the subsidiaries, directors, trustees, owners, members, shareholders, officers, agents, and employees of the Company Group and their affiliates, parents, successors, predecessors, and subsidiaries (collectively, all of the foregoing are referred to as the “Employer”), from any and all causes of action, claims and damages, including attorneys’ fees, whether known or unknown, foreseen or unforeseen, presently asserted or otherwise arising through the date of his signing of this Release, concerning his employment or separation from employment.  Subject to the last sentence of the first paragraph of this Section 1, this Release includes, but is not limited to, any payments, benefits or damages arising under any federal law (including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act, Executive Order 11246, the Family and Medical Leave Act, and the Worker Adjustment and Retraining Notification Act, each as amended, and all other employment discrimination laws whatsoever as may be created or amended from time to time); any claim arising under any state or local laws, ordinances or regulations (including, but not limited to, any state or local laws, ordinances or regulations requiring that advance notice be given of certain workforce reductions); and any claim arising under any common law principle or public policy, including, but not limited to, all suits in tort or contract, such as wrongful termination, defamation, emotional distress, invasion of privacy or loss of consortium.  Notwithstanding any other provision of this Release to the contrary, this Release does not encompass, and Executive does not release, waive or discharge, the obligations of the Company Group (a) to make the payments and provide the other benefits contemplated by the Employment Agreement, or (b) under any restricted stock agreement, option agreement or other agreement pertaining to Executive’s equity ownership, or (c) under any indemnification or similar agreement with Executive or indemnification under the Articles of Incorporation, Amended and Restated Agreement of Limited Partnership, Bylaws or other governing instruments of the Company Group.

 

Executive understands that by signing this Release, he is not waiving any claims or administrative charges which cannot be waived by law.  Nothing in this Release shall be construed to prohibit Executive from commencing or otherwise assisting in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or any other federal, state or local government agency; provided, however, Executive waives any right to monetary recovery or individual relief in connection with any such proceeding or should one be

 

1

 

pursued on his behalf arising out of or related to his employment with and/or separation from employment with the Company Group.  For the avoidance of doubt, nothing herein prevents Executive from pursuing a whistleblower claim under applicable law.

 

Executive further agrees without any reservation whatsoever, never to sue the Employer or become a party to a lawsuit on the basis of any and all claims of any type lawfully and validly released in this Release.

 

2.                                      Acknowledgments.  Executive is signing this Release knowingly and voluntarily.  He acknowledges that:

 

(a)                                 He is hereby advised in writing to consult an attorney before signing this Release;

 

(b)                                 He has relied solely on his own judgment and/or that of his attorney regarding the consideration for and the terms of this Release and is signing this Release knowingly and voluntarily of his own free will;

 

(c)                                  He is not entitled to the Severance Payment unless he agrees to and honors the terms of this Release;

 

(d)                                 He has been given at least twenty-one (21) calendar days to consider this Release, or he expressly waives his right to have at least twenty-one (21) days to consider this Release;

 

(e)                                  He may revoke this Release within seven (7) calendar days after signing it by submitting a written notice of revocation to the Employer.  He further understands that this Release is not effective or enforceable until after the seven (7) day period of revocation has expired without revocation, and that if he revokes this Release within the seven (7) day revocation period, he will not receive the Severance Payment;

 

(f)                                   He has read and understands the Release and further understands that, subject to the limitations contained herein, it includes a general release of any and all known and unknown, foreseen or unforeseen claims presently asserted or otherwise arising through the date of his signing of this Release that he may have against the Employer; and

 

(g)                                  No statements made or conduct by the Employer has in any way coerced or unduly influenced him to execute this Release.

 

3.                                      No Admission of Liability.  This Release does not constitute an admission of liability or wrongdoing on the part of the Employer, the Employer does not admit there has been any wrongdoing whatsoever against the Executive, and the Employer expressly denies that any wrongdoing has occurred.

 

2

 

4.                                      Entire Agreement.  There are no other agreements of any nature between the Employer and Executive with respect to the matters discussed in this Release, except as expressly stated herein, and in signing this Release, Executive is not relying on any agreements or representations, except those expressly contained in this Release.

 

5.                                      Execution.  It is not necessary that the Employer sign this Release following Executive’s full and complete execution of it for it to become fully effective and enforceable.

 

6.                                      Severability.  If any provision of this Release is found, held or deemed by a court of competent jurisdiction to be void, unlawful or unenforceable under any applicable statute or controlling law, the remainder of this Release shall continue in full force and effect.

 

7.                                      Governing Law.  This Release shall be governed by the laws of the State of Maryland, excluding the choice of law rules thereof.

 

8.                                      Headings.  Section and subsection headings contained in this Release are inserted for the convenience of reference only.  Section and subsection headings shall not be deemed to be a part of this Release for any purpose, and they shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof.

 

IN WITNESS WHEREOF, the undersigned has duly executed this Agreement as of the day and year first herein above written.

 

	
 
    	
EXECUTIVE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Sean Mahoney
    

 

3

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