Document:

exv10w1

Exhibit 10.1

July 30, 2009

Revised August 4, 2009

Further Revised August 12, 2009

Further Revised August 16, 2009

John A. Schmidt, MD

19 Fairway Drive

Green Brook, NJ 08812

Dear Jack:

     This letter agreement sets forth the terms of the termination of your employment based upon
your decision to resign your position with Alnylam Pharmaceuticals, Inc. (the “Company”). This
letter agreement also summarizes the terms of the separation package that the Company is willing to
offer you. Please read this letter agreement, which includes a general release, carefully. If
you are willing to agree to its terms, please sign in the space provided below and return it to me
within the designated time period.

     1. By signing this letter, you confirm your intent to resign your position as Chief Scientific
Officer effective as of September 30, 2009 (“the Separation Date”). You will be paid for time
worked through the Separation Date at your current gross bi-weekly rate of pay pursuant to the
Company’s regular payroll practices. You will also be paid for any unused and accrued vacation
time (if any) as of the Separation Date, less lawful deductions. During the period August 10, 2009
through September 30, 2009, you will work from your home and will use your best efforts to perform
tasks that may be assigned to you from time to time by John Maraganore, Chief Executive Officer,
and otherwise keep yourself available for consultation with the Company during regular business
hours. In the event you do not sign this letter agreement and confirm your decision to resign
effective September 30, 2009, your employment will terminate as of August 21, 2009.

	 	a.	 	Under the terms and conditions of the Amended and Restated 2004
Stock Incentive Plan, 25% of the stock options to purchase 200,000 shares of
common stock awarded to you on September 29, 2008 will vest and become
exercisable as of September 29, 2009. Pursuant to the terms of your stock
option agreement(s), you will have three months following the Separation Date to
exercise such vested stock options (the “Exercise Period”). Your right to
exercise such stock options will terminate on the last day of the Exercise
Period, subject to your compliance with the terms and conditions of your stock
option agreement(s), and any unexercised stock options will be immediately
cancelled. Subject to compliance with the federal securities laws relating to
insider trading, there is no restriction on the timing or manner of your sale of
the underlying shares of common stock acquired following the exercise of your
vested stock options.

 

 

	 	b.	 	Under the provisions of the Alnylam Pharmaceuticals, Inc. Savings
and Investment Plan, as amended, the Company matches, at its discretion, up to
50% of the first 6% of your contributions to your account in the form of Company
common stock. The matching contributions are subject to a two-year vesting
schedule: 50% of the match vests after one year of employment and the remaining
50% vests after the second full year of employment.

     2. After the Separation Date, except as provided below, you will not be entitled to receive
any benefits paid by, or participate in any benefit programs offered by the Company to its
employees. You will receive, under separate cover, information concerning your right to continue
your health insurance benefits after that date in accordance with COBRA and the American Recovery
and Reinvestment Act of 2009. You will not receive any monies under the Company’s 2009 Annual
Incentive Program.

     3. In consideration for signing this letter agreement and general release and in compliance
with the promises made herein, and in the event you sign this agreement and return it to me within
time period set forth in the agreement and do not revoke your acceptance pursuant to paragraph 9
below, the Company agrees as follows:

	 	a.	 	Provided that you remain employed in good standing through the
Separation Date, the Company will pay you severance in the gross amount of two
hundred twelve thousand, five hundred dollars ($212,500), an amount equal to six
(6) months of your gross base salary. From that gross amount will be deducted
all appropriate tax and FICA withholdings. However, in order to be eligible
for the payment described in this subparagraph (a) you must sign a second
General Release, in the form attached as Exhibit 1, after your last day of
employment and not thereafter revoke that second General Release. You
specifically agree that you will not sign a General Release in the form attached
as Exhibit 1 prior to your last day of employment. Payment of the
amounts described in this subparagraph (a) will be made in twelve (12)
semi-monthly installments beginning in the first payroll cycle that is at least
fifteen (15) business days after you sign the second General Release in the form
attached as Exhibit 1 and continuing for eleven (11) subsequent semi-monthly
periods.
	 
