Document:

Exhibit 10.9

Exhibit 10.9

MORGANS HOTEL GROUP

September 21, 2006

VIA FEDERAL EXPRESS

Mr. Randy Kwasniewski

9128 Eagle Hills Drive

Las Vegas, NV 89134

Dear Randy:

I am pleased to confirm our offer of employment to you as President Morgans Hotel Group
Las Vegas/President COO hard Rock Hotel & Casino with Morgans Hotel Group Management LLC (the
“Company”) to assist us in the acquisition of the Hard Rock Hotel and Casino and/or Echelon
development project, and upon closing of the acquisition to be responsible for property
operations. You will report directly to me. Your base salary will be $400,000 per year ($16,666
semi-monthly). Your start date will be October 9, 2006. Your annual bonus plan will have a
target bonus of 70% of your base salary and a maximum of 100% of your base salary, with a
guaranteed minimum bonus of $200,000 for 2006 and a guaranteed minimum bonus of $200,000 for
2007. Performance reviews will be given annually, usually at the end of the calendar year, at
which point we would expect that, if in our judgment your performance warrants it, your bonus
may exceed the target. Your bonus will be paid by February 1st of the following
year, and employees must be employed by the Company on the date bonuses are  paid to be eligible to
receive a bonus.

The Company has agreed to grant you a one-time signing bonus of $250,000 which you will
receive with your first pay check. If you elect to terminate your employment at any time during the first year, a
pro-rated portion of the signing bonus must be repaid to MHG on your departure.

The Company has-agreed to grant you 60,000 Restricted Stock Units (RSUs) and 100,000
options struck at the option price at the Market close on your first date of employment.
40,000 RSU’s vest 25%/year over 4 years, 20,000 vest at the end of the 4th year;
options vest 1/3 each year so they are fully vested in 3 years. Options have a ten-year
life. These grants will commence at the time of employment, at which time you will sign an
RSU agreement and a stock option agreement. The terms of those agreements will govern the
RSUs and the options. You will be eligible for benefits on the same basis as other,
similarly situated employees.

Please understand that your employment with the Company is at-will; this means that
either you or the Company may terminate your employment at any time, for any reason, with or
without cause or notice. However, if the Company terminates you without Cause (as defined
below) prior to the second anniversary of your employment, you will receive the lesser of 18
months base salary or one month for every month remaining until your third anniversary of
employment. If the Company terminates you without Cause on or after the second
anniversary of your employment, you will receive one year’s base salary. In addition, if the
Company terminates your employment without Cause during 2007, you will receive a bonus
$280,000 in addition to any other payments due you under this Agreement. If the Company
terminates your employment without Cause after 2007, you will receive a bonus equal to the
number of months you worked during the year prior to your termination multiplied by the
monthly equivalent of the actual bonus you received in the prior year, with a minimum payment
of one-half your prior year’s bonus and a maximum payment of $280,000. If you are terminated
without Cause, those Restricted Stock Units and those Stock Options which would have vested
prior to December 31 of the year in which you are terminated will immediately vest on your
termination date.

MORGANS
HOTEL GROUP LLC 475 TENTH AVENUE NEW YORK CITY NY 10018 PHONE 212 277 4100 FAX 212 277 4290

 

 

For purposes of this agreement, “Cause” shall mean (i) your repeated failure to perform your
duties commensurate with your position; (ii) your refusal to follow the lawful policies and
directives of your supervisors; (iii) your breach of the provisions of this Agreement, but
only after the Company has given
You written notice of such
breach and a 30-day opportunity to cure such breach; (iv) your
engagement in any act of dishonesty, gross negligence or willful misconduct that may have an
adverse effect on the Company, its business operations, financial condition, assets, prospects or
reputation; (v) your breach of any fiduciary duty owed to the Company or (vi) your knowing
violation of any law, rule or regulation that affect your performance of or ability to perform any
of your duties or responsibilities with the Company. Notwithstanding the foregoing or anything
else to the contrary, if both the Hard Rock and the Eschelon development projects fail to close for
any reason and your employment is terminated, such termination shall be deemed a termination
without Cause.

