La Quinta Offer Letter and Employment Terms for Stephen T. Parker as Senior Vice President, Sales and Marketing
This letter confirms the offer of employment from La Quinta Inns to Stephen T. Parker for the position of Senior Vice President, Sales and Marketing, starting May 8, 2000. The agreement outlines an annual salary of $300,000, a target bonus of 40% of base pay, stock options, a car allowance, vacation, and various benefits. It also details severance terms if terminated without cause, including salary, bonus, and benefits continuation, with enhanced terms in the event of a change in control. Disputes will be resolved by arbitration in Texas.
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EXHIBIT 10.10
[La Quinta Letterhead]
May 3, 2000
Mr. Stephen T. Parker
28908 North 111th Street
Scottsdale, AZ 85262
Dear Steve:
I am very pleased to confirm our offer of the position of Senior Vice President Sales and Marketing. This letter provides a confirmation of the compensation and benefits offered to you as we had discussed.
| Salary: | $300,000 annually. | |
Bonus: | Participation in our executive bonus plan with a target bonus of 40% of base pay. A copy of the bonus plan is enclosed for your review. For the business plan year 2000, your bonus will be guaranteed at 40% of base pay prorated from May 8, 2000. | |
Stock Options: | Participate in our Non-qualified Stock Option Plan with an initial grant of options to purchase 125,000 shares of Meditrust common stock (pending approval of the Board of Directors). The exercise price for the options will be set at fair market value on the date of employment. These options vest over four years – 25% on each of the successive anniversary dates of the effective date of your employment, pursuant to the stock option plan. | |
Additionally, as we discussed a new executive compensation plan is presently under review by the Board of Directors, which may either enhance or replace the aforementioned stock option grant. | ||
Car Allowance: | You will receive a car allowance of $1,100 per month in lieu of reimbursement for use of your personal vehicle for business. | |
Vacation: | You will be eligible to take four weeks of vacation each calendar year, prorated for the first year of employment. | |
Other benefits: | Enclosed you will find a detailed explanation of our health, life, dental, long term disability and other benefit plans. You are eligible to enroll in our Flexible Benefits program on the first of the month after one full month of service. | |
Relocation: | Reimbursement for normal costs in connection with a relocation as explained in the enclosed policy. | |
Severance: | Although La Quinta does not have employment contracts for our officers, we will commit that if you are terminated from the company without cause, that your severance payment will be one year salary and target bonus. Furthermore, in the event you are terminated without cause, you will be entitled to continue to receive during the severance period such company provided group health insurance, life insurance and long-term disability coverage as are in effect for you at the time of termination. In the event your employment with La Quinta is terminated voluntarily or by reason of death, disability (which entitles you to coverage under the long-term disability plan) or for "cause," no severance would be due or payable. For purposes thereof, "cause" shall be (a) your willful and continuing failure to discharge your duties and responsibilities to La Quinta, (b) any material act of dishonesty involving La Quinta, (c) conviction of a felony. Any disputes arising out of this arrangement will be arbitrated in the State of Texas under the rules of the American Arbitration Association. The judgment of the arbitrator is final. The prevailing party gets costs and attorneys' fees paid. If termination of employment were due to a change of control, then your severance would be two years salary and two years target bonus. Furthermore, you will be entitled to continue to receive during the two year severance period such company provided group health insurance, life insurance and long-term disability coverage as are in effect for you at the time of termination. It is our intention to have in place a written definition of "change in control" within the first 120 days of your employment. | |
Start Date | Your start date is May 8, 2000. |
Please call me if you have any questions regarding this letter, as it is important for both of us to have a clear and complete understanding as possible. Vito Stellato, our Senior Vice President of Human Resources is also available to answer any questions regarding benefits and relocation. Please feel free to contact him at ###-###-####.
I look forward to working with you and am confident that you are capable of making a significant contribution to the success of La Quinta Inns. Welcome aboard.
Sincerely,
/s/ Francis W. Cash
Francis W. Cash
President and CEO
VJS:lb
Encl.
EMPLOYEE'S ACCEPTANCE
I have received and read the attached offer letter, and agree to the terms outlined for the position of Senior Vice President Sales and Marketing.
| /s/ Stephen T. Parker Signature of Employee | Stephen T. Parker Printed Name | |
5/3/2000 Date |
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