AMENDMENT TO NON-COMPETITION, NON-SOLICITATION AND SEVERANCE BENEFITAGREEMENT

EX-10.2 3 d292696dex102.htm EXHIBIT 10.2 EXHIBIT 10.2

EXHIBIT 10.2

AMENDMENT TO

NON-COMPETITION, NON-SOLICITATION AND SEVERANCE BENEFIT AGREEMENT

This Amendment (“Amendment”) is made as of January 27, 2012 by and between Bruce Haase (“Employee”) and Choice Hotels International, Inc. (“Choice”), and amends that certain Non-Competition, Non-Solicitation and Severance Benefit Agreement dated January 25, 2008 between the parties (“Agreement”).

NOW, THEREFORE, in consideration of the promises contained in this Amendment, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree to the following terms:

1. Severance Benefits. With respect to the Severance Benefits set forth in Section 5 of the Agreement, the parties acknowledge for purposes of clarity:

(i) the target bonus referred to in Section 5(b) is 55% of Employee’s base salary; and

(ii) a schedule of the stock options and stock awards referred to in Section 5(c) is set forth as Exhibit A hereto.

2. Additional Severance Benefits. The following provisions are added to the end of Section 5 of the Agreement:

(f) for a period of seven months from the Termination Date, Employee shall continue to participate in Choice’s Flexible Perquisite program at the same level that Employee was participating at the Termination Date.

(g) Choice will provide Employee long-term disability coverage during the Severance Benefit Period substantially equivalent to Employee’s coverage during employment.

(h) With respect to converted basic and option life insurance, Choice will pay Employee’s premiums during the Severance Benefit Period.

(i) Choice will provide Employee with Supplemental Executive Life Insurance through July 2014.

(j) During the Severance Benefit Period, Choice shall reimburse Employee for monthly cell phone charges, up to $250 per month.

(k) During the Severance Benefit Period, Employee shall continue to participate in the Executive Stay At Choice program up to a total reimbursement of $5,000.

3. Outplacement Services. Section 5(d) of the Agreement is amended by adding the following to the end thereof:

The outplacement services will be at the level Choice provides for its other NEO’s and Employee may choose the outplacement provider(s).

4. Offset. Section 6 of the Agreement is amended by adding the following to the end thereof:

Notwithstanding the foregoing, Employee shall be permitted to provide independent consulting services to third parties during the Severance Benefit Period without offset to the payments under Sections 5(a) and (b) so long as: (i) such services do not exceed $5,000 per month, and (ii) such services are not provided to any person or entity who competes with Choice.


5. Miscellaneous.

(a) All other provisions of the Agreement not modified by this Amendment remain in full force and effect.

(b) The Agreement and this Amendment contains the entire agreement of the parties, and supersedes all other agreements, discussions or understandings concerning the subject matter. The Agreement may be changed only by an agreement in writing signed by both parties.

 

Choice Hotels International, Inc.

    Employee:

By:/s/ Patrick Cimerola

    /s/ Bruce Haase
    Bruce Haase

 

2


Exhibit A

Stock Options and Stock Awards Outstanding as of January 27, 2012

Restricted

Stock

 

Award Date

   Award Type    Awarded      Target      Vested      Unvested      Cancelled  

21-Mar-2008

   RSS      30 ###-###-####         NA         10,185.0000         20 ###-###-####         0.0000   

08-Feb-2009

   RSS      4,185.0000         NA         2,092.0000         2,093.0000         0.0000   

14-Feb-2010

   RSS      3 ###-###-####         NA         958.0000         2 ###-###-####         0.0000   

14-Feb-2010

   RSS      12 ###-###-####         NA         0.0000         12 ###-###-####         0.0000   

14-Feb-2010

   PSU      3 ###-###-####         3 ###-###-####         0.0000         3 ###-###-####         0.0000   

20-Feb-2011

   PSU      3 ###-###-####         3 ###-###-####         0.0000         3 ###-###-####         0.0000   

20-Feb-2011

   RSS      3 ###-###-####         NA         0.0000         3 ###-###-####         0.0000   
     

 

 

       

 

 

    

 

 

    

Total

        88 ###-###-####            37 ###-###-####         48,033.0000      
     

 

 

       

 

 

    

 

 

    

Stock Options

 

Grant Date

   Grant
Type
   Expiration Date      Granted      Exercised      Cancelled      Expired      Exercisable      Outstanding  

14-Feb-2005

   ISO      14-Feb-2015         5 ###-###-####         0.0000         0.0000         0.0000         5 ###-###-####         5 ###-###-####   

12-Feb-2006

   ISO      12-Feb-2013         2 ###-###-####         0.0000         0.0000         0.0000         2 ###-###-####         2 ###-###-####   

11-Feb-2007

   ISO      11-Feb-2014         3,136.0000         0.0000         0.0000         0.0000         3,136.0000         3,136.0000   

25-May-2007

   ISO      25-May-2014         903.0000         0.0000         0.0000         0.0000         903.0000         903.0000   

10-Feb-2008

   ISO      10-Feb-2015         3,022.0000         0.0000         0.0000         0.0000         0.0000         3,022.0000   

08-Feb-2009

   ISO      08-Feb-2016         2 ###-###-####         0.0000         0.0000         0.0000         0.0000         2 ###-###-####   

14-Feb-2010

   ISO      14-Feb-2017         2 ###-###-####         0.0000         0.0000         0.0000         0.0000         2 ###-###-####   

20-Feb-2011

   ISO      20-Feb-2018         3 ###-###-####         0.0000         0.0000         0.0000         0.0000         3 ###-###-####   

14-Feb-2005

   NQ      14-Feb-2015         17 ###-###-####         0.0000         0.0000         0.0000         17 ###-###-####         17 ###-###-####   

12-Feb-2006

   NQ      12-Feb-2013         7 ###-###-####         0.0000         0.0000         0.0000         7 ###-###-####         7 ###-###-####   

11-Feb-2007

   NQ      11-Feb-2014         9 ###-###-####         0.0000         0.0000         0.0000         9 ###-###-####         9 ###-###-####   

25-May-2007

   NQ      25-May-2014         24,097.0000         0.0000         0.0000         0.0000         24,097.0000         24,097.0000   

10-Feb-2008

   NQ      10-Feb-2015         21 ###-###-####         0.0000         0.0000         0.0000         18,511.0000         21 ###-###-####   

08-Feb-2009

   NQ      08-Feb-2016         43,183.0000         0.0000         0.0000         0.0000         23,031.0000         43,183.0000   

14-Feb-2010

   NQ      14-Feb-2017         4,005.0000         0.0000         0.0000         0.0000         1 ###-###-####         4,005.0000   

14-Feb-2010

   NQ      14-Feb-2017         18 ###-###-####         0.0000         0.0000         0.0000         4 ###-###-####         18 ###-###-####   

20-Feb-2011

   NQ      20-Feb-2018         18 ###-###-####         0.0000         0.0000         0.0000         0.0000         18 ###-###-####   
        

 

 

             

 

 

    

 

 

 

Total

           349 ###-###-####                  118 ###-###-####         188 ###-###-####