Document:

exv10w2wc

Exhibit 10.2(c)

EMPLOYMENT AGREEMENT

BETWEEN CHATHAM LODGING TRUST

AND JULIO E. MORALES

          THIS EMPLOYMENT AGREEMENT, effective as of                     , 20___, between CHATHAM LODGING TRUST, a
Maryland real estate investment trust (the “Company”), and JULIO E. MORALES (the “Executive”),
recites and provides as follows:

W I  T  N  E  S  S  E   T  H:

          WHEREAS, the Company is a self-advised equity real estate investment trust which has been
formed to own hotel properties directly and through its subsidiaries; and

          WHEREAS, the Company desires to employ the Executive to devote substantially all of his time,
attention and efforts to the business of the Company and to serve as Executive Vice President and
Chief Financial Officer of the Company; and

          WHEREAS, the Executive desires to be so employed on the terms and subject to the conditions
hereinafter stated.

          NOW, THEREFORE, in consideration of the premises and mutual obligations hereinafter set forth,
the parties agree as follows:

          1. RECITALS. The above recitals are incorporated by reference herein and made a part
hereof as set forth verbatim.

          2. EMPLOYMENT. The Company shall employ the Executive, and the Executive agrees to be
so employed, in the capacity of Executive Vice President and Chief Financial Officer to serve for
the Term (as hereinafter defined) hereof, subject to earlier termination as hereinafter provided.

          3. TERM. The Initial Term of the Executive’s employment hereunder (the “Initial
Term”) shall be for a period of three (3) years commencing on [     ], 20___, and continuing
until [     ], 20___, unless terminated earlier as provided herein. If neither the Company
nor the Executive has provided the other with written notice of an intention to terminate this
Agreement at least thirty (30) days before the end of the Initial Term (or any subsequent renewal
period), this Agreement will automatically renew for a twelve (12) month period. For purposes of
this Agreement, the word “Term” means the Initial Term and the period of any extension of the
Initial Term pursuant to the preceding sentence.

          4. SERVICES. The Executive shall devote substantially all of his time, attention and
effort to the Company’s affairs. The Company further agrees that the Executive may engage in civic
and community activities and endeavors provided that such activities do not interfere with the
performance of the Executive’s duties hereunder. The Executive shall have full authority and
responsibility for formulating policies and administering the Company in all respects, subject to
the general direction, approval and control of the Company’s Chief Executive Officer.

 

 

          5. COMPENSATION.

               (a) Base Salary. During the Term, the Company shall pay the Executive for his services an
annual Base Salary equal to $285,000, subject to any increases approved by the Board of Trustees
(the “Board”) or its Compensation Committee (the “Committee”). Such Base Salary shall be paid in
twenty-six (26) bi-weekly installments. Any increase in Base Salary shall not serve to limit or
reduce any other obligations to the Executive under this Agreement.

               (b) Annual Bonus. In addition to his annual Base Salary, during the Term the Executive shall
have the opportunity to earn an Annual Bonus as determined by the Committee in its discretion or to
the extent that prescribed individual and corporate goals established by the Committee are
achieved. Any Annual Bonus that is earned under this Section 5(b) shall be paid in a single lump
sum payment no later than March 15 following the calendar year in which the Annual Bonus is earned.

          6. BENEFITS. The Company agrees to provide the Executive with the following benefits:

               (a) Vacation. The Executive shall be entitled each year to a vacation, during which time his
compensation shall be paid in full. The time allotted for such vacation shall be an aggregate of
three (3) weeks. In the year Executive terminates employment, he shall be entitled to receive a
prorated paid vacation based upon the amount of time that he has worked during the year of
termination. In the event that he has not taken his vacation time computed on a prorated basis, he
shall be paid, at his regular rate of pay, for unused vacation. In the event Executive has taken
more vacation time than allotted for the year of termination, there shall be no reduction in
compensation otherwise payable hereunder.

               (b) Employee Benefits. During the Term, the Executive and/or the Executive’s family, as the
case may be, shall be eligible to participate in all Company employee benefit plans in which other
executive level employees of the Company and/or the members of their families, as the case may be,
are eligible to participate, but not limited to, any retirement, pension, profit-sharing,
insurance, hospital, or other plans which may now be in effect or which may hereafter be adopted by
the Company. Regarding life insurance, the Executive shall have the right to name the beneficiary
of such life insurance policy.

          7. EXPENSES. The Company recognizes that the Executive will have to incur certain
out-of-pocket expenses related to his services and the Company’s business, and the Company agrees
to promptly reimburse the Executive for all reasonable expenses necessarily incurred by him in the
performance of his duties to the Company upon presentation of a voucher or documentation indicating
the amount and business purposes of any such expenses. These expenses include, but are not limited
to, travel, meals, entertainment, etc. The Company also recognizes that the Executive will incur
expenses to relocate from Gaithersburg, Maryland and the Company agrees to reimburse the Executive
for those relocation expenses, not to exceed $50,000, in accordance with the Company’s relocation
expense policy. Expenses that are reimbursable to the Executive under this Section 7 shall be paid
to the Executive in accordance

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with the Company’s expense reimbursement policy but in no event later than March 15 following
the calendar year in which the expense is incurred.

          8. OFFICE AND SUPPORT STAFF. During the term of this Agreement, the Executive shall
be entitled to an office of a size and with furnishings and other appointments, and to secretarial
and other assistants, at least equal to those provided to other management level employees of the
Company.

          9. TERMINATION.

               (a) Grounds. This Agreement shall terminate in the event of the Executive’s death.
In the case of the Executive’s Disability, the Company may elect to terminate the Executive as a
result of such Disability. Where appropriate, the Company also may terminate the Executive
pursuant to a Termination With Cause. Finally, the Executive may terminate his employment with the
Company pursuant to either a Voluntary Termination or a Voluntary Termination for Good Reason. For
purposes of this Agreement, the terms Disability, Voluntary Termination, Voluntary Termination for
Good Reason, and Termination With Cause are defined in Section 12 of this Agreement.

               (b) Notice of Termination. Any termination by the Company or the Executive (other
than upon death) shall be communicated by Notice of Termination to the Executive or the Company, as
applicable. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement relied upon and the specific
ground for termination; (ii) sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for such termination; and (iii) the date of termination in accordance with 9(c)
below.

               (c) Date of Termination. For the purposes of this Agreement, “Date of Termination”
means (i) if the Company intends to treat the termination as a termination based upon the
Executive’s Disability, the Executive’s employment with the Company shall terminate effective on
the thirtieth day after the date of the Notice of Termination (which may not be given before the
Executive has been absent from work on account of a physical or mental illness or physical injury
for at least hundred fifty (150) days) provided that, before such date, the Executive shall not
have returned to full-time performance of the Executive’s duties; (ii) if the Executive’s
employment is terminated by reason of Death, the Date of Termination shall be the date of death of
the Executive; (iii) if the Executive’s employment is terminated by reason of Voluntary
Termination, the Date of Termination shall be thirty (30) days from the date of the Notice of
Termination (and the Executive shall be deemed to have terminated his employment by Voluntary
Termination if the Executive voluntarily refuses to provide substantially all the services
described in Section 4 hereof for a period greater than four (4) consecutive weeks (excluding
periods in which the Executive is not performing services on account of vacation in accordance with
Section 6(a) hereof and periods in which the Executive is not performing services on account of the
Executive’s illness or injury or the illness or injury of a member of the Executive’s immediate
family); in such event, the Date of Termination shall be the day after the last day of such
four-week period); (iv) if the Company intends to treat the termination as a Termination With Cause
based upon the grounds described in clause 12(i)(ii) or (iii), then Termination shall be effective
upon Notice of Termination as defined in this Agreement; (v) if

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the Company intends to treat the termination as a Termination With Cause based upon the
grounds described in clause 12(i)(i) of this Agreement, the Company shall provide the Executive
written notice of such grounds for termination and the Executive shall have a period of thirty (30)
days to cure such cause to the reasonable satisfaction of the Board, failing which employment shall
be deemed terminated at the end of such thirty (30) day period; (vi) if the Executive’s employment
is terminated by reason of Voluntary Termination for Good Reason, the Date of Termination shall be
thirty (30) days after the end of the thirty (30) day cure period.

