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                                                                    Exhibit 10.1

                     SETTLEMENT AGREEMENT AND MUTUAL RELEASE
                     ---------------------------------------

         This Settlement Agreement and Mutual Release (this "Agreement") is
entered into by and between Telenetics Corporation, a California corporation
("Telenetics"), David Stone, an individual ("Stone") and Michael Taglich, an
individual ("Taglich," and together with Stone and Telenetics, the
"Defendants"), on the one hand, and Michael Armani ("Armani"), on the other.
This Agreement is entered into with reference to the following facts:

                                    RECITALS
                                    --------

         A. On or about August 2, 2002, Armani filed a Complaint against
Defendants in Orange County Superior Court Case No. 02CC12884 ("Case No.
02CC12884"); on or about September 10, 2002, Telenetics filed a cross-complaint
against Armani in said Case No. 02CC12884.

         B. The parties to this Agreement wish to settle all differences between
them which arise out of or which in any way are connected with or related to any
of the claims, allegations, causes of action and/or contentions set forth in
Case No. 02CC12884 and otherwise.

         C. Without acknowledging the validity of any other party's rights,
claims or defenses in connection with the subject matter of Case No. 02CC12884,
and in order for the parties to this Agreement to settle all differences between
them, and in consideration of the mutual covenants, agreements and promises set
forth in this Agreement, and other good and valuable consideration, each party
to this Agreement agrees as follows:

                                    AGREEMENT
                                    ---------

         1. The foregoing Recitals shall be part of this Agreement.

         2. Concurrently with the execution of this Agreement, the parties shall
submit a Notice of Settlement in Case No. 02CC12884.

         3.       (a) Armani shall pay to Telenetics the sum of $20,000,
payable as follows: $5000.00 upon the execution of this Agreement and $2000.00
per month commencing thirty (30) days following the execution of this Agreement
and each thirty (30) days thereafter until paid in full. In the event that any
installment is not received within ten (10) days of its due date the entire
unpaid balance due by the terms hereof shall become immediately due and payable

                  (b) Armani shall cause to be filed a Request for Dismissal
with Prejudice of his Complaint in the aforesaid Case No. 02CC12884 as to all
defendants forthwith upon the execution of this Agreement.

                  (c) Telenetics and Armani agree that any press release
concerning this Agreement and/or its terms and effect shall be jointly approved
by Telenetics and Armani, such approval not to be unreasonably withheld.

         4. Except for any obligations imposed by this Agreement, Defendants,
and each of them, on the one hand, and Armani, on the other, and, as applicable,
each of their respective agents, successors, predecessors, parent companies,
affiliated companies, related companies, partners, officers, directors,
shareholders, representatives, employees, attorneys, insurance companies,
assigns and heirs, and each of them, past and present, hereby release and
forever discharge each other party and each of his, her, or its respective
agents, successors, predecessors, parent companies, affiliated companies,
related companies, partners, officers, directors, shareholders, representatives,

                                       -1-

<PAGE>

employees, attorneys, insurance companies, assigns and heirs, and each of them,
past and present, with respect to any and all claims, demands, charges of
discrimination, liabilities, damages, obligations, debts, attorneys' fees,
costs, accounts, actions, or causes of action which any of the parties have or
claim to have as of the date of this Agreement, in law or equity, whether known
or unknown, which pertain to or which arise out of the facts, circumstances,
and/or events which are asserted, or could have been asserted in Case No.
02CC12884 and/or which pertain to, arise out of, or is in any connected with the
past relationships between the Parties including, without limiting the
generality of the foregoing, any claims related to or arising out of Armani's
employment relationship with Telenetics and the termination of that employment
relationship, his relationship as a Director of Telenetics and the termination,
if any, of that relationship, his relationship as a consultant of Telenetics and
the termination, if any, of that relationship. (collectively, the "Defendant
Released Parties).

         5. The release set forth in Section 4 specifically includes, without
limiting the generality of the foregoing in any way, the release of any and all
claims under the California labor laws, the California Fair Employment and
Housing Act, California wage-hour laws, Title VII of the Civil Rights Act of
1964, the Americans With Disabilities Act, The Age Discrimination in Employment
Act, 29 U.S.C. ss. 621 and sections following, COBRA, the Employment Retirement
Income Security Act, defamation claims and/or violations of any other statutes,
rules, regulations, ordinances or law whether federal, state or local and the
release of any and all claims regarding any agreements, claimed or otherwise,
between the parties to this Agreement.

         6. Armani represents that, except for Case No. 02CC12884, he has not
filed any complaints or charges against any of the Defendant Released Parties
with any local, state or federal agency or court; he represents that no claims
are currently pending; he promises he will not file any claim at any time
hereafter relating to any claims, demands, causes of action or other liabilities
arising before the date of this agreement; and if any such agency, arbitrator or
court assumes jurisdiction of any complaint or charge against any of the
Defendant Released Parties on behalf of Armani, whenever filed, he will request
such agency or court to withdraw from the matter immediately. Moreover, Armani
agrees that should he bring an action contrary to this Agreement, he shall pay
all costs and attorneys' fees incurred by any and all Defendant Released Parties
for any action brought contrary to this Agreement.

         7.      (a). In consideration for this Agreement, Armani agrees to
indemnify, defend and hold harmless the Defendant Released Parties against and
from any claim, liability, obligation, loss, damage, assessment, judgment, cost
and expense (including, without limitation, reasonable attorneys' fees and
costs) of any kind or character (collectively, "Losses") arising out of or in
any manner incident, relating or attributable to any actions of Armani
constituting fraud, misrepresentation, breach of fiduciary duty or any knowing
or intentional violation of law or any actions outside the course and scope of
his employment or duties as a director of Telenetics, as the case may be, and
any Losses related to any written or oral agreement executed or consented to, as
the case may be, by Armani on behalf of Telenetics and which written or oral
agreement was not clearly within the course and scope of his employment and
authority and/or had not been approved by the board of directors of Telenetics.

                 (b). 1)   As further consideration for this Agreement,
                           Telenetics shall indemnify Armani for all liability,
                           loss and expense that Armani may reasonably incur by
                           reason of his personal guaranty of the Lease
                           Agreement covering Telenetics' facility at 25111
                           Arctic Ocean, Lake Forest, California 92630, or in
                           defending suits, actions or other proceedings brought
                           in connection therewith. Promptly after receipt by
                           Armani of notice of the commencement of any action,
                           suit or proceeding in respect of which Armani will
                           seek indemnification hereunder (a "Facility Action"),
                           Armani shall notify Telenetics to provide such
                           indemnification thereof in writing, but any failure
                           to so notify Telenetics shall not relieve it from
                           liability that it may have to Armani under this
                           section except to the extent that Telenetics is
                           prejuduced by the failure to give such notice.

