Document:

exv10w7

Exhibit 10.7

REUNION HOSPITALITY TRUST, INC.

EMPLOYMENT AGREEMENT

     EMPLOYMENT
AGREEMENT (this “Agreement”), dated as of _________ ___, 2011, between
Reunion Hospitality Trust, Inc., a Maryland corporation, its successors or assigns (the
“Company”), and George L. Ruff (the “Employee”).

W I T N E S S E T H

     WHEREAS, the Company intends to complete an initial public offering and a concurrent private
placement (the “Offering”) of its common stock;

     WHEREAS,
the Company desires to employ the Employee as Executive Vice Chairman of the Company following the Company’s Offerings;

     WHEREAS, the Company and the Employee desire to enter into this Agreement as to the terms of
the Employee’s employment as the Executive Vice Chairman of the Company;

     WHEREAS, the Employee’s agreement to be employed by the Company as of the Effective Date (as
defined in Section 2 hereof) is a material inducement to the Company to enter into this Agreement
as of the date hereof and the date of the Offering;

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

     1. POSITION AND DUTIES.

          (a) During the Employment Term (as defined in Section 2 hereof), the Employee shall serve as
the Executive Vice Chairman of the Company. In this capacity, the Employee shall
have all duties, authorities and responsibilities commensurate with the duties, authorities and
responsibilities of persons in similar capacities in similarly sized companies, and such other
duties, authorities and responsibilities as the Company’s Board
of Directors (the “Board”) shall designate
from time to time that are not inconsistent with the Employee’s
position as the Executive Vice Chairman of the Company. The Employee shall
report to the Company’s Board.

          (b) During the Employment Term the Employee shall devote substantially all of the Employee’s
business time, energy and skill and the Employee’s best efforts to the performance of the
Employee’s duties with the Company; provided, that the foregoing shall not prevent the
Employee from (i) serving Trinity Hotel Investors L.L.C., and its affiliates (collectively,
“THI”), so long as such service does not, in any
material way, limit the operations of the Company, (ii) serving on the boards of
directors of non-

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profit organizations and, with the prior written approval of the Board of Directors of the
Company (the “Board”) (or the applicable committee(s) thereof) in each instance, other
for-profit companies, (iii) participating in charitable, civic, educational, professional, community
or industry affairs or serving on advisory boards and committees, and
(iv) managing the Employee’s
passive personal investments; provided further that without derogating from the
foregoing, in no event shall the Employee be obligated to devote any specific portion of his time
to the Company’s affairs.

     2. EMPLOYMENT TERM. The Company agrees to employ the Employee pursuant to the terms of this
Agreement, and the Employee agrees to be so employed, from the period commencing as of the
Effective Date and ending on December 31, 2014 (the “Initial Term”). Notwithstanding
anything herein to the contrary, the Employee agrees that he shall not terminate this Agreement
prior to the Effective Date. In addition, prior to the Effective Date, the Employee shall agree to
cooperate and permit the Company to use his name in regulatory filings that he has approved, which
approval shall not unreasonably be withheld or delayed. Upon the expiration of the Initial Term
and each Renewal Term (as defined below), as the case may be, the term of this Agreement shall be
automatically extended for successive one-year periods (each, a “Renewal Term”),
provided, however, that either party hereto may elect not to extend the term of
this Agreement by giving written notice to the other party at least 90 days prior to the expiration
of the Initial Term or any Renewal Term. Notwithstanding the foregoing, the Employee’s employment
hereunder may be earlier terminated at any time during the Initial Term or any Renewal Term in
accordance with Section 8 hereof, subject to Section 9 hereof. The period of time between the
Effective Date and the termination of the Employee’s employment hereunder for any reason shall be
referred to herein as the “Employment Term.” For purposes of this Agreement,
“Effective Date” means the date upon which the Offering is consummated.

     3. [RESERVED]

     4. ANNUAL
BASE SALARY. From the Effective Date through the earlier of (i)
the date on which the Company satisfies the Capital Deployment Hurdle
(as defined in the Registration Statement) or (ii) July 31, 2012, the Employee will
not be entitled to receive any salary from the Company pursuant to this Agreement, except that
nothing herein shall prohibit the Employee from receiving any discretionary bonus approved by the
Board or the compensation committee of the Board (the “Compensation Committee”). Commencing
the earlier of (i) the date following the date on which the Company
satisfies the Capital Deployment Hurdle or (ii) August 1, 2012,
the Company agrees to pay the Employee an annual base salary of $400,000 (as
increased from time to time in accordance with Section 5 below, the “Annual Base Salary”).
The Annual Base Salary shall be payable in accordance with the regular payroll practices of the
Company.

     The Annual Base Salary shall be subject to annual review by the Board (or the Compensation
Committee), and, subject to Section 5 below, may be increased, but not decreased below its then
current level, from time to time by the Board.

     5. ANNUAL SALARY INCREASE; ANNUAL BONUS. On each January 1 during the Employment Term, the
Employee shall receive an annual salary increase equal to the greater of (i) 3% of the Employee’s
then current Annual Base Salary (which Annual Base Salary shall, during the period commencing on
the Effective Date through the earlier of (i) the date on which the
Company satisfies the Capital Deployment Hurdle or (ii) July 31,
2012, be deemed to be for this purpose $400,000), or (ii)
the annual percentage increase cost of living in the city of New York as determined by the
Compensation Committee of the Board. In addition,

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during the Employment Term, the Employee shall be eligible to receive an annual discretionary
incentive payment under the Company’s annual cash bonus plan as in effect from time to time equal
to either 50%, 75% or 125% of the Employee’s then current Annual Base Salary (the “Annual
Bonus”), upon the attainment of one or more pre-established performance goals established by
the Compensation Committee and approved by the Board, which shall include, but not be limited to,
operating the Company in a safe and sound manner and complying with all federal or state laws,
rules and regulations.

     6. EQUITY AWARDS. During the Employment Term, the Employee shall be eligible to receive
equity and long-term incentive awards under any equity-based incentive compensation plan adopted by
the Company during the Employment Term for which the Company’s senior executives are generally
eligible. The level of the Employee’s participation in any such plan, if any, shall be determined
in the sole discretion of the Board from time to time.

     7. EMPLOYEE BENEFITS; CHANGE IN CONTROL BENEFITS.

          (a) BENEFIT PLANS. During the Employment Term, the Employee shall be entitled to participate,
in accordance with the Company’s policies, in any employee benefit plan that the Company has
adopted or may adopt, maintain or contribute to for the benefit of its employees generally from
time to time including health, vision, dental, disability, and life in a manner commensurate with
other employees of the Company, and in accordance with, and subject to, the terms and conditions
thereof, including satisfying the applicable eligibility requirements. Notwithstanding the
foregoing, the Company may in its sole discretion modify or terminate any employee benefit plan at
any time.

          (b) VACATIONS; SICK LEAVE. During the Employment Term, the Employee shall be entitled to four
weeks of paid vacation per calendar year (as prorated for partial years) in accordance with the
Company’s policy on accrual and use applicable to employees as in effect from time to time. The
Employee agrees that any vacation taken by the Employee during the Employment Term shall be taken
at times which are mutually determined by the Board and the Employee not to
interfere, in any material respect, with the Employee’s performance of his duties hereunder.
During the Employment Term, the Employee shall be entitled to up to 30 days of sick leave per
calendar year for use in accordance with the Company’s policy on accrual and use applicable to
employees as in effect from time to time.

          (c) BUSINESS AND ENTERTAINMENT EXPENSES. Upon presentation of appropriate documentation, the
Employee shall be reimbursed in accordance with the Company’s expense reimbursement policy, for all
reasonable business and entertainment expenses reasonably incurred in connection with the
performance of the Employee’s duties hereunder and the Company’s policies with regard thereto.

          (d) CHANGE IN CONTROL PAYMENT. If there is a Change in Control during the Employment Terms
and the Employee is terminated without Cause or the Employee resigns for Good Reason (as defined
herein) within six months following such Change in Control, the Employee shall be entitled to (a)
(x) payment of any accrued but unpaid Annual Base Salary through the date of termination, paid in
accordance with the regular payroll practices

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of the Company; (y) reimbursement for any outstanding reasonable business expenses and (z)
100% vesting of any unvested securities previously awarded to the Employee using a time-based
method of vesting (collectively, the “CIC Accrued Benefits”), (b) within 10 days of termination, a
single lump sum payment in an amount equal to (x) three times the Employee’s then current Annual
Base Salary plus (y) three times the Employee’s average Annual Bonus paid over the prior three
years or such lesser period a bonus has been paid and (c) retain any Company provided mobile phone.
For purposes of this Agreement, a “Change in Control” means a change in control of the
Company which will be deemed to have occurred after the date hereof if:

     (i) any “person” as such term is used in Section 3(a)(9) of the Exchange Act,
as modified and used in Sections 13(d) and 14(d) thereof except that such term shall
not include (A) the Company or any of its subsidiaries, (B) any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any of
its affiliates, (C) an underwriter temporarily holding securities pursuant to an
offering of such securities, (D) any corporation owned, directly or indirectly, by
the shareholders of the Company in substantially the same proportions as their
ownership of the Company’s common shares, or (E) any person or group as used in Rule
13d-1(b) under the Exchange Act, is or becomes the Beneficial Owner, as such term is
defined in Rule 13d-3 under the Exchange Act, directly or indirectly, of securities
of the Company representing at least 35% of the combined voting power or common
shares of the Company;

     (ii) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board or whose election by the Board or
nomination for election by the Company’s shareholders was approved by a vote of at
least two-thirds of the Board then still in office cease for any reason to
constitute at least a majority thereof;

     (iii) there is consummated a merger or consolidation of the Company or any
direct or indirect subsidiary of the Company with any other corporation, other than
a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or
any parent thereof) in combination with the ownership of any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any
subsidiary of the Company, more than 50% of the combined voting power and common
shares of the Company or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation; or

     (iv) there is consummated an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets (or any transaction
having a similar effect, including a liquidation) other than a sale or disposition
by the Company of all or substantially all of the Company’s assets to an entity,
more than 50% of the combined voting power and common shares of which is owned by
shareholders of the Company in substantially the same proportions as their ownership
of the common shares of the Company immediately prior to such sale.

