Document:

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EXHIBIT 10.1

ASHFORD HOSPITALITY TRUST, INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

(Effective January 1, 2008)

 

 

TABLE OF CONTENTS

ASHFORD HOSPITALITY TRUST, INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

	 	 	 	 	 	 	 
	CONTENTS	 	 	 	 	Page
	PREAMBLE

	 	 	 	 	1	 
	ARTICLE 1

	 	DEFINITIONS
	 	 	1	 
	ARTICLE 2

	 	PARTICIPATION IN THE PLAN
	 	 	4	 
	ARTICLE 3

	 	DEFERRAL ACCOUNTS
	 	 	5	 
	ARTICLE 4

	 	INVESTMENT FUNDS
	 	 	8	 
	ARTICLE 5

	 	DISTRIBUTION OF ACCOUNT
	 	 	9	 
	ARTICLE 6

	 	NON-ASSIGNABILITY
	 	 	15	 
	ARTICLE 7

	 	AMENDMENT OR TERMINATION OF THE PLAN
	 	 	15	 
	ARTICLE 8

	 	PLAN ADMINISTRATION
	 	 	16	 
	ARTICLE 9

	 	MISCELLANEOUS
	 	 	21	 

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ASHFORD HOSPITALITY TRUST, INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

(Effective January 1, 2008)

PREAMBLE

Ashford Hospitality Trust, Inc. (the “Company”)
 adopted on December 31, 2007, the
Ashford Hospitality Trust, Inc. Nonqualified Deferred Compensation Plan (the “Plan”), effective
January 1, 2008, for the benefit of a select group of management or highly compensated employees of
the Company. The Company subsequently restated the Plan on
April 4, 2008, effective as of January 1, 2008 to clarify
certain provisions. The purpose of the Plan is to permit designated executives and key employees
of the Company to accumulate additional retirement income on a tax deferred basis.

This Plan is intended to be a nonqualified deferred compensation plan within the meaning of Section
409A of the Internal Revenue Code of 1986, as amended. The provisions of this Plan shall be
construed consistent with the requirements of Code Section 409A and applicable regulations and
other guidance issued thereunder.

ARTICLE 1

DEFINITIONS

As used in this Plan, the following capitalized words shall have the meanings indicated below,
unless the context clearly requires a different meaning:

	1.1	 	“Account” means the aggregate of a Participant’s Cash Account and Stock Account.
	 
	1.2	 	“Allocation Date” means each business day during the Plan Year.
	 
	1.3	 	“Base Salary” means a Participant’s base salary as shown in the personnel records of
the Company.
	 
	1.4	 	“Beneficiary” means the person or persons designated by a Participant or otherwise
entitled to receive any amount credited to his or her Account that remains
undistributed at the Participant’s death.
	 
	1.5	 	“Bonus” means the annual bonus payable to a Participant as incentive compensation as
determined by the Company, and any other bonus, including long-term incentive bonus,
which the Committee, in its sole discretion, determines is eligible for deferral under
the Plan.

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	1.6	 	“Bonus Deferral Election” means an agreement between a Participant and the Company
under which the Participant agrees to defer all or a portion of his or her Bonus.
	 
	1.7	 	“Cash Account” means the separate bookkeeping account established on behalf of each
Participant to reflect the amounts credited to the Plan on his or her behalf that are
not invested in the Stock Account. Separate sub-accounts shall be maintained in the
Cash Account for deferrals attributable to each Plan Year.
	 
	1.8	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	1.9	 	“Committee” means the committee appointed in accordance with Section 8.1 to
administer the Plan.
	 
	1.10	 	“Common Stock” means common stock of the Company, $.01 par value per share.
	 
	1.11	 	“Company” means Ashford Hospitality Trust, Inc. a Maryland corporation, and any
successor thereto.
	 
	1.12	 	“Disability” means that a Participant: (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months; or (ii) is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than 3 months under an accident and
health plan covering employees of the Company. For all purposes, the term
“Disability” shall comply with the requirements of Section 409A.
	 
	1.13	 	“Eligible Employee” means an employee of the Company who is a member of a select
group of management or highly compensated employees and who is designated by the
Company as eligible for participation in the Plan.
	 
	1.14	 	“Investment Fund” means one or more of the measurement investment funds designated by
the Committee for purposes of crediting or debiting hypothetical investment gains and
losses to the Cash Accounts of Participants.
	 
	1.15	 	“Participant” means any Eligible Employee who satisfies the conditions for
participation in the Plan set forth in Section 2.1.

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	1.16	 	“Plan” means the Ashford Hospitality Trust, Inc. Nonqualified Deferred Compensation
Plan, as set forth herein and as from time to time amended.
	 
	1.17	 	“Plan Year” means the calendar year (January 1-December 31).
	 
	1.18	 	“Retirement” means Separation from Service on or after attainment of age 55 with 10
or more years of service with the Company.
	 
	1.19	 	“RSU Deferral Election” means an election to defer receipt of shares of Common Stock
otherwise payable to the Participant upon the vesting of restricted stock unit awards
under the Stock Incentive Plan. The Committee, in its discretion, shall determine
which restricted stock unit awards, if any, under the Stock Incentive Plan are
eligible for deferral under the Plan.
	 
	1.20	 	“Salary Deferral Election” means an agreement between a Participant and the Company
under which the Participant agrees to defer a portion of his or her Base Salary.
	 
	1.21	 	“Separation from Service” means the termination of a Participant’s employment with
the Company which constitutes a “separation from service” as that term is defined
under Code Section 409A and regulations issued thereunder.
	 