                           Telenetics shall be entitled to participate in the
                           defense of such Facility Action and to assume control
                           of such defense (including settlement of such

                                       -2-
<PAGE>

                           Facility Action) with counsel reasonably satisfactory
                           to Armani; PROVIDED, HOWEVER, that (i) Armani shall
                           be entitled to participate in the defense of such
                           Facility Action and to employ counsel at his own
                           expense to assist in the handling of such Facility
                           Action; (ii) Telenetics shall not consent to the
                           entry of any judgment or enter into any settlement
                           that does not include as an unconditional term
                           thereof the giving by each claimant or plaintiff to
                           Armani of a release from all liability in respect of
                           such Facility Action; and (iii) Telenetics shall not
                           be entitled to control the defense of any Facility
                           Action unless Telenetics confirms in writing its
                           assumption of such defense and continues to pursue
                           the defense reasonably and in good faith. After
                           written notice by Telenetics to Armani of this
                           election to assume control of the defense of any such
                           Facility Action in accordance with the foregoing, (y)
                           Telenetics shall not be liable to Armani for any
                           legal expenses subsequently incurred by Armani
                           attributable to defending against such Facility
                           Action, and (z) as long as Telenetics is reasonably
                           contesting such Facility Action in good faith, Armani
                           shall not admit any liability with respect to, or
                           settle, compromise or discharge the claim underlying
                           such Facility Action without Telenetics' prior
                           written consent. If Telenetics does not assume
                           control of the defense of such Facility Action in
                           accordance with this section, Armani shall have the
                           right to defend and/or settle such Facility Action in
                           such manner as he may deem appropriate at the cost
                           and expense of Telenetics, and Telenetics will
                           promptly reimburse Armani therefor in accordance with
                           this section. The reimbursement of fees, costs and
                           expenses required by this section shall be made by
                           periodic payments during the course of the
                           investigation or defense, as and when bills are
                           received or expenses are incurred.

                      2)   If Armani has actual knowledge of any facts or
                           circumstances other than the commencement of a
                           Facility Action which cause in good faith him to
                           believe that he is entitled to indemnification under
                           this section of this Agreement, then Armani shall
                           promptly give Telenetics notice thereof in writing,
                           but any failure to so notify Telenetics shall not
                           relieve it from any liability that it may have to
                           Armani under this section, except to the extent that
                           Telenetics is prejudiced by the failure to give such
                           notice.

         8. As a condition of this Agreement and in furtherance of the release
provisions set forth in this Agreement, the parties expressly waive any and all
rights and benefits conferred upon them by the provisions of section 1542 of the
Civil Code of the State of California with respect to any of the matters
described or set forth in this Agreement. Section 1542 of the Civil Code of the
State of California states:

                  A general release does not extend to claims which the creditor
                  does not know or suspect to exist in his favor at the time of
                  executing the release, which if known by him must have
                  materially affected his settlement with the debtor.

         The parties acknowledge that except for matters expressly represented
or recited in this Agreement, the facts and law in relation to this matter and
the claims released by the terms of this Agreement may turn out to be different
from the facts or law as now known to each party and/or his, her or its agents
and/or representatives, including his, her or its counsel. Each party expressly
assumes the risk of the existence of different or presently unknown facts or law
and agrees that this Agreement shall in all respects be effective and binding as
to each party despite the possibility of the existence of different or new facts
or law.

         9. Each of the parties represents and warrants that he or it has not
heretofore assigned, transferred or subrogated, or purported to assign, transfer
or subrogate, to any person or entity, any of the claims released in this
Agreement. Each of the parties agrees that he or it shall indemnify each of the
other parties, including with respect to any attorneys' fees and costs, and hold

                                       -3-
<PAGE>

each of the other parties harmless from and against any claims based on or
arising from any such assignment, transfer or subrogation, or any attempted
assignment, transfer or subrogation, of any of the claims released in this
Agreement.

         10. Each of the parties agrees to execute and deliver to each other
party all necessary documents and to take such additional action as may be
necessary or reasonably required to effectuate the terms, conditions,
provisions, and intent of this Agreement.

         11. Each party executing this Agreement and/or any other documents
related to the settlement between the parties represents and warrants that he,
she or it has been duly authorized to execute this Agreement and any such other
related documents.

         12. Each of the parties acknowledges that he, she or it has carefully
read this Agreement and knows and understands the contents and effect of this
Agreement, and each of the parties further acknowledges that he, she or it is
signing this Agreement based on his, her or its own free act.

         13. Each of the parties acknowledges that he, she or it has been
advised to seek legal counsel in connection with this matter and the provisions
and execution of this Agreement, and each of the parties acknowledges that he,
she or it either has consulted with his, her or its own legal counsel or has had
a full opportunity to consult with his, her or its own legal counsel in
connection with the settlement between the parties, the terms, conditions, and
provisions of this Agreement, and the execution of this Agreement.

         14. This Agreement has been entered into in the State of California,
and all of the terms, conditions and provisions of this Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of California.

         15. If any term, condition or provision of this Agreement is held to be
invalid, void or unenforceable, the remaining terms, conditions and provisions
of this Agreement nevertheless shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

         16. This Agreement and all of its terms, conditions and provisions
shall be binding upon and shall inure to the benefit of each of the parties and
each of the parties' respective heirs, successors and assigns.

         17. The prevailing party in any proceeding to enforce the provisions of
this Agreement shall be entitled to recover all costs, including reasonable
attorney's fees, from the non-prevailing party.

         18. Each of the parties shall bear and be responsible for his, her or
its own attorneys' fees and costs incurred in connection with all aspects of
Case No. 02CC12884.

         19. This Agreement contains the entire agreement and understanding
concerning the settlement between the parties and replaces any prior
negotiations or agreements between the parties, whether written and/or oral.

         20. Each of the parties agrees that no particular party or parties to
this Agreement shall be deemed to be the author of this Agreement or any
particular term, provision or condition of this Agreement. Each of the parties
further agrees that any ambiguities in this Agreement shall be resolved, and the
terms, provisions and conditions of this Agreement shall be construed and
interpreted, without regard to which party or parties may have suggested,
drafted, revised, or otherwise authored this Agreement or any of its particular
terms, provisions or conditions. Each of the parties further agrees that this
Agreement shall be construed and interpreted as if drafted jointly by all of the
parties.

                                       -4-
<PAGE>

         21. It is understood that this Agreement is entered into in compromise
of disputed claims and that neither the settlement between the parties nor the
performance of any of the terms, provisions, or conditions of this Agreement
shall be construed or interpreted as an admission of liability on the part of
any of the parties to this Agreement.

         22. Any disputes arising under this Agreement shall be resolved in
accordance with the laws of the State of California in either the County of
Orange or the County of Los Angeles, State of California.