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     8. TERMINATION. The Employee’s employment under this Agreement and/or the Employment Term
shall terminate on the first of the following to occur, whether before or after the Effective Date:

          (a) DISABILITY. Upon the Employee’s receipt of written notice from the Company of termination
due to Disability. For purposes of this Agreement, “Disability” shall be defined as the
inability of the Employee to have performed the Employee’s material duties hereunder due to a
physical or mental injury, infirmity or incapacity for 180 consecutive or non-consecutive days
(including weekends and holidays) in any 365-day period. Disability shall be determined by the
Board, in its discretion, and any such determination shall be final and binding on all parties.

          (b) DEATH. Automatically on the date of death of the Employee.

          (c) CAUSE. Cause, as determined in this Section. The Company shall not allege the existence
of Cause without the determination of such by the affirmative vote of a majority of the entire
Board. The Employee shall be entitled to written notice from the Company of, together with a
reasonably detailed description of the basis for, any such determination that Cause exists with
respect to the Employee. The Employee’s employment under this Agreement and/or the Employment Term
shall terminate for Cause upon the 30th calendar day following the Employee’s receipt of
such written notice from the Company, unless within such 30-day period, the Employee has (x) cured
such Cause (subject to any limitations below) or (y) given written notice to the Company of the
Employee’s claim that Cause does not exist, together with a reasonably detailed description of the
basis for such claim; provided, that if the Company and the Employee are unable to resolve such
claim within such 30-day period, then such claim shall be submitted for resolution by arbitration
to be held in the City and County of New York in accordance with the rules of the American
Arbitration Association then in effect (before a panel of three arbitrators chosen in accordance
with such rules), but in any event providing for discovery on the same basis as if the dispute were
being litigated under the Federal Rules of Civil Procedure. If the final outcome of any such
arbitration is that Cause does exist, then the Employee’s employment and/or the Employment Term
shall terminate for Cause within 30 additional days after the Employee’s receipt of written notice
of such outcome, unless the Employee has cured such Cause within such additional 30-day period;
provided, that repetition of the same refusal or failure that has previously been determined
hereunder to have constituted Cause under subsection (ii) below may not be cured. “Cause”
shall mean any of the following:

     (i) the Employee’s willful misconduct or gross negligence in the performance of
the Employee’s duties to the Company that has or could reasonably be expected to
have an adverse effect on the Company;

     (ii) the Employee’s refusal or failure to follow the written lawful directives
of the Board (other than as a result of death or a physical or mental incapacity);

     (iii) indictment for, conviction of, or pleading of guilty or nolo contendere
to, a felony or any crime involving moral turpitude (none of which shall be subject
to cure as provided above);

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     (iv) the Employee’s embezzlement or misappropriation of corporate funds or
other acts of theft, fraud, malfeasance, self-dealing, dishonesty or breach of
fiduciary duty in connection with the performance of the Employee’s duties to the
Company;

     (v) breach of Section 11 of this Agreement; or

     (vi) material breach of any other Section of this Agreement or any other
agreement with the Company or a violation of the Company’s code of conduct or other
written policy.

          (d) WITHOUT CAUSE. Immediately upon the Employee’s receipt of written notice from the Company
of an involuntary termination without Cause (other than for death or Disability).

          (e) GOOD REASON. Good Reason as determined in this Section. The Company shall be entitled to
written notice from the Employee of, together with a reasonably detailed description of the basis
for, any allegation by the Employee that Good Reason exists. Any claim that Good Reason exists
shall be deemed irrevocably waived by the Employee unless the Board receives such written notice
from the Employee within 60 days following the date on which the Employee first becomes aware of
the event the Employee claims constitutes Good Reason. The Employee’s employment under this
Agreement and/or the Employment Term shall terminate for Good Reason upon the 30th
calendar day following the Employee’s receipt of such written notice from the Employee, unless
within such 30-day period, the Company has (x) cured such Good Reason or (y) given written notice
to the Employee of the Company’s claim that Good Reason does not exist, together with a reasonably
detailed description of the basis for such claim; provided, that if the Company and the Employee
are unable to resolve such claim within such 30-day period, then such claim shall be submitted for
resolution by arbitration to be held in the City and County of New York in accordance with the
rules of the American Arbitration Association then in effect (before a panel of three arbitrators
chosen in accordance with such rules), but in any event providing for discovery on the same basis
as if the dispute were being litigated under the Federal Rules of Civil Procedure. If the final
outcome of any such arbitration is that Good Reason does exist, then the Employee’s employment
and/or the Employment Term shall terminate for Good Reason within 30 additional days after the
Company’s receipt of written notice of such outcome, unless the Company has cured the circumstances
that gave rise to such Good Reason within such additional 30-day period; provided, that repetition
of the same diminution, action or inaction that has previously been determined hereunder to
constitute Good Reason under any of clauses (i) through (iii) below may not be cured. “Good
Reason” shall mean the occurrence of any of the following events without the written consent of
the Employee:

     (i) diminution in the Employee’s then current Annual Base Salary;

     (ii) a material diminution of the Employee’s authority, duties and
responsibilities; or

     (iii) any other action or inaction that constitutes a breach by the Company of
a material provision of this Agreement.

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          (f) RESIGNATION. 90 days following the Company’s receipt of a written notice setting forth the
Employee’s resignation without Good Reason; provided, that upon receipt of such notice the Company
may, in its sole discretion, make such termination effective at an earlier date and the termination
shall still be treated as a voluntary termination by the Employee without Good Reason.

          (g) EXPIRATION OF EMPLOYMENT TERM; NON-EXTENSION OF AGREEMENT. Upon the expiration of the
Employment Term due to a non-extension of the Agreement by the Company or the Employee pursuant to
the provisions of Section 2 hereof.

     9. CONSEQUENCES OF TERMINATION.

          (a) DEATH. In the event that the Employee’s employment and the Employment Term ends on or
after the Effective Date on account of the Employee’s death, the Employee’s estate shall be
entitled to the following:

     (i) a lump sum payment equal to the sum of (x) any unpaid Annual Base Salary
through the date of termination, plus (y) the Annual Base Salary payable for the
remainder of the Employment Term then in effect, plus (z) the Employee’s average
Annual Bonus paid over the prior three years (or such lesser period during which an
Annual Bonus has been paid), paid on the 60th day from the date of
termination;

     (ii) reimbursement for any reasonable business expenses incurred through the
date of termination pursuant to, and paid in accordance with, Sections 7(c) and
24(b)(iii) of this Agreement;

     (iii) any accrued but unused vacation time or sick leave days paid in
accordance with Company policy;

     (iv) such vested accrued benefits, if any, as to which the Employee may be
entitled under the Company’s employee benefit plans and programs applicable to the
Employee as of the date of termination, which shall be paid or provided in
accordance with the terms of the applicable plan or program; and

     (v) the vesting as of the date of termination of any unvested securities
previously issued to the Employee using a time-based method of vesting
(collectively, Sections 9(a)(i) through 9(a)(v) hereof shall be hereafter referred
to as the “Accrued Benefits”).

          (b) DISABILITY. In the event that the Employee’s employment and/or Employment Term ends on or
after the Effective Date on account of the Employee’s Disability, the Company shall pay or provide
the Employee with the Accrued Benefits.

          (c) TERMINATION FOR CAUSE OR AS A RESULT OF NON-EXTENSION OF THIS AGREEMENT. If the
Employee’s employment is terminated (i) by the Company for Cause or (ii) as a result of the
non-extension of the Employment Term as

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provided in Section 2 hereof, the Company shall pay to the Employee any accrued but unpaid
Annual Base Salary from the Effective Date through the date of termination, paid in accordance with
the regular payroll practices of the Company, except as required otherwise by law. The Employee’s
access to the Company’s employee benefit plans and programs applicable to the Employee shall
terminate as of the date of termination, except as required otherwise by law.