          10. COMPENSATION UPON TERMINATION WITH CAUSE, VOLUNTARY TERMINATION, DEATH OR
DISABILITY. This Section 10 applies in the event that the Executive’s employment ends upon a
Termination With Cause, a Voluntary Termination, Death or Disability or any reason other than a
Termination Without Cause or a Voluntary Termination With Good Reason. In any of those events, the
Executive (or the Executive’s estate in the event of his death) shall be entitled to receive the
Standard Termination Benefits. The Standard Termination Benefits are the benefits or amounts
described in the following subsections (a) and (b):

               (a) The Executive shall be entitled to receive any compensation (including Base Salary and
Annual Bonus and accrued but unused vacation) that is earned but unpaid as of the Date of
Termination.

               (b) The Executive shall be entitled to receive any benefits due him under the terms of any
employee benefit plan maintained by the Company and any option, restricted share or similar equity
award; which benefits shall be paid in accordance with the terms of the applicable plan and any
award agreement between the Executive and the Company.

Except for the Standard Termination Benefits, the Executive shall not be entitled to receive any
compensation after the Date of Termination on account of a Termination With Cause, a Voluntary
Termination, death, Disability or any reason other than a Termination Without Cause or a Voluntary
Termination With Good Reason.

          11. COMPENSATION UPON TERMINATION WITHOUT CAUSE OR VOLUNTARY TERMINATION WITH GOOD
REASON. This Section 11 applies in the event that the Executive’s employment ends upon a
Termination Without Cause or a Voluntary Termination With Good Reason. In any of those events, the
Executive shall be entitled to receive the benefits and amounts described in the following
subsections (a), (b), (c) and (d):

               (a) The Company shall pay or provide the Standard Termination Benefits as defined in Section
10 except that all outstanding options, restricted Company shares and other equity awards, shall be
vested and exercisable as of the Date of Termination and outstanding options shall remain
exercisable thereafter until their stated expiration date as if the Executive’s employment had not
terminated.

               (b) The Company shall pay an amount equal to the product of the Multiple (as defined below)
times the Executive’s Base Salary at the rate in effect on the Date of Termination (or, in the case
of a Voluntary Termination for Good Reason, at the rate in effect

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before a reduction in Base Salary that constitutes Good Reason for resignation), such payment
to be made in a single cash payment.

               (c) The Company shall pay an amount equal to the product of the Multiple (as defined below)
times the highest annual bonus paid to the Executive for the three (3) fiscal years of the Company
ended immediately before the Date of Termination.

               (d) The Company shall pay an amount equal to the product of (x) the annual bonus paid to the
Executive for the fiscal year of the Company ended immediately before the Date of Termination and
(y) a fraction, the numerator of which is the number of days the Executive was employed by the
Company during the fiscal year that includes the Date of Termination and the denominator of which
is 365, such payment to be made in a single cash payment no later than ten (10) days after the Date
of Termination.

               (e) The Company shall pay an amount equal to the Multiple (as defined below) times the annual
premium or cost paid by the Company for the health, dental and vision insurance coverage for the
Executive and the Executive’s eligible dependents as in effect on the Date of Termination plus an
amount equal to the Multiple (as defined below) times the annual premium or cost paid by the
Company for the disability and life insurance coverage for the Executive as in effect on the Date
of Termination, such payment to be made in a single cash payment.

The Multiple is “one (1.0)” if the Executive’s employment ends upon a Termination Without Cause
before the date of a Change in Control and a Change in Control does not occur within ninety (90)
days after the Date of Termination or if the Executive’s employment ends upon a Voluntary
Termination With Good Reason before the date of a Change in Control. The Multiple is “two (2.0)” if
the Executive’s employment ends upon a Termination Without Cause on or after the date of a Change
in Control or within the ninety (90) day period preceding the date of a Change in Control or if the
Executive’s employment ends upon a Voluntary Termination With Good Reason on or after the date of a
Change in Control.

No benefits will be paid or provided to, or on behalf of, the Executive under this Section 11
unless and until the Executive has signed a release and waiver of claims acceptable to the Company,
releasing the Company and its officers, directors and affiliates from all claims the Executive has
or may have against such parties, and such release and waiver of claims has become binding and
irrevocable. The cash benefits payable under this Section 11 shall be paid on the fifth
(5th) business day after the Executive’s release and waiver of claims has become binding
and irrevocable; provided, however, that if the Executive’s employment ends upon a Termination
Without Cause and additional amounts become payable under this Section 11 because a Change in
Control occurs within ninety (90) days after the Date of Termination, such additional amounts shall
be paid on the fifth (5th) business day after the date of the Change in Control or, if
later, the fifth (5th) business day after the Executive’s release and waiver of claims
has become binding and irrevocable.

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          12. DEFINITIONS. For the purposes of this Agreement, the following terms shall have
the following definitions:

               (a) “Acquiring Person” means that a Person, considered alone or together with all Control
Affiliates and Associates of that Person, is or becomes directly or indirectly the beneficial owner
of securities representing at least fifty percent (50%) of the Company’s then outstanding
securities entitled to vote generally in the election of the Board.

               (b) “Affiliate” means any “subsidiary” or “parent” corporation (within the meaning of Section
424 of the Code) of the Company.

               (c) “Board” means the Board of Trustees of the Company.

               (d) “Change in Control” for purposes of this Agreement, means a “Change in Control” shall mean
any of the following events:

(i) In the event a Person is or becomes an Acquiring Person;

(ii) In the event that the Company transfers at least fifty percent
(50%) of the Company’s total assets on a consolidated basis, as
reported in the Company’s consolidated financial statements filed
with the Securities and Exchange Commission;

(iii) In the event that the Company merges or consolidates the
Company or effects a statutory share exchange with another Person,
regardless of whether the Company is intended to be the surviving or
resulting entity after the merger, consolidation, or statutory share
exchange; provided that a merger, consolidation or statutory share
exchange in which the shareholders of the Company immediately before
such transaction own more than fifty percent (50%) of the outstanding
securities of the surviving entity entitled to vote generally in the
election of directors shall not be a Change in Control;

(iv) Continuing Trustees cease to constitute a majority of the Board
(other than as a result of a merger, consolidation or statutory share
exchange that does not constitute a Change in Control under clause
12(d)(iii). For purposes of this Agreement, the term “Continuing
Trustee” means (i) a member of the Board on ___, 2010 or (ii)
a member whose nomination for, or election to, the Board was approved
or recommended by a majority of the then Continuing Trustees.