In the event that there is a Change in Control of the Company and, as a result, the Company
terminates your employment, you will be paid a sum equal to two years’ base salary (based on your
then current base salary) plus $280,000. In addition, in the event that the Company terminates your
employment as a result of a Change in Control, any unvested stock or options shall immediately vest
on your termination date. As used in this agreement, a “Change in Control” shall mean (i) a sale or
exchange of all or substantially all the assets of the Company, (ii) the liquidation or dissolution
of the Company or (iii) any merger, consolidation, reorganization or other transaction or event
that results in a Change of Ownership in the Company. For purposes of this Agreement, a “Change of
Ownership” means the acquisition by any individual, entity or group of beneficial ownership of or
the right to vote 51 percent or more of the then outstanding stock of the Company.

As a Company employee, you will acquire Confidential Information in the course of your
employment. You agree that, in consideration of your employment with the company, you will treat
such Confidential Information as strictly confidential. You will not, directly or indirectly, at any
time during your employment with the Company or any time thereafter, and without regard to when or
for what reason, if any, such employment shall terminate, use or cause to be used any such
Confidential Information, in connection with any activity or business except in the normal course
of performing your designated duties for the Company. You shall not disclose or cause to be
disclosed any such Confidential Information to any third parties unless such disclosure has been
authorized in writing by the Company or except as may be required by regulatory body or
governmental body. “Confidential Information” is any Company confidential information not generally
known to the public, including but not limited to trade secrets, mailing lists, financial
information, business plans and/or policies, methods of operations,
customer lists and information, sales and marketing plans, research
and development plans, strategic plans, and any other information
acquired by you in the course of your employment with the Company that is not readily available to
the public.

During the period that you are employed by the Company, and for a period of two (2) years
thereafter, regardless of the reason your employment with the Company terminates, you will not
directly or indirectly, either individually or through any entity with which you may become
associated, cause, solicit, entice or induce any present or future employee of the Company to leave
the employ of the Company and/or directly hire or directly or indirectly cause, solicit, entice or
induce any present or future employee of the Company to become employed or associated in any
capacity with a competitor of the Company.

 

 

Please indicate your acceptance of this offer by signing below and returning the original of this
offer letter to me.

I would like to take this opportunity to wish you success in your new position, and I look forward
to working with you.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ W. Edward Scheetz
 	 
	 	W. Edward Scheetz 	 

JOB OFFER ACCEPTED BY:

	 	 	 
	/s/ Randy Kwasniewski
 

Randy KwasniewskiExhibit 10.12

Exhibit 10.12

July 17, 2009

Randy Kwasniewski

Hard Rock Hotel and Casino, Morgans Hotel Group — Las Vegas

4455 Paradise Road

Las Vegas, NV 89169

Dear Randy:

Confirming our conversation this morning; your base salary will remain at the current level of
$725,000.00 annually and your target bonus for 2009 and all future years will be 100% of your base
salary. Additionally, we are confirming your 2009 bonus will be paid at no less than 100% of your
target, less the 30% hold back should the North and South Tower not open by December 31, 2009 on
time and within budget as determined in the sole discretion  of Morgans Hotel Group Management
LLC. This bonus will be paid no later than January 15, 2010.

Further, we continue necessary details to complete an amendment to your employment agreement,
which will be at no less than the terms contained in the current draft of that amendment.

Your strong leadership and support in achieving the goals set forth by our joint venture is much
appreciated.

Sincerely,

	 	 	 	 	 
	/s/ Fred Kleisner

	 	/s/ Ryan Sprott	 	 
	 

Fred Kleisner

	 	 

Ryan Sprott
	 	 
	Morgans Hotel Group

	 	DLJ Merchant Banking Partners	 	 

4455 Paradise Road, Las Vegas, NV 89169 (702) 693-5031 FAX (702) 693-5557 (800) 693-ROCKExhibit 10.8

EXHIBIT
10.8

FORBEARANCE AND WAIVER AGREEMENT

This FORBEARANCE AND WAIVER AGREEMENT (this “Agreement”), dated as of October 14,
2009, is made by and between CONCORD REAL ESTATE CDO 2006-1, LTD., an exempted company with limited
liability under the laws of the Cayman Islands (“Concord CDO”), MORGANS GROUP LLC, a
Delaware limited liability company (and, together with it successors and/or assigns as permitted
hereunder, “Morgans”) and HENRY HUDSON SENIOR MEZZ LLC, a Delaware limited liability
company (the “Hudson Borrower”).