	 	b.	 	You will not be responsible for repayment of the $175,000.00
payment you received on or about January 15, 2009. (You are not eligible for the
additional payment of $100,000.00 you would have received had you been employed
on January 15, 2010.)
	 
	 	c.	 	You will not be responsible for repayment of any relocation
benefits previously provided by the Company. The Company will reimburse you for
the cost of temporary local housing through August 31, 2009 and furniture rental
through August 18, 2009 under your existing leases. In addition, the Company
will pay the cost of any early termination penalty under your existing leases.
The

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	 	 	 	Company will also pay you an additional amount to offset any income taxes
associated with these payments.
	 
	 	d.	 	The Company will pay the full cost of your COBRA premiums until
the earlier of (i) March 31, 2010 or (ii) the date you become eligible for
coverage under the group health plan of another employer; provided that you
properly elect to continue such coverage under COBRA. Thereafter, you will be
responsible for the full cost of COBRA coverage. You agree to promptly notify
the Company if you become eligible for coverage under the group health plan of
another employer prior to March 31, 2010.
	 
	 	e.	 	The Company will pay for your use of outplacement services up to
a maximum amount of ten thousand dollars ($10,000). The provider of the
outplacement services selected by you shall submit invoice(s) for services
directly to the Company, and payments made by the Company for your outplacement
services shall not be attributable to you by the Company as income. The Company
can assist you in identifying an outplacement service provider.

     4. You understand and agree that you would not receive the monies and/or benefits specified in
Paragraph No. 3 above, except for your execution of this letter agreement and general release and
the fulfillment of the promises contained therein.

     5. In consideration of the payments to be made by the Company to you as set forth in Paragraph
No. 3 above and the promises contained in this letter agreement and general release, you
voluntarily, and of your own free will, release, forever discharge and hold harmless Alnylam
Pharmaceuticals, Inc., its parent corporation, affiliates, subsidiaries, divisions, predecessors,
insurers, successors and assigns, and their current and former employees, attorneys, officers,
directors and agents thereof, both individually and in their business capacities, and their
employee benefit plans and programs and their administrators and fiduciaries (collectively referred
to throughout the remainder of this Agreement as “Releasees”) of and from any and all claims,
demands, rules or regulations, or any other causes of action of whatever nature, whether known or
unknown, which the you have or may have against Releasees as of the date you sign this letter
agreement including, but not limited to, The National Labor Relations Act, as amended; Title VII of
the Civil Rights Act of 1964, as amended; Sections 1981 through 1988 of Title 42 of the United
States Code, as amended; the Age Discrimination in Employment Act of 1967, as amended; the Older
Workers Benefit Protection Act; the Immigration Reform Control Act, as amended; the Employee
Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et seq.; the Occupational
Safety and Health Act, as amended; the Civil Rights Act of 1866, 29 U.S.C. § 1981, et
seq; the Rehabilitation Act of 1973, 29 U.S.C. § 701, et seq.; the
Americans With Disabilities Act of 1990, as amended; the Family and Medical Leave Act; the Civil
Rights Act of 1991; the Massachusetts Law Against Discrimination, G.L. c. 151B; the Massachusetts
Wage and Hour Laws, G.L. c. 151; the Massachusetts Privacy Statute, G.L. c. 214, § 1B; the
Massachusetts Wage Payment Statute, G.L. c. 149, § 148 et seq.; the Massachusetts
Sexual Harassment Statute, G.L. c. 214 § 1C; the Massachusetts Civil Rights Act, G.L. c. 12, § 11H,
the Massachusetts Equal Rights Act, G.L. c. 93, § 102; or any other federal or state law,
regulation, or ordinance; any public policy, contract, tort, or common law; or any

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allegation for costs, fees, or other expenses including attorneys’ fees incurred in these
matters. You agree that neither this letter agreement and general release, nor the furnishing of
consideration for this letter agreement and general release, shall be deemed or construed at
anytime for any purpose as an admission by the Company of any liability or unlawful conduct of any
kind.

