Document:

exv10w24

 

EXHIBIT 10.24

ESOP LOAN AGREEMENT

     THIS ESOP LOAN AGREEMENT (the “Loan Agreement”), executed and delivered this 4th day of
November 2005, by and between the TRUST OF THE EMPLOYEE STOCK OWNERSHIP PLAN OF TELECOMUNICACIONES
DE PUERTO RICO, INC. (the “Borrower”), and Telecomunicaciones de Puerto Rico, Inc., a corporation
organized and existing under the laws of Puerto Rico (the “Company”).

WITNESSETH:

     WHEREAS, U.S. Trust Company, National Association (“UST”) is trustee of Borrower pursuant to
the terms of a Trust Agreement dated as of March 2, 1999 by and between the Company and UST;

     WHEREAS, the Borrower has previously borrowed from the Lender the principal sum of Twenty Six
Million One Hundred Thousand Dollars (U.S. $26,100,000.00) (the “Original Loan”) to finance the
acquisition of securities of the Company for the benefit of participants and beneficiaries of the
Employee Stock Ownership Plan of Telecomunicaciones de Puerto Rico, Inc. (“ESOP”);

     WHEREAS, the Borrower has previously borrowed from the Company a sum in the original principal
amount of Three Million Two Hundred Thousand Dollars (U.S. $3,200,000.00) (the “Second Loan”) to
finance the acquisition of securities of the Company for the benefit of participants and
beneficiaries of the ESOP;

     WHEREAS, the Borrower has previously borrowed from the Company a sum in the original principal
amount of One Hundred Twenty Thousand Dollars (U.S. $120,000.00) (the “Third Loan”) to finance the
acquisition of securities of the Company for the benefit of participants and beneficiaries of the
ESOP;

     WHEREAS, the Borrower has previously borrowed from the Company a sum in the original principal
amount of One Million Five Hundred Thirty Five Thousand Dollars (U.S. $1,535,000.00) (the “Fourth
Loan”) to finance the acquisition of securities of the Company for the benefit of participants and
beneficiaries of the ESOP; and

     WHEREAS, the Borrower wishes to borrow from the Company and the Company has agreed to lend to
the Borrower an additional principal sum of up to Two Million Dollars (U.S. $2,000,000.00) in order
to finance the acquisition of securities of the Company from participants who have terminated their
employment and elected to receive cash distributions from the ESOP (to the extent those
distributions will be made on or before December 31, 2005) for the benefit of participants and
beneficiaries of the ESOP.

     NOW, THEREFORE, in consideration of the agreements, covenants, representations and warranties
set forth herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Borrower and the Company hereby agree as follows:

ARTCLE I

THE LOAN

          Section 1.01. The Loan. Upon the terms and subject to the conditions contained
herein, the Company shall lend to the Borrower, and the Borrower shall borrow from the Company, the
principal amount of U.S. $5,000,000.00 (the “Loan”). The principal amount of the Loan shall be
borrowed in one installment. The proceeds of the Loan shall be used by the Borrower solely for the
purpose of acquiring shares of Common Stock, par value $0.01 per share (the “Common Stock”), of the
Company for the Borrower in such a manner that the Loan shall constitute an Exempt Loan as defined
in the trust agreement which established the Borrower. The Loan shall be evidenced by and
repayable in accordance with, a promissory note of the Borrower substantially in the form of
Exhibit A hereto, with the blanks appropriately filled in (the “Note”).

          Section 1.02. Interest Rate. Interest shall accrue on the outstanding principal
balance of the Loan at a rate equal to (i) LIBOR plus 0.50 percent (0.50%) per annum, or (ii) in
the event that LIBOR for any period shall not be available, then the Prime Rate. For purposes
hereof, “LIBOR” shall mean the London Interbank Offered Rate, as quoted from time to time in the
Wall Street Journal, for funds borrowed for an interest period of one (1) year. The “Prime Rate”
shall mean the prime rate as quoted from time to time in the Wall Street Journal minus 1.5 percent
(1.5%). The interest rate applicable to the Loan shall be determined for each year, commencing

 

 

on the date of the initial borrowing hereunder and on each successive anniversary thereof. In
the case of LIBOR, such rate shall be determined as of the close of business on the second Business
Day preceding the date of determination. The Prime Rate shall be based on the prime rate as quoted
from time to time for each day during the period for which such rate is applicable. Interest shall
be calculated based on a year of 365 days or 366 days (as the case may be) and the actual number of
days elapsed.