WITNESSETH:

WHEREAS, Morgans has requested that Concord CDO waive, or forbear from exercising its rights
under, certain provisions of (ii) that certain Loan and Security Agreement (the “Hudson Loan
Agreement”), dated as of October 6, 2006, between the Hudson Borrower and Wachovia Bank,
National Association, a national banking association (“Wachovia”), and (ii) the related
Promissory Note dated October 6, 2006 (the “Hudson Note,” and together with the Hudson Loan
Agreement, the “Hudson Loan Documents”) in the original principal amount of $32,500,000.00
made by the Hudson Borrower to Wachovia; and

WHEREAS, in connection with such request, Concord CDO, in its capacity as the holder of the
Hudson Note, has agreed to enter into this Agreement with Morgans and the Hudson Borrower on the
terms and conditions set forth below.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

1. Definitions. Capitalized terms used but not defined herein shall have the
respective meanings assigned to them in the Hudson Loan Documents. As used in this Agreement, the
following terms shall have the following meanings:

“111 Debt” means 111 Debt Acquisition-Key LLC, a Delaware limited liability company.

“Concord CDO” shall have the meaning set forth in the preamble above.

“Forbearance Period” shall mean the period from (x) the date hereof through (y) the
earliest to occur of (1) October 12, 2013, (2) an Event of Default (other than any Event of Default
deemed to be waived pursuant to this Agreement), or (3) the date on which the Hudson Borrower fails
to have a Rate Cap Agreement in effect on the outstanding principal balance of the Hudson Note (as
reduced by the Hudson Payment or as a result of subsequent principal repayments), which Rate Cap
Agreement shall comply with the terms of Section 2.1(e)(iii)(B) of the Hudson Note as modified by
such terms as have been mutually agreed upon by the parties in connection with transactions
contemplated hereby; provided, however, the Forbearance Period shall terminate if:

 

 

 

(i) Morgans shall not have exercised its right to acquire the Scottsdale Bonds
by December 31, 2011 and 111 Debt shall not have exercised its right to sell the
Scottsdale Bonds by January 30, 2012 and the acquisition of the Scottsdale Bonds
shall not have occurred in accordance with such terms as have been mutually agreed
upon by the parties in connection with transactions contemplated hereby; or

(ii) Morgans shall not have exercised its right to acquire the LA Bond by
October 11, 2011 and the acquisition of the LA Bond shall not have occurred in
accordance with such terms as have been mutually agreed upon by the parties in
connection with transactions contemplated hereby; or

(iii) Morgans or the Hudson Borrower fails to pay to the holder of the Hudson
Note, in lieu of interest thereon at the stated rate, on the 9th day of
each month (or if such day is not a Business Day the next succeeding Business Day),
and such failure continues for a period of 5 days after receipt of notice of such
nonpayment from the holder of the Hudson Note to Morgans, during the period from
October 12, 2011 to, but excluding October 12, 2013, an amount equal to the interest
payment that would be required to be paid on a loan with an outstanding principal
balance equal to the average daily outstanding principal amount owing on the Hudson
Loan (as reduced by the Hudson Payment or as a result of subsequent principal
repayments) during each such month and bearing interest at the Forbearance Rate
computed on the basis of a year of 360 days and paid for the actual number of days
elapsed.

“Forbearance Rate” shall mean, (i) for the period from, and including, October 12,
2011 to, but excluding, October 12, 2012, the greater of (x) the LIBOR Rate plus 600 basis points
or (y) 9% per annum, and (ii) for the period from, and including, October 12, 2012 to, but
excluding, October 12, 2013, the greater of (x) the LIBOR Rate plus 900 basis points or (y) 12% per
annum.

“Hudson Borrower” shall have the meaning set forth in the preamble above.

“Hudson Loan” shall that certain mezzanine loan made to the Hudson Borrower in the
original principal amount of $32,500,000 pursuant to the Hudson Loan Agreement.

“Hudson Loan Agreement” shall have the meaning set forth in the recitals above.

“Hudson Loan Documents” shall have the meaning set forth in the recitals above.

“Hudson Note” shall have the meaning set forth in the recitals above.

“Hudson Payment” shall mean $6,000,000.

“LA Bond” shall mean the Series 2007-Whale 8 Class MH-2 with a current principal
balance of $3,200,000.

“Morgans” shall have the meaning set forth in the preamble above.