     6. You agree not to disclose to anyone, either directly or indirectly, any information
whatsoever regarding the existence or substance of this letter agreement and general release,
except your immediate family, attorneys, financial advisors, accountants, and tax preparation
professionals, provided that they agree to keep such information strictly confidential. This
includes, but is not limited to, present or former employees of the Company and other members of
the public. You further agree not to make or publish any written or oral disparaging or defamatory
statements regarding the Company (including, without limitation, its research and product
development), and its current and former employees, officers, directors and agents. Violation of
this paragraph shall be deemed a material breach of this agreement.

     7. You hereby acknowledge and reaffirm the validity of the Employee Nondisclosure,
Noncompetition and Assignment of Intellectual Property Agreement between you and the Company, the
terms and conditions of which are incorporated herein by reference and remain in full force and
effect for the full term stated therein and which survives the Separation Date. Notwithstanding
the foregoing, in consideration of your fulfillment of the promises contained herein and the
continued compliance with your obligations hereunder, the Company hereby agrees to limit the scope
of Paragraph 6 of such Employee Nondisclosure, Noncompetition and Assignment of Intellectual
Property Agreement as follows: “participate, directly or indirectly, in any capacity, in any
business involving the modulation of gene expression using RNA and RNA analogs” or any “other
business of developing, designing, producing, marketing, selling or rendering (or assisting any
other person in developing, designing, producing, marketing, selling or rendering) products or
services competitive with those being developed, designed, produced, marketed, sold or rendered by
the Company” shall be understood to cover only your employment, working directly with or for, any
direct competitors of the Company (which shall include, in each case in the form established and
subsisting as of the date of this Agreement, Sirna Therapeutics, Inc., a subsidiary of Merck & Co.,
Inc., the RNAi division of Pfizer Inc./Wyeth, RXi Pharmaceuticals Corporation, Silence Therapeutics
plc, MDRNA, Inc., Dicerna Pharmaceuticals, Inc. and AiRNA Pharmaceuticals, Inc.), and any affiliate
of the preceeding companies engaged in a similar business. You understand that the Company would
not provide you with the benefits under this letter agreement but for your reaffirmation of your
obligations under the Employee Nondisclosure, Noncompetition and Assignment of Intellectual
Property Agreement, as modified herein. You further understand and agree that your obligations
under this paragraph are material terms of this agreement, and that the Company shall have the
right, in addition to any other damages, to discontinue the salary continuation payments and seek
and obtain the return of the consideration already paid hereunder (without impacting the validity
or enforceability of the general release contained herein) in the event you breach any of your
obligations under this paragraph. By signing this Agreement, you affirm that you have not divulged
any proprietary or confidential information of the Company and will continue to maintain the
confidentiality of such information consistent with the Company’s policies and your Employee
Nondisclosure, Noncompetition and Assignment of Intellectual Property Agreement.

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     8. You will be afforded a period of up to (21) twenty-one days to consider the meaning and
effect of this letter agreement and general release. You are advised to consult with an attorney
and you acknowledge that you have had the opportunity to do so. You agree that any modifications,
material or otherwise, do not restart or affect in any manner the original 21-day consideration
period for the separation proposal made to you.

     9. You may revoke this letter agreement and general release for a period of seven (7) days
following the day you execute this letter agreement and general release. Any revocation within
this period must be submitted, in writing, to Eric Raichle, Vice President of Human Resources and
state, “I hereby revoke my acceptance of the letter agreement and general release.” The revocation
must be personally delivered to Eric Raichle, Vice President of Human Resources, Alnylam
Pharmaceuticals, Inc., 300 Third Street, Cambridge, MA 02142, or postmarked within seven (7) days
of execution of this letter agreement and general release. This letter agreement and general
release shall not become effective or enforceable until the revocation period has expired. If the
last day of the revocation period is a Saturday, Sunday, or legal holiday in Massachusetts, then
the revocation period shall not expire until the next following day which is not a Saturday,
Sunday, or legal holiday.

     10. This letter agreement and general release, which will be construed under Massachusetts
law, may not be modified, altered, or changed except upon express written consent of both parties
wherein specific reference is made to this letter agreement and general release.