          Section 1.03. Payments. (a) Installment Payments. On December 31, 2005, the
Borrower shall pay to Company the interest accrued on the Loan for the period ending December 31,
2005. The Loan shall amortize over a period of twenty (20) years, and the principal thereof
together with interest thereon shall be payable in accordance with the amortization schedule set
forth in Exhibit B hereto. On any payment date in any given year pursuant to this Section 1.03,
the accrued interest being paid shall be the interest that would have accrued if such payment date
were December 31st of such year. The unpaid principal balance, and accrued and unpaid interest,
together with other charges and fees, if any, shall be due and payable on the last Business Day of
December, 2025.

          (b) Crediting of Payments. To the extent the Company receives a payment from the
Borrower that is not clearly denominated as to whether such payment should be applied to the
Original Loan, to the Second, Third, or Fourth Loans, or to this Loan, the Company shall apply such
payment as follows: (i) the payment shall be applied to the Original Loan first, to the extent
required to make an installment payment on the Original Loan; (ii) the payment shall next be
applied to the Second Loan, to the extent required to make an installment payment on the Second
Loan; (iii) the payment shall next be applied to the Third Loan, to the extent required to make an
installment payment on the Third Loan; (iv) the payment shall next be applied to the Fourth Loan,
to the extent required to make an installment payment on the Fourth Loan; and (v) the remainder of
the payment, if any, shall be applied to prepay all or a portion of the Fourth Loan.

          Section 1.04. Prepayment. (a) Optional Prepayment. The Borrower may prepay
the Loan, in whole, without payment of any penalty or premium, at any time or times upon five
Business Days written notice to the Company.

          (b) Mandatory Prepayment. The Borrower shall prepay the Loan, on an annual basis, out
of any excess cash available on the first Business Day following the first day on which
distributions to participants are made under the ESOP during a year. “Excess cash” shall mean any
cash comprising assets of the Borrower after payment by the Borrower of the expenses and
liabilities thereof for the prior year, including interest and regularly scheduled principal on the
Original Loan, the Second Loan, the Third Loan, the Fourth Loan, and this Loan and all amounts
payable as distributions to participants for the prior year out of the assets of the Borrower, but
only to the extent the cash represents amounts described in Section 1.06 (b) or (c) below, or
dividends on shares purchased with the Loan that have been allocated to the accounts of
participants under the ESOP.

          Section 1.05. Security. The Note shall be secured pursuant to the terms of a pledge
agreement, substantially in the form of Exhibit C hereto, with the blanks appropriately filled in
(the “Pledge Agreement”). As used herein, the term “Collateral” shall have the meaning ascribed to
such term in the Pledge Agreement.

          Section 1.06. Non-Recourse Nature of Loans. No Person (as defined below, including,
but not limited to, the Company and any subsequent holder of the Note) entitled to payment with
respect to the Loan (whether under this Agreement, the Pledge Agreement, the Note or otherwise)
shall have any right of recourse against the Borrower (or UST in its individual capacity) with
respect to the Loan or shall have any right to assets of the Borrower with respect to the Loan
other than:

          (a) the Collateral;

          (b) participant contributions, if any, and Company contributions, other than contributions of
employer securities, to the Borrower under the ESOP to meet the Borrower’s obligations hereunder or
under the Note; and

          (c) earnings attributable to the Collateral and the investment of non-excluded contributions
referred to in Section 1.06(b) above.

The Borrower shall account for such earnings and nonexcluded contributions separately on its books
of account until the Loan is repaid. Notwithstanding the foregoing, in the event of any default
with respect to the Loan, the value of any assets of the Borrower applied in satisfaction of the
Loan shall not exceed the amount of the default, and if the

 

 

Person (including, but not limited to, the Company and any subsequent holder of the Note) for whose
benefit such assets are or would be applied is a disqualified person within the meaning of Section
4975(e)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) with respect to the
Borrower, such application of assets of the Borrower upon a default with respect to the Loan shall
be made only upon and to the extent of the failure of the Borrower to meet the payment schedule of
the Loan. The provisions of this Section 1.06 shall apply notwithstanding any other provision to
the contrary contained in this Agreement, the Pledge Agreement or the Note.

          Section 1.07. Application of Payments. All payments made in connection with this
Agreement or under the Note shall be applied in the following order with no portion of such payment
applied to a subsequently listed item until all previous items have been paid in full:

          (a) to interest on the Note then due and payable; and

          (b) to the unpaid principal balance of the Note in the order of the next succeeding annual
installments.