         23. This Agreement may not be changed, altered or modified except in a
writing signed by each of the parties and/or duly authorized representatives of
each of the parties.

         24. This Agreement may be executed in counterparts, including facsimile
counterparts, and all such executed counterparts, including with facsimile
signatures, together shall constitute one original Agreement which shall be
binding on all of the parties to this Agreement notwithstanding that all of the
parties are not signatory to the original or the same counterparts.

         25. The effective date of this Agreement (the "Effective Date") shall
be the date when this Agreement has been signed by all of the parties to this
Agreement and executed copies of this Agreement with all of the parties'
signatures have been delivered to each of the other parties and/or their
counsel.

         26. A copy of this Agreement shall be attached to, and made a part of,
the Notice of Settlement filed in the aforesaid Case No. 02CC12884

         IN WITNESS WHEREOF, the undersigned have executed this Settlement
Agreement and Mutual Release on the dates set forth below.

Dated:  August 8, 2003                               TELENETICS CORPORATION

                                                     By: /s/ David Stone
                                                         -----------------------
                                                         David Stone, President

Dated: August 8, 2003                                /s/ Michael Armani
                                                     ---------------------------
                                                     MICHAEL ARMANI

Dated: August 8, 2003                                /s/ David Stone
                                                     ---------------------------
                                                     DAVID STONE

Dated: August 12, 2003                               /s/ Michael Taglich
                                                     ---------------------------
                                                     MICHAEL TAGLICH

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<PAGE>

APPROVED AS TO FORM:
LAW OFFICES OF KRISTIN M. CANO

By: /s/ Kristin Cano
    ------------------------------------------------
    Kristin M. Cano
    Attorneys for Michael Armani

------------------------------------
Robert J. Huston III, Attorney for
Telenetics Corporation, David Stone and
Michael Taglich

SECRETARY'S CERTIFICATE

                  I, George Rombach, declare and state that I am Secretary of
Telenetics Corporation and that on August 8, 2003, the Board of Directors
approved the preceding Settlement Agreement and Mutual Release, authorized the
company's President, David Stone, to execute the such agreement on behalf of
Telenetics Corporation.

                  I declare under penalty of perjury pursuant to the laws of the
State of California and the United States of America that the foregoing is true
and correct.

This 8th day of August, 2003.

                                             /s/ George Rombach
                                             -------------------------------
                                             George Rombach

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Exhibit 10.1    
    

 
 

AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
    

        This Amended and Restated Employment Agreement (the "Agreement") dated as of September 30, 2003, is entered between La Quinta Corporation (the "Company")
and Alan L. Tallis (the "Executive"). 

        WHEREAS,
the Company and the Executive have previously entered into a letter agreement regarding employment which they wish to amend and restate in its entirety as set forth in this
Agreement, pursuant to which the Executive will be employed by the Company in accordance with the terms and conditions stated below; 

        NOW,
THEREFORE, for good and valuable consideration, the delivery and receipt of which is hereby acknowledged by the parties hereto, respectively, said parties hereby agree as follows: 

 
 

ARTICLE I
  
    Employment, Duties and Responsibilities    
    

        1.1   Employment. The Executive shall serve as the Executive Vice President and Chief Development Officer of the Company. The
Executive hereby accepts such continued employment. The Executive agrees to devote substantially all of his time and efforts to promoting the interests of the Company. 

        1.2   Duties and Responsibilities. Subject to the supervision of and direction by the Chief Executive Officer and President,
the Executive shall perform such duties as are customarily associated with the position of Executive Vice President and Chief Development Officer of the Company, and such related duties and
responsibilities with comparable levels of responsibilities and skill set requirements as the Company may assign, from time to time. 

        1.3   Base of Operation. The Executive's principal base of operation for the performance of his duties and responsibilities
under this Agreement shall be the offices of the Company in Dallas, Texas. 

 
 

ARTICLE II
  
    Term

        2.1   Term. The term of this Agreement (the "Term") shall commence on the date of this Agreement as indicated above, and shall
continue for a period of three years from the commencement date hereof. The Term and this Agreement will be renewed automatically thereafter for
successive one-year terms unless 6 months notice of non-renewal is given by either party to the other. Regardless of the term remaining on this Agreement determined as
provided above, upon the occurrence of a Change of Control of the Company, the Term of this Agreement shall not expire until the later of the end of the remaining term then in effect or two years from
the date of such Change of Control. 

 
 

ARTICLE III
  
    Compensation and Expenses

        3.1   Salary and Benefits. As compensation and consideration for the performance by the Executive of his obligations under this
Agreement, the Executive shall be entitled to the following (subject, in each case, to the provisions of Article V hereof): 

        (a)   The
Company shall pay the Executive a base salary, payable in accordance with the ordinary payment procedures of the Company and subject to such withholdings and other
ordinary employee deductions as may be required by law. The total base salary paid to the Executive through the date of his next regular annual salary review shall be $275,000. The base salary to be 

 

paid
the Executive during the Term for subsequent years shall be reviewed on an annual basis, by the Board of Directors of the Company (the "Board") or by the Compensation Committee of the Board, (the
"Compensation Committee") subject to increase based upon performance and competitive market data as determined by the Compensation Committee in its sole discretion. In no event shall such base salary
be less than $275,000 per annum. 

        (b)   The
Executive shall participate during the Term in the annual cash bonus plan maintained by the Company, subject to the performance goals and procedures established by
the Compensation Committee, from time to time. Subject to the terms and conditions of the annual cash bonus plan, the Executive's base target bonus opportunity for each fiscal year for satisfaction of
goals for such fiscal year shall be 75 percent of the Executive's base salary as actually paid in the applicable calendar year ("Base Target"). In the event the Executive significantly exceeds
annual goals for any fiscal year, he may receive a cash bonus of up to 150 percent of the Executive's base salary as actually paid in the applicable calendar year. Actual payments under the
annual cash bonus plan will be determined by the Compensation Committee, in its sole discretion. 

        (c)   The
Executive shall participate during the Term in such retirement, pension, health, disability and medical insurance plans, and in such other employee benefit plans and
programs, as may be maintained from time to time during the Term by the Company for the benefit of the employees of the Company, in each case to the extent and in such manner available to other
executive officers of the Company and subject to the terms and provisions of such plans or programs. 

        (d)   The
Executive shall be entitled to an annual paid vacation period (but not necessarily consecutive vacation weeks) during the Term, in accordance with the Company's
employee benefit policies, but in no event less than four weeks per year. 

        (e)   The
Company will pay the annual premium on the Executive's supplemental life insurance policy with US Life Financial Insurance Company up to a maximum of $2,500 per
year, increased by not more than ten percent (10%) per year, cumulatively. 