     11. Nothing herein limits your right, where applicable, to file or participate in an
investigative proceeding of any federal, state or local governmental agency, provided however, that
by signing this Agreement, you waive the right to seek or receive any money damages based upon any
claim that might be asserted arising out of your employment at the Company. You further affirm that
you have been paid and have received all leave (paid or unpaid), compensation, wages, bonuses,
commissions, and/or benefits to which you may be entitled and that no other leave (paid or unpaid),
compensation, wages, bonuses, commissions and/or benefits are due to you, except as provided in
this letter agreement. You furthermore affirm that you have no known workplace injuries or
occupational diseases and have been provided and/or have not been denied any leave requested under
the Family and Medical Leave Act. You also affirm that you have not been retaliated against for
reporting any allegations of wrongdoing by the Company or its officers, including any allegations
of corporate fraud.

     12. You agree to timely complete any questionnaire and provide any other information requested
by the Company that is required to be disclosed as part of its corporate reporting obligations,
which request may come after the expiration of the salary continuation period.

     13. This letter agreement, which includes a general release, represents the complete agreement
between you and the Company, and fully supersedes any prior agreements or understandings between
the parties (including, without limitation, your offer letter dated September 5, 2008), other than
your Employee Nondisclosure, Noncompetition and Assignment of Intellectual Property Agreement as
set forth and referred to in paragraph 7, as so modified by paragraph 7. You acknowledge that you
have not relied on any representations, promises, or agreements of any kind

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made to you in connection with your decision to sign this letter agreement and general
release, except those set forth herein.

The Company would like to extend its appreciation to you for your past service, and its sincere
hope for success in your future endeavors.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ Eric Raichle
 	 
	 	Eric Raichle 	 
	 	Vice President, Human Resources 	 
	 

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ACKNOWLEDGMENT AND AGREEMENT

I acknowledge and agree that I have been advised in writing that I have a period of up to 21
calendar days to consider this letter agreement and general release and to consult with an attorney
prior to signing this letter agreement and general release.

Having elected to execute this letter agreement and general release, to fulfill the promises
set forth herein, and to receive thereby the sums and benefits set forth in Paragraph No. 3 above,
I freely and knowingly, and after due consideration, enter into this letter agreement and general
release intending to waive, settle, and release all claims I have or might have against the Company
and Releasees.

	 	 	 	 	 
	 	 	 
	Date:      August 21, 2009 	/s/ John A. Schmidt, MD
 	 
	 	John A. Schmidt, MD 	 
	 	 	 
	 