          Section 1.08. Partial Forgiveness of Loan. (a) Lower Valuation. The Company
acknowledges that the Borrower is willing to pay no more than fair market value (as determined by
an independent appraiser selected by the Borrower) for the shares of Common Stock that the Borrower
purchases from the accounts of participants and beneficiaries with the proceeds of the Loan. The
Borrower will purchase the shares at an initial price of U.S. $69.44 per share, which is the fair
market value of the Common Stock determined by an independent appraiser as of December 31, 2004.
As soon as practicable after December 31, 2005, the Borrower shall cause an independent appraiser
to determine the fair market value of the Common Stock as of December 31, 2005. If the fair market
value of the Common Stock as of December 31, 2005, is less than U.S. $69.44 per share, the Company
shall forgive Loan principal in an amount determined by multiplying the number of shares purchased
with the Loan by the difference between the fair market value of each share on December 31, 2004,
and the fair market value on December 31, 2005. The Company shall also forgive accrued interest,
and reimburse the Borrower for interest actually paid, with respect to the portion of the Loan
principal that the Company forgives pursuant to the preceding sentence. The Company shall execute
any amendment to this Loan Agreement, the Note, or other applicable documents that the Borrower
shall reasonably request to reflect the reduction in the Loan principal and interest.

          (b) Higher Valuation. The Company and the Borrower agree that the Borrower shall have
no obligation to increase the Loan principal and interest, or to compensate the Company, the ESOP
participants, or any other Person, if the value of the Common Stock on December 31, 2005, is
determined by the independent appraiser to be equal to or greater than U.S. $69.44.

          (c) No Other Guarantee. The Company and the Borrower agree that the Company has no
obligation to guarantee the value of the Common Stock purchased with the Loan for any period after
December 31, 2005, or in any circumstances except as described in paragraph (a) of this Section
1.08.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

          Section 2.01. Representations and Warranties of the Borrower. The Borrower represents
and warrants that the following are true and correct as of the date of this Agreement:

          (a) Authority. The Borrower, acting by and through the Trustee, has all requisite
power, authority and legal right to execute and deliver this Agreement, the Pledge Agreement and
the Note and to perform its obligations hereunder and thereunder.

          (b) Enforceability. This Agreement, the Pledge Agreement and the Note will constitute
valid and binding obligations of the Borrower enforceable against the Borrower in accordance with
their respective terms, except as the enforceability hereof and thereof may be limited by any
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other laws
affecting the enforcement of creditors’ rights generally and by general principles of equity.

 

 

          Section 2.02. Representations and Warranties of the Company. The Company represents
and warrants that the following are true and correct as of the date of this Agreement:

          (a) Authority. The execution, delivery and performance of this Agreement by the
Company and the consummation by the Company of the transactions contemplated hereby have been duly
authorized by all necessary corporate action. This Agreement has been duly executed and delivered
by the Company and, assuming due execution and delivery by the Borrower, constitutes a valid and
binding obligation of the Company enforceable against the Company in accordance with its terms,
except as the enforceability hereof may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other laws affecting the enforcement of
creditors’ rights generally and by general principles of equity.

          (b) No Violations. The execution, delivery, performance and compliance with the
terms, of this Agreement by the Company does not and will not, and consummation by the Company of
the transactions contemplated by this Agreement will not, (i) result in a violation of any laws
applicable to the Company or any of its subsidiaries, (ii) result in the violation of the
constituent documents of the Company or any of its subsidiaries; (iii) result in the breach of, or
constitute a default under, or permit the acceleration of any obligation under any agreement or
instrument to which the Company or any of its subsidiaries is a party or by which any of them or
any of the respective assets of the Company and its subsidiaries is bound; (iv) result in the
mandatory acceleration, redemption, payment or prepayment of any obligation of the Company or any
of its subsidiaries under any such agreement or instrument or afford the holder of any such
obligation the right to require the Company or any of its subsidiaries to purchase, redeem or
otherwise acquire, reacquire or repay any such obligation; (v) result in the creation or imposition
in favor of any person of any lien upon any of the assets of the Company or any of its
subsidiaries, or (vi) constitute an event which, after notice or lapse of time or both, would
result in any of the foregoing.

          (c) Prohibited Transactions. Assuming the Borrower has properly discharged its
fiduciary duties pursuant to ERISA and complied with the applicable provisions of the Code, the
execution, delivery and performance by the Company of this Agreement and the Pledge Agreement do
not involve or constitute: (i) a non-exempt “prohibited transaction” within the meaning, of Section
406 of ERISA or (ii) a non-exempt “prohibited transaction” within the meaning of Section 4975(c) of
the Code.