(v) A complete liquidation or dissolution of the Company; or,

(vi) Notwithstanding the foregoing, a Change in Control shall not be
deemed to occur solely because any Person acquired Beneficial
Ownership as defined in the Exchange Act of more than

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the permitted amount of the then outstanding securities as a result
of the acquisition of securities by the Company which by reducing the
number of securities then outstanding, increases the proportional
number of shares Beneficially Owned by the subject Person(s),
provided that if a Change in Control would occur as a result of the
acquisition of securities by the Company, and after such share
acquisition by the Company, the Person becomes the Beneficial Owner
of any additional securities which increases the percentage of the
then outstanding securities Beneficially Owned by the subject Person,
then a Change in Control shall occur.

               (e) “Control Affiliate”, with respect to any Person, means an Affiliate as defined in Rule
12B-2 of the General Rules and Regulations under the Exchange Act, as amended as of January 1,
1990.

               (f) “Disability” means that the Executive is “disabled” within the meaning of Section
409A(a)(2)(C) of the Internal Revenue Code of 1986, as amended (the “Code”).

               (g) “Exchange Act” means the Securities Exchange Act of 1934, as amended and as in effect from
time to time.

               (h) “Person” means any human being, firm, corporation, partnership, or other entity. Person
also includes any human being, firm, corporation, partnership , or other entity as defined in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act, as amended as of January 1, 1990. The term
Person does not include the Companies or any related entity within the meaning of Code Section
1563(a), 414(b) or 414(c), and the term Person does not include any employee-benefit plan
maintained by the Companies or by any Related Entity, and any Person or entity organized,
appointed, or established by the Companies or by any subsidiary for or pursuant to the terms of any
such employee-benefit plan, unless the Board determines that such an employee-benefit plan, or such
Person or entity is a Person.

               (i) “Termination With Cause” means the termination of the Executive’s employment by act of the
Company’s Board of Directors on account of (i) the Executive’s failure to perform a material duty
or the Executive’s material breach of an obligation set forth in this Agreement or a breach of a
material and written Company policy other than by reason of mental or physical illness or injury,
(ii) the Executive’s breach of Executive’s fiduciary duties to the Company, (iii) the Executive’s
conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise or
(iv) the Executive’s conviction of, or plea of nolo contendre to, a felony or crime involving moral
turpitude or fraud or dishonesty involving assets of the Company and that in all cases is described
in a written notice from the Board and that is not cured, to the reasonable satisfaction of the
Board, within thirty (30) days after such notice is received by the Executive.

               (j) “Voluntary Termination” means the Executive’s voluntary termination of his employment,
other than a Voluntary Termination for Good Reason, hereunder for any reason. For purposes of this
Section 10, the term Voluntary Termination does not include a voluntary refusal to perform services
on account of a vacation taken in accordance with

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Section 6(a) hereof, the Executive’s failure to perform services on account of his illness or
injury or the illness or injury of a member of his immediate family, provided such illness is
adequately substantiated at the reasonable request of the Company, or any other absence from
service with the written consent of the Board.

               (k) Voluntary Termination for “Good Reason” means the Executive’s termination of his
employment hereunder on account of (i) the Company’s material breach of the terms of this Agreement
or a direction from the Board that the Executive act or refrain from acting which in either case
would be unlawful or contrary to a material and written Company policy, (ii) a material diminution
in the Executive’s duties, functions and responsibilities to the Company and its affiliates without
the Executive’s consent or the Company preventing the Executive from fulfilling or exercising his
material duties, functions and responsibilities to the Company and its affiliates without the
Executive’s consent, (iii) a material reduction in the Executive’s Base Salary or Annual Bonus
opportunity or (iv) a requirement that the Executive relocate his employment more than fifty (50)
miles from the location of the Executive’s principal office on the date of this Agreement, without
the consent of the Executive. The Executive’s resignation shall not be deemed a “Voluntary
Termination for Good Reason” unless the Executive gives the Board written notice (delivered within
thirty (30) days after the Executive knows of the event, action, etc. that the Executive asserts
constitutes Good Reason), the event, action, etc. that the Executive asserts constitutes Good
Reason is not cured, to the reasonable satisfaction of the Executive, within thirty (30) days after
such notice and the Executive resigns effective not later than thirty (30) days after the
expiration of such cure period.

          13. CODE SECTION 280G. The benefits that the Executive may be entitled to receive
under this Agreement and other benefits that the Executive is entitled to receive under other
plans, agreements and arrangements (which, together with the benefits provided under this
Agreement, are referred to as “Payments”), may constitute Parachute Payments that are subject to
Code Sections 280G and 4999. As provided in this Section 13, the Parachute Payments will be
reduced if, and only to the extent that, a reduction will allow the Executive to receive a greater
Net After Tax Amount than the Executive would receive absent a reduction.

     The Accounting Firm will first determine the amount of any Parachute Payments that are payable
to the Executive. The Accounting Firm also will determine the Net After Tax Amount attributable to
the Executive’s total Parachute Payments.

     The Accounting Firm will next determine the largest amount of Payments that may be made to the
Executive without subjecting the Executive to tax under Code Section 4999 (the “Capped Payments”).
Thereafter, the Accounting Firm will determine the Net After Tax Amount attributable to the Capped
Payments.

     The Executive will receive the total Parachute Payments or the Capped Payments, whichever
provides the Executive with the higher Net After Tax Amount. If the Executive will receive the
Capped Payments, the total Parachute Payments will be adjusted by first reducing the amount of any
benefits under this Agreement or any other plan, agreement or arrangement that are not subject to
Section 409A of the Code (with the source of the reduction to be directed by the Participant) and
then by reducing the amount of any benefits under this Agreement or any other plan, agreement or
arrangement that are subject to Section 409A of the Code (with the

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source of the reduction to be directed by the Participant). The Accounting Firm will notify
the Executive and the Company if it determines that the Parachute Payments must be reduced to the
Capped Payments and will send the Executive and the Company a copy of its detailed calculations
supporting that determination.

     As a result of the uncertainty in the application of Code Sections 280G and 4999 at the time
that the Accounting Firm makes its determinations under this Section 13, it is possible that
amounts will have been paid or distributed to the Executive that should not have been paid or
distributed under this Section 13 (“Overpayments”), or that additional amounts should be paid or
distributed to the Executive under this Section 13 (“Underpayments”). If the Accounting Firm
determines, based on either the assertion of a deficiency by the Internal Revenue Service against
the Company or the Executive, which assertion the Accounting Firm believes has a high probability
of success or controlling precedent or substantial authority, that an Overpayment has been made,
the Executive must repay to the Company, without interest; provided, however, that no loan will be
deemed to have been made and no amount will be payable by the Executive to the Company unless, and
then only to the extent that, the deemed loan and payment would either reduce the amount on which
the Executive is subject to tax under Code Section 4999 or generate a refund of tax imposed under
Code Section 4999. If the Accounting Firm determines, based upon controlling precedent or
substantial authority, that an Underpayment has occurred, the Accounting Firm will notify the
Executive and the Company of that determination and the amount of that Underpayment will be paid to
the Executive promptly by the Company.

