Document:

EX-10.1

Exhibit 10.1

Outside Director

Deferred Compensation Plan

La Quinta Corporation

December 2004

1

La Quinta Corporation

Outside Director Deferred Compensation Plan

Article 1. Establishment, Purpose, and Duration

1.1 Establishment of the Plan. La Quinta Corporation hereby establishes a deferred
compensation plan to be known as the “La Quinta Corporation Outside Director Deferred Compensation
Plan” (the “Plan”), as set forth in this document. The Plan provides for the deferral of
compensation and acquisition of Deferred Stock Units by Nonemployee Directors, subject to the terms
and provisions set forth herein.

Upon approval by the Board of Directors of the Company, the Plan shall become effective as of
January 1, 2005 (the “Effective Date”), and shall remain in effect as provided in Section 1.3
herein.

1.2 Purpose of the Plan. The purposes of the Plan are to promote the achievement of long-term
objectives of the Company by linking the personal interests of Nonemployee Directors to those of
the Company’s shareholders and to attract and retain Nonemployee Directors of outstanding
competence.

1.3 Duration of the Plan. The Plan shall commence on January 1, 2005 and shall remain in
effect, subject to the right of the Board of Directors to terminate the Plan at any time pursuant
to Article 8.

Article 2. Definitions

Whenever used in the Plan, the following terms shall have the meanings set forth below
and, when the defined meaning is intended, the initial letter of the word is capitalized:

	 	(a)	 	“Board” or “Board or Directors” means the Board of Directors of the
Company.	 

	 	(b)	 	“Committee” means the Compensation Committee of the Board of Directors of the Company
or any other committee appointed by the Board to administer the Plan.

	 	(c)	 	“Company” means La Quinta Corporation, a Delaware corporation, and any successor by
merger, consolidation, or otherwise.

	 	(d)	 	“Deferrals” means, individually or collectively, amounts deferred under
this Plan.	 

	 	(e)	 	“Deferred Stock Units” means stock units that track the actual price of the Shares
but are not represented by actual Shares.

	 	(f)	 	“Deferred Stock Unit Account” means the deferred stock unit account established for
each Participant in accordance with Section 6.1 of the Plan.

	 	(g)	 	“Director” means any individual who is a member of the Board of Directors of the
Company.

	 	(h)	 	“Fair Market Value” shall mean the closing price for Shares on the relevant date, or
if there is no sale on such date, then on the last previous day on which a sale was
reported.

	 	(i)	 	“Nonemployee Director” means any individual who is a member of the Board of Directors
of the Company whose arrangements with the Company provide for him or her to receive fees
for serving as a Director and who is not otherwise an employee of the Company.

	 	(j)	 	“Participant” means a Nonemployee Director of the Company who has an outstanding
Deferral under the Plan.

	 	(k)	 	“Shares” means the common stock of the Company, par value two cents ($0.02) per
share.

Article 3. Administration

3.1 General. The Plan shall be administered by the Compensation Committee of the Board,
or by any other committee appointed by the Board for purposes of administering this Plan. The
members of the Committee shall be appointed from time to time by, and shall serve at the discretion
of, the Board of Directors. Any committee administering the Plan shall be comprised entirely of
Directors. Members of the Committee can participate in this Plan. The Committee shall have the
authority to delegate administrative duties to a committee of officers, employees, or Directors of
the Company and to add or change investment options available to Participants under this Plan.

3.2 Administration by the Committee. The Committee shall have the full power, discretion, and
authority to interpret and administer the Plan in a manner which is consistent with the Plan’s
provisions. However, in no event shall the Committee have the power to determine Plan eligibility,
or to determine the number, the value, the vesting period, or the timing of Deferrals to be made
under the Plan (all such determinations being automatic pursuant to the provisions of the Plan).

3.3 Decisions Binding. All determinations and decisions made by the Committee pursuant to the
Plan, and all related orders or resolutions of the Board, shall be final, conclusive, and binding
on all persons, including the Company, its shareholders, employees, Participants, and their estates
and beneficiaries.

Article 4. Eligibility and Participation

Persons eligible to participate in the Plan are limited to Nonemployee Directors who
are serving on the Board on the date of each scheduled Deferral under the Plan.

Article 5. Deferral of Cash Retainer and Fees

5.1 Deferral of Cash Retainer and Fees. During the term of this Plan, any Nonemployee
Director may elect to defer all or a portion of his or her annual cash retainer, board meeting
fees, and Committee meeting fees paid in connection with Board service to a Deferred Stock Unit
Account. Such election to defer compensation shall be subject to the provisions of this Article 5.