	1.22	 	“Specified Employee” means a Participant who is a key employee (as defined in Code
Section 416(i) without regard to Code Section 416(i)(5)) of the Company. For purpose
of this definition, a Participant is a key employee if the Participant meets the
requirements of Code Section 416(i)(1)(A)(i), (ii) or (iii) (applied in accordance
with the regulations thereunder and disregarding Code Section 416(i)(5)) at any time
during the 12-month period ending on any December 31st. If a Participant
is a key employee as of any December 31st, then that Participant is treated
as a Specified Employee for distributions during the 12-month period beginning on the
April 1st following the relevant December 31st.
	 
	1.23	 	“Stock Account” means the separate bookkeeping account established on behalf of each
Participant to reflect amounts credited to the Plan on his or her behalf with respect
to deferrals of restricted stock unit awards under the Stock Incentive Plan. The
Stock Account shall be maintained in the form of Stock Units and shall be payable
solely in the form of shares of Common Stock from the Stock Incentive Plan. Separate
sub-accounts shall be maintained in the Stock Account for deferrals attributable to
each Plan Year.

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	1.24	 	“Stock Incentive Plan” means the Ashford Hospitality Trust, Inc. Amended and Restated
2003 Stock Incentive Plan, and any successor thereto.
	 
	1.25	 	“Stock Unit” means a unit that entitles the Participant to one share of Common Stock.
	 
	1.26	 	Rules of Construction

	 	(a)	 	Governing law. The construction and operation of this Plan are
governed by the laws of the State of Texas except to the extent pre-empted by
ERISA or other applicable federal law.
	 
	 	(b)	 	Headings. The headings of Articles, Sections and Subsections are for
reference only and are not to be utilized in construing the Plan.
	 
	 	(c)	 	Gender. Unless clearly inappropriate, all pronouns of whatever gender refer
indifferently to persons or objects of any gender.
	 
	 	(d)	 	Singular and plural. Unless clearly inappropriate, singular items also
refer to the plural and vice versa.
	 
	 	(e)	 	Severability. If any provision of this Plan is held illegal or invalid for
any reason, the remaining provisions shall remain in full force and effect and be
construed and enforced in accordance with the purposes of the Plan as if the illegal
or invalid provision did not exist.

ARTICLE 2

PARTICIPATION IN THE PLAN

	2.1	 	Eligibility
	 
	 	 	Participation in the Plan shall be limited to employees of the Company who (i) qualify for
inclusion in a “select group of management or highly compensated employees” within the
meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA and (ii) are designated by the
Company as being eligible to participate in the Plan. If the Company determines that a
Participant no longer qualifies as being a member of a select group of management or highly
compensated employees, the Company shall have the right to suspend the Participant’s
contributions for future Plan Years, except to the extent prohibited by Section 409A of the
Code.

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	2.2	 	Commencement of Participation
	 
	 	 	Eligible Employees may elect to participate in the Plan, in the manner designated by and
acceptable to the Company, prior to the first day of each Plan Year (or in the case of newly
eligible enrollees, within 30 days of first becoming eligible to participate in the Plan).

ARTICLE 3

DEFERRAL ACCOUNTS

	3.1	 	Deferral Elections

	 	(a)	 	Deferral of Base Salary. After satisfaction of applicable statutory
tax withholding requirements and Company mandated withholding for applicable benefits,
an Eligible Employee may elect to defer up to 100% of his or her Base Salary for a Plan
Year by filing a Salary Deferral Election in accordance with Section 3.2.
	 
	 	(b)	 	Deferral of Bonus. An Eligible Employee may elect to defer up to 100%
of his or her Bonus for a Plan Year by filing a Bonus Deferral Election in accordance
with Section 3.2.
	 
	 	(c)	 	Deferral of Restricted Stock Awards. An Eligible Employee may elect to
defer payment of up to 100% of his or her restricted stock units vesting under the
Stock Incentive Plan by filing an RSU Deferral Election in accordance with Section 3.2.

	3.2	 	Deferral Elections. A Participant’s deferral elections shall be in writing,
and shall be filed with the Committee at such time and in such manner as the Committee
shall provide, subject to the following:

	 	(a)	 	Salary Deferrals. A Salary Deferral Election shall be
made during the election period established by the Committee, which shall end no
later than the last day of the Plan Year preceding the Plan Year in which the
Base Salary would otherwise be earned.
	 
	 	(b)	 	Bonus Deferrals. If the Committee determines that Bonus
eligible for deferral satisfies the requirements of “performance based
compensation” within the meaning of Code Section 409A, then any election to
defer such Bonus must be made no later than the date which is six months prior
to the

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	 	 	 	end of the performance period to which the Bonus relates. If the Committee
determines that any Bonus eligible for deferral under the Plan does not
satisfy the requirements of performance based compensation, then any election
to defer such Bonus must be made no later of the last day of the calendar
year preceding the Plan Year which contains the first day of the performance
period to which such Bonus relates. Any deferral of Bonus shall be made in
accordance with the rules and procedures established by the Committee.
	 
	 	(c)	 	Restricted Stock Unit Deferrals. An RSU Deferral
Election shall be made during the election period established by the Committee,
which shall end no later than 30 days after the date such restricted stock units
are awarded to the Eligible Employee provided that the vesting date under the
Stock Incentive Plan for such RSU’s is at least 12 months after the date of such
deferral election. If the Committee determines that restricted stock units
eligible for deferral satisfy the requirements of performance based compensation
within the meaning of Code Section 409A, then the election to defer must be made
no later than the date which is six months prior to the end of the performance
period with respect to such restricted stock units.
	 
	 	(d)	 	Deferral elections may be expressed as a percentage or in whole
dollar amounts (or whole shares, with respect to restricted stock units), within
the limits provided under the Plan.
	 