     For purposes of this Section 13, the term “Accounting Firm” means the independent accounting
firm engaged by the Company immediately before the Change in Control. For purposes of this Section
13, the term “Net After Tax Amount” means the amount of any Parachute Payments or Capped Payments,
as applicable, net of taxes imposed under Code Sections 1, 3101(b) and 4999 and any State or local
income taxes applicable to the Executive on the date of payment. The determination of the Net
After Tax Amount shall be made using the highest combined effective rate imposed by the foregoing
taxes on income of the same character as the Parachute Payments or Capped Payments, as applicable,
in effect on the date of payment. For purposes of this Section 13, the term “Parachute Payment”
means a payment that is described in Code Section 280G(b)(2), determined in accordance with Code
Section 280G and the regulations promulgated or proposed thereunder.

          14. CODE SECTION 409A. This Agreement and the amounts payable and other benefits
provided under this Agreement are intended to comply with, or otherwise be exempt from, Section
409A of the Code (“Section 409A”), after giving effect to the exemptions in Treasury Regulation
section 1.409A-1(b)(3) through (b)(12). This Agreement shall be administered, interpreted and
construed in a manner consistent with Section 409A. If any provision of this Agreement is found
not to comply with, or otherwise not be exempt from, the provisions of Section 409A, it shall be
modified and given effect, in the sole discretion of the Board and without requiring the
Executive’s consent, in such manner as the Board determines to be necessary or appropriate to
comply with, or to effectuate an exemption from, Section 409A; provided, however, that in
exercising its discretion under this Section 14, the Board shall modify this Agreement in the least
restrictive manner necessary and without reducing any payment or benefit due under this Agreement.
Each payment under this Agreement shall be treated as a separate identified payment for purposes of
Section 409A.

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     With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, the
Executive, as specified under this Agreement, such reimbursement of expenses or provision of
in-kind benefits shall be subject to the following limitations: (i) the expenses eligible for
reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the
expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable
year, except for any medical reimbursement arrangement providing for the reimbursement of expenses
referred to in Section 105(b) of the Code; (ii) the reimbursement of an eligible expense shall be
made as specified in this Agreement and in no event later than the end of the year after the year
in which such expense was incurred and (iii) the right to reimbursement or in-kind benefit shall
not be subject to liquidation or exchange for another benefit.

     If a payment obligation under this Agreement arises on account of a Change in Control or the
Executive’s termination of employment and such payment obligation constitutes “deferred
compensation” (as defined under Treasury Regulation section 1.409A-1(b)(1), after giving effect to
the exemptions in Treasury Regulation section 1.409A-1(b)(3) through (b)(12)), it shall be payable
only if the Change in Control constitutes a change in ownership or effective control of the
Company, etc. as provided in Treasury Regulation section 1.409A-3(i)(5) or after the Executive’s
separation from service (as defined under Treasury Regulation section 1.409A-1(h)); provided,
however, that if the Executive is a specified employee (as defined under Treasury Regulation
section 1.409A-1(i)), any payment that is scheduled to be paid within six months after such
separation from service shall accrue without interest and shall be paid on the first day of the
seventh month beginning after the date of the Executive’s separation from service or, if earlier,
within fifteen days after the appointment of the personal representative or executor of the
Executive’s estate following his death.

          15. TAX WITHHOLDING. All payments to be made under this Agreement shall be reduced by
applicable income and employment tax withholdings.

          16. CONFIDENTIAL INFORMATION. The Executive recognizes that the Company’s business
interests require a confidential relationship between the Company and the Executive and the fullest
practical protection and confidential treatment of their trade secrets, operating manuals,
marketing techniques, designs, concepts, franchise operation and system management programs,
customer lists, innovations and improvements (collectively, “Information”) that will be conceived
or learned by him in the course of his employment with the Company. Accordingly, the Executive
agrees, both during and after termination of his employment, to keep secret and to treat
confidentially all of the Company’s Information and not to use or aid others in using any such
Information in competition with the Company. The obligation set forth in this Section 16 shall
exist during the Executive’s employment and shall continue after the termination of the Executive’s
employment for so long as any of the Company’s Information retains any confidentiality.

          17. NOTICES. All notices or deliveries authorized or required pursuant to this
Agreement shall be deemed to have been given when in writing and personally delivered or three (3)
days following the date when deposited in the U.S. mail, certified, return receipt requested,
postage prepaid, addressed to the parties at the following addresses or to such other addresses as
either may designate in writing to the other party:

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	 	To the Company:
	 	 	 	CHATHAM LODGING TRUST
	 

	 	 	 	 	 	Attn:                                        
	 

	 	 	 	 	 	50 Cocoanut Row
	 

	 	 	 	 	 	Suite 200
	 

	 	 	 	 	 	Palm Beach, Florida 33480
	 
	 	 	 	 	 	 
	 

	 	To the Executive:
	 	 	 	                                                            
	 

	 	 	 	 	 	                                                            
	 

	 	 	 	 	 	                                                            
	 

	 	 	 	 	 	                                                            

          18. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the
parties hereto with respect to the subject matter hereof and shall not be modified in any manner
except by instrument in writing signed, by or on behalf of, the parties hereto. This Agreement
shall be binding upon and inure to the benefit of the heirs, successors and assigns of the parties
hereto.

          19. ARBITRATION. Any claim or controversy arising out of, or relating to, this
Agreement or its breach, shall be settled by arbitration in Palm Beach County, Florida in
accordance with the governing rules of the American Arbitration Association. Judgment upon the
award rendered may be entered in any court of competent jurisdiction. In the event one of the
parties hereto requests an arbitration proceeding under this Agreement, such proceeding shall
commence within 30 days from the date of such request. The prevailing party shall be entitled to
reasonable attorney’s fees and costs.

          20. APPLICABLE LAW. This Agreement shall be governed and construed in accordance with
the laws of the State of Florida.

          21. NO SETOFF. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by a setoff,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others. In no event shall the Executive be obligated to seek other
employment or take other action by way of mitigation of the amounts payable to the Executive under
the provisions of this Agreement.

          22. ASSIGNMENT. The Executive acknowledges that his services are unique and personal.
Accordingly, the Executive may not assign his rights or delegate his duties or obligations under
this Agreement. The Executive’s rights and obligations under this Agreement shall insure to the
benefit of and shall be binding upon the Executive’s successors and assigns.

          23. HEADINGS. Headings in this Agreement are for convenience only and shall not be
used to interpret or construe its provisions.

-11-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the ___day of
___, 2010.

	 	 	 	 	 	 	 	 	 
	 	 	CHATHAM LODGING TRUST, a Maryland	 	 
	 	 	real estate investment trust	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	JULIO E. MORALESexh101.htm

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

 

 

This Employment Agreement (the "Agreement") is entered into as of the 25th day of February, 2010 between David Saltrellli ("Employee") and Calibert Explorations, Ltd., a Nevada Corporation, it’s affiliates, predecessors
and subsidiaries (the "Company”).

 

WHEREAS, Employee and the Company desire to enter into this Agreement setting forth the terms and conditions for the employment relationship of Employee with the Company during the Employment Term (as defined below).