          (d) Tax Issues. (i) Plan and Trust Qualification. The ESOP and the Borrower comply
in form with the requirements of Sections 401(a) of the Code and 1165(a) of the Puerto Rico
Internal Revenue Code of 1994, as amended (the “PR Code”), and are exempt from taxation pursuant to
Sections 501(a) of the Code and 1165(a) of the PR Code, and the Company is aware of no facts that
would cause it to believe the ESOP does not comply in operation with the requirements of Sections
401(a) of the Code and 1165(a) of the PR Code. (ii) Employer Securities. The securities that the
ESOP will acquire from participants with the proceeds of the Loan are “employer securities” within
the meaning of Section 409(l) of the Code and 1165(h)(2) of the PR Code.

ARTICLE III

CONDITIONS TO LOAN

          Section 3.01. Conditions Precedent to Loan. The obligation of the Company to make the
Loan shall be subject to the prior or concurrent satisfaction of the following conditions:

          (a) Note. The Borrower having executed and delivered the Note; and

          (b) Pledge Agreement. The Borrower having executed and delivered the Pledge
Agreement, together with all documents referred to therein.

ARTCLE IV

EVENTS OF DEFAULT

          Section 4.01. Events of Default. If any one or more of the following events (each, an
“Event of Default”) shall occur and be continuing:

 

 

          (a) Payment Default Under Note. Default shall be made in the payment of any principal
of or interest on the Note for more than five (5) Business Days after the same shall become due and
payable, whether at a date fixed for the payment of an installment or at final maturity, if the
Borrower has sufficient available funds under the ESOP for the payment on the Note and if not,
after the Company has contributed sufficient funds to the Borrower to pay such amount; or

          (b) Representations and Warranties. If any representation or warranty made by the
Borrower in this Agreement shall cease to be true or shall prove to have been false in any material
respect on the date as of which made, and such representation or warranty is not corrected or made
good within thirty (30) days after written notice thereof shall have been given to the Borrower by
the Company, or

          (c) Other Covenants. Default shall be made in the due observance or performance of
any other material covenant or agreement contained in this Agreement or the Note to be observed or
performed by the Borrower and such default shall remain unremedied for thirty (30) days after
written notice thereof shall have been given to the Borrower by the Company, or

          (d) Pledge Agreement. Default shall be made in the due observance or performance of
any covenant or agreement or obligation of the Borrower under the Pledge Agreement or any event of
default shall occur and continue under the Pledge Agreement and, in each case shall remain
unremedied for thirty (30) days after written notice thereof shall have been given to the Borrower
by the Company;

then and in every such event, the Company may, at its option, exercise its rights with respect to
the Collateral. Subject to Section 1.06 hereof, if any Event of Default shall occur and be
continuing, the Company or any subsequent holder of the Note may declare any outstanding principal
and accrued interest on the Note to be immediately due and payable.

          Section 4.02. Remedies. Each of the rights, powers and remedies of the Company set
forth in this Agreement and the Pledge Agreement may be exercised alternatively or conjunctively
and at such times, in such order and from time to time, all as determined by the Company. No
partial exercise of any right, remedy or power by the Company shall preclude any further exercise
of such right, power or remedy or the exercise of any other right, power or remedy consistent with
the terms hereof. The rights, remedies and powers of the Company set forth herein or in the Pledge
Agreement are cumulative and are in addition to any provided by law or in equity. No delay or
omission on the part of the Company in exercising any right, power or remedy shall impair such
right, power or remedy or be construed as a waiver of any Event of Default or acquiescence therein.
No waiver of any Event of Default shall extend to any subsequent Event of Default of the same or a
dissimilar nature. The Company, in its discretion, may proceed against the Collateral without
first proceeding against the Borrower.

ARTICLE V

DEFINITIONS

          Section 5.01. Additional Definitions. The terms defined in this Section 5.01, which
are in addition to terms defined elsewhere in this Agreement, shall have the meanings indicated
below.

          “Business Day” — means any Monday, Tuesday, Wednesday, Thursday or Friday which is not
a day on which banking institutions in New York are authorized or obligated to close by law or
executive order, and for purposes of the definition of LIBOR in Section 1.02 hereof, a day on which
transactions are effected in the London interbank market.

          “ERISA” — means the Employee Retirement Income Security Act of 1974, as from time to
time in effect or as otherwise expressly specified herein, and references to particular sections or
provisions of ERISA (or the Code) include any successor section covering substantially the same
subject matter or area covered by the specified section on the date hereof as well as all rules,
regulations and orders issued pursuant thereto.