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EXHIBIT 1

GENERAL RELEASE

     In consideration for the promises made to John A. Schmidt, MD by Alnylam Pharmaceuticals (“the
Company”) in a letter agreement and general release signed by the Company on July 30, 2009,
including but not limited to the promise in that letter agreement and general release to pay to Dr.
Schmidt the gross amount of two hundred twelve thousand, five hundred ($212,500), an amount equal
to six (6) months of Dr. Schmidt’s gross base salary and the full cost of any COBRA premiums for
the period October 1, 2009 to March 31, 2010, unless eligible for group health insurance coverage
through another employer prior to March 31, 2010 (and provided that Dr. Schmidt does not revoke
this General Release), John A. Schmidt, MD agrees that by signing this General Release, he
voluntarily and of his own free will releases, forever discharges and holds harmless Alnylam
Pharmaceuticals, Inc., its parent corporation, affiliates, subsidiaries, divisions, predecessors,
insurers, successors and assigns, and their current and former employees, attorneys, officers,
directors and agents thereof, both individually and in their business capacities, and their
employee benefit plans and programs and their administrators and fiduciaries (collectively referred
to throughout the remainder of this Agreement as “Releasees”) of and from any and all claims,
demands, rules or regulations, or any other causes of action of whatever nature, whether known or
unknown, which the you have or may have against Releasees as of the date you sign this letter
agreement including, but not limited to, The National Labor Relations Act, as amended; Title VII of
the Civil Rights Act of 1964, as amended; Sections 1981 through 1988 of Title 42 of the United
States Code, as amended; the Age Discrimination in Employment Act of 1967, as amended; the Older
Workers Benefit Protection Act; the Immigration Reform Control Act, as amended; the Employee
Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et seq.; the Occupational
Safety and Health Act, as amended; the Civil Rights Act of 1866, 29 U.S.C. § 1981, et
seq; the Rehabilitation Act of 1973, 29 U.S.C. § 701, et seq.; the
Americans With Disabilities Act of 1990, as amended; the Family and Medical Leave Act; the Civil
Rights Act of 1991; the Massachusetts Law Against Discrimination, G.L. c. 151B; the Massachusetts
Wage and Hour Laws, G.L. c. 151; the Massachusetts Privacy Statute, G.L. c. 214, § 1B; the
Massachusetts Wage Payment Statute, G.L. c. 149, § 148 et seq.; the Massachusetts
Sexual Harassment Statute, G.L. c. 214 § 1C; the Massachusetts Civil Rights Act, G.L. c. 12, § 11H,
the Massachusetts Equal Rights Act, G.L. c. 93, § 102; The New Jersey Law Against Discrimination;
The New Jersey Civil Rights Act; The New Jersey Family Leave Act; The New Jersey State Wage and
Hour Law; The New Jersey Conscientious Employee Protection Act; The New Jersey Equal Pay Law; The
New Jersey Occupational Safety and Health Law; The New Jersey Smokers’ Rights Law; The New Jersey
Genetic Privacy Act; The New Jersey Fair Credit Reporting Act; The New Jersey Statutory Provision
Regarding Retaliation/Discrimination for Filing A Workers’ Compensation Claim; The New Jersey
Public Employees’ Occupational Safety and Health Act; New Jersey laws regarding Political
Activities of Employees, Lie Detector Tests, Jury Duty, Employment Protection, and Discrimination.
or any other federal or state law, regulation, or ordinance; any public policy, contract, tort, or
common law; or any allegation for costs, fees, or other expenses including attorneys’ fees incurred
in these matters.

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     By signing this General Release, Dr. Schmidt affirms that he has not filed, caused to be
filed, or presently is a party to any claim against any of the Releasees. Dr. Schmidt also affirms
that he has been paid and/or has received all compensation, wages, bonuses, commissions, and/or
benefits to which he may be entitled. Dr. Schmidt affirms that he has been granted any leave to
which he was entitled under the Family and Medical Leave Act or related state or local leave or
disability accommodation laws, and that he has no known workplace injuries or occupational
diseases.

     By signing this Agreement, Dr. Schmidt affirms that he has not divulged any proprietary or
confidential information of the Company and will continue to maintain the confidentiality of such
information consistent with the Company’s policies and his Employee Nondisclosure, Noncompetition
and Assignment of Intellectual Property Agreement.

     Dr. Schmidt further affirms that he has not been retaliated against for reporting any
allegations of wrongdoing by the Company or its officers, including any allegations of corporate
fraud. Both Parties acknowledge that this Agreement does not limit either party’s right, where
applicable, to file or participate in an investigative proceeding of any federal, state or local
governmental agency. To the extent permitted by law, Dr. Schmidt agrees that if such an
administrative claim is made, he shall not be entitled to recover any individual monetary relief or
other individual remedies. Dr. Schmidt also affirms that he is in possession of all of his
property that he had at the Company’s premises and that the Company is not in possession of any of
Dr. Schmidt’s property.

     Dr. Schmidt will be afforded a period of up to (21) twenty-one days to consider the meaning
and effect of this General Release. Dr. Schmidt is advised to consult with an attorney before
signing this General Release and he acknowledges that he has had the opportunity to do so. Dr.
Schmidt agrees that any modifications, material or otherwise, do not restart or affect in any
manner the original 21-day consideration period for the separation proposal made to Dr. Schmidt.
Dr. Schmidt may revoke this General Release for a period of seven (7) days following the day he
signs it. Any revocation within this period must be submitted, in writing, to Eric Raichle, Vice
President of Human Resources and state, “I hereby revoke my acceptance of the letter agreement and
general release.” The revocation must be personally delivered to Eric Raichle, Vice President of
Human Resources, Alnylam Pharmaceuticals, Inc., 300 Third Street, Cambridge, MA 02142, or
postmarked within seven (7) days of execution of this letter agreement and general release. This
General Release shall not become effective or enforceable until the revocation period has expired.
If the last day of the revocation period is a Saturday, Sunday, or legal holiday in Massachusetts,
then the revocation period shall not expire until the next following day which is not a Saturday,
Sunday,

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or legal holiday. Dr. Schmidt is also advised that he should not sign this General Release until
after September 30, 2009 unless his employment ends involuntarily prior to that date and an
authorized representative of the Company notifies him in writing that he may do so.