 

NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties to this Agreement hereby agree as follows:

 

1.             Services

 

                1.1           Employment. During
the Employment Term (as defined below), the Company hires Employee to perform such services as the Company may from time to time reasonably request consistent with Employee's position with the Company (as set forth in Section 1.1 and 1.5 hereof) and Employee's stature and experience in the industry (the "Services"). The Services and authority of Employee shall include, but not necessarily be limited to, management and supervision of all aspects of developing
and implementing technology initiatives within the Company.

 

                1.2           Location.
During the Term, Employee's Services shall be performed in Florida. Employee acknowledges and understands that the Company’s current headquarters are located in Clearwater Beach, Florida and that officers and other participants critical to the Company’s business are dispersed nationally and internationally, and that such dispersion will increase substantially as the Company grows. The parties therefore acknowledge and agree that the nature of Employee's duties hereunder may require domestic and international
travel from time to time.

 

                1.3           Term. The
term of Employee's employment under this Agreement (the "Employment Term") shall commence on the 25th day of February, 2010 (the "Effective Date") and shall end on February, 24th 2012 unless sooner extended or terminated in accordance with the provisions of this Agreement.

 

For purposes of this Agreement, "Employment Year" shall mean each twelve-month period during the Term commencing on February, 24th,  and ending on February, 24th, of the following year. In the event the parties decide to extend this Agreement for an additional one year Employment
Term, any extension agreed upon must be done so in writing and executed by the Company and Employee no later than 5 p.m. Eastern Standard Time on November  25th, 2010.

 

1.4           Exclusive Employment; Non-Competition.  Employee agrees that his employment
hereunder is on an exclusive basis, and that as long as Employee is employed by the Company, Employee will not engage in any other business activity which is in conflict with Employee’s duties and obligations hereunder.  Employee agrees that during the Employment Term, Employee shall not directly or indirectly engage in or participate as an owner, partner, shareholder, officer, employee, director, agent of or consultant for any business that competes with any of the principal activities of the
Company.

 

 

 

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1.5           Power and Authority.

 

1.5.1        During the Employment Term, Employee shall be Employed as President, Chief Executive Officer and Chairman of the Board of Directors.

 

                1.5.2        The Company may from time to time during the Term appoint Employee to one or more additional offices of the Company. Employee agrees to accept
such offices if consistent with Employee's stature and experience and position with the Company.

 

                1.6           Indemnification. The Company shall indemnify
Employee to the fullest extent allowed by applicable law. Without limiting the foregoing, Employee shall be entitled to the benefit of the indemnification provisions contained on the date hereof in the Bylaws of the Company and any applicable Bylaws of any Affiliate, notwithstanding any future changes therein.

 

2.             Compensation.

 

                 As compensation and consideration for the Services provided by Employee during the Term pursuant to this Agreement, the Company agrees to pay to Employee the compensation set forth below.

 

                2.1           Fixed Annual Compensation. The
Company shall pay to Employee salary ("Fixed Annual Compensation") at the rate of $96,000 per annum beginning on February 25th, 2010, and continuing for the term of this agreement, with stated salary for the first year of the Employment Term to be paid as follows: Fixed Annual Compensation payable to Employee by the Company hereunder shall be paid beginning February 25th of each year during the Employment Term and at such times and in such amounts as the
Company may designate in accordance with the Company’s usual salary practices, but in no event less than twice monthly.

 

                2.2           Bonus. Under this Agreement, Employee
shall be entitled to participate in the highest bonus incentive program (hereafter “BIP”) set up by the Board. While the specific structure and trigger mechanisms for the BIP are at the sole discretion of the Board, the BIP shall afford Employee the opportunity to earn a cash bonus through the Employee’s accomplishment of specific pre-identified reasonable milestones in the development of the Company’s business, or by exceeding the approved business plan revenue and income levels. Any
payments under the BIP shall be paid annually to Employee and shall be paid no later than the end of the first quarter following the Company’s fiscal year-end. In addition to the BIP, Employee shall also be entitled to such additional bonus, if any, as may be granted by the Board (with Employee abstaining from any vote thereon) or compensation or similar committee thereof in the Board's (or such committee's) sole discretion based upon Employee's performance of his Services under this Agreement.

 

 

2

 

 

3.             Expenses; Additional Benefits

 

                3.1           Vacation. Employee shall be entitled to
an aggregate of two weeks of paid vacation during each year of the Employment Term. Employee may take vacation at times determined by the Employee, however, subject the Company’s business needs. In addition, Employee shall be entitled to holidays generally observed in the United States and the State of Florida.

 

                3.2           Employee Business Expense Reimbursement.
Employee shall be entitled to reimbursement of all business expenses for which Employee makes a submission for and provides an adequate accounting to the Company beginning on the effective date of this Agreement. The determination of the adequacy of the accounting of the foregoing expenses shall be within the reasonable discretion of the Company’s independent certified accountants taking into consideration the substantiation requirements of the Internal Revenue Code of 1986, as amended (the "Code").
Employee shall be entitled to cash reimbursement for expense items, including extended travel. Employee shall be entitled to cash or stock reimbursement for ordinary expenses, including phone and local travel, as approved in advance by the Board. Such reimbursement of business expenses shall be payable to Employee at the end of each calendar month for the business expenses incurred by the Employee for the month prior for each specific submission for reimbursement during the Term of this Agreement,

 

                3.3           Stock Option Plan and Agreement.
Concurrently with the execution of this Agreement and in consideration for the execution thereof, Employee and the Company shall develop, implement and enter into the Calibert Explorations, Ltd., 2010 Stock Option Plan and Agreement.

 

                3.4           Medical and Dental Insurance. In the event
that the Company, with the approval of the Board of Directors, elects to establish a Medial Insurance Benefit Plan for the benefit of the Company’s employment staff, Employee shall be entitled to participate in such plan which shall include comprehensive medical and dental insurance (from a reputable and financially-sound insurance carrier of national standing) for himself and his immediate family. Such insurance shall cover at the minimum 100% of all hospitalization costs after payment of deductibles and
80% of other medical costs, with the annual deductible not exceeding $500 per person. There shall be no cap on benefits for the medical insurance, and the annual cap for dental insurance benefits shall not be less than $3,000. The Company may either provide these benefits directly to Employee or promptly reimburse Employee for the cost of such benefits, at the Company’s election.

 

                3.5           Other Agreements. Concurrent with
the execution of this Agreement, Employee and the Company shall enter into other Transaction Documents that have not been previously executed.

 

                3.6           General. Employee shall be entitled to
participate in any profit-sharing, pension, health, sick leave, holidays, personal days, insurance or other plans, benefits or policies (not duplicative of the benefits provided hereunder) available to the employees of the Company or its Affiliates on the terms generally applicable to such employees.

 

 

 

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                3.7           No Reduction of Benefit or Payment. No
payment or benefit made or provided under this Agreement shall be deemed to constitute payment to Employee or his legal representative or guardian in lieu of, or in reduction of, any benefit or payment under an insurance, pension or other benefit plan, and no payment under any such plan shall reduce any payment or benefit due under this Agreement.

 

                3.8           Covenant Not To Solicit.  Employee
agrees that for a period of two (2) years following any termination of the employment of the Employee with the Company, Employee will not, directly or indirectly, without the prior written consent of the Company:  solicit, entice, persuade or induce any employee, consultant, agent or independent contractor of the Company or of any of its subsidiaries or Affiliates to terminate his or her employment with the Company or such subsidiary or Affiliate to become employed by any person, corporation or other
entity other than the Company or such subsidiary or Affiliate,  or approach any such employee, consultant, agent or independent contractor for any of the foregoing purposes, or hire any such employee, consultant, agent or independent contractor or authorize or assist in the taking of any such actions by any third party.