     (d) TERMINATION WITHOUT CAUSE OR FOR GOOD REASON. If the Employee’s employment by the Company
is terminated on or after the Effective Date (x) by the Company without Cause (other than for death
or Disability), or (y) by the Employee for Good Reason, the Company shall pay or provide the
Employee with the CIC Accrued Benefits and, subject to the Employee’s compliance with the
obligations in Sections 10, 11 and 12 hereof, the following, subject to the provisions of Section
24 hereof:

     (i) a lump sum payment equal to (x) three times the Employee’s then current
Annual Base Salary, plus (y) three times the Employee’s average Annual Bonus paid
over the prior three years (or over such lesser period in which the Annual Bonus was
paid), paid on the 60th day following the termination of employment; and

     (ii) subject to (A) the Employee’s timely election of continuation coverage
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”), and (B) the Employee’s continued co-payment of premiums at the same level
and cost to the Employee as if the Employee were an employee of the Company
(excluding, for purposes of calculating cost, an employee’s ability to pay premiums
with pre-tax dollars) (the “active employee rate”), continued participation in the
Company’s group health plan and life insurance plan (to the extent permitted under
applicable law and the terms of such plan), which covers the Employee for a period
of up to 12 months at the Company’s expense (other than as set forth in sub-section
(B)), provided, that the Employee is eligible and remains eligible for COBRA
coverage; and provided, further, that in the event that the Employee obtains other
employment that offers group health benefits, Company’s contribution to the coverage
under this Section 9(d)(ii) shall immediately cease and thereafter shall be the sole
responsibility of the Employee. Notwithstanding the foregoing, if the benefits
under the Company’s group health plan will be taxable to the Employee, then in lieu
of the Company’s payments for such continued participation, the Company shall
reimburse the Employee, subject to the terms herein, for his premiums for continued
coverage under such plan in the amount that the cost of such coverage exceeds the
active employee rate (as determined based on the Employee’s premium rate in effect
on the date of termination).

Payments and benefits provided in this Section 9(d)(ii) shall be in lieu of any termination or
severance payments or benefits for which the Employee may be eligible under any of the plans,
policies or programs of the Company.

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          (e) RESIGNATION. In the event that the Employee’s employment and the Employment Term ends on
or after the Effective Date on account of the Employee’s resignation, the Employee shall be
entitled to the following:

     (i) any unpaid Annual Base Salary from the Effective Date through the date of
termination, paid in accordance with the regular payroll practices of the Company;

     (ii) reimbursement for any unreimbursed business expenses incurred through the
date of termination pursuant to, and paid in accordance with, Sections 7(c) and
24(b)(iii) of this Agreement;

     (iii) any accrued but unused vacation time or sick leave days paid in
accordance with Company policy; and

     (iv) such vested accrued benefits, if any, as to which the Employee may be
entitled under the Company’s employee benefit plans and programs applicable to the
Employee as of the date of termination (other than any severance pay plan), which
shall be paid or provided in accordance with the terms of the applicable plan or
program.

          (f) OTHER OBLIGATIONS. Upon any termination of the Employee’s employment with the Company,
the Employee shall promptly resign from any other position as an officer, director or fiduciary of
any Company-related entity.

     10. RELEASE; NO MITIGATION. Any and all amounts payable and benefits or additional rights
provided to the Employee upon a termination of his employment pursuant to Section 9 shall only be
payable or provided if the Employee delivers to the Company and does not revoke a general release
of claims in favor of the Company and certain related parties in the form attached hereto as
Exhibit A, which the Company shall provide to the Employee within seven days following the
date of termination. Such release shall be executed and delivered (and no longer subject to
revocation, if applicable) within 60 days following termination. In no event shall the Employee be
obligated to seek other employment or take any other action by way of mitigation of the amounts
payable to the Employee under any of the provisions of this Agreement, nor shall the amount of any
payment hereunder be reduced by any compensation earned by the Employee as a result of employment
by a subsequent employer, except as provided in Section 9(d)(ii) hereof. The Employee shall not be
entitled to any release of claims from the Company in favor of the Employee.

     11. RESTRICTIVE COVENANTS.

          (a) CONFIDENTIALITY. The Employee agrees that the Employee shall not, directly or indirectly,
use, make available, sell, disclose or otherwise communicate to any person, other than in the
course of the Employee’s assigned duties and for the benefit of the Company, following the date of
this Agreement, any business and technical information or trade secrets, nonpublic, proprietary or
confidential information, knowledge or data relating to the Company, any of its subsidiaries,
affiliated companies or businesses, which shall have been obtained by the Employee following the
date of this Agreement. The foregoing shall not apply

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to information that (A) was known to the public prior to its disclosure to the Employee; (B)
becomes generally known to the public subsequent to disclosure to the Employee through no wrongful
act of the Employee or any representative of the Employee; or (C) the Employee is required to
disclose by applicable law, regulation or legal process (provided, that the Employee
provides the Company with prior notice of the contemplated disclosure and cooperates with the
Company at its expense in seeking a protective order or other appropriate protection of such
information).

          (b) NONCOMPETITION. The Employee acknowledges that during the Employment Term, the Employee’s
performance of the same services he provides for the Company for any Competing Business will result
in irreparable harm to the Company. Accordingly, during the Employee’s employment hereunder and
for a period of one year after such employment terminates, the Employee agrees that the Employee
will not, directly or indirectly, own, manage, operate, control, be employed by (whether as an
employee, consultant, independent contractor or otherwise, and whether or not for compensation) or
render services to any person, firm, corporation or other entity in whatever form, except for those
set forth in Section 1(b), with respect to the conduct of a Competing Business; provided,
however, that the Employee shall not be subject to the provisions of this Section 11(b) to
the extent the Employee elects to forego the receipt of any severance payments or benefits the
Employee is otherwise entitled to receive pursuant to this Agreement upon or following termination.
Notwithstanding the foregoing, nothing herein shall prohibit the Employee from (i) being, either
directly or indirectly, a passive owner of not more than 4.9% of the equity securities of a
publicly traded corporation the principal business of which is a
Competing Business, (ii)
subject to the restrictions set forth in Section 1(b)(i),
continuing to serve THI in any capacity and/or (iii) subject to the
restrictions set forth in Section 1(b)(i), serving on the board
of directors of any other organizations that have been disclosed to and/or approved by the Board
pursuant to Section 1(b) hereof, in any capacity. For purposes of this Agreement, “Competing
Business” means any person or entity that, as a principal or substantial part of its business,
invests in and acquires hospitality and related investments, primarily in the United States and
Canada, or any other material business in which the Company or any of its subsidiaries or
affiliates are engaged on the date of termination or have expended substantial resources to
investigate and have determined to engage on or after such date, but does not mean any business
that principally invests in or acquires gaming or restaurant investments.

          (c) NONSOLICITATION; NONINTERFERENCE. From the date of this Agreement through and including
the six months following the termination of the Employee’s employment with the Company, the
Employee agrees that the Employee shall not, except in the furtherance of the Employee’s duties
hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation
or other entity: (A) solicit, aid or induce any customer of the Company or its subsidiaries or
affiliates that is then paying or has agreed in writing to pay the Company not less than $250,000
per year); (B) solicit, aid or induce any employee, representative or agent of the Company or any
of its subsidiaries or affiliates to leave such employment or retention or to accept employment
with or render services to or with any other person, firm, corporation or other entity unaffiliated
with the Company or hire or retain any such employee, representative or agent, or take any action
to materially assist or aid any other person, firm, corporation or other entity in identifying,
hiring or soliciting any such employee, representative or agent; or (C) interfere, or aid or induce
any other person or entity in interfering,

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with the relationship between the Company or any of its subsidiaries or affiliates and any of
their respective vendors, joint venturers or licensors.

          (d) RETURN OF COMPANY PROPERTY. Except as otherwise provided herein, on the date of the
Employee’s termination of employment with the Company for any reason (or at any time prior thereto
at the Company’s request), the Employee shall return all property belonging to the Company or its
affiliates (including, but not limited to, any Company-provided equipment, or documents and
property belonging to the Company).

          (e) REFORMATION. If it is determined by a court of competent jurisdiction in any state that
any restriction in this Section 11 is excessive in duration or scope or is unreasonable or
unenforceable under the laws of that state, it is the intention of the parties that such
restriction may be modified or amended by the court to render it enforceable to the maximum extent
permitted by the laws of that state.

          (f) TOLLING. In the event of any violation of the provisions of this Section 11, the Employee
acknowledges and agrees that the post-termination restrictions contained in this Section 11 shall
be extended by a period of time equal to the period of such violation, it being the intention of
the parties hereto that the running of the applicable post-termination restriction period shall be
tolled during any period of such violation.

          (g) SURVIVAL OF PROVISIONS. The obligations contained in Sections 11 and 12 hereof shall
survive the termination or expiration of this Agreement, the Employment Term and/or the Employee’s
employment with the Company and shall be fully enforceable thereafter.