          “Person” — includes an individual, a corporation, a partnership, a limited liability
company, a government or agency or political subdivision thereof, a trust, joint venture, employee
organization and an “employee benefit plan,” as defined in Section 3 of ERISA.

 

 

          Section 5.02. Time. As used in this Agreement, a “day” is a calendar day except in
those instances where reference is expressly made to Business Days.

ARTCLE VI

MISCELLANEOUS

          Section 6.01. Notices. All notices, consents and demands hereunder shall be in
writing and mailed by first class mail, postage prepaid, to the Borrower to:

Manuel D. Rojo

U.S. Trust Company, National Association

515 South Flower Street

Los Angeles, California 90171

Telephone: (213) 861-5073

Fax: (213) 488-1366

With a copy to:

Ronald S. Rizzo

Jones, Day, Reavis & Pogue

77 West Wacker, Suite 3500

Chicago, Illinois 60601-1692

Telephone: (312) 782-3939

Fax: (312) 782-8585

To the Company:

Hector Houssay, Finance VP & CFO

Telecomunicaciones de Puerto Rico, Inc.

1515 Franklin D. Roosevelt Avenue

Guaynabo, Puerto Rico 00968

Telephone: (787) 793-1818

Fax: (787) 792-9830

With a copy to:

Verizon International

1095 Avenue of the Americas, Room 4158

New York, NY 10036

Telephone: (972) 718-5000

Telecopy: (972) 718-2916

Attention: Daniel C. Petri

 

 

          Section 6.02. Survival of Representations and Warranties. All representations and
warranties made in this Agreement or otherwise in writing in connection herewith shall survive the
execution and delivery of this Agreement, any investigation at any time made by any Person, the
execution and delivery of the Note and the making of the Loan provided for in this Agreement.

          Section 6.03. Entire Agreement. This Agreement, together with the Pledge Agreement
and the Note, embodies the entire agreement and understanding between the Borrower and the Company
with respect to the subject matter hereof and supersedes all prior agreements and understandings
relating to the subject matter hereof. The Company and the Borrower may enter into further and
additional written agreements to amend or supplement this Agreement, and the terms and provisions
of such further or additional written agreements shall be deemed a part of this Agreement as though
incorporated herein. No amendment of, modification or supplement to, or waiver of any provision
of, this Agreement shall in any event be effective unless in writing and signed by the parties
hereto.

          Section 6.04. Parties in Interest. All the terms and provisions of this Agreement
shall inure to the benefit of and be binding upon and enforceable by the parties hereto and their
respective successors and assigns, except that neither the Borrower nor the Company shall assign
its respective rights hereunder without the prior written consent of the other party; provided,
however, that the Company may at any time and without the prior consent of the Borrower grant a
security interest in any or all of its rights under this Agreement, the Pledge Agreement and the
Note.

          Section 6.05. Construction; Governing Law. This Agreement and the Note shall be
governed by, and construed and enforced in accordance with, the laws of the State of New York
without reference to the State of New York’s conflict of laws provisions. The parties hereto
intend that the Loan provided for herein shall be an “exempt loan” within the meanings of Section
408(b)(3) of ERISA and Section 4975(d)(3) of the Code, and that the terms of this Agreement shall
be construed in a manner consistent with that intention.

          Section 6.06. Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original, but both of which taken together shall constitute one
agreement.

          IN WITNESS WHEREOF, the parties have caused this Loan Agreement to be executed on the date
first above written by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	 	TRUST OF THE EMPLOYEE STOCK
	 	 	OWNERSHIP PLAN OF
	 	 	TELECOMUNICACIONES DE PUERTO RICO, INC.
	 
	 	 	 	 
	 

	 	By:
	 	U.S. TRUST COMPANY, NATIONAL
ASSOCIATION, solely in its capacity as
trustee and not in its individual capacity
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard C. Murray
	 

	 	 	 	 
	 

	 	Name:
	 	Richard C. Murray
	 

	 	Title:
	 	Senior Vice President
	 
	 	 	 	 
	 	 	TELECOMUNICACIONES DE PUERTO RICO, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Héctor Houssay
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:exv10w5w7

 