 

2

 

“Permitted Refinancing” shall mean an extension, modification, amendment,
restructuring, or refinancing of the Mortgage Loan so long as (i) the principal amount of the new
loan shall in no event exceed the principal balance of the Mortgage Loan on the date such new loan
is advanced, plus the amount of fees incurred in connection with any such extension, modification,
amendment, restructuring, or refinancing (subject to the limitation set forth in clause (ii)), (ii)
the interest rate payable, together with all fees paid in connection with such new loan to the
lender thereof or its affiliate, considered in their totality do not exceed 110% of then market
rates for loans of similar size, maturity, and nature (taking into account, among other things, the
value of and cash flows generated by the collateral and other financial characteristics of the
loan), (iii) the stated maturity date of the new loan is not earlier than October 12, 2013 (other
than in the case of an extension, modification, amendment, or restructuring of the Mortgage Loan),
(iv) the new loan has an amortization schedule and other provisions requiring payment of principal
before maturity that are customary for similar loans based on then existing conditions in the
credit markets, (v) the lender under the new loan agrees to enter into an intercreditor agreement
with the holder of the Hudson Loan on terms that are customary for similar loans (taking into
account, among other things, the value of and cash flows generated by the collateral and other
financial characteristics of the loan) based on then existing conditions in the credit markets, and
(vi) the new loan shall not contain terms that cause any of the following:

(a) increase the monetary obligations of the borrower under the new loan (other than
principal, interest, and fees, which are governed by clauses (i) and (ii) above) in any
material respect;

(b) establish a cash management system for the cash generated by the business of the
borrower under the new loan that is more restrictive as it applies to the holder of the
Hudson Loan than is customary for similar loans (taking into account, among other things,
the value of and cash flows generated by the collateral and other financial characteristics
of the loan) based on then existing conditions in the credit markets;

(c) provide to the lender under the new loan any contingent or additional interest or
similar “equity participation,” unless the payment of any such amounts is subordinated in
right of payment to payment of the Hudson Loan; or

(d) modify the definition of an “Event of Default” under the Mortgage Loan or add any
default provisions unless such modification or addition is customary for similar loans
(taking into account, among other things, the value of and cash flows generated by the
collateral and other financial characteristics of the loan) based on then existing
conditions in the credit markets.

“Scottsdale Bonds” shall mean the Series 2006-FL4 Class N-MON with a current principal
balance of $1,133,143, and the Series 2006-FL4 Class O-MON with a current principal balance of
$1,473,799.

“Wachovia” shall have the meaning set forth in the recitals above.

 

3

 

2. Waiver of Certain Requirements for Extension Option. Concord CDO hereby waives the
following requirements set forth in Section 2.1(e) of the Hudson Note in connection with the
exercise from time to time of any Extension Option:

(a) Delivery of the Maturity Date Notice (such notice being deemed to have been given
hereby);

(b) payment of a fee of $100,000, as set forth in Section 2.1(e)(i) of the Hudson Note;

(c) payment of the Extension Fee set forth in Section 2.1(e) of the Hudson Note; and

(d) delivery of proof of a specified debt service coverage, as set forth in Section
2.1(e)(iii)(A) of the Hudson Note.

3. Forbearance and Waiver. Concord CDO hereby agrees:

(a) during the Forbearance Period, to (i) forbear from exercising any remedies it may
have in connection with the Hudson Loan as a result of the Hudson Borrower’s failure to
satisfy the Hudson Note in full on the Maturity Date or Extended Maturity Date including,
without limitation, charging default interest or late fees and (ii) permit the Hudson
Borrower to exercise all rights that it is entitled to exercise in the absence of an Event
of Default; and

(b) that any Event of Default that would otherwise be deemed to have occurred and be
continuing under the Hudson Note and Hudson Loan Agreement by reason of (i) Hudson
Borrower’s failure to satisfy the Hudson Note in full on the Maturity Date or Extended
Maturity Date or in connection with the consummation of any Permitted Refinancing or (ii) an
event described in Section 3.01(e) of the Hudson Loan Agreement occurring from and after
July 12, 2010 shall, in each case, automatically and without further action by any Person be
deemed to be waived; provided that the waiver of any Event of Default described in clause
(ii) shall automatically be deemed to be withdrawn upon the commencement of foreclosure
proceedings or other exercise of collateral remedies under the Mortgage Loan against the
Premises and such waiver shall automatically be deemed to be reinstated if such foreclosure
or other exercise of collateral remedies is subsequently withdrawn or cured.