     12. COOPERATION. Upon the receipt of reasonable notice from the Company (including its
outside counsel), the Employee agrees that while employed by the Company and thereafter, the
Employee will respond and provide information with regard to matters in which the Employee has
knowledge as a result of the Employee’s employment with the Company, and will provide reasonable
assistance to the Company, its affiliates and their respective representatives in defense of any
claims that may be made against the Company or its affiliates, and will assist the Company and its
affiliates in the prosecution of any claims that may be made by the Company or its affiliates, to
the extent that such claims may relate to the period of the Employee’s employment with the Company.
The Employee agrees to promptly inform the Company if the Employee becomes aware of any lawsuits
involving such claims that may be filed or threatened against the Company or its affiliates. The
Employee also agrees to promptly inform the Company (to the extent that the Employee is legally
permitted to do so) if the Employee is asked to assist in any investigation of the Company or its
affiliates (or their actions), regardless of whether a lawsuit or other proceeding has then been
filed against the Company or its affiliates with respect to such investigation, and shall not do so
unless legally required. If the Employee is required to provide services pursuant to this Section
12, then, in accordance with its reimbursement policies and procedures as in effect, including the
timely submission of proper documentation supporting such expenses, the Company will pay (or
reimburse the Employee for) reasonable out-of-pocket travel, lodging, communication, duplication
and legal expenses incurred in connection with the performance of such services.

11

 

     13. EQUITABLE RELIEF AND OTHER REMEDIES. The Employee acknowledges and agrees that the
Company’s remedies at law for a breach or threatened breach of any of the provisions of Section 11
or Section 12 hereof would be inadequate and, in recognition of this fact, the Employee agrees
that, in the event of such a breach or threatened breach, in addition to any remedies at law, the
Company, without posting any bond, shall be entitled to obtain equitable relief in the form of
specific performance, a temporary restraining order, a temporary or permanent injunction or any
other equitable remedy which may then be available. In the event of a violation by the Employee of
Section 11 or Section 12 hereof, any severance being paid or provided to the Employee pursuant to
this Agreement or otherwise shall immediately cease, and any severance previously paid to the
Employee shall be immediately repaid to the Company.

     14. NO ASSIGNMENTS. This Agreement is personal to each of the parties hereto. Except as
provided in this Section 14 hereof, no party may assign or delegate any rights or obligations
hereunder without first obtaining the written consent of the other party hereto. The Employee
hereby acknowledges and agree that the Company may assign this Agreement (including the provisions
of Section 11 and Section 12) to any successor to all or substantially all of the business and/or
assets of the Company.

     15. NOTICE. For purposes of this Agreement, notices and all other communications provided for
in this Agreement shall be in writing. Each notice and all other communications shall be delivered
either by hand, by confirmed facsimile or electronic mail (but only if followed by transmittal by
national overnight courier or hand delivered in person on the next business day), by guaranteed
overnight delivery service, or by United States registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:

	 	 	 

	If to the Employee:

	 	 
	 
	 	 
	At the address (or to the facsimile number) shown
on the records of the Company
	 	 
	 
	 	 
	If to the Company:
	 	 
	 
	 	 
	Reunion Hospitality Trust, Inc.
	 	 
	1370 Avenue of the Americas, 28th Floor
	 	 
	New York, New York 10019
	 	 
	Attention:
Jason N. Ader, Executive Chairman
	 	 
	Facsimile: (212) 445-7801
	 	 

12

 

	 	 	 

	and
	 	 
	 
	 	 
	Reunion
Hospitality Trust, Inc.
	 	 
	410
Park Avenue, Suite 430
	 	 
	New York, New York
	 	 
	Attention:
Alfred A. Frazzini, Chief Executive Officer
	 	 
	Facsimile:
(212) 317-9775
	 	 
	 
	 	 
	with a copy to:
	 	 
	 
	 	 
	Proskauer Rose LLP
	 	 
	Eleven
Times Square
	 	 
	New York, New York 10036
	 	 
	Attention: Jeffrey A. Horwitz, Esq.
	 	 
	Facsimile: (212) 969-2900
	 	 

or to such other address as either party may have furnished to the other in writing in accordance
herewith. Each notice and all other communications shall be deemed duly given and effective upon
actual receipt (or refusal of receipt).

     16. SECTION HEADINGS; INCONSISTENCY. The section headings used in this Agreement are included
solely for convenience and shall not affect, or be used in connection with, the interpretation of
this Agreement. In the event of any inconsistency between the terms of this Agreement and any
form, award, plan or policy of the Company, the terms of this Agreement shall govern and control.

     17. SEVERABILITY. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or enforceability of
the other provisions hereof.

     18. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall
be deemed to be an original but all of which together will constitute one and the same instrument.

     19. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. This Agreement shall be
governed by and construed in accordance with the internal laws of the State of New York, without
regard to its principles of conflicts of laws. Each of the Parties irrevocably submits to the
exclusive jurisdiction of the courts of the State of New York located in New York City or the
United States District Court for the Southern District of New York for the purpose of any suit,
action, proceeding or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Service of process in connection with any such suit, action or proceeding may
be served on each party hereto anywhere in the world by the same methods as are specified for the
giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the
jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in
such court. Each party hereto irrevocably waives any objection to the laying of venue of any such
suit, action or proceeding brought in such courts and irrevocably waives any claim that any such
suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH
RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

     20. INDEMNIFICATION. The Company hereby agrees to indemnify the Employee and hold the
Employee harmless to the extent provided under the By-Laws of the Company and

13

 

the Indemnification Agreement to be entered into between the Company and the Employee against
and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs,
expenses (including reasonable attorney’s fees), losses, and damages resulting from the Employee’s
good faith performance of the Employee’s duties and obligations with the Company. This obligation
shall survive the termination of the Employee’s employment with the Company.

     21. LIABILITY INSURANCE. From and after the Effective Date, the Company shall cover the
Employee under directors’ and officers’ liability insurance and professional liability insurance
both during and, while potential liability exists, after the term of this Agreement in the same
amount and to the same extent as the Company covers its other officers and directors.

     22. MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and signed by the Employee
and such officer or director as may be designated by the Board. No waiver by either party hereto
at any time of any breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed a waiver of similar
or dissimilar provisions or conditions at the same or at any prior or subsequent time. This
Agreement together with all exhibits hereto sets forth the entire agreement of the parties hereto
in respect of the subject matter contained herein and supersedes any and all prior agreements or
understandings, written or oral, between the Employee and either the Company with respect to the
subject matter hereof. No agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.

     23. REPRESENTATIONS. The Employee represents and warrants to the Company that (a) the
Employee has the legal right to enter into this Agreement and to perform all of the obligations on
the Employee’s part to be performed hereunder in accordance with its terms, and (b) the Employee is
not a party to any agreement or understanding, written or oral, and is not subject to any
restriction, which, in either case, could prevent the Employee from entering into this Agreement or
performing all of the Employee’s duties and obligations hereunder. In addition, the Employee
acknowledges that the Employee is aware of Section 304 (Forfeiture of Certain Bonuses and Profits)
of the Sarbanes-Oxley Act of 2002 and the right of the Company to be reimbursed for certain
payments to the Employee in compliance therewith. In addition, the Employee hereby represents,
warrants and agrees with the Company that: (i) a portion of the compensation payable to the
Employee pursuant to this Agreement constitutes good and valuable consideration, the receipt and
sufficiency of which are hereby expressly acknowledged, for the covenants and agreements contained
in Section 11 and Section 12; (ii) the covenants and agreements contained in Section 11 and Section
12 are reasonable, appropriate and suitable in their geographic scope, duration and content; the
Employee shall not, directly or indirectly, raise any issue of the reasonableness, appropriateness
and suitability of the geographic scope, duration or content of such covenants and agreements in
any proceeding to enforce such covenants and agreements; and such covenants and agreements shall
survive the termination of the Employee’s employment for the durations set forth therein; (iii) the
enforcement of any remedy under this Agreement will not prevent the Employee from earning a
livelihood because the Employee’s past work history and abilities are such that the Employee
reasonably can expect to find work, if he so chooses, in other areas and lines of business; (iv)
the covenants and agreements stated in

14

 

Section 11 and Section 12 are essential for the Employer’s reasonable protection; and (v) the
Company has reasonably relied on these covenants and agreements by the Employee.

     24. TAX MATTERS.

          (a) WITHHOLDING. The Employee shall pay, or make arrangements satisfactory to the Company to
pay, in a manner satisfactory to the Company, an amount equal to the amount of all applicable
federal, state and local taxes (but not the Company’ share of Social Security taxes) that the
Company is required to withhold at any time. In the absence of such arrangements, the Company may
withhold from any and all amounts payable under this Agreement such federal, state and local taxes
as may be required to be withheld pursuant to any applicable law or regulation.

          (b) SECTION 409A COMPLIANCE.

     (i) The parties agree that this Agreement shall be interpreted to comply with Code
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the
regulations and guidance promulgated thereunder to the extent applicable (collectively
“Code Section 409A”) and all provisions of this Agreement shall be construed in a
manner consistent with the requirements for avoiding taxes or penalties under Code Section
409A. In no event will the Company be liable for any additional tax, interest or penalties
that may be imposed on the Employee by Code Section 409A or any damages for failing to
comply with Code Section 409A or the provisions of this Section 24.