        3.2   Expenses. The Company will reimburse the Executive for reasonable business-related expenses incurred by him in connection
with the performance of his duties hereunder during the Term subject, however, to the Company's policies relating to business-related expenses as in effect from time to time during the Term. 

        3.3   Long Term Incentives. The Company may provide the Executive with additional opportunities to earn long-term
incentive awards in the future, from time to time, at levels that are competitive with external market place opportunities for the Executives' position and in line with the Company's compensation
philosophies as in effect, from time to time, as may be approved by the Compensation Committee, in its sole discretion. 

        As
compensation and in consideration for the performance by the Executive of his obligations under his prior employment letter agreement and this Employment Agreement, the Executive has
received the following (subject, in each case, to the provisions of Article V hereof): 

        (a)   Performance Shares. The Company has granted awards to the Executive and may grant additional awards in the future of
shares of the common stock of La Quinta Corporation and shares of the common stock of La Quinta Properties, Inc. which are paired for trading purposes ("Paired Shares") in accordance with the
provisions of the Agreements pursuant to which such awards have been or will be granted (the "Award Agreements") and the terms of the La Quinta Corporation 1995 Share Award Plan, the La Quinta
Corporation 2002 Share Award Plan and any additional or modified plans as may be adopted from time to time, as applicable, (the "Award" of the "Performance Shares" under the "Plans"). 

2

 

        (b)   Stock Options. The Company has also granted to the Executive options to purchase Paired Shares and may grant additional
awards in the future (the "Options") in accordance with the provisions of the Agreements pursuant to which such awards have been or will be granted (the "Option Agreements") and the terms of the
Plans. 

        In
the event of a Change in Control (as hereafter defined and provided for in Section 5.7), all Performance Shares and Options shall become fully vested immediately prior to the
consummation of the Change in Control. 

        3.4   Automobile Allowance. In lieu of an automobile furnished by the Company, the Executive shall receive an automobile
allowance of $1,100 per month. All gas, insurance, and maintenance will be at the Executive's expense. 

 
 

ARTICLE IV
  
    Exclusivity, Etc.

        4.1   Exclusivity. The Executive agrees to perform his duties, responsibilities and obligations hereunder efficiently and to
the best of his ability. The Executive agrees that he will devote substantially all of his working time, care and attention and best efforts to such duties, responsibilities and obligations throughout
the Term. The foregoing shall not be interpreted to prohibit the Executive from serving as director or trustee of one or more corporations or foundations (either for-profit or
not-for-profit) other than the Company, after obtaining consent from the Board, which shall not be unreasonably withheld. The Executive also agrees so long as he is employed by
the Company that he will not engage in any other business activities, pursued for gain, profit or other pecuniary advantage, that are competitive with the activities of the Company. 

        4.2   Other Business Ventures. The Executive agrees that, so long as he is employed by the Company, he will not own, directly
or indirectly, any controlling or substantial stock or other beneficial interest in any business enterprise which is engaged in, or competitive with, any business engaged in by the Company.
Notwithstanding the foregoing, the Executive may own, directly or indirectly, up to 5% of the outstanding capital stock of any business having a class of capital stock which is traded on any national
stock exchange or in the over-the-counter market. 

        4.3   Confidentiality. The Executive agrees that he will not, at any time during or after the Term, make use of or divulge to
any other person, firm or corporation any trade or business secret, process, method or means, or any other confidential information concerning the business or policies of the Company, which he may
have learned in connection with his employment hereunder. For purposes of this Agreement, a "trade or business secret, process, method or means, or any other confidential
information" shall mean and include written information treated as both confidential and as a trade secret by the Company. The Executive's obligation under this
Section 4.3 shall not apply to any information which (a) is known publicly; (b) is in the public domain or hereafter enters the public domain without the fault of the Executive;
(c) is known to the Executive prior to his receipt of such information from the Company, as evidenced by written records of the Executive; or (d) is hereafter disclosed to the Executive
by a third party not under an obligation of confidence to the Company. The Executive agrees not to remove from the premises of the Company, except as an employee of the Company in pursuit of the
business of the Company or except as specifically permitted in writing by the Company, any document or other object containing or reflecting any such confidential information. The Executive recognizes
that all such documents and objects, whether developed by him or by someone else, will be the sole and exclusive property of the Company. Upon termination of his employment hereunder, the Executive
shall forthwith deliver to the Company all such confidential information, including without limitation all lists of lessees, customers, correspondence, accounts, records and any other documents or
property made or held by him or under his control in relation to the business or 

3

 

affairs
of the Company, and no copy of any such confidential information shall be retained by him. The provisions of this Section 4.3 shall survive any termination of this Agreement. 

        4.4   Noncompetition and Non Disparagement. During the period commencing on the date hereof and ending on the first anniversary
of the date on which the Executive's employment is terminated, (the "Restricted Period") whether before or after the Term the Executive shall not, directly or indirectly, whether as an employee,
consultant, independent contractor, partner, joint venturer or otherwise, (A) solicit or induce, or in any manner attempt to solicit or induce, any person employed by, or as agent of, the
Company to terminate such person's employment or agency, as the case may be, with the Company or (B) divert, or attempt to divert, any person, concern, or entity from doing business with the
Company (including entering into a lease), nor will he attempt to induce any such person, concern or entity to cease being a lessee, customer or supplier of the Company. Furthermore, during the
Restricted Period, the Executive shall not make disparaging remarks about the Company. If the Executive is terminated by the Company for other than Cause or by the Executive for Good Reason, or after
a Change of Control and Executive Termination Event, the provisions of this Section 4.4 relating to non-competition shall not be binding on Executive. The provisions of this
Section 4.4 shall survive the termination of this Agreement. 

 
 

ARTICLE V
  
    Termination

        5.1
Termination by the Company. 

        (a)   The
Company shall have the right to terminate the Executive's employment at any time with or without "Cause". For purposes of this Agreement,
"Cause" shall mean that, prior to any termination the Executive shall have committed: (i) an act of willful misconduct, fraud, embezzlement,
theft, or any other act constituting a felony, involving moral turpitude or causing material harm, financial or otherwise, to the Company; (ii) a demonstrably intentional and deliberate act or
failure to act, including a gross neglect in duties, (other than as a result of incapacity due to physical or mental illness), which is committed in bad faith by the Executive, which causes or can be
expected to cause material financial injury to the Company; or (iii) an intentional and material breach of this Agreement that is not cured by the Executive within 30 days after written
notice from the President and Chief Executive Officer specifying the breach and requesting a cure. For purposes of this Agreement, no act, or failure to act, on the part of the Executive shall be
deemed "intentional" if it was due primarily to an error in judgment or negligence, but shall be deemed "intentional" only if done, or omitted to be done, by the Executive not in good faith and
without reasonable belief that his action or omission was in, or not opposed to, the best interest of the Company. Notwithstanding the foregoing, the Executive shall not be deemed to have been
terminated for "Cause" hereunder unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the
Board then in office at a meeting of the Board of Directors called and held for such purpose (after reasonable notice to the Executive and an opportunity for the Executive, together with his counsel,
to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive had committed an act set forth above and specifying the particulars thereof in detail. Nothing herein
shall limit the right of the Executive or his beneficiaries to contest the validity or propriety of any such determination. 