	 	(e)	 	The minimum annual deferral of Base Salary under the Plan shall
be ten thousand dollars ($10,000) and any deferral election that would provide a
lesser deferral for a Plan Year shall be disregarded for such Plan Year.
	 
	 	(f)	 	Notwithstanding the foregoing provisions of this Section 3.2, the
Committee may provide that an employee who first becomes an Eligible Employee
may make a deferral election within 30 days of first becoming an Eligible
Employee, which deferral election shall relate to Base Salary, Bonus and
restricted stock units earned for periods after the date such election is made.

	 	 	 	Once made, the Committee may provide that a deferral election shall remain in effect
for subsequent Plan Years unless changed or revoked by the Participant in accordance
with rules established by the Committee. Any such modification or

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	 	 	 	revocation shall be effective for the Plan Year following the Plan Year in which it
is made. Participants shall be fully vested in their Plan benefits at all times.

	3.3	 	Account Reflecting Deferred Compensation
	 
	 	 	The Company shall establish and maintain a separate Account for each Participant which shall
reflect the amount of a Participant’s total deferrals made under Section 3.2 and all credits
or charges under Section 3.4, and applicable earnings and losses under Article IV. All
amounts credited or charged to a Participant’s Account hereunder shall be in a manner and
form determined within the sole discretion of the Company.
	 
	3.4	 	Credits or Charges

	 	(a)	 	Balance of Account
	 
	 	 	 	As of each Allocation Date, the amount credited to a Participant’s Account shall be
the amount credited to his or her Account as of the immediately preceding Allocation
Date, plus the Participant’s deferrals since the immediately preceding Allocation
Date, minus any amount that is paid to or on behalf of a Participant pursuant to this
Plan subsequent to the immediately preceding Allocation Date, plus or minus any
hypothetical investment gains or losses determined pursuant to Section 3.4(b) below.
	 
	 	(b)	 	Earnings or Losses
	 
	 	 	 	As of each Allocation Date, a Participant’s Cash Account shall be credited or debited
with earnings, gains or losses approximately equal to the earnings, gains or losses
on the Investment Funds designated by the Participant to be used for purposes of
calculating his or her Cash Account balance.

	3.5	 	Credits to Trust Fund
	 
	 	 	The Company may establish a Trust Fund and make credits to it corresponding to any or all
amounts credited under this Article III with respect to Eligible Employees of the Company
who participate in the Plan. Notwithstanding any other provision of this Plan, any assets
of the Trust Fund shall remain the property of the Company and are subject to the claims of
its creditors in accordance with the terms of the Trust. No Participant (or Beneficiary) has
any priority claim on Trust assets, if any, or any security interest or other right in or to
such assets superior to the rights of general unsecured creditors of the Company.

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ARTICLE 4

INVESTMENT FUNDS

	4.1	 	Designation of Preferred Investment Funds By Participants
	 
	 	 	Each Participant may indicate to the Company, in writing, a preference that monies in his or
her Cash Account be invested by the Company in one or more of the Investment Funds selected
by the Committee for use by the Plan. If the monies are invested by the Company in one or
more such Investment Funds, then the value of a Participant’s Cash Account at any time shall
include the current fair market value of the investment in such Investment Funds. A
Participant’s investment election under this Section 4.1 may be changed as of each
Allocation Date (or at such other times as permitted by the Committee) in accordance with
rules determined by the Committee.
	 
	 	 	Notwithstanding Section 4.1 or any other provision in this Plan or any notice, statement,
summary or other communication provided to a Participant that may be interpreted to the
contrary, the Company shall have sole control and discretion over the investment, management
and use of all amounts credited to a Participant’s Account until such amounts are
distributed pursuant to Article V. The Investment Funds are to be used for measurement
purposes only, and a Participant’s preference of any such Investment Fund, the determination
of credits and debits to his or her Account based on such Investment Funds, the Company’s
actual ownership of such Investment Funds, and any authority granted by the Company to a
Participant to change the investment of the Company’s assets, if any, shall not be
considered or construed in any manner as an actual investment of the Cash Account in any
such Investment Fund or to constitute a funding of this Plan. The Company shall at all
times retain the discretion to invest the monies credited to the Cash Accounts of
Participants in any funds it may choose and shall not have a duty to notify a Participant of
the identity of such funds. In such event, the credits or charges to a Cash Account shall be
determined using earnings, gains or losses equivalent to the hypothetical rate of earnings,
gains or losses which such Account would have experienced had the Cash Account been invested
in the Investment Funds designated by the Participant, based on the Participant’s most
current investment preference in accordance with Section 4.1.
	 
	4.2	 	Stock Account.
	 
	 	 	A Participant’s deferrals of shares of Common Stock payable on the vesting of restricted
stock units shall be credited to the Participant’s Stock Account in the form of Stock Units.
The Participant shall be credited with one Stock Unit for each share of Common Stock

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deferred under the Plan. All distributions from the Stock Account shall be made in shares of
Common Stock, which shall be payable from the share reserve under the Stock Incentive Plan.
No interest or other earnings shall accrue on such Stock Account.

Prior to distribution, Stock Units shall receive dividend equivalents, which shall entitle
the Participant to an amount equal to the dividends the Participant would have received if
each Stock Unit held in the Stock Account on the dividend record date for the Common Stock
were a share of Common Stock held by the Participant. At the time the Participant enters
into an RSU Deferral Election, the Participant shall indicate on such election the manner in
which dividend equivalents with respect to the Stock Units subject to such election shall be
treated. The Participant may, in any combination permitted under the Plan, elect to (i)
receive such dividend equivalents as current income or (ii) have the dividend equivalents
deferred under the Plan. If the Participant elects to have dividend equivalents paid as
current income, the dividend equivalents shall be paid in cash (or Common Stock or other
applicable property for a non-cash dividend) as of the last business day of each month. If
the Participant elects to have dividend equivalents deferred under the Plan, the amount of
the dividend equivalents shall be credited to the Participant’s Cash Account as of the
dividend payment date and deemed invested in accordance with the Participant’s investment
election then in effect for the Cash Account (or, if none, in accordance with the default
deemed investment election established by the Committee). If the Participant elects to have
dividend equivalents deferred under the Plan, and such dividend equivalents are payable in
the form of Common Stock, then the Participant shall be credited with additional Stock Units
equal to the number of shares so payable. If the dividends are deferred under the Plan, the
amount attributable to the deferred dividend equivalents shall be paid in the same time and
form as the underlying Stock Units to which they relate.