     (ii) Notwithstanding any provision to the contrary in this Agreement, a termination of
the Employee’s employment shall not be deemed to have occurred for purposes of any provision
of this Agreement providing for the payment of any amounts or benefits upon or following a
termination of employment unless such termination is also a “separation from service”
(within the meaning of Code Section 409A) and, for purposes of any such provision of this
Agreement, references to a “termination” or “termination of employment” will mean separation
from service. If the Employee is deemed on the date of termination of his employment to be
a “specified employee”, within the meaning of that term under Section 409A(a)(2)(B) of the
Code and using the identification methodology selected by the Company from time to time, or
if none, the default methodology set forth in Code Section 409A, then with regard to any
payment or the providing of any benefit that constitutes “non-qualified deferred
compensation” pursuant to Code Section 409A, such payment or benefit will not be made or
provided prior to the earlier of (i) the expiration of the six-month period measured from
the date of the Employee’s separation from service or (ii) the date of the Employee’s death.
On the first day of the seventh month following the date of the Employee’s separation from
service or, if earlier, on the date of the Employee’s death, all payments delayed pursuant
to this Section (whether they would have otherwise been payable in a single sum or in
installments in the absence of such delay) will be paid or reimbursed to the Employee in a
lump sum, and any remaining payments and benefits due under this Agreement will be paid or
provided in accordance with the normal payment dates specified for them herein.

15

 

     (iii) Any reimbursement of costs and expenses provided for under this Agreement shall
be made no later than December 31 of the calendar year next following the calendar year in
which the expenses to be reimbursed are incurred.

     (iv) With regard to any provision herein that provides for reimbursement of expenses or
in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement
or in-kind benefits is not subject to liquidation or exchange for another benefit, and (ii)
the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any
taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits
to be provided, in any other taxable year, provided, that the foregoing clause (ii)
shall not be violated with regard to expenses reimbursed under any arrangement covered by
Code Section 105(b) solely because such expenses are subject to a limit related to the
period the arrangement is in effect.

     (v) With regard to any installment payments provided for herein, each installment
thereof shall be deemed a separate payment for purposes of Code Section 409A.

     (vi) Whenever a payment under this Agreement specifies a payment period with reference
to a number of days, the actual date of payment within the specified period shall be within
the sole discretion of the Company.

     (vii) To the extent that this Agreement provides for the Employee’s indemnification by
the Company and/or the payment or advancement of costs and expenses associated with
indemnification, any such amounts shall be paid or advanced to the Employee only in a manner
and to the extent that such amounts are exempt from the application of Code Section 409A in
accordance with the provisions of Treasury Regulation 1.409A-1(b)(10).

     25. WAIVER. The Employee hereby acknowledges that the Escrow Proceeds will be placed in an
escrow account (the “Escrow Account”). The Employee hereby waives any claim of any kind in
or to any monies in the Escrow Account established by the Company (the “Claim”) that the
Employee may have in the future as a result of, or arising out of, any negotiations, contracts or
agreements with the Company and will not seek recourse against the Escrow Account for any reason
whatsoever.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

16

 

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

	 	 	 	 	 
	 	REUNION HOSPITALITY TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Jason N. Ader 	 
	 	 	Title:  	Executive Chairman 	 
	 

	 	 	 	 

	 

	 	 	 
	 

	 	 	 
	 

	 	George L. Ruff	 

17exv10w9

Exhibit 10.9

[REUNION HOSPITALITY TRUST, INC. LETTERHEAD]

__________ ___, 20__

[NAME]

[ADDRESS]

			
	               Re:	 	Director Compensation

Dear                     :

          On behalf of Reunion Hospitality Trust, Inc. (the “Company”), I am pleased to
summarize in this letter agreement (this “Agreement”) the terms relating to the compensation that
you may be entitled to receive in connection with your service as a non-executive director on the
Board of Directors of the Company (the “Board”).

	 	1.	 	Initial Restricted Share Grant. Subject to your continuous service as a
non-executive director on the Board from the date hereof through the completion of the
Company’s initial public offering (“IPO”) and concurrent private placement (together with
the IPO, the “Offering”), upon completion of the Offering you will receive a grant
of a number of restricted shares of the Company’s common stock, par value $0.001
(“Common Stock”), equal to $100,000 as determined based on the per share price for
the Common Stock in the IPO and rounding up to nearest whole number of shares of Common
Stock (the “Initial Grant”). The Initial Grant will be subject to the terms and
conditions of the form of Restricted Share Agreement attached hereto as Exhibit A.
	 
	 	2.	 	Second Restricted Share Grant. Subject to your continuous service as a
non-executive director on the Board from the date hereof through the
achievement of the Capital Deployment Hurdle (as defined on Exhibit
B attached hereto), upon the achievement of the
Capital Deployment Hurdle, as determined by the Company in its sole discretion, you will
receive a grant of a number of restricted shares of Common Stock with a value equal to
[$100,000 / $75,000] as determined based on the per share closing price for the Common
Stock on the date the Company achieves the Capital Deployment Hurdle and rounding up to
nearest whole number of shares of Common Stock (the “CDH Grant”). The CDH Grant
will vest ratably at a rate of 20% per year commencing on the first anniversary of the
grant date subject to your continuous service as a non-executive
director on the Board from the grant date through each vesting date and
will otherwise be subject to a restricted share agreement substantially in the form
attached as Exhibit A hereto with such changes thereto as the Company determines,
in its

1

 

	 	 	 	sole discretion, are necessary to reflect the terms and conditions of the CDH Grant and any
legally required changes.

	 	3.	 	Compensation. Subject to your continuous service as
a non-executive director on the Board from the date hereof through the earlier of (i) the date following the date on which the Company satisfies the Capital Deployment Hurdle or (ii) August 1, 2012, on such date (and on January 1 of each year thereafter, you will receive an annual retainer, at
your election, of either: (a) [$40,000 / $30,000] in cash, paid in equal quarterly
installments by no later than the thirtieth (30th) following the end of each
calendar quarter, and a grant made as of the first day of such year of a number of
restricted shares of Common Stock with a value equal to [$40,000 / $30,000] as determined
based on the per share closing price for the Common Stock on the last trading date of the
year immediately prior to the year for which such grant is made and rounding up to nearest
whole number of shares of Common Stock, or (b) a grant made as of the first day of such
year of a number of restricted shares of Common Stock with a value equal to [$100,000 /
$75,000] as determined based on the per share closing price for the Common Stock on the
last trading date of the year immediately prior to the year for which such grant is made
and rounding up to nearest whole number of shares of Common Stock. The annual retainer will be paid and/or granted ratably for the first year (for example if such annual retainer
is paid and/or granted on March 31, you will be entitled to receive three-quarters of the applicable amount of cash and/or the applicable value of the restricted stock that you would be entitled to had such annual retainer for the first year been granted on January 1). Any such election must
be made prior to January 1 of the applicable year for which such annual retainer will be
paid and/or granted (for example, an election must be made on or prior to December 31, 2012
with respect to the retainer for 2013). In the event that you do not make a timely
election with regard to the retainer for any year, your retainer for such year will be the
cash amount and grant set forth in subsection (a). Any restricted shares of Common Stock
granted under this Section 3 will be granted under the Reunion Hospitality Trust, Inc. 2010
Equity Incentive Plan (the “Equity Plan”) (or a successor plan adopted and
maintained by the Company or its successor), will vest ratably at a rate of 20% per year
commencing on the first anniversary of the grant date subject to your continuous service
as a non-executive director on the Board from the grant date through each vesting date and will
otherwise be subject to the Equity Plan (or any such successor plan) and a restricted share
agreement substantially in the form attached as Exhibit A hereto with such changes
thereto as the Company determines, in its sole discretion, are necessary to reflect the
terms and conditions of such grant, the terms and conditions of the Equity Plan and any
legally required changes.
	 
	 	4.	 	Additional Compensation. In addition to the compensation set forth in this
Agreement, commencing on the earlier of (i) the date following the date on which the Company satisfies the Capital Deployment Hurdle or (ii) August 1, 2012, you may also be entitled to receive additional
amounts in connection with you serving on Board committees (including for service as the
chair of a Board committee) in such amount(s) as may be determined from time to time by,
and in the sole discretion of, the Compensation Committee of the Board.
	 
	 	5.	 	Reimbursement of Expenses. During the term of your service as a non-executive
director on the Board, the Company will reimburse you for all reasonable direct third-party
out-of-pocket expenses incurred by you in connection with your performance of your duties
as a director, including, without limitation, reasonable travel expenses in connection with
your attendance at Board and committee meetings. Any such reimbursement will be subject to
documentation and the expense reimbursement policies of the Company relating to expense
reimbursement.

2

 

	 	6.	 	No Obligation to Continue Service. This Agreement is not an agreement of
employment or services. This Agreement does not guarantee that the Company or its
Affiliates will retain, or continue to retain you as a director or in any other capacity
for any set period of time, including but not limited through the date of the completion of
the Offering, the date that the Capital Deployment Hurdle is achieved or for any period
during which a restricted share award granted hereunder is outstanding, nor does it modify
in any respect the Company or its Affiliate’s right to terminate or modify your service.
	 
	 	7.	 	Independent Contractor Status. You acknowledge and agree that your status at
all times will be that of an independent contractor. You hereby acknowledge and agree that
all compensation paid to you as a director of the Company will represent fees for services
as an independent contractor (unless you subsequently become an employee of the Company),
and will therefore be paid without any deductions or withholdings taken therefrom for taxes
or for any other purpose. You further agree that you will pay all taxes, if any, assessed
on such payments under the applicable laws of any federal, state, local or other
jurisdiction.
	 