 

3.9           Confidentiality.  During the Term of Employment and continuously thereafter,
Employee shall keep secret and retain in strictest confidence and not use or disclose, furnish or make accessible to anyone outside the Company and any of its Affiliates, directly or indirectly, or use for the benefit of Employee or others except in conjunction with the business of the Company and the business of any of its subsidiaries or Affiliates, any Protected Information.  The term “Protected Information” shall mean trade secrets, confidential or proprietary information and all other
knowledge, technology, know-how, information, documents or materials owned, developed or possessed by the Company or any of its subsidiaries or Affiliates, whether in tangible or intangible form, pertaining to the business of the Company or any of its subsidiaries or Affiliates, including, but not limited to, research and development, operations, systems, databases, computer programs and software, designs, models, operating procedures, knowledge of the organization, products and services (including prices, costs,
sales or  content), processes, techniques, contracts, financial information or measures, business methods, future business plans, details of consultant contracts, new personnel acquisition plans, business acquisition plans, customers and suppliers (including identities of customers and prospective customers and suppliers, identities of individual contacts at business entities which are customers  or prospective customers or suppliers, preferences, businesses or habits), and business relationships.  Provided
however, that Protected Information shall not include information that shall become generally known to the public or the trade without violation of this Section 1.6.

 

                3.10        Company Ownership.  The results and proceeds
of Employee’s services hereunder, including, without limitation, any works of authorship resulting from Employee’s services during his employment with the Company or any of the Company’s Affiliates and any works in progress, shall be works-made-for-hire, and the Company shall be, and shall be deemed, the sole owner throughout the universe of any and all rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right
to use the same in perpetuity in any manner the Company determines in its sole discretion without any further payment to Employee whatsoever.

 

 

 

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If, for any reason, any of such results and proceeds shall not legally be a work-for-hire and/or there are any rights which do not accrue to the Company under the preceding sentence, then Employee hereby irrevocably assigns and agrees to assign any and all of Employee’s right, title and interest thereto, including, without limitation,
to any and all copyrights, patents, trade secrets, trademarks and/or other rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed to the Company, and the Company shall have the right to use the same in perpetuity throughout the universe in any manner the Company determines without any further payment to Employee whatsoever.  Provided however, that if the Company elects not to utilize any work(s) of authorship resulting from Employee’s
services during his Employment Term, the Company shall wave and release all rights to said work(s) and assign all rights thereto to Employee. Employee shall, from time to time, as may be requested by the Company, do any and all things which the Company may deem useful or desirable to establish or document the Company’s exclusive ownership of any and all rights in any such results and proceeds, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments.  To
the extent Employee has any rights in the results and proceeds of Employee’s services that cannot be assigned in the manner described above, Employee unconditionally and irrevocably waives the enforcement of such rights.  This Section 3.10 is subject to, and shall not be deemed to limit, restrict, or constitute any waiver by the Company of any rights of ownership to which the Company may be entitled by operation of law by virtue of the Company’s being the employer of Employee.

 

                3.11         Litigation.  Employee agrees that, during
the Employment Term, for two (2) years thereafter and, if longer, during the pendency of any litigation or other proceeding, (i) Employee shall not communicate with anyone (other than his personal attorney(s) and/or tax advisor(s)) and, except to the extent necessary in the performance of Employee’s duties hereunder, with respect to the facts or subject matter of any pending or potential litigation, or regulatory or administrative proceeding involving the Company or any of its Affiliates, or any of their
officers, directors, shareholders, representatives, agents, employees, suppliers or customers, other than any litigation or other proceeding in which Employee is a party-in-opposition, without giving prior notice to the Company’s Board of Directors or Company Counsel and receiving a response, and (ii) in the event that any other party attempts to obtain information or documents from Employee with respect to matters possibly related to such litigation or other proceeding, Employee shall promptly so notify
the Company’s Board of Directors  or Company Counsel and await any response .

 

                 3.12        No right to Give Interviews or to Write Books, Articles,
etc.    Employee agrees that during the Employment Term and for a period of two (2) years thereafter, except with the Company’s prior written authorization, Employee shall not (i) give any interviews or speeches, or (ii) prepare or assist any person or entity in the preparation of any books, articles, television or motion picture productions or other creations, in either case, concerning the Company or any of its Affiliates, or any of their officers, directors, shareholders, representatives,
agents, employees, suppliers or customers.

 

                3.13        Return of Property.  All documents, date books,
recordings, or other property, whether tangible or intangible, including all information stored in electronic form, obtained or prepared by or for Employee and/or utilized by Employee in the course of Employee’s employment with the Company shall remain the exclusive property of the Company.

 

 

 

5

 

 

 

                In the event of the termination of Employee’s employment for any reason, the Company reserves the right, to the extent permitted by law and in addition to any other remedy the Company may have, to deduct from any monies otherwise payable to
Employee by the Company the following:  (i) the full amount of any debt Employee owes to the Company or to any of the Company’s Affiliates at the time of or subsequent to the termination of Employee’s employment with the Company; and (ii) the value of the Company’s property which is retained in Employee’s possession after the termination of Employee’s employment with the Company.  In the event that the law of any state or other jurisdiction requires the consent
of an employee for such deductions, this Agreement and the Employee’s signature hereon shall serve, and be deemed to serve, as such consent. Employee acknowledges and agrees that the foregoing remedy shall not be the sole and/or exclusive remedy of the Company with respect to a breach of this Section 3.13.

 

                3.14        Non-Disparagement.  Employee agrees that he shall
not, during the Employment Term and for a period of two (2) years thereafter, criticize, ridicule or make any statement which disparages or is derogatory of the Company or any of its Affiliates, or of any of their officers, directors, shareholders, representatives, agents, employees, suppliers or customers.

 

                 3.15        Injunctive Relief/Specific Enforcement. The Company
has entered into this Agreement in order to obtain the benefit of Employee’s unique skills, talent, and experience.  Employee acknowledges that the services to be rendered by Employee are of a special, unique and extraordinary character and, in connection with such services, Employee will have access to confidential or proprietary information or trade secret vital to the Company’s business and the businesses of its subsidiaries and Affiliates.  By reason of this, Employee acknowledges,
consents and agrees that any violation of Sections 1.4 and 3.10 – 3.15 of this Agreement will result in irreparable harm to the Company and its subsidiaries or Affiliates, and that money damages will not provide adequate remedy to the Company, and that the Company shall be entitled to have those sections specifically enforced by any court having competent jurisdiction. Accordingly, Employee agrees that the Company may obtain injunctive and/or other equitable relief for any breach or threatened breach of
those sections, in addition to any other remedies, including the recovery of money damages from Employee available to the Company.