ARTICLE 5

DISTRIBUTION OF ACCOUNT

	5.1	 	Distribution Upon Separation from Service
	 
	 	 	In the event a Participant incurs a Separation from Service for any reason other than death,
Disability, or Retirement, the Participant’s Account shall be paid in a single lump-sum
payment within 45 days following such Separation from Service.

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	5.2	 	Distribution Upon Retirement

	 	(a)	 	Time of Payment

In the event a Participant incurs a Separation from Service due to Retirement, the
Participant’s Cash Account and Stock Account shall be paid as of such Retirement date
in the form designated by the Participant in accordance with Section 5.2(b) below.

	 	(b)	 	Form of Payment
	 
	 	 	 	At the time a Participant makes a deferral election, the Participant shall designate
the manner in which the amounts deferred shall be paid upon a Separation from Service
due to Retirement. The optional forms of payment shall include: (i) a single
lump-sum distribution; or (ii) annual installments of up to 15 years. If a
Participant fails to elect a form of retirement distribution for a given Plan Year,
payment shall automatically be made in the form of a lump-sum distribution.
	 
	 	(c)	 	Modification of Form of Payment
	 
	 	 	 	A Participant may elect to modify the form of any benefit payment made in accordance
with this Section 5.2, subject to the following:

	 	(i)	 	the new distribution election must be made at least 12 months in
advance of the originally scheduled distribution date and may not take effect
for at least 12 months after the date the new distribution election is made;
	 
	 	(ii)	 	the new distribution election must require a revised distribution
date of at least five years from the date such payment would otherwise have been
made; and
	 
	 	(iii)	 	the new distribution election shall not accelerate the schedule
of any payment, except as permitted under the regulations under Code Section
409A.

Each subsequent election modification made under this Section 5.2 must comply with
paragraphs (i), (ii) and (iii) above (as if the previously revised distribution date
was the originally scheduled distribution date).

	5.3	 	Distribution Upon Death

	 	(a)	 	Payment of Benefit

If a Participant dies before commencing the payment of his or her Account, the unpaid
Account balance shall be paid to a Participant’s designated Beneficiary. Payment to
such designated Beneficiary shall begin within 45 days after the

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Participant’s death. Distribution shall be made to the designated Beneficiary in
accordance with the Participant’s death distribution election (or if the Participant
would have been eligible for Retirement at the time of his or her death, then payment
shall be made in the same manner that benefits would have been paid had the
Participant retired from employment).

At the time of initial enrollment in the Plan, each Participant shall designate the
manner in which his or her Account shall be paid upon death. The optional forms of
payment shall include: (i) a single lump-sum distribution; or (ii) annual
installments of up to 15 years. If a Participant fails to elect a form of
distribution which shall apply in the event of death, payment shall be automatically
made in the form of a lump-sum distribution. A Participant may elect to modify the
form of any benefit payment made in accordance with this Section 5.3, provided that
the new distribution election must be made at least 12 months in advance of the
distribution date and may not take effect for at least 12 months after the date the
new distribution election is made, in accordance with the requirements of Code
Section 409A.

If a Participant dies before receiving the total amount of his or her Account, but
after benefit payments have commenced, the Participant’s remaining installments shall
be paid to the Participant’s designated Beneficiary at the same time such payments
would have been made had the Participant survived.

	 	(b)	 	Designation of Beneficiary
	 
	 	 	 	A Participant shall designate a Beneficiary on a form to be supplied by the Company.
The Beneficiary designation may be changed by the Participant at any time, but any
such change shall not be effective until the Beneficiary designation form completed
by the Participant is delivered to and received by the Company. In the event that the
Company receives more than one Beneficiary designation form from the Participant, the
form bearing the most recent date shall be controlling. If the Participant fails to
designate a Beneficiary, or no designated Beneficiary survives the Participant, then
the Participant’s benefits under the Plan shall be made in the following order of
priority: (1) to the Participant’s surviving spouse; (2) if there is no surviving
spouse, to the Participant’s children in equal shares by right of representation (one
share for each surviving child and one share for each child who predeceases the
Participant but has surviving descendants); and (3) to the Participant’s estate.

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	5.4	 	Distribution Upon Disability

	 	(a)	 	Time of Payment
	 
	 	 	 	In the event a Participant terminates employment due to Disability, the Participant’s
Account shall be paid as of such date in the form designated by the Participant in
accordance with Section 5.4(b) below.
	 
	 	(b)	 	Form of Payment
	 
	 	 	 	At the time of initial enrollment in the Plan, each Participant shall designate the
manner in which his Account shall be paid upon Disability. The optional forms of
payment shall include: (i) a single lump sum payment; or (ii) annual installments of
up to 15 years. If a Participant fails to elect a Disability form of distribution,
payment shall be automatically made in the form of a lump-sum distribution.
	 
	 	(c)	 	Modification of Form of Payment
	 
	 	 	 	A Participant may elect to modify the form of any benefit payment made in accordance
with this Section 5.4, provided that the new distribution election must be made at
least 12 months in advance of the distribution date and may not take effect for at
least 12 months after the date the new distribution election is made, in accordance
with the requirements of Code Section 409A.