	 	8.	 	General Provisions.

(a) This Agreement will be governed by, and construed under and in accordance with the
internal laws of the State of Maryland without reference to rules relating to conflicts of
laws.

(b) This Agreement shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns. This Agreement is personal to you and you hereby
acknowledge and agree that you may not assign your rights under this Agreement.

(c) This Agreement shall constitute the sole agreement between the parties hereto with
respect to the subject matter hereof and shall supersede any and all prior agreements or
understandings relating to the subject matter hereof. No change or amendment to this
Agreement shall be binding unless in writing and signed by both parties.

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

(e) The headings in this Agreement are for reference only, and shall not affect the meaning
or interpretation of this Agreement.

(f) In the event that any provision of this Agreement shall be declared to be invalid,
illegal or unenforceable, such provision shall survive to the extent it is not so declared,
and the validity, legality and enforceability of the other provisions hereof shall not in
any way be affected or impaired thereby, unless such action would substantially impair the
benefits to any party of the remaining provisions of this Agreement.

3

 

(g) Although the Company does not guarantee the tax treatment of any payments or grants of
restricted shares under this Agreement, the intent of the parties is that payments and
grants of restricted shares under this Agreement be exempt from, or otherwise comply with,
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the
regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and,
accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in
compliance therewith. In no event whatsoever shall the Company be liable for any additional
tax, interest or penalties that may be imposed on you by Code Section 409A or any damages
for failing to comply with Code Section 409A. Any taxable reimbursement of costs and
expenses by the Company provided for under this Agreement shall be made in accordance with
the Company’s applicable policy and this Agreement but in no event later than December 31 of
the calendar year next following the calendar year in which the expenses to be reimbursed
are incurred. With regard to any provision in this Agreement that provides for
reimbursement of expenses or in-kind benefits, except as permitted by Code Section 409A, (i)
the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for
another benefit, and (ii) the amount of expenses eligible for reimbursement, or in-kind
benefits, provided during any taxable year shall not affect the expenses eligible for
reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that
the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any
arrangement covered by Section 105(b) of the Code solely because such expenses are subject
to a limit related to the period the arrangement is in effect. Whenever a payment under
this Agreement may be paid within a specified period, the actual date of payment within the
specified period shall be within the sole discretion of the Company. With regard to any
installment payments provided for under this Agreement, each installment thereof shall be
deemed a separate payment for purposes of Code Section 409A.

[Remainder of page intentionally left blank — signature page follows]

4

 

          If this letter accurately reflects your understanding as to the terms relating to the
compensation that you may be entitled to receive in connection with your service as a non-executive
director on the Board, please sign and date one copy of this letter and return the same to me for
the Company’s records.

	 	 	 	 	 	 	 

	 	 	REUNION HOSPITALITY TRUST, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

ACCEPTED AND AGREED:.

	 	 	 

	 

[Name]

	 	 
	 
	 	 
	Dated:
	 	 

5

 

EXHIBIT A

Form of Restricted Share Award

     THIS RESTRICTED SHARE AGREEMENT (this “Agreement”), is made, effective as of __________,
20____ (the “Grant Date”), by and between Reunion Hospitality Trust, Inc. (the “Company”) and
___________ (the “Participant”).

W I T N E S S E T H:

     WHEREAS, in recognition of the Participant’s continued service as a non-executive director on
the Board of Directors of the Company (the “Board”), the Board has approved a grant of shares of
the Company’s common stock, par value $0.001 per share (“Common Share”) to the Participant subject
to certain restrictions as set forth herein.

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

     1. Grant of Common Shares. Subject to the restrictions, terms and conditions of this
Agreement, the Company granted to the Participant on the Grant Date [_________] shares of duly
authorized, validly issued, fully paid and non-assessable Common Share (the “Shares”). Pursuant to
Sections 2, 3(c) and 3(d) hereof, the Shares are subject to certain transfer restrictions and
possible risk of forfeiture. While such restrictions are in effect, the Shares subject to such
restrictions shall be referred to herein as “Restricted Shares.”

     2. Restrictions on Transfer. The Participant shall not sell, transfer, pledge,
exchange, hypothecate or otherwise dispose of the Restricted Shares, except as set forth in this
Agreement. Any attempted sale, transfer, pledge, exchange, hypothecation or other disposition of
the Restricted Shares in violation of this Agreement shall be void and of no effect and the Company
shall have the right to disregard the same on its books and records and to issue “stop transfer”
instructions to its transfer agent.

     3. Restricted Shares.

          (a) Retention of Certificates. Promptly after the date of this Agreement, the Company
shall issue stock certificates representing the Restricted Shares unless it elects to recognize
such ownership through book entry or another similar method pursuant to Section 8 herein. The
stock certificates shall be registered in the Participant’s name and shall bear any legend required
under Section 4(a) of this Agreement. Unless held in book entry form, such stock certificates
shall be held in custody by the Company (or its designated agent) until the restrictions thereon
shall have lapsed. Upon the Company’s request, the Participant shall deliver to the Company a duly
signed stock power, endorsed in blank, relating to the Restricted Shares. If the Participant
receives a stock dividend on the Restricted Shares or the shares of Restricted Shares are split or
the Participant receives any other shares, securities, moneys or property representing a dividend
on the Restricted Shares or representing a distribution or return of capital upon or in respect of
the Restricted Shares or any part thereof, or resulting from a split-up,

6

 

reclassification or other like changes of the Restricted Shares, or otherwise received in
exchange therefor, and any warrants, rights or options issued to the Participant in respect of the
Restricted Shares (collectively “RS Property”), the Participant will also immediately deposit with
and deliver to the Company any of such RS Property, including any certificates representing shares
duly endorsed in blank or accompanied by stock powers duly executed in blank, and such RS Property
shall be subject to the same restrictions, including that of this Section 3(a), as the Restricted
Shares with regard to which they are issued and shall herein be encompassed within the term
“Restricted Shares.”

               (b) Rights with Regard to Restricted Shares. The Participant will have the right to
vote the Restricted Shares, to receive and retain any dividends payable to holders of Shares of
record on and after the transfer of the Restricted Shares (although such dividends shall be
treated, to the extent required by applicable law, as additional compensation for tax purposes if
paid on Restricted Shares and stock dividends will be subject to the restrictions provided in
Section 3(a)), and to exercise all other rights, powers and privileges of a holder of Common Share
with respect to the Restricted Shares, with the exceptions that: (i) the Participant will not be
entitled to delivery of the stock certificate or certificates representing the Restricted Shares
until the Restriction Period shall have expired; (ii) the Company (or its designated agent) will
retain custody of the stock certificate or certificates representing the Restricted Shares and the
other RS Property during the Restriction Period; (iii) no RS Property shall bear interest or be
segregated in separate accounts during the Restriction Period; and (iv) the Participant may not
sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Restricted Shares during
the Restriction Period.

               (c) Vesting.

     (i) Time Based Vesting.

               A. 50% of the Restricted Shares shall be subject to time-based vesting in accordance with this
Section 2(c)(i) (the “Time-Based Shares”). The Time-Based Shares shall become vested and cease to
be Restricted Shares, and accordingly, the restrictions contained in Sections 2, 3(a) and 3(b)
shall no longer apply (but the Time-Based Shares shall remain subject to Section 5) pursuant to the
following schedule, which shall be cumulative; provided that the Participant is continuously
providing services to the Company or an Affiliate from the Grant Date through the applicable
vesting date:

	 	 	 
	 	 	Number of
	Vesting Date	 	Time-Based Shares
	[First Anniversary of the initial public offering for
the Company’s common stock (the “IPO”)]
	 	 
	 
	 	 
	[Second Anniversary of IPO]
	 	 
	 
	 	 
	[Third Anniversary of IPO]
	 	 
	 
	 	 
	[Fourth Anniversary of IPO]
	 	 

7

 

	 	 	 
	 	 	Number of
	Vesting Date	 	Time-Based Shares
	[Fifth Anniversary of IPO]
	 	 

               B. In the event of a Corporate Transaction, to the extent then unvested 100% of the Time-Based
Shares will vest on the Control Change Date, provided that the Participant is continuously
providing services to the Company or an Affiliate from the Grant Date through the Control Change
Date.

               C. “Control Change Date” means the date on which a Corporate Transaction occurs. If a
Corporate Transaction occurs on account of a series of transactions, the “Control Change Date” is
the date of the last of such transactions.