        (b)   The
end of the Term, due to the exercise by the Company of its non-renewal right under Section 2.1, shall also constitute termination by the Company
of the Executive's employment, with the giving of such notice by the Company creating a severance payment obligation, which is payable at the end of the notice period. 

4

 

        5.2   Death. In the event the Executive dies during the Term, this Agreement shall automatically terminate, such termination to
be effective on the date of the Executive's death. 

        5.3   Disability. In the event that the Executive shall suffer a disability which shall have prevented him from performing
satisfactorily his obligations hereunder for a period of at least 120 consecutive days, the Company shall have the right to terminate this Agreement, such termination to be effective upon the giving
of notice thereof to the Executive in accordance with this Agreement. 

        5.4   Termination by the Executive for Good Reason. The Executive's employment may be terminated during the Term by the
Executive for Good Reason, by giving to the Company 30 days advance written notice specifying the event or circumstance which the Executive alleges constitutes Good Reason. Such notice of
resignation will take effect, if not revoked by the Executive, at the conclusion of such thirty-day period. For purposes of this Agreement, the following circumstances shall constitute
"Good Reason" if not cured prior to the expiration of such thirty-day period: 

        (a)   the
assignment to the Executive of duties that are materially inconsistent with the Executive's position or with his authority, duties or responsibilities as
contemplated by Sections 1.1 and 1.2 of this Agreement, or any other action by the Company or its successor which results in a material diminution or material adverse change in such position,
authority, duties or responsibilities; 

        (b)   any
material breach by the Company or its successor of the provisions of this Agreement; 

        (c)   the
Company shall relocate its principal executive offices or require the Executive to have his principal location of work changed, in either case, to any location which
is in excess of 45 miles from its current location; or 

        (d)   the
reduction of the Executive's base salary below its then current level or the reduction of the Executive's Base Target bonus percentage factor. 

        5.5   Effect of Termination. 

        (a)   In
the event of termination of the Executive's employment for any reason or by reason of the Executive's death or disability, the Company shall pay to the Executive (or
his beneficiary in the event of his death) within 30 days after termination of employment any base salary, bonus, vested benefits in accordance with the Company's plans, and any other
compensation earned but not paid to the Executive prior to the effective date of such termination and, other than the circumstances of termination by the Company for Cause or by the Executive
voluntarily without Good Reason, the pro rata amount of the annual cash bonus payable under the plan based on the Base Target bonus for the year during which such termination occurs, based on the
number of days worked during such year. Upon such termination, the Company's obligation to pay base salary, annual bonus and long term incentives ceases except to the extent vested, in accordance with
the plans, or as otherwise payable pursuant to this Agreement. 

        (b)   In
the event of termination of the Executive's employment (other than a termination following a Change of Control as hereafter defined and provided for in
Section 5.7, which shall govern in such event) (i) by the Company other than for Cause or (ii) by the Executive for Good Reason, (subject to the signing by the Executive of the
Company's standard form of general release of employment claims as generally used prior to the Change in Control and the expiration of the statutory revocation period) the Company shall pay to the
Executive, within 30 days after termination of employment in addition to
the amounts described in Section 5.5(a) hereof, a lump sum equal to one time the sum of Executive's then current base salary and then current Base Target bonus. 

        (c)   In
the event of the termination of the Executive's employment (other than a termination following a Change in Control as hereafter defined and provided for in
Section 5.7, which shall 

5

 

govern
in such event) (i) by the Company other than for Cause, (ii) by the Executive for Good Reason or (iii) on account of the Executive's death or disability, for
12 months (or, if later, the date the Executive becomes eligible for Medicare if his employment terminates on account of disability) following the Termination Date, the Company shall arrange to
provide the Executive with insurance benefits (medical, dental, life and disability) on the same terms and conditions applicable to active executive officers of the Company, and in the event of the
Executive's death, the Company shall arrange to provide the Executive's surviving spouse and dependents with such benefits if they were provided with such benefits by the Company at the time of the
Executive's death. If and to the extent that such benefits shall not or cannot be paid or provided under any policy, plan, program or arrangement of the Company solely due to the fact that the
Executive is no longer an officer or employee of the Company, then the Company shall pay to the Executive, his dependents and beneficiaries, the amount of premiums that would have been incurred by the
Company were the Company able to provide such coverage through its plan, program or arrangement. Such benefits shall be discontinued prior to the end of the specified continuation period if the
Executive receives comparable coverage from a subsequent employer (except to the extent that the subsequent employer does not cover the preexisting medical conditions of the Executive or a previously
covered member of the Executive's family). 

        5.6   Termination Following a Change of Control. 

        (a)   Definitions. As used herein, the following terms shall have the following meanings: 

        (i)    Change
in Control. "Change in Control" shall mean 

        (1)   any
transaction, or series of transactions, including, but not limited to any merger, consolidation, or reorganization, which results when any "person" as defined in
Section 3(a)(9) of the Securities Exchange Act of 1934 (the "Exchange Act") and as used in Sections 13(d) and 14(d) thereof, including a "group" as defined in Section 13(d) of the
Exchange Act, but excluding the Company, any subsidiary of the Company, and any employee benefit plan sponsored or maintained by the Company or any subsidiary of the Company, directly or indirectly,
becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing more than 50% of the combined voting power of the
Company's then outstanding securities; 

        (2)   when,
during any period of 24 consecutive months the individuals who, at the beginning of such period, constitute the Board (the "Incumbent Directors") cease for any
reason other than death to constitute at least a majority of the Board; provided, however, that a director who was not a director at the beginning of such 24-month period shall be deemed
to have satisfied such 24-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval of, at least
two-thirds of the directors who then qualified as Incumbent Directors either actually (because they were directors at the beginning of such 24-month period) or by prior
operation of this Section; or 

        (3)   upon
the closing of a transaction comprising: a stockholder approved plan of complete liquidation of the Company; or an agreement for the sale or disposition of
substantially all of the Company's assets; or a merger, consolidation, or reorganization of the Company in which stockholders of the Company immediately prior to the transaction own less than 50% of
the combined voting power of the surviving entity. 

        (ii)   "Termination
Date" shall mean the date on which the Executive's employment with the Company is terminated. 