 

                3.16        Non-Renewal Notice.  The Company shall notify
Employee in writing in the event that the Company elects not to extend this Agreement as provide for in Section 1.3 herein.  If the Company gives Employee such notice less than three (3) months before the end of the Employment Term, Employee shall be entitled to receive his Salary as provided in Section 2.1, payable in accordance with the Company’s then-effective payroll practices, subject to applicable withholding requirements, for the period commencing after the end of  the Employment
Term which, when added to the portion of the Employment Term, if any, remaining when the notice is given or the termination occurs, equals three (3) months.  The payments provided for in this Section 3.16 are in lieu of any severance or income continuation or protection under any Company plan that may now or hereafter exist.  Employee shall be required to mitigate the amount of any payment provided for in this Section 3.16 by seeking other employment or otherwise, and the amount of any such
payment provided hereunder shall be reduced by any compensation earned by Employee from any third person.

 

 

 

6

 

 

3.17         The provisions of Sections 1.4 and 3.11-3.16 shall, without any limitation as to time, survive the expiration of Employee’s employment hereunder, irrespective of the reason
for any termination.

 

4.             Termination:

 

                4.1           Voluntary Termination.   Employee
may voluntarily terminate his employment with the Company at any time upon at least ninety (90) days prior written notice, in which case this Agreement shall terminate on the 90th day from such notice, or such longer period as may be consented to in writing by the Company.  Upon such termination, the Company shall have no further obligations under this Agreement, except to pay all amounts of Base Salary accrued, but unpaid,
at the effective date of voluntary termination, and all reasonable unreimbursed business-related expenses, if any.

 

                4.2           Disability.  In the event of
the permanent disability (as hereinafter defined) of Employee during the Term of Employment, the Company shall have the right, upon written notice to Employee, to terminate Employee’s employment under this Agreement, effective upon the 30th calendar day following the giving of such notice (or such later day as shall be specified in such notice).  Upon the effectiveness of such termination, (i) the Company shall have
no further obligations under this Agreement, except as to pay and to provide, subject to applicable withholding, (A) all amounts of Base Salary accrued, but unpaid, at the effective date of termination, (B) a lump sum amount equal to Employee’s then annual Base Salary, (C) a pro rata portion of Employee’s Quarterly Bonus or Target Bonus, as applicable, and (D) all reasonable unreimbursed business-related expenses, and (ii) Employee shall have no further obligations hereunder other than those provided
for in Sections 1.4 and 3.18  of this Agreement.

 

All amounts payable to Employee pursuant to this Section 4.2 shall be payable within thirty  (30) days following the effective date of the termination of Employee’s employment.  For purposes of this Section, “permanent disability” shall be defined as any physical or mental disability or incapacity which
renders Employee incapable in any material respect of performing the services required of him in accordance with his obligations under Sections 1.1 and 1.5 for a period of  ninety  (90) days, consecutive or otherwise, in any three hundred and sixty (360) day period.

 

                4.3           Death.  In the event of the
death of Employee during the Term of Employment, this Agreement shall automatically terminate and the Company shall have no further obligations hereunder, except as to pay and provide to Employee’s beneficiary or other legal representative, subject to applicable withholding, (A) all amounts of Base Salary accrued but unpaid, at the date of death, (B) a pro rata portion of Employee’s Quarterly bonus or Target Bonus, as applicable, and (C) all reasonable unreimbursed business related expenses.  All
amounts payable to Employee pursuant to this Section 4.3 shall be payable within thirty (30) days following the Companies receipt of notice of date of death.

 

                4.4           Cause.  The Company shall have
the right, upon written notice to Employee, to terminate Employee’s employment under this Agreement for Cause (as hereinafter defined);  In the event of a termination for cause, this Agreement shall terminate and the Employee shall be removed from office effective as of the date specified by the Company in the notice, and (i) the Company shall have no further obligations hereunder, except to pay all amounts of Base Salary, reimburse all reasonable unreimbursed business-related expenses and pay
and provide all other benefits accrued to the date of termination and (ii) Employee shall have no further obligations hereunder, except for those provided in Sections 1.4 and 3.18 hereof;  provided, however, that nothing contained in this Section 4.4 shall constitute a waiver or release by the Company of any rights or claims it may have against Employee for actions or omissions which give rise to a termination under this Section  4.4.

 

 

 

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For purposes of this Agreement, the term “Cause” shall mean:

 

(i) Any act of fraud, embezzlement or dishonesty on the part of Employee with respect to the Company or any of its subsidiaries or Affiliates; or

 

(ii) Any material breach by Employee of his obligations under this Agreement;  or

 

(iii) A material breach of, or the failure or refusal by Employee to perform and discharge Employee’s duties, responsibilities or obligations under this Agreement (it being understood that no action or failure to act by Employee
shall be considered to be Cause if such action or failure to act shall have been taken by Employee in good faith); or

 

(iv) Gross negligence or willful misconduct in the performance of duties to the Company that has resulted or is likely to result in substantial and material damage to the Company; or

 

(v) Repeated unexplained or unjustified absence from the Company; or

 

(vi) A material and willful violation of any federal, state or local law; or

 

(vii) Conviction of a felony or a crime involving moral turpitude causing material harm to the standing and reputation of the Company, in each case as determined in good faith by the Board of Directors of the Company.

 

                4.5           Plan Benefits.  Upon any termination
of Employee’s employment hereunder, the Company shall pay Employee the amounts and shall provide all benefits generally available upon termination under any employee benefit plans, policies and practices of the Company, determined in accordance with the applicable terms and provisions of such plans, policies and practices.

 

5.             General

 

5.1           Governing Law. Venue The
laws of the State of Florida shall govern the interpretation, construction and applicability of this Agreement in any arbitration or judicial proceeding.

 

5.2           Attorneys’ Fees. In the event that any legal (judicial or arbitral) proceeding
is instituted in connection with any controversy arising out of this Agreement or the enforcement of any rights hereunder, the prevailing party (as defined by the courts of Florida) shall be entitled to recover, in addition to court and other costs, such sums as the court or arbitrator may decide are reasonable as attorneys’ fees.

 

 

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5.3           Waiver.  Neither party shall, by mere lapse of time, without giving notice
be deemed to have waived any breach by the other party of any of this Agreement.  Further, the waiver by either party of a particular breach of this Agreement shall be construed or deemed as a continuing waiver of such breach.

 

                5.4           Entire Agreement. The parties agree that this
instrument constitutes and contains the entire agreement between the parties concerning the subject matter and contents of this Agreement, and that this instrument supersedes all prior negotiations, proposed agreement, or understandings, if any, between the parties concerning any of the provisions or contents of this Agreement.  No amendment to this Agreement shall be effective unless it is in writing and signed by a duly authorized representative of each of the parties to this Agreement.

 

                 5.5          Fair Meaning. The parties agree that the wording
of this Agreement shall be construed as a whole according to its fair meaning, and not strictly for or against the party that drafted this Agreement.

 

                 5.6          Counterparts.  This Agreement
may be executed in any number of counterparts which shall be deemed an original, and all of which taken together constitutes one and the same Agreement.

 

                5.7           Severability.  The parties agree
that if any provision of this Agreement should ever be declared or determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby, and said illegal or invalid part, term or provision shall be automatically conformed to the law, if possible, or if not possible, be deemed to be stricken from this Agreement.