               D. A “Corporate Transaction” shall be deemed to have occurred if after the Grant Date:

          (I) any “person” as such term is used in Section 3(a)(9) of Securities Exchange Act
of 1934, as amended (the “Exchange Act”), as modified and used in Sections
13(d) and 14(d) thereof except that such term shall not include (1) the Company
or any of its subsidiaries, (2) any trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its affiliates,
(3) an underwriter temporarily holding securities pursuant to an offering of
such securities, (4) any corporation owned, directly or indirectly, by the
shareholders of the Company in substantially the same proportions as their ownership of
the Company’s common shares, or (5) any person or group as used in Rule 13d-1(b)
under the Exchange Act, is or becomes the Beneficial Owner, as such term is defined in
Rule 13d-3 under the Exchange Act, directly or indirectly, of securities of the Company
representing at least 50% of the combined voting power or common shares of the Company;

          (II) during any period of two consecutive years, individuals who at the beginning
of such period constitute the Board or whose election by the Board or nomination for
election by the Company’s shareholders was approved by a vote of at least two-thirds
(2/3) of the Board then still in office cease for any reason to constitute at least a
majority thereof;

          (III) there is consummated a merger or consolidation of the Company or any direct
or indirect subsidiary of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or any parent thereof) in
combination with the ownership of any trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any subsidiary of the Company, more
than 50% of the combined voting power and common shares of the Company or such surviving
entity or any parent thereof outstanding immediately after such merger or consolidation;
or

8

 

          (IV) there is consummated an agreement for the sale or disposition by the Company
of all or substantially all of the Company’s assets (or any transaction having a similar
effect, including a liquidation) other than a sale or disposition by the Company of all
or substantially all of the Company’s assets to an entity, more than fifty percent (50%)
of the combined voting power and common shares of which is owned by shareholders of the
Company in substantially the same proportions as their ownership of the common shares of
the Company immediately prior to such sale.

     (ii) Performance Based Vesting.

               A. 50% of the Restricted Shares shall be subject to performance-based vesting in accordance
with this Section 2(c)(ii) (the “Performance-Based Shares”). The Performance-Based Shares shall
become vested and cease to be Restricted Shares, and accordingly, the restrictions contained in
Sections 2, 3(a) and 3(b) shall no longer apply (but the Performance-Based Shares shall remain
subject to Section 5) on the date(s) that the Board has determined and certified the achievement of
the applicable Performance Vesting Goal, which shall be cumulative; provided that the Participant
is continuously providing services to the Company or an Affiliate from the Grant Date through the
1st Tranche Achievement Date and the 2nd Tranche Achievement Date, as
applicable:

	 	 	 	 	 
	 	 	 	 	Number of
	 	 	 	 	Performance-
	 	 	Performance Vesting Goal	 	Based Shares
	Tranche 1

	 	 Total Return (as defined below) equals or is
greater than 20% of the per share price paid
by investors in the Company’s initial public
offering for the Company’s common stock (the
“IPO Price”) (the “1st Return
Threshold”) on a date (the “1st
Tranche Achievement Date”) between the first
(1st) anniversary of the Grant Date
and the seventh (7th) Anniversary
of the Grant Date	 	 
	 
	 	 	 	 
	Tranche 2

	 	 Total Return equals or is greater than 25% of
the IPO Price (the “2nd Return
Threshold”) on a date (the “2nd
Tranche Achievement Date”) between the second
(2nd) anniversary of the Grant Date
and the seventh (7th) Anniversary
of the Grant Date	 	 

               B. If the 1st Return Threshold or the 2nd Return Threshold do not occur
on or prior to the seventh (7th) Anniversary of the Grant Date, then the Number of
Performance-Based Shares subject to the applicable Performance Vesting Goal shall be forfeited in
their entirety (together with any related RS Property), without compensation, other than repayment
of any par value paid by the Participant for such Performance-Based Shares (if any).

9

 

               C. In the event of a Corporate Transaction at any time prior to the seventh (7th)
Anniversary of the Grant Date, to the extent then unvested (x) 100% of the Performance Based Shares
in Tranche 1 will vest on the Control Change Date if the 1st Return Threshold is
achieved in connection with the Corporate Transaction and (y) 100% of the Performance Based Shares
in Tranche 2 will vest on the Control Change Date if the 2nd Return Threshold is
achieved in connection with the Corporate Transaction; provided, in each case, that the Participant
is continuously providing services to the Company or an Affiliate from the Grant Date through the
Control Change Date.

               D. “Total Return” means an amount equal to the sum of (a) any increase or decrease in the
trading price of the Common Shares on The NASDAQ Global Market or another nationally-recognized
exchange compared to the IPO Price as adjusted for any stock splits or reverse stock splits, plus
(b) the cumulative cash value of any dividends or other distributions paid by the Company on the
Common Shares sold in the initial public offering of the Company’s Common Shares (including any
distributions which may be deemed a return of capital) at the time of such calculation.

     (iii) There shall be no proportionate or partial vesting in the periods prior to any vesting
date and, subject to Sections 3(c)(i) and 3(c)(ii), as applicable, all vesting pursuant to Sections
3(c)(i) and 3(c)(ii) shall occur only on the appropriate vesting date, the Participant is
continuously providing services to the Company or an Affiliate from the Grant Date through such
date.

     (iv) When any Shares of Restricted Shares become vested, the Company shall promptly issue and
deliver, unless the Company is using a book entry or similar method pursuant to Section 8, in which
case the Company shall upon the Participant’s request promptly issue and deliver, to the
Participant a new stock certificate registered in the name of the Participant for such Shares
without the legend set forth in Section 4(a) hereof and deliver to the Participant such Shares and,
within 30 days following the vesting date, any related other RS Property (all of which is included
in the term Restricted Shares), in each case free of all liens, claims and other encumbrances
(other than those created by the Participant), subject to applicable withholding taxes.

               (d) Termination. [Upon a termination of the Participant’s service with the Company and its
Affiliates on account of the Participant’s death or permanent and total disability (as defined in
Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”)) all then unvested
Restricted Shares shall vest on the date of termination.] Upon a termination of the Participant’s
service with the Company and its Affiliates other than as provided in the foregoing sentence the
Participant shall forfeit to the Company, without compensation, other than repayment of any par
value paid by the Participant for such Shares (if any), any and all Restricted Shares (but no
vested Shares) and RS Property.

               (e) Withholding. The Participant shall be solely responsible for all applicable foreign,
federal, state, provincial and local taxes with respect to the Restricted Shares; provided,
however, that at any time the Company is required to withhold any such taxes, the Participant shall
pay, or make arrangements to pay, in a manner satisfactory to the Company, an amount equal to the
amount of all applicable federal, state and local or foreign taxes that the

10

 

Company is required to withhold at any time. In the absence of such arrangements, the Company
or one of its Affiliates shall have the right to withhold such taxes from any amounts payable to
the Participant, including, but not limited to, the right to withhold Shares otherwise deliverable
to the Participant hereunder. In addition, any statutorily required withholding obligation may be
satisfied, as determined in the Board’s sole discretion, in whole or in part, at the Participant’s
election, in the form and manner prescribed by the Board, by delivery of Shares of Common Share to
the Company (including Shares issuable under this Agreement) equal to the statutorily required
withholding obligation.

               (f) Section 83(b). If the Participant properly elects (as permitted by Section 83(b) of the
Code) within thirty (30) days after the Grant Date of the Restricted Shares to include in gross
income for federal income tax purposes in the year of issuance the fair market value of all or a
portion of such Restricted Shares, the Participant shall pay to the Company or make arrangements
satisfactory to the Company to pay to the Company upon such election, any federal, state or local
taxes required to be withheld with respect to the applicable Restricted Shares. If the Participant
shall fail to make such payment, the Company shall, to the extent permitted by law, have the right
to deduct from any payment of any kind otherwise due to the Participant any federal, state or local
taxes of any kind required by law to be withheld with respect to the Restricted Shares, as well as
the rights set forth in Section 3(e) hereof. The Participant acknowledges that it is the
Participant sole responsibility, and not the Company’s, to file timely and properly the election
under Section 83(b) of the Code and any corresponding provisions of state tax laws if the
Participant elects to utilize such election.

               (g) Delivery Delay. The delivery of any certificate representing the Shares or other RS
Property may be postponed by the Company for such period as may be required for it to comply with
any applicable foreign, federal or state securities law, or any national securities exchange
listing requirements and the Company is not obligated to issue or deliver any securities if, in the
opinion of counsel for the Company, the issuance of such Shares shall constitute a violation by the
Participant or the Company of any provisions of any applicable foreign, federal or state law or of
any regulations of any governmental authority or any national securities exchange.

     4. Legend. All certificates representing the Restricted Shares shall have endorsed
thereon the following legends:

               (a) “The anticipation, alienation, attachment, sale, transfer, assignment, pledge, encumbrance
or charge of the shares of stock represented hereby are subject to the terms and conditions
(including forfeiture) of an agreement entered into between the registered owner and Reunion
Hospitality Trust, Inc. (the “Company”). Copies of such agreement are on file at the principal
office of the Company.”

               (b) Any legend required to be placed thereon by applicable blue sky laws of any state.

     Notwithstanding the foregoing, in no event shall the Company be obligated to issue a
certificate representing the Restricted Shares prior to the vesting dates set forth above.

11

 

     5. Securities Representations. The Shares are being issued to the Participant and
this Agreement is being made by the Company in reliance upon the following express representations
and warranties of the Participant.

               The Participant acknowledges, represents and warrants that:

               (a) the Participant has been advised that the participant may be an “affiliate” within the
meaning of Rule 144 under the Securities Act of 1933, as amended (the “Act”), currently or at the
time the Participant desires to sell the Shares following the vesting of the Restricted Shares, and
in this connection the Company is relying in part on the Participant’s representations set forth in
this section.

               (b) If the Participant is deemed an affiliate within the meaning of Rule 144 of the Act, the
Shares must be held indefinitely unless an exemption from any applicable resale restrictions is
available or the Company files an additional registration statement (or a “re-offer prospectus”)
with regard to such Shares and the Company is under no obligation to register the Shares (or to
file a “re-offer prospectus”).