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED TO:

 
	 	/s/ John A. Schmidt, MD
 	 
	 	John A. Schmidt, MD 	 

	 
	 	Date: October 1, 2009 	 
	 
	 	Alnylam Pharmaceuticals, Inc.

 	 
	 	By:  	/s/ Eric Raichle
 	 
	 	 	 	 
	 	 	Date: October 5, 2009 	 
	 

10exv10w3

Exhibit 10.3

SUBSCRIPTION AGREEMENT

Chatham Lodging Trust

50 Cocoanut Row, Suite 200

Palm Beach, Florida 33480

Ladies and Gentlemen:

     The offer and sale of the common shares of beneficial interest, par value $0.01 per share (the
“Shares”), of Chatham Lodging Trust, a Maryland real estate investment trust (the “Company”), to
the undersigned (the “Investor”) are not being registered under the Securities Act of 1933, as
amended (the “Securities Act”), but rather are being made privately by the Company pursuant to the
private placement exemption from the registration requirements provided in Section 4(2) of the
Securities Act and Rule 506 of Regulation D (“Regulation D”) promulgated thereunder by the
Securities and Exchange Commission.

     The information requested in this Subscription Agreement is needed in order to, among other
things, ensure compliance with Regulation D and to determine whether an investment in the Company
by the Investor is suitable.

     The Investor understands and agrees that, although the Company will use its commercially
reasonable efforts to keep the information provided in the answers to this Subscription Agreement
strictly confidential, the Company may present this Subscription Agreement and/or the information
provided in the answers to such parties as the Company deems advisable.

     The Investor hereby agrees as follows:

I. Irrevocable Subscription for Shares.

     A. The Investor irrevocably subscribes for and agrees to purchase the number of Shares
indicated in this Subscription Agreement on the terms provided for herein. The Investor agrees to
and understands the terms and conditions upon which the Shares are being offered. The price per
Share paid by the Investor shall be the initial public offering price for the common shares in the
Company’s underwritten initial public offering of its common shares (the “IPO”). The aggregate
purchase price for the Shares purchased by the Investor will be $10,000,000 and the number of
Shares purchased by the Investor will be the number obtained by dividing $10,000,000 by the initial
public offering price per share for the Shares in the IPO.

     B. The Investor understands and agrees that the Company reserves the right to accept or reject
the Investor’s subscription for the Shares for any reason or for no reason, in whole or in part, at
any time prior to its acceptance by the Company, and the same shall be deemed to be accepted by the
Company only when this Subscription Agreement is signed by a duly authorized person by or on behalf
of the Company. In the event of rejection of the entire subscription, the Investor’s payment
hereunder (the “Subscription Amount") will be returned promptly to the Investor along with this
Subscription Agreement, and this Subscription Agreement shall have no force or effect.

II. Payment by the Investor.

     Concurrently with the closing of the sale by the Company of common shares in the IPO, the
Investor will pay the full purchase price for the number of Shares indicated in this Subscription
Agreement.

III. Representations and Covenants of the Investor.

     The Investor understands that the Shares are being sold in reliance upon the exemptions
provided in the Securities Act and/or Regulation D thereunder for transactions involving limited
offers and sales, and the Investor makes the following representations, declarations and
warranties:

 

 

     A. The Investor fully understands that the Shares are being offered in a transaction not
involving any public offering within the United States within the meaning of the Securities Act and
that the Shares have not been registered under the Securities Act or any state securities laws and,
unless so registered, may not be sold except in accordance with the Securities Act (a) pursuant to
a registration statement that has been declared effective under the Securities Act; or (b) pursuant
to an available exemption from the registration requirements of the Securities Act. The Investor
understands that the registrar and transfer agent for the Shares will not be required to accept for
registration or transfer any Shares acquired by the Investor except upon presentation of evidence,
satisfactory to the Company and the transfer agent, that the proposed transfer complies with the
foregoing. The Investor further understands that any certificates representing Shares acquired by
the Investor will bear a legend reflecting the substance of this paragraph.