5.2 Deferral Elections. Any deferral election under Section 5.1 shall be made prior to the
calendar year in which such payments would otherwise be earned and payable. New Nonemployee
Directors shall make such election within thirty (30) days of their original election to the Board.
Each such election may pertain to more than one (1) year of scheduled payments. All deferral
elections shall be irrevocable, and shall be made on a “Deferral Election Form,” as described
herein. Participants shall make irrevocable elections on the initial and each subsequent “Deferral
Election Form” as to the amount to be deferred with respect to each component of compensation for
the relevant calendar year.

5.3 Number of Deferred Stock Units. The number of Deferred Stock Units to be credited (to a
Participant’s Deferred Stock Unit Account) in connection with an election pursuant to this Article
5 shall equal the portion of the cash retainer and fees elected by the Participant to be deferred
into Deferred Stock Units, divided by the Fair Market Value of a Share on the date of the scheduled
payment of the amount deferred. In the event of any fractional shares, the number of Deferred Stock
Units credited to a Participant’s Deferred Stock Unit Account shall be rounded up to the next whole
number of full Shares.

5.4 Vesting of Deferrals. All Deferrals under this Article 5 shall be one hundred percent
(100%) vested at the time of such deferral.

5.5 Length of Deferral. Except as otherwise provided herein, all Deferrals hereunder and
investment return thereon shall be maintained in deferred status until the respective Participant’s
termination of services on the Board.

5.6 Unforeseeable Emergency. The Committee shall have the authority to alter the timing or
manner of payment of deferred amounts in the event that the Participant establishes, to the
satisfaction of the Committee, an unforeseeable emergency has occurred. In such event, the
Committee may, in its sole discretion:

	 	(a)	 	Authorize the cessation of Deferrals by such Participant under the
Plan; or

	 	(b)	 	Provide that all, or a portion, of any previous Deferrals by the
Participant shall immediately be paid in a lump-sum in Shares; or

	 	(c)	 	Provide for such other payment schedule as deemed appropriate by the
Committee under the circumstances.

For purposes of this Section 5.6, “unforeseeable emergency” shall mean a severe financial
hardship to the Participant resulting from the sudden and unexpected illness or accident of the
Participant, the Participant’s spouse, or the Participant’s dependent (as defined in Section 152(a)
of the Code), loss of the Participant’s property due to casualty, or other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control of the
Participant. Withdrawals of amounts because of an unforeseeable emergency may only be permitted to
the extent reasonably necessary to satisfy the hardship, after taking into account the extent to
which such hardship is or may be relieved through reimbursement or compensation by insurance or by
liquidation of the Participant’s assets.

The Committee, in its sole discretion, shall judge the severity of the financial hardship. The
Committee’s decision with respect to the severity of financial hardship and the manner in which, if
at all, the Participant’s future Deferral opportunities shall be ceased, and/or the manner in
which, if at all, the payment of deferred amounts to the Participant shall be altered or modified,
shall be final, conclusive, and not subject to appeal.

Article 6. Participants’ Accounts

6.1 Deferred Stock Unit Account. A Deferred Stock Unit Account shall be established and
maintained by the Company for each Participant who makes a Deferral thereto under the Plan. Each
Deferred Stock Unit Account shall be credited as of the date the amount deferred otherwise would
have become due and payable to the Participant with an amount elected by the Participant in
accordance with Section 5.2. That amount will be converted to a number of Deferred Stock Units
using the Fair Market Value on the date of credit. Dividend equivalents on Deferred Stock Units in
the Deferred Stock Unit Account shall be converted to additional Deferred Stock Units based upon
the Fair Market Value on the dividend payment date. Each Deferred Stock Unit Account is maintained
solely for accounting purposes and shall not require a segregation of any Company assets.

6.2 Form and Amount of Payout of the Deferred Stock Unit Account. Deferred Stock Units will be
paid out of the Deferred Stock Unit Account solely in Shares.

6.3 Timing of Payout of Deferred Stock Unit Account. Any Deferred Stock Units in a
Participant’s Deferred Stock Unit Account shall be paid out upon the termination of a Nonemployee
Director’s service on the Board of Directors. The payout of the Deferred Stock Units shall be made
solely in Shares (in a single lump sum) within thirty (30) days following such termination of
service.