	5.5	 	Distributions Due to Unforeseeable Emergency
	 
	 	 	Prior to Separation from Service, a Participant may receive a distribution of all or a
portion of his or her Account upon demonstrating severe financial hardship due to an
unforeseeable emergency in accordance with Code Section 409A and the regulations and other
guidance issued thereunder.
	 
	 	 	For purposes of this Plan, an “unforeseeable emergency” is an unanticipated emergency that
is caused by events beyond the control of the Participant or Beneficiary and would result in
severe financial hardship if early withdrawal were not permitted.
	 
	 	 	This definition includes, but is not limited to: sudden unexpected illness or accident of
the Participant or of a dependent (as defined in Internal Revenue Code Section 152(a)) of
the Participant, loss of the Participant’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the Participant. Expenses related to sending a Participant’s child to college or
purchasing a

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home are not unforeseeable emergencies for purposes of this Section 5.5. The Committee
shall determine additional exclusions to the definition of an unforeseeable emergency on a
case by case basis.

The Committee will determine the existence of severe financial hardship due to an
unforeseeable emergency in a uniform and nondiscriminatory manner. The determination will
be based on the supporting facts, circumstances, and documentation provided by the
Participant. The Plan will permit early distribution only to the extent the hardship cannot
be relieved by insurance, liquidation of other assets (to the extent the liquidation itself
will not cause severe financial hardship), or cessation of deferrals under the Plan.

Withdrawals from Participants’ Accounts made in accordance with this Section 5.5 will be
limited to the amount reasonably necessary to satisfy the emergency need, plus applicable
taxes.

In the event that a distribution is made to a Participant in accordance with this Section
5.5, the Participant’s deferrals under the Plan shall be automatically terminated and the
Participant shall not eligible to re-enroll in the Plan until the enrollment period for the
Plan Year that begins at least 12 months after such distribution.

	5.6	 	Distribution Prior to Separation From Service

	 	(a)	 	Time of Payment
	 
	 	 	 	During the annual enrollment for each Plan Year, a Participant may designate a date
or dates that any portion of his or her Base Salary, Bonus deferrals and RSU
deferrals attributable to such Plan Year shall be paid prior to Separation from
Service. Any such distribution date must be no earlier than January 1 of the third
Plan Year following the Plan Year with respect to which the deferral election was
effective. By way of example, the earliest in-service distribution date for amounts
attributable to the 2008 Plan Year would be January 1, 2011. At the time a
Participant makes a deferral election with respect to restricted stock units, the
Participant may also designate a date in a future Plan Year prior to Separation from
Service on which all or a portion of the deferred restricted stock units shall be
paid. Such date must be no earlier than January 1 of the third Plan Year following
the Plan Year in which the restricted stock units are credited to the Participant’s
Stock Account under the Plan.

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	 	(b)	 	Form of Payment
	 
	 	 	 	At the time that a deferral election is made under this Section 5.6, a Participant
shall elect whether the in-service distributions will be distributed in the form of:
(i) a single lump-sum distribution; or (ii) a series of installment payments of a
period of time not to exceed five years.
	 
	 	(c)	 	Modification of Time and/or Form of Payment
	 
	 	 	 	Subsequent to the Participant’s initial distribution election with respect to any
Plan Year under this Section 5.6, the Participant may elect to modify, an unlimited
number of times, the time and/or form of the payment of any benefit paid under this
Section 5.6 subject to the following:

	 	(i)	 	the new distribution election must be made at least 12 months in
advance of the originally scheduled distribution date and may not take effect
for at least 12 months after the date the new distribution election is made;
	 
	 	(ii)	 	the new distribution date must be at least five Plan Years from
the date such payment would otherwise have been made; and
	 
	 	(iii)	 	the new distribution election shall not, with respect to time or
form of payment, accelerate the schedule of any payment, except as permitted
under the regulations under Code Section 409A.

Notwithstanding the foregoing provisions of this Section 5.6, if a Participant elects
a distribution at one or more specific future dates under this Section 5.6 but
becomes entitled to a distribution under Section 5.1, 5.2, 5.3 or 5.4 prior to any
such date, distribution shall commence pursuant to Section 5.1, 5.2, 5.3 or 5.4, as
applicable. For purposes of the preceding sentence, installment payments made to a
Participant shall be treated as a right to a series of separate payments. Each
subsequent election modification made under this Section 5.6 must comply with
paragraphs (i), (ii) and (iii) above (as if the previously revised distribution date
was the originally scheduled distribution date).

	5.7	 	Distributions Made To Specified Employees
	 
	 	 	Notwithstanding any provision of this Article V to the contrary, if a Participant is a
Specified Employee at the time the Participant is to receive any distribution due to his or
her Separation from Service (including “Retirement”), such Participant’s distribution shall
be made (or commence to be made) on the first day following the six (6) month anniversary of his or her Separation from Service.

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	5.8	 	Distribution of Small Sums
	 
	 	 	Notwithstanding the foregoing provisions of this Article V or any Participant election to
the contrary, if at the time distribution of a Participant’s Account is to commence, the
total value of the Account is less than the limitation then in effect under Code Section
402(g)(1)(B), the Participant’s Account shall be paid in a single lump sum payment.

ARTICLE 6

NON-ASSIGNABILITY

Neither a Participant nor any Beneficiary of a Participant shall have any right to commute,
sell, assign, pledge, transfer or otherwise convey the right to receive his or her Account
until his Account is actually distributed to the Participant or Beneficiary. The portion of
the Account which has not been distributed shall not be subject to attachment, garnishment
or execution for the payment of any debts, judgments, alimony or separate maintenance and
shall not be transferable by operation of law in the event of bankruptcy or insolvency of a
Participant or a Participant’s Beneficiary. Notwithstanding the foregoing or any other
provision in this Plan to the contrary, the Plan will recognize a qualified domestic
relations order relating to the division of a Participant’s Account and issued in connection
with divorce proceeding.