     B. The Investor has consulted with, as deemed appropriate, his, her or its attorney,
accountant or investment advisor with respect to the investment contemplated hereby and its
suitability for the Investor. The Investor acknowledges that in making a decision to subscribe for
the Shares the Investor has relied solely upon the independent investigations made by the Investor.
The Investor is aware and acknowledges that the Company has been recently formed and has no
operating history. The Investor’s investment in the Shares is consistent with the investment
purposes and objectives and cash flow requirements of the Investor and will not adversely affect
the Investor’s overall need for diversification and liquidity.

     C. The Investor has received such information as the Investor deems necessary in order to make
an investment decision with respect to the Shares. The Investor represents and agrees that prior
to the Investor’s agreement to purchase the Shares, the Investor and the Investor’s advisor or
advisors, if any, have asked such questions, received such answers and obtained such information as
the Investor deemed relevant to making an investment in the Shares. The Investor became aware of
the offering of the Shares solely by means of direct contact between the Investor and the Company.
The Investor did not become aware of, nor were the Shares offered to the Investor by, any other
means including, in each case, by any form of general solicitation or general advertising. In
making the decision to purchase the Shares, the Investor relied solely on information obtained by
the Investor directly from the Company as a result of any inquiries by the Investor.

     D. The Investor has such knowledge and experience in financial and business matters so that
the Investor is capable of evaluating the merits and risks of the Investor’s investment in the
Shares and is able to bear such risks and has obtained, in the Investor’s judgment, sufficient
information from the Company or its authorized representative to evaluate the merits and risks of
such investment. The Investor has evaluated the risks of investing in the Shares and has
determined that the Shares are a suitable investment for the Investor.

     E. The Investor is acquiring the Shares subscribed for herein for its own account and not for
the account of others, for investment purposes only and not with a view to distribute or resell
such Shares in whole or in part. The Investor was not formed for the specific purpose of acquiring
the Shares.

     F. The Investor agrees and is aware that no federal or state agency has passed upon the Shares
or made any findings or determination as to the fairness of this investment.

     G. The Investor understands that there is no established market for the Shares and that no
public market for the Shares may develop.

     H. The execution, delivery and performance by the Investor of this Subscription Agreement are
within the powers of the Investor, have been duly authorized and will not constitute or result in a
breach of or default under or conflict with any order, ruling or regulation of any court or other
tribunal or of any governmental commission or agency or with any agreement or other undertaking to
which the Investor is a party or by which the Investor is bound. The signature on this
Subscription Agreement is genuine, and the Investor has legal competence and capacity to execute
the same, and this Subscription Agreement constitutes a legal, valid and binding obligation of the
Investor, enforceable in accordance with its terms.

     I. The Investor represents that neither it nor, to its knowledge, any person or entity
controlling, controlled by or under common control with it, nor any person having a beneficial
interest in it, nor any person on whose behalf the Investor is acting: (i) is a person listed in
the Annex to Executive Order No. 13224 (2001) issued by the

 

 

President of the United States (Executive Order Blocking Property and Prohibiting Transactions
with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is named on the List of
Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets
Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S.
shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close
associate of such figure; or (v) is otherwise prohibited from investing in the Company pursuant to
applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules or
orders (categories (i) through (v), each a “Prohibited Investor"). The Investor agrees to provide
the Company, promptly upon request, all information that the Company reasonably deems necessary or
appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control
laws, regulations, rules and orders. The Investor consents to the disclosure to U.S. regulators
and law enforcement authorities by the Company and its affiliates and agents of such information
about the Investor as the Company reasonably deems necessary or appropriate to comply with
applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules
and orders. The Investor acknowledges that if, following its investment in the Company, the
Company reasonably believes that the Investor is a Prohibited Investor or is otherwise engaged in
suspicious activity or refuses to provide promptly information that the Company requests, the
Company has the right or may be obligated to prohibit additional investments, segregate the assets
constituting the investment in accordance with applicable regulations or immediately require the
Investor to transfer the Shares. The Investor further acknowledges that the Investor will have no
claim against the Company or any of its affiliates or agents for any form of damages as a result of
any of the foregoing actions.