        (b)   Termination by the Company. Following a Change in Control, the Executive's employment may be terminated by the Company (a
"Company Termination Event") and the Executive shall not 

6

 

be
entitled to the severance benefits provided under Section 5.7, provided that the Executive's termination occurs as a result of one or more of the following events: 

        (i)    The
Executive's death; 

        (ii)   The
Executive's disability, provided the Executive actually begins to receive disability benefits pursuant to the long-term disability plan in effect for
senior executives of the Company immediately prior to the Change in Control; or 

        (c)   Executive Termination Event. If at any time during the two year period commencing on the date of a Change in Control, the
Company or the Executive terminates his employment following the occurrence of one or more of the following events (each, an "Executive Termination Event"), the Executive shall be entitled to the
severance benefits provided in Section 5.7 below: 

        (i)    Any
termination by the Company of the Executive's employment during such two year period for any reason, other than for Cause, as a result of the Executive's death, or
by reason of the Executive's disability and the actual receipt of disability benefits pursuant to the long-term disability plan in effect for senior executives of the Company immediately
prior to the Change in Control. 

        (ii)   Termination
by the Executive of his employment with the Company at any time within two years after the Change in Control upon the occurrence of any of the following
events: 

        (1)   The
Company's failure to elect, re-elect or otherwise maintain the Executive in the office or position in the Company which the Executive held immediately
prior to a Change in Control. 

        (2)   A
significant, adverse change (increase or decrease) in the nature or scope of the authorities, powers, functions, responsibilities or duties attached to the position
with the Company which the Executive held immediately prior to the Change in Control, or a reduction in the aggregate of the Executive's base pay or annual incentive bonus opportunity (and relative
level of goal achievement) in which the Executive participated immediately prior to the Change in Control, or the termination of the Executive's rights to any employee benefits to which he was
entitled immediately prior to the Change in Control, or a reduction in scope or value of such benefits, without prior written consent of the Executive, any of which is not remedied within 10 calendar
days after receipt by the Company of a written notice from the Executive of such change, reduction, or termination, as the case may be; 

        (3)   The
Company or its successor becomes a subsidiary of another company and the Executive does not hold the position stated in Section 1.1 of the ultimate parent
company; 

        (4)   The
Company shall relocate its principal executive offices, or require the Executive to have his principal location of work changed, to any location which is in excess
of 45 miles from the location thereof immediately prior to the Change in Control; or 

        (5)   Without
limiting the generality or effect of the foregoing, any material breach of this Agreement by the Company or any successor thereto. 

        5.7   Severance Benefits. In the event the Executive's employment is terminated within two years of the date of a Change in
Control as a result of an Executive Termination Event, the Executive shall be entitled to the benefits set forth below, subject to the signing by the Executive of the Company's standard form of
general release of employment claims as generally used prior to the Change in 

7

 

Control
and the expiration of any statutory revocation period. All amounts payable under this Section 5.7(a) (b) (c) and (d) shall be paid to the Executive in one lump sum within
30 days after his termination of employment. 

        (a)   The
Company shall pay to the Executive an amount equal to three times the greater of: (i) average of his annual base salary for the three fiscal years (or such
fewer fiscal years that the Executive is actually employed by the Company) preceding the Change in Control or (ii) his then current base salary ("average Base Salary") and three times the
greater of: i) the average of his cash bonuses paid with respect to the last two fiscal years (or such fewer fiscal years that the Executive is actually employed by the Company) preceding the
Change in Control, or ii) his Base Target bonus. 

        (b)   The
Company shall pay the Executive his full base salary through the Executive's Termination Date. The Company shall also pay the Executive an amount equal to the pro
rata amount of the Base Target bonus award available to the Executive under the bonus plan during the year of termination, based on the number of days of the year elapsed prior to the Termination
Date. Any cash-based long-term incentives shall be cashed out on a pro-rata basis, based on the greater of actual goal achievement or target. 

        (c)   All
Performance Shares, Options, Award Grants and retirement benefits (such as 401k) shall become vested in accordance with the applicable plan documents as in effect on
the dates of the respective grants. 

        (d)   The
Company will provide outplacement assistance from a service selected by the Executive for a period of one year from the Termination Date. All associated costs will
be paid by the Company, up to a maximum of thirty percent (30%) of the Executive's average Base Salary. 

        (e)   For
a period of three years following the Executive's termination of employment the Company shall arrange to provide the Executive with insurance benefits (medical,
dental, life and disability) substantially similar to those which the Executive was receiving or entitled to receive immediately prior to the Termination Date with all costs paid by the Company. If
and to the extent that such benefits shall not or cannot be paid or provided under any policy, plan, program or arrangement of the Company solely due to the fact that the Executive is no longer an
officer or employee of the Company, then the Company shall pay to the Executive, his dependents and beneficiaries, the amount of premiums that would have been incurred by the Company were the Company
able to provide such coverage through its plan, program or arrangement. Such insurance benefits shall be discontinued prior
to the end of the specified continuation period if the Executive receives comparable coverage from a subsequent employer (except to the extent that the subsequent employer does not cover the
preexisting medical conditions of the Executive or a previously covered member of the Executive's family). 

        5.8   Other Rights. A termination of the Executive's employment by the Company pursuant to this Agreement or by the Executive
shall not affect adversely any rights which the Executive may have pursuant to any agreement, employment contract, policy, plan, program or arrangement of the Company providing employee benefits,
which rights shall be governed by the terms of such employee benefit plan. 

        5.9   Retirement. The Executive will be entitled to retirement benefits and all other applicable benefits if any, pursuant to
the terms of any of the Company's plans. The Company's obligation to pay base salary, annual bonus and long-term incentives ceases upon retirement except to the extent vested, in
accordance with the plans, or as otherwise payable pursuant to this Agreement. 

8

 

 
 

ARTICLE VI
  
    Indemnification

        The
Company will indemnify the Executive to the fullest extent that would be permitted by law (including a payment of expenses in advance of final disposition of a proceeding) as in
effect at the time of the subject act or omission, or by the charter or by-laws of the Company as in effect at such time, or by the terms of any indemnification agreement between the
Company and the Executive, whichever affords greatest protection to the Executive, and the Executive shall be entitled to the protection of any insurance policies the Company may elect to maintain
generally for the benefit of its officers and/or, during the Executive's service in such capacity (if applicable), directors (and to the extent the Company maintains such an insurance policy or
policies, in accordance with its or their terms to the maximum extent of the coverage available for any Company officer or director); against all costs, charges and expenses whatsoever incurred or
sustained by the Executive (including but not limited to any judgment entered by a court of law) at the time such costs, charges and expenses are incurred or sustained, in connection with any action,
suit or proceeding to which the Executive may be made a party by reason of his being or having been an officer or employee of the Company, or serving as a director, officer or employee of an affiliate
of the Company, at the request of the Company, other than any action, suit or proceeding brought against the Executive by or on account of his breach of the provisions of an employment agreement with
a third party that has not been disclosed by the Executive to the Company. The provisions of this Article VI shall survive any termination of this Agreement. 

