Employment Transition and Advisory Agreement between Extended Stay America, Inc. and M. Thomas Buoy

Contract Categories: Human Resources › Employment Agreements
Summary

This agreement outlines the terms for M. Thomas Buoy’s continued employment with Extended Stay America, Inc. after the elimination of his Executive Vice President, Revenue position. Effective January 1, 2020, Mr. Buoy will serve as an Advisor to the Chief Marketing Officer until March 31, 2020, with the same base salary and benefits. He will assist with the transition, remain eligible for his 2019 bonus, and continue to vest in restricted share units. Upon termination, he will receive severance benefits at a reduced salary rate and must sign a release as required by the company’s severance plan.

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EX-10.1 2 d791455dex101.htm EX-10.1 EX-10.1

Exhibit 10.1

August 9, 2019

M. Thomas Buoy

Executive Vice President, Revenue

Extended Stay America, Inc.

11525 N. Community House Road, Suite 100

Charlotte, NC 28277

Dear Tom:

Following up on our previous discussion regarding the elimination of the Executive Vice President, Revenue, this letter confirms the terms of your continued employment after your position is eliminated on December 31, 2019. Effective January 1, 2020, the following terms will become effective:

 

New Title

    Advisor, reporting to Chief Marketing Officer. You will be an employee and not an independent contractor.

Length of Assignment

    January 1, 2020 through March 31, 2020

Duties

    Assistance and advice as needed and requested by Chief Marketing Officer to support transition.

Support

    You may work remotely or at HSC at your discretion except as Chief Marketing Officer specifically requests.

Salary

    You will continue to be paid your base salary at the annual rate of $459,380. You will be paid bi-weekly through ESA normal payroll process. Ordinary tax, benefit and other required payroll deductions and withholdings will continue to be taken through your employment period.

Benefits

    You will continue to be eligible to participate in Company’s standard benefits program through your employment. Upon termination, you are eligible to continue benefits coverage through COBRA. This coverage is available to you for up to 18 months.

Annual Incentive

    You will be eligible for your bonus based on 2019 actual results as calculated under the Extended Stay America, Inc. Annual Incentive Plan, consistent with prior years and other members of the Senior Leadership Team.

Time and

Performance RSUs

    Restricted Share Units will continue to vest as scheduled per the terms of the 2017, 2018, and 2019 Long Term Incentive Plan Restricted Share Agreement.

Severance

    At the end of your period of employment , you will be entitled to the benefits under the Extended Stay America, Inc. Executive Severance Plan except salary payment will be at seventy-five percent not one hundred percent, and your target bonus will be deemed to be 100% of your base salary.

Release

    At the end of your period of employment, you will execute a release as provided in Extended Stay America, Inc. Executive Severance Plan.

Please sign below to reflect your agreement to the terms outlined in this memorandum and return to my attention.

 

Sincerely,
/s/ Kevin Henry
Kevin Henry
Chief Human Resource Officer
Accepted and agreed

/s/ M. Thomas Buoy

M. Thomas Buoy
Date: August 9, 2019