ARTICLE 7

AMENDMENT OR TERMINATION OF THE PLAN

	7.1	 	Amendment
	 
	 	 	The Company, by action of its Board of Directors or authorized committee, may, at any time
and from time to time, amend, in whole or in part, any of the provisions of this Plan. Any
such amendment is binding upon all Participants and their Beneficiaries, the Committee and
all other parties in interest.
	 
	7.2	 	Termination
	 
	 	 	The Company reserves the right to terminate the Plan at any time by action of its Board of
Directors. Upon the termination of the Plan, Participants’ Account balances shall remain in
the Plan until the Participant becomes eligible for the distribution of benefits as provided
in Article V. Notwithstanding the foregoing, the Board, in its discretion, may elect to
distribute

-15-

 

Participants’ Account balances following termination of the Plan, in which case the entire
vested Account balances of all Participants shall be distributed during the period beginning
12 months after such termination date and ending 24 months after such termination date,
notwithstanding any installment payment elections made by Participants; provided, however,
if the Plan is terminated in connection with a change in control of the Company (within the
meaning of Code Section 409A), then all Account balances shall be distributed within 12
months after such change in control, and any such distributions must comply with the
requirements of Treas. Reg. § 1.409A-3(i)(4)(ix).

	7.3	 	When Amendments Take Effect
	 
	 	 	A resolution amending or terminating the Plan becomes effective as of the date specified
therein.
	 
	7.4	 	Restriction on Retroactive Amendments
	 
	 	 	No amendment may be made that retroactively deprives a Participant of any benefit accrued
before the date of the amendment.

ARTICLE 8

PLAN ADMINISTRATION

	8.1	 	The Administrative Committee
	 
	 	 	The Plan shall be administered by a Committee appointed by the Company’s Board of Directors.
The Company may remove any member of the Committee at any time, with or without cause, and
may fill any vacancy. If a vacancy occurs, the remaining member or members of the Committee
have full authority to act. The Company is responsible for transmitting to any trustee the
names and authorized signatures of the members of the Committee and, as changes take place
in membership, the names and signatures of new members. Any member of the Committee may
resign by delivering his written resignation to the Company, any trustee and the Committee.
Any such resignation becomes effective upon its receipt by the Company or on such other date
as is agreed to by the Company and the resigning member. The Committee may adopt such rules
and appoint such subcommittees as it deems desirable for the conduct of its affairs and the
administration of the Plan.

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8.2 Powers of the Committee

In carrying out its duties with respect to the general administration of the Plan, the
Committee has, in addition to any other powers conferred by the Plan or by law, the
following powers:

	 	(a)	 	to conclusively determine all questions relating to eligibility to
participate in the Plan;
	 
	 	(b)	 	to compute and certify to any trustee or other appropriate party the amount
and kind of distributions payable to Participants and their Beneficiaries;
	 
	 	(c)	 	to maintain all records necessary for the administration of the Plan that
are not maintained by the Company, record keeper or any trustee;
	 
	 	(d)	 	to conclusively construe and interpret the provisions of the Plan and to
make and publish such rules for the administration of the Plan as are not
inconsistent with the terms thereof;
	 
	 	(e)	 	to establish and modify the method of accounting for the Plan or any Trust;
	 
	 	(f)	 	to employ counsel, accountants and other consultants to aid in exercising
its powers and carrying out its duties hereunder; and
	 
	 	(g)	 	to perform any other acts necessary and proper for the administration of the
Plan, except those that are to be performed by the record keeper or trustee, if any.

8.3 Indemnification

     (a) Indemnification of Members of the Committee by the Company

The Company agrees to indemnify and hold harmless each member of the Committee
against any and all expenses and liabilities arising out of his or her action or
failure to act in such capacity, excepting only expenses and liabilities arising out
of the member’s own willful misconduct or gross negligence. This right of
indemnification is in addition to any other rights to which any member of the
Committee may be entitled.

     (b) Liabilities for Which Members of the Committee are Indemnified

Liabilities and expenses against which a member of the Committee is indemnified

-17-

 

hereunder include, without limitation, the amount of any settlement or judgment,
costs, counsel fees and related charges reasonably incurred in connection with a
claim asserted or a proceeding brought against him or the settlement thereof.

     (c) Company’s Right to Settle Claims

The Company may, at its own expense, settle any claim asserted or proceeding brought
against any member of the Committee when such settlement appears to be in the best
interests of the Company.

8.4 Claims Procedure

A Participant or Beneficiary or other person who feels he or she is being denied any benefit
or right provided under the Plan (hereinafter referred to as “Claimant”) may file a written
claim with the Committee or its delegate setting forth the claim. Any such claim shall be
signed by the Claimant and shall be considered filed on the date the claim is received by
the Company or prescribed addressee. The claim must be addressed as prescribed by the
Company. If a Participant shall fail to file a request for review in accordance with the
procedures described herein, such Participant shall have no right to review and shall have
no right to bring action in any court and the denial of the claim shall become final and
binding on all persons for all purposes.

     (a) Committee Action

The Committee or its delegate shall, within 90 days after its receipt of such claim
make its determination. However, in the event that special circumstances require an
extension of time for processing the claim, the Committee or its delegate shall
provide such Claimant with its determination not later than 180 days after receipt of
the Claimant’s claim, but, in such event, the Committee or its delegate shall furnish
the Claimant, within 90 days after its receipt of such claim, notification of the
extension explaining the circumstances requiring such extension and the date that it
is anticipated that its determination will be furnished.