 
 

ARTICLE VII
  
    Taxes and Miscellaneous Other Provisions

        7.1   Tax Considerations. Notwithstanding anything herein to the contrary, in the event any payments or benefits provided to
the Executive hereunder upon a Change in Control are determined by the Company to be subject to the tax imposed by Section 4999 of the Internal Revenue Code (the "Code", with all Code Section
references used herein being deemed to include any regulations thereunder), or any similar federal or state excise tax, FICA tax, or any interest or penalties are incurred by the Executive with
respect to such excise tax (such excise tax, together with any such interest and penalties are hereinafter collectively referred to as the "Excise Tax"), the Company shall pay to the Executive at the
time specified in Section 5.5 (b) or 5.7 above (whichever applies), an additional amount (the "Gross-Up Payment") such that after the payment by the Executive of all federal,
state, or local income taxes, Excise Taxes, FICA tax, or other taxes (including any interest or penalties imposed with respect thereto) imposed upon the receipt of the Gross-Up Payment,
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed on the severance payments and benefits provided herein. 

        (a)   For
purposes of determining whether any payments or benefits to the Executive hereunder will be subject to the Excise Tax and the amount of such Excise Tax: 

        (i)    all
payments or benefits received or to be received by the Executive in connection with a Change in Control or the termination of employment (whether pursuant to the
terms of this Agreement or of any other plan, arrangement or agreement with the Company) shall be treated as "parachute payments" within the meaning of Section 280G(b)(2) of the Code, and all
"excess parachute payments" within the meaning of Section 280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion of tax counsel selected by the Company and acceptable
to the Executive, such payments or benefits (in whole or in part) do not constitute parachute payments under Section 280G of the Code, or such excess parachute payments (in whole or in part)
represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code; 

9

 

        (ii)   the
amount of the severance payments which shall be treated as subject to the Excise Tax shall be equal to the amount of excess parachute payments within the meaning of
Sections 280G(b)(1) and (4) (after applying clause (a), above); and 

        (iii)  the
parachute value of any noncash benefits or any deferred payment or benefit shall be determined by Company in accordance with the principles of
Sections 280G(d)(3) and (4) of the Code. 

        (b)   If
the Excise Tax is subsequently determined to be less than the amount taken into account hereunder at the time of termination of employment, the Executive shall repay
to the Company, at the time the reduction in Excise Tax is finally determined, the portion of the Gross-Up Payment attributable to such reduction. If the Excise Tax is determined to exceed
the amount taken into account hereunder at the time of termination of employment, the Company shall make an additional Gross-Up Payment to the Executive in respect of such excess at the
time the amount of such excess is finally determined. The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later that ten business days after the Executive is informed in writing of such claim
and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30 calendar
day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company
notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 

        (i)    give
the Company any information reasonably requested by the Company relating to such claim, 

        (ii)   take
such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the Company, 

        (iii)  cooperate
with the Company in good faith in order to effectively contest such claim, and 

        (iv)  permit
the Company to participate in any proceedings relating to such claim; 

provided,
however, that the Company shall bear and pay directly all costs and expenses (including legal and accounting fees and additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax, FICA tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this section, the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim
and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest
to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis, and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect
to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the 

10

 

taxable
year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised
by the Internal Revenue Service or any other taxing authority. 

        If
any such claim referred to in this Section is made by the Internal Revenue Service and the Company does not request the Executive to contest the claim within the 30 calendar day
period following notice of the claim, the Company shall pay to the Executive the amount of any Gross-Up Payment owed to the Executive, but not previously paid pursuant to
Section 7.1(b), immediately upon the expiration of such 30 calendar day period. If any such claim is made by the Internal Revenue Service and the Company requests the Executive to contest such
claim, but does not advance the amount of such claim to the Executive for purposes of such contest, the Company shall pay to the Executive the amount of any Gross-Up Payment owed to the
Executive, but not previously paid under the provisions of Section 7.1(b), within 5 business days of a Final Determination of the liability of the Executive for such Excise Tax. For purposes of
this Agreement, a "Final Determination" shall be deemed to occur with respect to a claim when (i) there is a decision, judgment, decree or other order by any court of competent jurisdiction,
which decision, judgment, decree or other order has become final, i.e., all allowable appeals pursuant to this section have been exhausted by either party to the action, (ii) there is a closing
agreement made under Section 7121 of the Code, or (iii) the time for instituting a claim for refund has expired, or if a claim was filed, the time for instituting suit with respect
thereto has expired. 

        If,
after the receipt by the Executive of an amount advanced by the Company pursuant to this section, the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company's complying with the requirements of this Section) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes
applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to this Section, a determination is made by the Internal Revenue Service that the Executive is
not entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 calendar
days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of
Gross-Up Payment required to be paid. 

        7.2   No Set-Off. There shall be no set-off or counterclaim against, or delay in, any payment of
severance benefits by the Company to the Executive provided for in this Agreement with respect to any claim against or debt or obligation of the Executive, whether arising hereunder or otherwise
except for insurance benefits as provided in Sections 5.5(c) or 5.7(e). 

        7.3   No Mitigation Obligation. The Executive's benefits hereunder shall be payable to him as severance pay in consideration of
his services under this Agreement. The Company hereby acknowledges that it will be difficult, and may be impossible, for the Executive to find reasonably comparable employment following the
Termination Date. Accordingly, the parties hereto expressly agree that the payment of the severance benefits by the Company to the Executive in accordance with the terms of this Agreement will be
liquidated damages, and that the Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall any profits,
income, earnings or other benefits from any source whatever create any mitigation, offset, reduction or any other obligation on the part of the Executive hereunder or otherwise. 

        7.4   Enforcement Costs. The Company is aware that, upon the occurrence of a Change in Control, the Board of Directors or a
shareholder of the Company, or the Company's successor in interest, may 

11

 

then
cause or attempt to cause the Company to refuse to comply with its obligations under this Agreement, or may cause or attempt to cause the Company to institute, or may institute litigation seeking
to have this Agreement declared unenforceable, or may take, or attempt to take, other action to deny the Executive the benefits intended under this Agreement. In these circumstances, the purpose of
this Agreement could be frustrated. It is the intent of the Company that the Executive not be required to incur the expenses associated with the enforcement of his rights under this Agreement by
litigation or other legal action, nor be bound to negotiate any settlement of his rights hereunder under threat of incurring such expenses because the cost and expense thereof would substantially
detract from the benefits intended to be extended to the Executive hereunder. Accordingly, if following a Change in Control the Executive should conclude in good faith that the Company has failed to
comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any
litigation or other legal action designed to deny, diminish or to recover from the Executive the benefits intended to be provided to the Executive hereunder, the Company irrevocably authorizes the
Executive from time to time to retain legal counsel of his choice at the expense of the Company to represent the Executive in connection with the initiation or defense of any litigation or other legal
action, whether by or against the Company or any director, officer, stockholder or other person affiliated with the Company. The reasonable fees and expenses of counsel selected from time to time by
the Executive as provided herein shall be paid or reimbursed to the Executive by the Company on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by
his counsel in accordance with its customary practices. In any action involving this Agreement, the Executive shall be entitled to prejudgment interest on any amounts found to be due him as of the
date such amounts would have been payable to the Executive pursuant to this Agreement at an annual rate of interest of 10%. 