Article 7. Deferred Stock Units

7.1 Value of Deferred Stock Units. Each Deferred Stock Unit shall have an initial value
that is equal to the Fair Market Value of one Share as of the date such Deferred Stock Unit is
credited to the Participant’s Deferred Stock Unit Account. Subsequent to such date of acquisition,
the value of each Deferred Stock Unit shall change in direct relationship to changes in the Fair
Market Value of a Share.

7.2 Dividend Equivalents. Dividend equivalents shall be earned on Deferred Stock Units
provided under this Plan. Such dividend equivalents shall be converted into an equivalent amount of
Deferred Stock Units based upon the Fair Market Value of a Share on the dividend payment date. The
converted Deferred Stock Units will be fully vested upon conversion.

Article 8. Amendment, Modification, and Termination

8.1 Amendment, Modification, and Termination. Subject to the terms set forth in this
Section 8.1, the Board may terminate, amend, or modify the Plan at any time and from time to time.

8.2 Previous Deferrals. Unless required by law, no termination, amendment, or modification of
the Plan shall in any material manner adversely affect any Deferral previously made under the Plan
without the written consent of the applicable Participant.

Article 9. Miscellaneous

9.1 Gender and Number. Except where otherwise indicated by the context, any masculine
term used herein also shall include the feminine; the plural shall include the singular and the
singular shall include the plural.

9.2 Severability. In the event any provision of the Plan shall be held illegal or invalid for
any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

9.3 Beneficiary Designation. Each Participant under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit
under the Plan is to be paid in the event of his or her death. Each designation will revoke all
prior designations by the same Participant, shall be in a form prescribed by the Board, and will be
effective only when filed by the Participant in writing with the Board during his or her lifetime.
In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall
be paid to the Participant’s estate.

9.4 No Right of Nomination. Nothing in the Plan shall be deemed to create any obligation on
the part of the Board to nominate any Director for reelection by the Company’s shareholders.

9.5 Shares Available. The Shares delivered under the Plan may be either authorized but
unissued Shares, or Shares which have been or may be reacquired by the Company, as determined from
time to time by the Board.

9.6 Successors. All obligations of the Company under the Plan with respect to Deferrals
hereunder shall be binding on any successor to the Company, whether the existence of such successor
is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company.

9.7 Requirements of Law. Deferrals under the Plan shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or national securities
exchanges as may be required.

9.8 Governing Law. The Plan, and all agreements hereunder, shall be construed in accordance
with and governed by the internal, substantive laws of the state of Delaware.

2EX-10.2

Exhibit 10.2

LA QUINTA CORPORATION

2004 ANNUAL BONUS PROGRAM

INTRODUCTION

The Annual Bonus Program provides a clear connection between financial rewards and specific
business objectives that are the personal responsibility of each individual who is eligible for the
bonus plan. The achievement of these business objectives is a direct measure of the efforts and
results of the individual. The attainment of these objectives supports the overall success of La
Quinta.

This bonus program provides incentives equally to all selected Corporate Executive Management. The
plan includes a component of total compensation that is linked to both the achievement of our
business objectives and individual performance.

OBJECTIVES

1. Link actual performance with financial incentives.

2. Provide enhanced rewards for above average financial returns.

3. Provide a financial incentive to achieve the business objectives.

PURPOSE

The purpose of this plan is to provide incentives for the achievement of company results.
This document provides information that enables the individual, at the beginning of the year, to
have a clear understanding of the financial rewards that can be earned for achieving specific
performance objectives and standards.

The principal cornerstones of this program are:

	 	1.	 	Bonus amounts are earned each year. These rewards must be earned through actual
performance.

2. Maximize EBITDA.

3. Increase Revenues.

4. Improve Guest Satisfaction.

5. Increase RevPAR.

6. Control costs.

7. Achieve individual objectives.

PARTICIPATION

Participation in the plan is limited to Corporate Executive Management. Determination of
membership in the plan is the sole responsibility of the Board of Directors Compensation Committee.

After the Compensation Committee has approved participation in the plan, each senior executive will
receive the necessary materials in order to enable him/her to communicate the plan to participants
in their area of responsibility.

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ELIGIBILITY

• Executive Committee Members – Job titles such as:

President and CEO, Executive Vice President, Senior Vice President, etc.

• Corporate Vice Presidents – Job titles such as:

Controller, Development Services, Reservation Systems, Revenue Management, Risk
Management, Sales, Tax, RVP’s, etc.

• Corporate Directors – Job titles such as:

Cash Management, Construction Services, Assistant Treasurer, Assistant Controller,
Relationship Marketing, Training, etc.