4. Notices. Any notice pursuant to the terms and conditions of this Agreement shall
be in writing and either (a) delivered personally; (b) sent by certified mail, return receipt
requested; (c) sent by a recognized overnight mail or courier service with delivery receipt
required; or (d) sent by facsimile transfer and acknowledged by recipient, and will be deemed to
have been given when received by the party to whom addressed. Notices shall be directed as
follows:

	 	 	 	 	 
	 

	 	If to Concord CDO:
	 	7 Bulfinch Place, Suite 500, P.O. Box 9507
	 

	 	 	 	Boston, Massachusetts 02114
	 

	 	 	 	Attention: Jay Cramer

FAX Number: (617) 570-4710

 

4

 

	 	 	 	 	 
	 	 	with copies by regular mail or such hand delivery or facsimile transmission to:
	 
	 	 	 	 
	 

	 	 	 	Post Heymann & Koffler LLP
	 

	 	 	 	Two Jericho Plaza, Wing A, Suite 211
	 

	 	 	 	Jericho, New York 11753
	 

	 	 	 	Attention: David J. Heymann, Esquire
	 

	 	 	 	FAX Number: (516) 433-2777
	 
	 	 	 	 
	 

	 	If to Morgans	 	 
	 

	 	or Hudson Borrower:
	 	475 Tenth Avenue
	 

	 	 	 	New York, New York 10018
	 

	 	 	 	Attention: David Smail, Executive Vice President and
	 

	 	 	 	    Chief Legal Officer
	 

	 	 	 	FAX Number: (212) 277-4172
	 
	 	 	 	 
	 	 	with copies by regular mail or such hand delivery or facsimile transmission to:
	 
	 	 	 	 
	 

	 	 	 	Hogan & Hartson LLP
	 

	 	 	 	555 13th Street NW
	 

	 	 	 	Washington, DC 20004
	 

	 	 	 	Attention: Bruce W. Gilchrist
	 

	 	 	 	FAX Number: (202) 637-5910

Any party may change its address or the person to notify by a notice delivered in accordance
with this Section 4.

5. Amendments. The provisions of this Agreement may be amended and each of the
parties may take any action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the other parties hereto have consented in writing to such amendment,
action or omission.

6. Assignment. Morgans and the Hudson Borrower shall be entitled to assign, transfer,
or otherwise dispose of their respective rights under this Agreement to any other Person, provided
that no such assignment of the rights or Morgans or the Hudson Borrower hereunder shall relieve
Morgans or the Hudson Borrower, as applicable, of its obligations hereunder. Concord CDO shall not
be entitled to assign, transfer, or otherwise dispose of its rights or obligations under this
Agreement to any other Person without the prior written consent of Morgans, which consent shall be
in the sole and absolute discretion of such party; provided that the foregoing shall not be deemed
to prohibit Concord CDO from pledging its interest in the Hudson Loan, or from transferring its
interests in the Hudson Loan pursuant to an option agreement in accordance with and to the extent
permitted by such terms as have been mutually agreed upon by the parties in connection with
transactions contemplated hereby. Any assignment or transfer in violation of this Section 6 shall
be void and of no force and effect.

 

5

 

7. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page of this Agreement by telecopy
or electronic format (including .pdf) shall be effective as delivery of a manually executed
original counterpart of this Agreement.

8. Governing Law. This Agreement and the rights and duties of the parties to this
Agreement shall be governed by and construed in accordance with the laws of the State of New York,
without regard to its conflicts of law principles.

9. Enforceability. Should any one or more of the provisions of this Agreement be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties hereto.

[Signature Page Follows]

 

6

 

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

	 	 	 	 	 
	 	MORGANS GROUP LLC

 	 
	 	By:  	Morgans Hotel Group Co., its Managing Member
 	 
	 	 	By:  	/s/ Marc Gordon 
	 	 	Name:  	Marc Gordon 	 
	 	 	Title:  	Chief Investment Officer and Executive
Vice President of Capital Markets 	 
	 
	 	HENRY HUDSON SENIOR MEZZ LLC

 	 
	 	 	By:  	/s/ Marc Gordon
 
	 	 	Name:  	Marc Gordon 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	CONCORD REAL ESTATE CDO 2006-1, LTD.

 	 
	 	By:  	WRP Management LLC, Collateral Manager
 	 
	 
	 	 	By:  	/s/ Peter Braverman 	 
	 	 	Name:  	Peter Braverman 	 
	 	 	Title:  	President 	 
	 

[Signature Page to Forbearance and Waiver Agreement]

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