In the event the claim is denied, the Committee or its delegate shall provide such
Claimant a statement of the Adverse Benefit Determination, as defined in subsection
(d) below. The notice of Adverse Benefit Determination shall contain the following:

	 	(i)	 	the specific reason or reasons for Adverse Benefit Determination;
	 
	 	(ii)	 	a reference to the specific provisions of the Plan upon which the
Adverse Benefit Determination is based;

-18-

 

	 	(iii)	 	a description of any additional material or information that is
necessary for the Claimant to perfect the claim;
	 
	 	(iv)	 	an explanation of why that material or information is necessary;
and
	 
	 	(v)	 	an explanation of the review procedure provided below, including
applicable time limits and a notice of a Claimant’s rights to bring a legal
action under ERISA after an Adverse Benefit Determination on final appeal.

     (b) Procedures for Appealing an Adverse Benefit Determination

Within 60 days after receipt of a notice of an Adverse Benefit Determination as
provided above, if the Claimant disagrees with the Adverse Benefit Determination, the
Claimant, or his or her authorized representative, may request, in writing, that the
Committee or its delegate review the claim and may request to appear before the
Committee or its delegate for such review. If the Claimant does not request a review
of the Adverse Benefit Determination within such 60 day period, the Claimant shall be
barred and estopped from appealing the Committee’s or its delegate’s Adverse Benefit
Determination. The appeal shall be filed with the Committee or prescribed addressee
at the address prescribed by the Company, and it shall be considered filed on the
date it is received by the prescribed addressee.

The Claimant shall have the rights to:

	 	(i)	 	submit written comments, documents, records and other information
relating to the claim for benefits;
	 
	 	(ii)	 	request, free of charge, reasonable access to, and copies of all
documents, records and other information relevant to the claim for benefits.

     (c) Response on Appeal

Within 60 days after receipt by the Committee or its delegate of a written
application for review of a Claimant’s claim, the Committee or its delegate shall
notify the Claimant of its decision; provided, however, in the event that special
circumstances require an extension of time for processing such application, the
Committee or its delegate shall so notify the Claimant of its decision not later than
120 days after receipt of such application.

In the event the Committee’s or its delegate’s decision on appeal is adverse to the
Claimant, the Committee or its delegate shall issue a notice of an Adverse Benefit

-19-

 

Determination on Appeal that will contain all of the following information, in a
manner calculated to be understood by the Claimant:

	 	(i)	 	the specific reason(s) for the Adverse Benefit Determination on
Appeal;
	 
	 	(ii)	 	reference to specific plan provisions on which the benefit
determination is based; and
	 
	 	(iii)	 	a statement that the Claimant is entitled to receive, upon
request and free of charge, reasonable access to and copies of all documents,
records and other information relevant to the Claimant’s claim for benefits; and
a statement describing any voluntary appeal procedures offered by the Plan and
the Claimant’s right to obtain the information about such procedures, as well as
a statement of the Claimant’s right to bring an action under ERISA Section
502(a).

     (d) Definition

As used herein, the term “Adverse Benefit Determination” shall mean a determination
that results in the denial, reduction, or termination of, or a failure to provide or
make payment (in whole or in part) for, a benefit.

8.5 Expenses

The members of the Committee serve without compensation for services as such. All expenses
of the Committee are paid by the Company.

8.6 Conclusiveness of Action

Any action on matters within the discretion of the Committee will be conclusive, final and
binding upon all Participants and upon all persons claiming any rights under the Plan,
including Beneficiaries.

-20-

 

ARTICLE 9

MISCELLANEOUS

9.1 Compliance With Code Section 409A

Notwithstanding any provision in this Plan to the contrary, this Plan shall be interpreted
and construed in accordance with Code Section 409A and regulations and other interpretative
guidance issued thereunder, including without limitation any regulations or other guidance
that may be issued after the effective date of this restatement. Notwithstanding any
provision of this Plan to the contrary, the Company may adopt such amendments to the Plan or
adopt other policies and procedures (including amendments, policies and procedures having a
retroactive effect), or take any other actions, that the Company determines is necessary or
appropriate to preserve the intended tax treatment of the benefits provided under the Plan
and/or to comply with Code Section 409A.

Notwithstanding any provision of the Plan to the contrary, during the period ending December
31, 2008, the Company may allow Participants to make or change elections under the Plan in a
manner that complies with the transition relief provided under Notice 2007-86 or other
applicable IRS guidance.

9.2 Plan Not a Contract of Employment

The adoption and maintenance of the Plan does not constitute a contract between the Company
and any Participant or to be a consideration for the employment of any person. Nothing
herein contained gives any Participant the right to be retained in the employ of the Company
or derogates from the right of the Company to discharge any Participant at any time without
regard to the effect of such discharge upon his or her rights as a Participant in the Plan.

9.3 No Rights Under Plan Except as Set Forth Herein

Nothing in this Plan, express or implied, is intended, or shall be construed, to confer upon
or give to any person, firm, association, or corporation, other than the parties hereto and
their successors in interest, any right, remedy, or claim under or by reason of this Plan or
any covenant, condition, or stipulation hereof, and all covenants, conditions and
stipulations in this Plan, by or on behalf of any party, are for the sole and exclusive
benefit of the parties hereto.

-21-

 

9.4 Other Benefit Plans

Deferred compensation under this Plan shall not be deemed to be compensation for purposes of
determining a Participant’s benefit or credit under any plan of the Company qualified under
Code Section 401(a), or any life insurance plan or disability plan established or maintained
by the Company, except to the extent specifically provided in such other plan.