               (c) If the Participant is deemed an affiliate within the meaning of Rule 144 of the Act, the
Participant understands that the exemption from registration under Rule 144 will not be available
unless (i) a public trading market then exists for the Common Share of the Company, (ii) adequate
information concerning the Company is then available to the public, and (iii) other terms and
conditions of Rule 144 or any exemption therefrom are complied with; and that any sale of the
Shares may be made only in limited amounts in accordance with such terms and conditions.

     6. No Obligation to Continue Service. This Agreement is not an agreement of
employment or services. This Agreement does not guarantee that the Company or its Affiliates will
retain, or continue to retain the Participant as a director or in any other capacity during the
entire, or any portion of the, term of this Agreement, including but not limited to any period
during which the Restricted Shares are outstanding, nor does it modify in any respect the Company
or its Affiliate’s right to terminate or modify the Participant’s service or compensation.

     7. Power of Attorney. The Company, its successors and assigns, is hereby appointed
the attorney-in-fact, with full power of substitution, of the Participant for the purpose of
carrying out the provisions of this Agreement and taking any action and executing any instruments
which such attorney-in-fact may deem necessary or advisable to accomplish the purposes hereof,
which appointment as attorney-in-fact is irrevocable and coupled with an interest. The Company, as
attorney-in-fact for the Participant, may in the name and stead of the Participant, make and
execute all conveyances, assignments and transfers of the Restricted Shares, Shares and property
provided for herein, and the Participant hereby ratifies and confirms all that the Company, as said
attorney-in-fact, shall do by virtue hereof. Nevertheless, the Participant shall, if so requested
by the Company, execute and deliver to the Company all such instruments as may, in the judgment of
the Company, be advisable for the purpose.

     8. Uncertificated Shares. Notwithstanding anything else herein, to the extent
permitted under applicable foreign, federal or state law, the Company may, issue the Restricted

12

 

Shares in the form of uncertificated shares. Such uncertificated shares of Restricted Shares
shall be credited to a book entry account maintained by the Company (or its designee) on behalf of
the Participant. If thereafter certificates are issued with respect to the uncertificated shares
of Restricted Shares, such issuance and delivery of certificates shall be in accordance with the
applicable terms of this Agreement.

     9. Rights as a Stockholder. The Participant shall have all rights of a stockholder
with respect to the Restricted Shares, except with respect to the right to Transfer any shares of
Restricted Shares during the Restriction Period or except as otherwise specifically provided for in
this Agreement.

     10. Notices. Any notice or communication given hereunder (each a “Notice”)
shall be in writing and shall be sent by personal delivery, by courier or by United States mail
(registered or certified mail, postage prepaid and return receipt requested), to the appropriate
party at the address set forth below:

If to the Company, to:

Reunion Hospitality Trust, Inc.

1370 Avenue of the Americas, 28th Floor

New York, New York 10019

Attention:

Facsimile: (212) 656-1777

If to the Participant, to the address for the Participant on file with the Company;

or such other address or to the attention of such other person as a party shall have specified by
prior Notice to the other party. Each Notice will be deemed given and effective upon actual
receipt (or refusal of receipt).

     11. Acceptance. The Participant shall forfeit the Restricted Shares if the
Participant does not execute this Agreement within a period of 60 days from the date the
Participant receives this Agreement (or such other period as the Board shall provide). In the
event that the Restricted Shares is not accepted within such time period, this Agreement shall be
null and void ab initio and this award of Restricted Shares shall not be valid.

     12. Governing Law. All questions concerning the construction, validity and
interpretation of this Agreement will be governed by, and construed in accordance with, the
domestic laws of the State of Maryland, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Maryland or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of Maryland.

     13. Consent to Jurisdiction. In the event of any dispute, controversy or claim
between the Company or any Affiliate and the Participant in any way concerning, arising out of or
relating to this Agreement (a “Dispute”), including without limitation any Dispute
concerning, arising out of or relating to the interpretation, application or enforcement of this
Agreement, the parties hereby (a) agree and consent to the personal jurisdiction of the courts of

13

 

the State of New York located in New York County and/or the Federal courts of the United
States of America located in the Southern District of New York (collectively, the “Agreed
Venue”) for resolution of any such Dispute, (b) agree that those courts in the Agreed Venue,
and only those courts, shall have exclusive jurisdiction to determine any Dispute, including any
appeal, and (c) agree that any cause of action arising out of this Agreement shall be deemed to
have arisen from a transaction of business in the State of New York. The parties also hereby
irrevocably (i) submit to the jurisdiction of any competent court in the Agreed Venue (and of the
appropriate appellate courts therefrom), (ii) to the fullest extent permitted by law, waive any and
all defenses the parties may have on the grounds of lack of jurisdiction of any such court and any
other objection that such parties may now or hereafter have to the laying of the venue of any such
suit, action or proceeding in any such court (including without limitation any defense that any
such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum), and (iii) consent to service of process in any such suit, action or proceeding, anywhere in
the world, whether within or without the jurisdiction of any such court, in any manner provided by
applicable law. Without limiting the foregoing, each party agrees that service of process on such
party pursuant to a Notice as provided in Section 11 hereof shall be deemed effective service of
process on such party. Any action for enforcement or recognition of any judgment obtained in
connection with a Dispute may enforced in any competent court in the Agreed Venue or in any other
court of competent jurisdiction.

     14. Amendment. No modification or waiver of any of the provisions of this Agreement
shall be effective unless in writing by the party against whom it is sought to be enforced.

     15. Counterparts. This Agreement may be executed (including by facsimile
transmission) with counterpart signature pages or in separate counterparts each of which shall be
an original and all of which taken together shall constitute one and the same agreement.

     16. Miscellaneous.

               (a) This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, legal representatives, successors and assigns.

               (b) The failure of any party hereto at any time to require performance by another party of any
provision of this Agreement shall not affect the right of such party to require performance of that
provision, and any waiver by any party of any breach of any provision of this Agreement shall not
be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the
provision itself, or a waiver of any right under this Agreement.

               (c) Although the Company makes no guarantee with respect to the tax treatment of the
Restricted Shares, the award of Restricted Shares pursuant to this Agreement is intended to be
exempt from Section 409A of the Code. With respect to any dividends and other RS Property,
however, this Agreement is intended to comply with the applicable requirements of Section 409A of
the Code relating to “short-term deferrals” thereunder, and shall be limited, construed and
interpreted in a manner so as to comply therewith.

[Remainder of page intentionally left blank — signature page follows]

14

 

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above
written.

	 	 	 	 	 	 	 

	 	 	REUNION HOSPITALITY TRUST, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

PARTICIPANT

                                                            

[Name]

15

 

EXHIBIT B

Definitions

“Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not limited to, joint
ventures, limited liability companies and partnerships). For this purpose, the term “control” shall
mean ownership of 50% or more of the total combined voting power or value of all classes of shares
or interests in the entity, or the power to direct the management and policies of the entity, by
contract or otherwise.

The “Capital Deployment Hurdle” shall be achieved upon the aggregate PI Transaction Value
of all Permitted Investments exceeding 75% of the escrowed proceeds (the “Escrow Proceeds”)
held in the escrow account funded upon the completion of the Company’s initial public offering and
concurrent private placement (the “Escrow Account”), and the release to the Company of the
remaining amount of the Escrowed Proceeds from (to the extent of lawfully available funds), and the
termination of, the Escrow Account.

“Permitted Investment” means an investment by the Company in and to acquire hospitality and
related investments, with a focus on distressed opportunities primarily in the United States and
Canada.

“PI Transaction Value” means, without duplication, the sum of:

	 	(i)	 	the cost of a Permitted Investment, whether consummated or subject to definitive
documentation pursuant to which the Company provides a commitment of capital to consummate
such Permitted Investment;
	 
	 	(ii)	 	the amount of debt which is senior in the capital structure to, or pari passu with, a
Permitted Investment (such as, in the event we make a mezzanine loan to a hotel owner, the
amount of any mortgage loan encumbering the hotel), only to the extent such Permitted
Investment, after consultation with third party accountants, would reasonably be expected
to be required to be consolidated on our balance sheet pursuant to U.S. generally accepted
accounting principles, or GAAP;
	 
	 	(iii)	 	any equity with a liquidation preference which is senior to, or pari passu with, a
Permitted Investment (such as, in the event we purchase common equity in an entity that
owns hotel properties, any outstanding preferred equity issued by such entity which has a
liquidation preference senior in priority to our investment), only to the extent such
Permitted Investment, after consultation with third party accountants, would reasonably be
expected to be required to be consolidated on our balance sheet pursuant to GAAP;
	 
	 	(iv)	 	estimated closing costs, pursuit costs, due diligence costs (such as engineering,
environmental and property condition reports, surveys, title commitments, zoning reports
and legal and accounting fees) and applicable transaction expenses; and
	 
	 	(v)	 	estimated amounts needed to cover future capital and funding commitments relating to a
Permitted Investment (as set forth in a written agreement or budget) including,

16

 

	 	 	 	without limitation, capital expenditures, escrows and follow-on investments or advances.

17

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