 

                5.8           Waiver/Estoppel. Any party hereto may waive
the benefit of any term, condition or covenant in this Agreement or any right or remedy at law or in equity to which any party may be entitled, but only by an instrument in writing signed by the parties to be charged. No estoppel may be raised against any party except to the extent the other parties rely on an instrument in writing, signed by the party to be charged, specifically reciting that the other parties may rely thereon. The parties' rights and remedies under and pursuant to this Agreement or at law or
in equity shall be cumulative and the exercise of any rights or remedies under any provision hereof or rights or remedies at law or in equity shall not be deemed an election of remedies; and any waiver or forbearance of any breach of this Agreement or remedy granted hereunder or at law or in equity shall not be deemed a waiver of any preceding or succeeding breach of the same or any other provision hereof or of the opportunity to exercise such right or remedy or any other right or remedy, whether or not similar,
at any preceding or subsequent time.

 

                 5.9          Notices. Any notice that the Company is
required to give or may desire to give to Employee hereunder shall be in writing and may be served by delivering it to Employee, or by sending it to Employee by certified mail, return receipt requested (effective three days after mailing) or overnight delivery of the same by delivery service capable of providing verified receipt (effective the next business day),

 

 

 

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or facsimile (effective twenty-four hours after receipt is confirmed by person or machine), at the address set forth below, or such substitute address as Employee may from time to time designate by notice to the Company. Any notice that Employee is required or may desire to serve upon the Company hereunder shall be in writing and may be
served by delivering it personally or by sending it certified mail, return receipt requested or overnight delivery, or facsimile (with receipt confirmed by person or machine) to the address set forth below, or such other substitute address as the Company may from time to time designate by notice to Employee. Such notices by Employee shall be effective at the same times as specified in this Section 5.9 for notices by the Company.

 

The Company:

 

Calibert Explorations, Ltd.

645 Bayway Blvd.

Clearwater Beach, Florida, 33767

Phone: 727-442-2667

Facsimile: 727-683-9671

 

Employee:

 

David Saltrelli

645 Bayway Blvd.

Clearwater Beach, Florida, 33767

Phone: 727-442-2667

Facsimile: 727-683-9671

 

                 5.10        Captions. The paragraph headings contained herein
are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

                 5.11        No Partnership or Joint Venture. Nothing herein contained
shall constitute a partnership between or joint venture by the parties hereto.

 

                 5.12        Assignability.  Successors.

 

                 (a)  The obligations of employee may not be delegated and, except as expressly provided in this Section 5.12 relating to the designation
of beneficiaries, Employee may not, without the Company’s prior written consent thereto, assign, transfer, convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any interest herein.  Any such attempted delegation or disposition shall be null and void and without effect.  Provided however, that Employee may assign all or any portion of his rights to receive compensation hereunder to any corporation at least fifty percent (50%) of the capital stock of which is
owned or controlled by Employee, to any other entity in which Employee owns or controls at least fifty percent (50%) of the total ownership interests, to trusts for the benefit of the family of Employee, to charitable trusts or to trusts for the benefit of any charitable purpose, or to any charity or non-profit organization. Notwithstanding any other provision hereof, Employee shall not be permitted to establish loan-out companies to provide his services to the Company and assign this Agreement thereto.

 

 

 

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                 (b)  The Company and Employee agree that this Agreement and each of the Company’s rights and obligations hereunder may be assigned
or transferred by the Company to, and shall be assumed by and be binding upon, any Successor to the Company.  The term “Successor” shall mean any corporation or other business entity which succeeds to the assets or conducts the business of the Company, whether directly or indirectly, by purchase, merger, consolidation or otherwise.  In the event another corporation or other business entity becomes a Successor of the Company, then the Successor shall, by an agreement in form and
substance reasonably satisfactory to Employee, expressly assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform if there had been no merger.

 

                5.13         No Mitigation; No Offset. Without limiting any other
provision hereof, the Company agrees that any income and other employment benefits received by Employee from any and all sources before, or during this Agreement shall in no way reduce or otherwise affect the Company's obligation to make payments and afford benefits hereunder.

 

6.             Arbitration.

 

                                (a)           In the event of any controversy arising from or concerning the interpretation of this
Agreement or its subject matter (including, without limitation, the interpretation, application, or enforceability of this Agreement or the arbitrability of the controversy), the parties agree that such controversy shall be resolved exclusively by binding arbitration before a single neutral arbitrator selected jointly by the parties.  The Company and Employee shall each be responsible for 50% of the fees and expenses of the arbitrator.  Each party shall be responsible for its own attorneys’
fees and any other costs occasioned by the arbitration, without regard to which party thereto prevails.  Provided however, that the arbitrator may award attorneys’ fees and costs to a party the terms of this Agreement.  The parties to the arbitration shall have all rights, remedies, and defenses available to them in a civil action before a court.  If, for any legal reason, a controversy arising from or concerning the interpretation, application, or enforceability of this Agreement
requires judicial intervention, the parties agree that the controversy shall be brought in the Pinellas County Superior Court or the U.S. District Court for the District of Florida.

 

                                (b)           The parties hereby waive and agree not to assert (by way of motion, as a defense
or otherwise) (a) any and all objections to jurisdiction that they may have under the laws of the State of Florida or the United States, and (b) any claim (i) that it or [he/she] is not subject personally to jurisdiction of such court, (ii) that such forum is inconvenient, (iii) that venue is improper, or (iv) that this Agreement or its subject matter may not for any reason be arbitrated or enforced as provided in this Section 6.0 (b).

 

                                (c)           Within ten (10) business days after receipt of the notice submitting a dispute or
controversy to arbitration, the parties shall attempt in good faith to agree upon an arbitrator to whom the dispute will be referred and on a joint statement of contentions. Each party hereby agrees that service of process in such action will be deemed accomplished and completed when a copy of the documents is sent in accordance with the notice provisions in Section 5.9 hereof.

 

 

 

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                                (d)           Discovery shall be conducted in accordance with the Florida Rules of Civil Procedure
regarding discovery. The arbitrator shall establish the discovery schedule promptly following submission of the joint statement of contentions (or the filing of the answer to the demand for arbitration) which schedule shall be strictly adhered to. To the extent the contentions of the parties relate to custom or practice in the Company’s business model, or the technical industry generally, or to accounting matters, each party may select an independent expert or accountant (as applicable) with substantial
experience in the industry segment involved to render an expert opinion or opinions. All decisions of the arbitrator shall be in writing.  The arbitrator shall make all rulings in accordance with Florida law and shall have authority equal to that of a Superior Court judge, to grant equitable relief in an action pending in Superior Court in which all parties have appeared.

 

                7.             Contractual Nomenclature. All
references herein to "Dollars" or "$" shall mean Dollars of the United States of America, its legal tender for all debts public and private. Wherever used herein and to the extent appropriate, the masculine, feminine or neuter gender shall include the other two genders, the singular shall include the plural, and the plural shall include the singular.

 

                8.             Publicity. Neither party shall issue
any press release or announcement of or relating to the execution of, or any terms, provisions or conditions contained in this Agreement without the other party's prior approval of the content and timing of any such announcement or announcements.

 

9.             Proof of Right to Work.  For purposes of federal immigration law,
Employee will be required to provide the Company with documentary evidence of his identity and eligibility for employment in the United States within three (3) business days of Employee’s date of hire; otherwise, the Company may terminate the employment relationship and this Agreement.

 

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

 

Calibert Explorations, Ltd., a Nevada Corporation

 

 

By: DAVID SALTRELLI

       David Saltrelli, President, Director

 

 

Employee

 

By: DAVID SALTRELLI

       David Saltrelli, an Individual

 

 

 

  

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