9.5 Withholding of Taxes

The Company shall cause taxes to be withheld from an Account distributed hereunder as
required by law. For each Plan Year in which any deferral is made under Section 3.1, the
Company shall withhold from that portion of the Participant’s compensation that is not being
deferred, in a manner determined by the Company, the Participant’s share of FICA and other
employment taxes on such deferral amount.

[The remainder of this page is intentionally left blank]

-22-

 

IN WITNESS WHEREOF, Ashford Hospitality Trust, Inc. has caused this document to be executed by its
duly authorized officer this
                     day of                                        , 2008, to be effective as of January
1, 2008,

	 	 	 	 	 	 	 
	 	 	ASHFORD HOSPITALITY TRUST, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	(print)	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	(signature)	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

-23-exv10w1

 

EXHIBIT 10.1

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

     This AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (“Amendment”) is made and entered into as
of April 4, 2008, by and between GREGORY L. PROBERT (the “Executive”) and HERBALIFE
INTERNATIONAL OF AMERICA, INC., a Nevada corporation (the “Company”).

     WHEREAS, the Executive and the Company are parties to that certain Employment Agreement dated
as of October 10, 2006 (the “Employment Agreement”); and

     WHEREAS, the Company and Executive wish to amend the Employment Agreement as provided for
herein.

     NOW, THEREFORE, in consideration of the foregoing, the Employment Agreement is amended as
follows, effective as of the date hereof:

     1. Section 3(a) of the Employment Agreement is hereby amended and restated in its entirety to
read as follows:

(a) Salary. Executive shall receive a salary at the per annum rate
of Nine Hundred Sixty Thousand Dollars ($960,000), payable in accordance
with the Company’s payroll practices for Senior Executives (as defined in
Section 3(b) below). Executive’s Salary shall be subject to an annual
review and adjustment in the discretion of the Chief Executive Officer,
subject to approval by the Board’s Compensation Committee. Executive’s
Salary shall be subject to a reduction of not more than ten percent in the
event that the Company adopts an across-the-board reduction for Senior
Executives and the Chief Executive Officer, in which event such percentage
reduction shall not exceed the smallest percentage reduction imposed on any
Senior Executive or the Chief Executive Officer.

     2. Section 3(c) of the Employment Agreement is hereby amended and restated in its entirety to
read as follows:

(c) Bonus. If the Company shall achieve the applicable bonus target
set annually by the Board’s Compensation Committee (the “Performance
Target”), then the Company shall pay Executive a cash bonus in an amount
equal to one hundred percent (100%) of Executive’s Target Bonus (as defined
below) calculated in accordance with the Company’s then current bonus plan
in effect for its Senior Executives. The Performance Target utilized for
calculating Executive’s bonus shall be the same as that utilized in
calculating the primary bonus (and not the APT bonus) for its Chief
Executive Officer. Executive’s “Target Bonus” shall be an amount
equal to one hundred twenty five percent (125%) of Executive’s annual salary
for the year with respect to which the bonus is to be paid, and the maximum
bonus payable to Executive shall be an amount equal to two

 

 

hundred fifty percent (250%) of Executive’s annual salary for the year with
respect to which the bonus is to be paid. Any bonus will be paid in the
calendar year following the completion of the relevant calendar year at such
time bonuses are paid to the Company’s other Senior Executives.

     3. Concurrent with the execution of this Amendment, Executive shall receive the following
equity awards in accordance with the terms and conditions of the Herbalife Ltd. 2005 Stock
Incentive Plan:

     (a) 290,740 stock appreciation rights with respect to the common shares of Herbalife
Ltd. (the “Common Shares”) (A) with a per share base price equal to the fair market
value of a Common Share on the date of grant, (B) with a seven (7) year term and (C) to
become vested based on the achievement of specified levels of compound annual growth rate of
the Common Shares, subject to Executive’s continued employment with the Company for four
years from the date of grant, except as otherwise provided in the applicable award agreement
(attached hereto as Exhibits A and B); and

     (b) a restricted stock unit award with respect to 81,550 Common Shares to become vested
at a rate of 30% per year on each of the first three anniversaries of the date hereof and
10% on the fourth anniversary of the date hereof, subject to Executive’s continued
employment with the Company through each applicable vesting date, except as otherwise
provided in the applicable award agreement (attached hereto as Exhibit C).

     4. In consideration for the awards described in Paragraph 3 above, Section 3(d) of the
Employment Agreement is hereby amended and restated in its entirety to read as follows:

(d) Long-Term Incentives. Executive shall be eligible to
participate in the Company’s long-term incentive plan for Senior Executives,
if any. The size, form, and timing of grants, if any, shall be consistent
with competitive practice, internal position responsibilities and
performance, and shall be subject to the joint approval of the Chief
Executive Officer and the Board’s Compensation Committee.

     5. The Company will pay all reasonable out-of-pocket attorneys’ fees and financial
representation costs incurred by Executive in connection with the evaluation and negotiation of
this Amendment in an amount not to exceed Ten Thousand Dollars ($10,000).

     6. Except as expressly provided herein, the provisions of the Employment Agreement shall
remain in full force and effect and are hereby ratified and confirmed.

[Signature Page Follows]

2

 

IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	HERBALIFE INTERNATIONAL OF AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Brett R. Chapman	 	 
	 

	 	 	 	 

     Name: Brett R. Chapman
	 	 
	 

	 	 	 	     Title:
General Counsel	 	 
	 
	 	 	 	 	 	 
	 

	 	EXECUTIVE
	 		 	 
	 
	 	 	 	 	 	 
	 
	 	 /s/ Gregory L. Probert
	 	 	 	 	 
	 	 	Gregory L. Probert	 	 

[Signature Page to Amendment No. 1 to Employment Agreement]

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