EXHIBIT 10.34
AMENDMENT NO. 1
TO
EMPLOYMENT AGREEMENT
FIRST AMENDMENT TO EMPLOYMENT AGREEMENT, made as of January 1, 2005, among
WINSTON HOTELS, INC., a North Carolina corporation (the "Corporation"), and
XXXXXX X. XXXXXXX, III (the "Employee"):
WHEREAS, the Employee and the Company entered into an Employment Agreement
dated as of January 2, 2003 (the "Employment Agreement"); and
WHEREAS, the parties desire to amend the Employment Agreement as provided
herein.
NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the parties hereby agree as follows:
1. The first paragraph of Section 2 of the Employment Agreement is hereby
deleted in its entirety and the following is hereby substituted in lieu thereof:
"Employee shall serve as the Chief Executive Officer of the Corporation and
shall have such responsibilities and authority consistent with such
positions as may be reasonably assigned to him by the Board of Directors of
the Corporation. Employee shall devote his full time and attention and best
efforts to perform successfully his duties and advance the Corporation's
interests. Employee shall abide by the Corporation's policies, procedures,
and practices as they may exist from time to time."
2. Section 3(a) of the Employment Agreement is hereby deleted in its
entirety and the following is hereby substituted in lieu thereof:
"(a) Salary. Compensation for Employee's services under this Agreement
shall be Four Hundred Five Thousand Dollars ($405,000) per year, payable in
accordance with the Corporation's reasonable policies, procedures, and
practices as they may exist from time to time. The Employee's salary shall
be reviewed annually by the Corporation's Board of Directors as of December
31 and by February 15 of each year and may be changed in the Board's
reasonable discretion."
3. Section 3(b) of the Employment Agreement is hereby deleted in its
entirety and the following is hereby substituted in lieu thereof:
"(b) Bonus. Employee shall be entitled to earn an annual bonus of up to one
hundred percent (100%) of his annual salary with the specific amount to be
reviewed and determined annually by the Corporation's Board of Directors."
4. Section 5(a) of the Employment Agreement is hereby deleted in its
entirety and the following is hereby substituted in lieu thereof:
"(a) With Notice. Either the Corporation or Employee may terminate this
Agreement during the original or any extension term of employment by giving
ninety (90) days prior written notice to the other party. If the
Corporation terminates this Agreement with such notice, or gives a notice
of non-renewal pursuant to Section 4 of this Agreement, then Employee shall
be entitled to an amount equal to the sum of (i) the Employee's then
current monthly salary multiplied by 12 plus (ii) an accrued bonus amount
equal to 100% of the Employee's then current annual salary pro rated from
the first day of the calendar year in which such notice is given through
and including the day and date that the Employee leaves the employment of
the Company, with said amount to be paid in a lump sum upon the date of
termination of this Agreement."
5. The third paragraph of Section 5 of the Employment Agreement is hereby
deleted in its entirety and the following is hereby substituted in lieu thereof:
"In the event of termination for Cause, the Corporation's obligation to
compensate Employee ceases on the date of termination except as to the
amounts of salary due at that time. In the event of termination for
Disability, the Corporation shall pay Employee's then current annual salary
(reduced by any payments Employee receives from disability insurance) and
any bonus to which he may be entitled equal to 100% of the Employee's then
current annual salary for a period of one year from the date of
termination. In the event of termination for death, the Corporation shall
pay Employee's estate any salary and prorated bonuses to which he may be
entitled as of the date of termination."
6. Section 7(c)(ii) of the Employment Agreement is hereby deleted in its
entirety and the following is hereby substituted in lieu thereof:
"(c)(ii) a severance payment equal to three (3) times the amount of the
Employee's current annual compensation plus a bonus equal to 100% of the
Employee's then current annual salary; provided, however, that in no case
shall the amount used for such annual compensation or bonus be less than
those amounts immediately prior to the Change in Control. The severance
payment shall be paid in a lump sum upon the date of termination;"
7. Except to the extent hereby amended, the Employment Agreement is herby
confirmed and ratified and shall continue in full force and effect.
8. The effective date of this Amendment is January 1, 2005.
[Signatures to appear on the following page]
IN WITNESS WHEREOF, the parties have executed this First Amendment to
Employment Agreement as of the date first written above.
WINSTON HOTELS, INC.: EMPLOYEE:
By: /s/ Xxxxxx X. Xxxxx /s/ Xxxxxx X. Xxxxxxx, III
--------------------------------- ----------------------------------------
Name: Xxxxxx X. Xxxxx Name: Xxxxxx X. Xxxxxxx, III
Title: President and Title: Chief Executive Officer
Chief Financial Officer Dated: January 1, 2005
Dated: January 1, 2005