        7.5   Arbitration. The Company and the Executive hereby agree that certain issues and/or disagreements arising in connection
with this Agreement shall be settled by arbitration. Accordingly, in the event the Company or the Executive believes that the other party has violated any provision of this Agreement, including but
not limited to any action by the Company which the Executive believes would entitle the Executive to terminate his employment with severance benefits in accordance with Article V hereof, the
party alleging such violation shall notify the other party in writing of such alleged violation. In the event the party receiving such violation notice disagrees with the position taken by the other
party in such written notice, the recipient of the violation notice may, within 20 days of receipt of such written notice, notify the other party, in writing, that it has elected to submit such
disagreement to arbitration. Arbitration of such dispute shall be settled in Dallas, Texas, in accordance with the then applicable rules of the American Arbitration Association. The Company shall bear
all costs associated with such arbitration. In the event the party receiving a violation notice does not elect to submit any issue or disagreement to arbitration within 10 days of its receipt
of the written violation notice, such party will be deemed to have accepted the position taken in such written notice. Notwithstanding anything herein to the contrary, neither the Company nor the
Executive shall be required to arbitrate the basis of any involuntary termination of the Executive's employment with the Company by the Company or its successor. 

        7.6   Employment Rights. Nothing expressed or implied in this Agreement shall create any right or duty on the part of the
Company or the Executive to have the Executive remain in the employment of the Company prior to any Change in Control, provided, however, that any event which would constitute an Executive Termination
Event had a Change in Control occurred following the commencement of active negotiations with a third party (which negotiations are evidenced by the delivery of evaluation material) that ultimately
results in a Change in Control shall be deemed to be a termination or removal of the Executive by the Company other than for Cause after a Change in Control for purposes of this Agreement. 

12

 

        7.7   Benefit of Agreement; Assignment; Beneficiary. This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns, including, without limitation, any corporation or person which may acquire all or substantially all of the Company's assets or business, or with or into which
the Company may be consolidated or merged. This Agreement shall also inure to the benefit of, and be enforceable by, the Executive and his personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive should die while any amount would still be payable to the Executive hereunder if he had continued to live, all such amounts
shall be paid in accordance with the terms of this Agreement to the Executive's beneficiary, devisee, legatee or other designee, or if there is no such designee, to the Executive's estate. 

        7.8   Notices. Any notice required or permitted hereunder shall be in writing and shall be sufficiently given if personally
delivered or if sent by telegram or telex or by registered or certified mail, postage prepaid, with return receipt requested, addressed: 

        (a)   in
the case of the Company, La Quinta Corporation, 909 Hidden Ridge, Suite 600, Irving, Texas 75038, Attention: General Counsel; and 

        (b)   in
the case of the Executive, to Alan L. Tallis, 11919 Edgestone Road, Dallas, TX 75230, or such other address as the Executive may specify in writing to the Company. 

        7.9   Entire Agreement; Amendment. This Agreement contains the entire agreement of the parties hereto with respect to the terms
and conditions of the Executive's employment during the Term and supersedes any and all prior agreements and understandings, whether written or oral, between the parties hereto with respect to
compensation due for services rendered hereunder. This Agreement may not be changed or modified except by an instrument in writing signed by both of the parties hereto. 

        7.10 Waiver. The waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a
continuing waiver or as a consent to or waiver of any subsequent breach hereof. 

        7.11 Headings. The article and section headings herein are for convenience of reference only, do not constitute a part of
this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

        7.12 Governing Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the internal laws
of the State of Texas without reference to the principles of conflict of laws. 

        7.13 Agreement to Take Actions. Each party hereto shall execute and deliver such documents, certificates, agreements and
other instruments, and shall take such other actions, as may be reasonably necessary or desirable in order to perform his or its obligations under this Agreement or to effectuate the purposes hereof. 

        7.14 Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this
Agreement to the extent necessary for the intended preservation of the rights and obligations under this Agreement. 

        7.15 Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

        7.16 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument. 

13

 

        7.17 Corporate Authorization. The Company hereby represents that the execution, delivery and performance by the Company of
this Agreement are within the corporate powers of the Company, and that the President and Chief Executive Officer has the requisite authority to bind the Company hereby. 

        7.18 Third Party Agreements and Rights. The Executive represents to the Company that the Executive's execution of this
Agreement, the Executive's employment with the Company and the performance of the Executive's duties for the Company will not violate any obligations the Executive may have to any employer, former
employer or other party, and the Executive does not possess tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.
Further, the Executive represents and acknowledges that to the extent that he is under any continuing obligation under any agreement with any employer, former employer or other party with regard to
non-solicitation, non-inducement and confidentiality, he shall not violate any such obligation. 

        7.19 Litigation and Regulatory Cooperation. During and after the Executive's employment, the Executive shall reasonably
cooperate with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or
occurrences that transpired while the Executive was employed by the Company; provided, however, that such cooperation shall not materially and adversely affect the Executive or expose the Executive to
an increased probability of civil or criminal litigation. The Executive's cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with
counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times. During and after the Executive's employment, the Executive also shall cooperate
fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that
transpired while the Executive was employed by the Company. The Company shall also provide the Executive with compensation on an hourly basis (to be derived from his then current or last applicable
level of base compensation, as paid by the Company) for requested litigation and regulatory cooperation that occurs after his termination of employment, and reimburse the Executive for all costs and
expenses incurred in connection with his performance under this Section 7.19, including, but not limited to, reasonable attorneys' fees and costs. 

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

	 	 	LA QUINTA CORPORATION
	

 	
 	

By:	

/s/  FRANCIS W. CASH      

	

 	
 	

Name: Francis W. Cash

As its: President and Chief Executive Officer
	

 	
 	

EXECUTIVE
	

 	
 	

/s/  ALAN L. TALLIS      
 Name: Alan L. Tallis

14

QuickLinks

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

ARTICLE I Employment, Duties and Responsibilities

ARTICLE II Term

ARTICLE III Compensation and Expenses

ARTICLE IV Exclusivity, Etc.

ARTICLE V Termination

ARTICLE VI Indemnification

ARTICLE VII Taxes and Miscellaneous Other Provisions

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]