• Corporate Managers – Job titles such as:

System Development, Field Marketing, Corporate Tax, General Accounting, Payroll, Hotel
General Managers, etc.

Other selected position titles in Salary Grade 18 and above unless participating in
another La Quinta Bonus Program.

• Corporate Staff – Job titles such as:

Benefits Specialist, Staff Accountant, Contracts Administrator, Administrative
Assistant, Accounting Clerk, etc.

Individuals are eligible for participation in the Annual Bonus Program:

	 	A.	 	If the individual has not voluntarily or involuntarily terminated employment prior to
the date incentive payments are issued.

	 	B.	 	In cases where an eligible individual has been transferred or promoted by Sept.
30th of the year, the bonus payout will be pro-rated according to the number of
rounded whole months in each position. In cases where an eligible individual has been
transferred or promoted on or after October 1st of the year, the bonus payout
will be based on the location, bonus percentage entitlement, etc. of the old
position/location for the entire year (as if the promotion/transfer had not occurred).

	 	C.	 	In cases where an employee manipulates expenses or revenues, the entire bonus for the
employee will be at risk of forfeiture as determined by the Compensation Committee.

ADMINISTRATION

The Board of Directors Compensation Committee is the sole interpreter and arbitrator of these
provisions and has the right to amend, withdraw, or revoke them at any time. Recommended bonus
payments (including any “stretch” bonus) are not final until approved by the Compensation
Committee.

DEFINITIONS

Pay is defined as the regular base pay earned during the year, as accounted for by the Payroll
system. It does not include any other bonus, auto allowance, relocation reimbursements, or other
similar types of payments received by the individual.

Gate is defined as the minimum level of achievement eligible for a bonus payment.

Target is defined as the planned level of achievement in the annual budget.

Stretch Bonus is defined as bonus payments greater than target. Stretch bonus can be applied to
any or all bonus components and can double the overall bonus potential.

Quantitative goals are goals based on numbers set forth in the annual budget or operations plan.
Financial goals such as IOC, EBITDA, Revenue or a Guest Satisfaction target are examples of
quantitative goals.

Qualitative goals are individual goals determined between the individual and his/her supervisor.

Department budget is the budget for the department for which the bonus eligible person is
responsible.

GATE

The Company must achieve a minimum threshold of 95% of Budgeted EBITDA, IOC or Revenue
(depending on the individual). This gate must be achieved in order for eligible participants to
qualify for the financial portion of their individual bonus potential.

BONUS OPPORTUNITIES

Bonus opportunities are established through a Goal Setting Exercise for each individual’s
immediate area of responsibility. The bonus opportunities are divided into Quantitative and
Qualitative categories.

The qualitative component of each individual’s bonus is determined by the achievement of Individual
Business Objectives. The weighting for achievement of business objectives varies by individual.

The individual and his/her immediate supervisor at the beginning of the year set individual
business objectives. These objectives may be revised, eliminated, or amended during the course of
the plan year depending on changes in business needs and conditions. Each business objective is
given target points that represent the importance of the objective. The total number of target
points must be 100. At the end of the year, the supervisor rates performance toward the
achievement of the business objectives by assigning achieved points for each objective. If the
objective is achieved, the assigned points equal the target points. If the objective is not
achieved, the assigned points are a percentage of the target point. This percentage represents the
degree to which the objective was completed. The achieved points determine the bonus amount paid.

A portion of a stretch bonus can also be earned by exceeding expectations for planned objectives.
An individual who exceeded their objectives or, who achieved unexpected results by overcoming
unforeseen or difficult business conditions, can earn an additional bonus payment based on the
discretion of the Executive Committee member and with the approval of the President and CEO. The
amount of this stretch portion of the bonus is completely discretionary within the range of payment
established for that position.

Reasons for granting this additional bonus are demonstrating leadership and management ability by:

	 	•	 	Overcoming adverse business conditions and obstacles, or foreseeing issues to
avoid problems that would have had an adverse impact on Company results.

	 	•	 	Enhancing La Quinta’s image with customers, employees, shareholders, the local
communities where we operate, the general business community, or vendors.

	 	•	 	Managing others to achieve outstanding results and increasing morale.

	 	•	 	Acting individually or as a member of a team to complete special assignments that
are critical to the success of the Company.

Where possible, the above accomplishments are to be supported by measurable results.
Recommendations for a stretch bonus are submitted to Executive Committee members. The Executive
Committee will review all recommendations with approval by the President and CEO prior to
submission to the Compensation Committee for final approval.

2

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