     J. The Investor hereby (i) acknowledges that the Company and others will rely upon the
Investor’s confirmations, acknowledgments, agreements and binding commitment to purchase Shares,
(ii) agrees that the Company is entitled to rely upon this agreement and the terms, representations
and warranties hereof; (iii) authorizes the Company to produce this Agreement or a copy hereof to
an interested party in any administrative or legal proceeding or official inquiry with respect to
the matter covered hereby; and (iv) certifies that the information set forth in the Purchaser
Questionnaire attached hereto as Exhibit A and incorporated herein by reference is true and
correct.

IV. General

     A. Indemnification. The Investor agrees to indemnify and hold harmless the Company and its
trustees, executive officers and each other person, if any, who control or are controlled by the
Company, within the meaning of Section 15 of the Securities Act or Section 20 of the Securities
Exchange Act of 1934, from and against any and all loss, liability, claim, damage and expense
whatsoever (including, without limitation, any and all expenses whatsoever reasonably incurred in
investigating, preparing or defending against any litigation commenced or threatened or any claim
whatsoever) arising out of or based upon (a) any false, misleading or incomplete representation,
declaration or warranty or breach or failure by the Investor to comply with any covenant or
agreement made by the Investor in this Subscription Agreement or (b) any action for securities law
violations by the Investor arising out of the foregoing.

     B. Severability. If any provision of this Subscription Agreement is invalid or unenforceable
under any applicable law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith. Any provision hereof which may be held invalid or unenforceable under any
applicable law shall not affect the validity or enforceability of any other provisions hereof, and
to this extent the provisions hereof, shall be severable.

     C. Binding Effect. This Subscription Agreement shall be binding upon the Investor and the
heirs, personal representatives, successors and assigns of the Investor.

     D. Transferability. Neither this Subscription Agreement nor any rights which may accrue to an
Investor hereunder may be transferred or assigned.

     E. Acknowledgement. The Investor understands and acknowledges that the Investor is purchasing
the Shares from the Company and not any other entity or individual. The Investor is aware and
agrees that no entity or individual, other than the Company, made any representations, declarations
or warranties to the Investor regarding the Company or its offering of the Shares. The Investor
further acknowledges and agrees that no entity or

 

 

individual, other than the Company, made any offer to sell, or solicited any offer to buy, any
of the Shares that the Investor proposes to acquire from the Company hereunder.

     F. Choice of Law. NOTWITHSTANDING THE PLACE WHERE THIS SUBSCRIPTION AGREEMENT MAY BE EXECUTED
BY ANY OF THE PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT ALL THE TERMS AND PROVISIONS HEREOF
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF MARYLAND, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

V. Additional Information and Subsequent Changes in the Foregoing Representations

     The Company may request from the Investor such additional information as the Company may deem
necessary to evaluate the eligibility of the Investor to acquire the Shares, and may request from
time to time such information as the Company may deem necessary to determine the eligibility of the
Investor to hold the Shares or to enable the Company to determine the Company’s compliance with
applicable regulatory requirements or tax status, and the Investor shall provide such information
as may reasonably be requested.

     The Investor agrees to notify the Company promptly if there is any change with respect to any of
the information, representations or certifications herein or in Exhibit A hereto and to provide the
Company with such further information as the Company may reasonably require.

[Remainder Of This Page Has Been Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, Chatham Lodging Trust has accepted this Subscription Agreement as of the date
set forth below.

	 	 	 	 	 
	 	Chatham Lodging Trust

 	 
	 	By:  	/s/
Jeffrey H. Fisher	 
	 	 	Name:  	Jeffrey H. Fisher	 
	 	 	Title:  	Chief Executive Officer	 
	 

Date: November 3, 2009

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