AMENDMENT TO NON-COMPETITION, NON-SOLICITATION AND SEVERANCE BENEFITAGREEMENT
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 Employees 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 Choices 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 Employees coverage during employment.
(h) With respect to converted basic and option life insurance, Choice will pay Employees 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 NEOs 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 | ||||||||||||||||
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Total | 88 ###-###-#### | 37 ###-###-#### | 48,033.0000 | |||||||||||||||||||
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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 ###-###-#### | ||||||||||||||||||||||
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Total | 349 ###-###-#### | 118 ###-###-#### | 188 ###-###-#### | |||||||||||||||||||||||||||
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