Exhibit 10.5.7

AMENDMENT TO EMPLOYMENT AGREEMENT

     THIS AMENDMENT TO EMPLOYMENT AGREEMENT, executed on March 29, 2006, effective as of January 1,
2006 (the “Effective Date”), between ASHFORD HOSPITALITY TRUST, INC., a corporation
organized under the laws of the State of Maryland and having its principal place of business at
Dallas, Texas (hereinafter, the “REIT”), ASHFORD HOSPITALITY LIMITED PARTNERSHIP, a limited
partnership organized under the laws of the State of Delaware and having its principal place of
business at Dallas, Texas (the Operating Partnership”), and DOUGLAS KESSLER, an individual
residing in Dallas, Texas (the “Executive”):

RECITALS:

	 	A.	 	The REIT and the Operating Partnership (collectively, the “Company”)
and the Executive are parties to a certain Employment Agreement (as amended, the
“Agreement”), dated as of August 29, 2003; and
	 
	 	B.	 	The Compensation Committee, with the approval granted by the Board of
Directors of the Company on March 28, 2006, desire to modify the Employment Agreement
as specifically set forth herein;
	 
	 	C.	 	The Executive has agreed to accept this Amendment pursuant to the terms and
conditions set forth herein; and
	 
	 	D.	 	All terms with their initial letter capitalized as set forth in the
Employment Agreement shall have the same meaning herein as given such terms in the
Employment Agreement

     NOW, THEREFORE, the Company and the Executive, in consideration of the respective covenants
set forth in the Employment Agreement, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, agree that the Employment Agreement is modified as
set forth below:

     1. SALARY. Section 3 of the Employment Agreement is hereby modified by providing that
the Base Salary, effective as of the Effective Date, shall be Five Hundred Thousand Dollars
($500,000.00) per year.

     2. INCENTIVE BONUS. The Company and Executive agree that the last sentence of Section
5(a) of the Employment Agreement is deleted in its entirety and the following is inserted in lieu
thereof:

The targeted range for the Incentive Bonus for the Initial Term ending on
the Initial Termination Date is 50% to 100% of Base Salary.

-1-

 

     3. LIMITED MODIFICATION. Except as expressly modified above, the terms and conditions
of the Employment Agreement shall remain in full force and effect, and the Company and the
Executive ratify and confirm to each other the enforceability thereof.

     4. MISCELLANEOUS.

     4.1 Severability. If any provision of this Amendment is or becomes invalid,
illegal or unenforceable in any respect under any law, the validity, legality and
enforceability of the remaining provisions hereof shall not in any way be affected or
impaired.

     4.2 Counterparts. This Amendment may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which together shall constitute one
and the same instrument. In making proof of this Amendment, it shall not be necessary to
produce or account for more than one such counterpart.

     4.3 Entire Agreement. This Amendment (together with the Employment Agreement,
as modified herein) contains the entire understanding of the parties, supercedes all prior
agreements and understandings, whether written or oral, relating to the subject matter
hereof and may not be amended except by a written instrument hereafter signed by the
Executive and a duly authorized representative of the Board.

     4.4 Governing Law. This Amendment and the performance hereof shall be
construed and governed in accordance with the laws of the State of Texas, without giving
effect to principles of conflicts of law. Jurisdiction and venue shall be solely in the
federal or state courts of Dallas County, Texas. This provision shall not be read as a
waiver of any right to removal to federal court in Dallas County, Texas.

     4.5 Construction. The language used in this Amendment will be deemed to be
the language chosen by the parties to express their mutual intent, and no rule of strict
construction will be applied against any party. The headings of sections of this Amendment
are for convenience of reference only and shall not affect its meaning or construction.

     4.6 Consultation with Counsel. The Executive acknowledges that he has had a
full and complete opportunity to consult with counsel or other advisers of his own choosing
concerning the terms, enforceability and implications of this Amendment, and that the
Company has not made any representations or warranties to the Executive concerning the
terms, enforceability and implications of this Amendment other than as are reflected in
this Amendment.

-2-

 

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have caused
this Agreement to be duly executed under seal as of the date first above written.

REIT:

ASHFORD HOSPITALITY TRUST, INC.

By: /S/ MONTY J. BENNETT

Name: Monty J. Bennett

Title: Chief Executive Officer

Dated: 3/29/06

OPERATING PARTNERSHIP:

ASHFORD HOSPITALITY LIMITED PARTNERSHIP

By: Ashford OP General Partner, LLC

By: /S/ MONTY J. BENNETT

Name: Monty J. Bennett

Title: Chief Executive Officer

Dated: 3/29/06

EXECUTIVE:

/s/ DOUGLAS KESSLER

Name: Douglas Kessler

Dated: 3/29/06

-3-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]