aple20200304_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549  

 


 

FORM 8-K 

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 2, 2020

 

APPLE HOSPITALITY REIT, INC.

(Exact name of registrant as specified in its charter)

 

Virginia

  

001-37389

  

26-1379210

(State or other jurisdiction

of incorporation)

  

(Commission File Number)

  

(I.R.S. Employer

Identification Number)

 

814 East Main Street, Richmond, Virginia

  

23219

(Address of principal executive offices)

  

(Zip Code)

 

(804) 344-8121

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered 

Common Shares, no par value

APLE

New York Stock Exchange

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company     

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      ☐

 

 

 

Apple Hospitality REIT, Inc. (which is referred to below as the “Company”) is filing this report in accordance with Items 5.02, 5.03, 8.01 and 9.01 of Form 8-K.

 

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

Executive Leadership Transition

 

As announced in March 2019, Kristian Gathright (currently the Company’s Executive Vice President and Chief Operating Officer) and Bryan Peery (currently the Company’s Executive Vice President and Chief Financial Officer) are retiring from their current officer roles with the Company. Their retirement will be effective on March 31, 2020. Upon her retirement, Mrs. Gathright will cease to be an employee but will remain a member of the Company’s Board of Directors (the “Board”). Mr. Peery has agreed to remain employed in an advisory role to support the transition of responsibilities.

 

In anticipation of their retirement, the Company and Mrs. Gathright, and separately the Company and Mr. Peery, entered into separation and general release agreements each dated as of March 4, 2020 (the “Separation Agreements”), and each providing for certain benefits in connection with their retirement. As set forth in the Separation Agreements, effective March 31, 2020, Mrs. Gathright and Mr. Peery will retire as Executive Vice President and Chief Operating Officer and Executive Vice President and Chief Financial Officer of the Company, respectively, as well as from all of the officer positions they hold with the Company and its subsidiaries and affiliates. Under the terms of the Separation Agreements, subject to either not revoking their Separation Agreement during the seven-day revocation period beginning on the date they sign their Separation Agreement, the Company has agreed to provide or cause to be provided to each a lump sum payment of $1,225,000, less applicable taxes and withholdings. In her Separation Agreement, Mrs. Gathright agreed (i) to not serve on the board of directors or similar body of a lodging-oriented real estate company that competes with the Company in the United States for a period of the later of two years from and after March 31, 2020 and one year from the date she is no longer a member of the Company’s Board of Directors and (ii) to a general release and waiver of claims against the Company, its subsidiaries, affiliates and employees. In his Separation Agreement, Mr. Peery agreed (i) to not serve on the board of directors or similar body of a lodging-oriented real estate company that competes with the Company in the United States for a period of two years from and after the date he ceases to be an employee of the Company or any of its subsidiaries and (ii) to a general release and waiver of claims against the Company, its subsidiaries, affiliates and employees. Mrs. Gathright’s and Mr. Peery’s decision to retire is not due to any disagreements between the Company and either of them on any matter relating to the Company’s operations, policies or practices. The foregoing summary of the Separation Agreements is not complete and is qualified in its entirety by reference to the Separation Agreements, which are attached hereto as Exhibits 10.1 and 10.2 and are incorporated herein by reference.

 

Officer Appointments

 

In conjunction with the retirements described above, on March 4, 2020, the Company’s Board of Directors made the following officer appointments effective April 1, 2020 as part of a reallocation of responsibilities. Each of the appointed officers has previous experience with the Company, including Nelson Knight whose title and role will change from Executive Vice President and Chief Investment Officer to President, Real Estate and Investments. In addition to the appointments described below, the Board approved a change to the title, but not the roles and responsibilities, of the Company’s current President and Chief Executive Officer, Justin Knight. Effective April 1, 2020, Mr. Justin Knight’s title will be Chief Executive Officer.

 

Nelson Knight, President, Real Estate and Investments

 

Mr. Nelson Knight, age 38, joined the Apple REIT Companies (defined below) in 2005 and has served as Executive Vice President and Chief Investment Officer for the Company since May 2014. Prior to his current role, he held various senior management positions with the Company and each of the former Apple REIT Companies. Mr. Knight executes on the Company’s capital deployment strategies, including oversight of the Company’s capital reinvestment team. Mr. Knight serves on the Marriott Capital Asset Planning and Execution (CAPE) Board, on Hilton’s Product Advisory Council, on the Home2 Suites by Hilton Owners Advisory Committee, on the TownePlace Suites by Marriott Franchise Advisory Council, as an advisory member of the Hunter Hotels Investment Conference, and as chair of the TownePlace Suites by Marriott System Marketing Committee. Mr. Knight also serves on the National Advisory Council for Southern Virginia University in Buena Vista, Virginia. Mr. Knight holds a Master of Business Administration degree from Texas Christian University, as well as a Bachelor of Arts degree, Cum Laude, in History with a minor in Business from Southern Virginia University. Mr. Nelson Knight is the son of Glade Knight, the Company’s Executive Chairman, and the brother of Justin Knight, the Company’s President and Chief Executive Officer. In connection with his appointment, Mr. Nelson Knight will receive an annual base salary of $382,500 in 2020 and have a target total incentive compensation award opportunity for 2020 of $1,338,750. Mr. Knight will continue to participate in the Company’s Executive Severance Pay Plan and in the other benefit plans offered to employees of the Company.

 

 

 

Elizabeth Perkins, Senior Vice President and Chief Financial Officer

 

Ms. Perkins, age 37, joined the Apple REIT Companies in 2006 and has served as Senior Vice President of Corporate Strategy and Reporting for the Company since April 2015. Ms. Perkins began her career with the Apple REIT Companies as an Asset Manager and has held various management and senior management roles since 2008. Ms. Perkins has been a key part of the leadership team at the Apple REIT Companies, fostering valuable relationships, aiding in strategic investment decisions, directing corporate strategy and reporting initiatives, and overseeing the Company’s investor relations, risk management and internal audit functions. Prior to joining the Apple REIT Companies, from 2004 to 2006, Ms. Perkins served as Assurance Associate with Ernst & Young, LLP, where she specialized in insurance clients. Within the industry, Ms. Perkins currently serves on the Homewood Suites by Hilton Owners Advisory Council, the Residence Inn by Marriott System Marketing Fund Council, the American Hotel and Lodging Association Consumer Innovation Forum, and the distribution advisory councils for Marriott and Hilton. Ms. Perkins holds a Bachelor of Business Administration degree in Accounting from the J.M. Tull School of Accounting within the Terry College of Business at the University of Georgia. In connection with her appointment, Ms. Perkins will receive an annual base salary of $375,000 and have a target total incentive compensation award opportunity for 2020 of $750,000. Ms. Perkins will also participate in the Company’s Executive Severance Pay Plan and in the other benefit plans offered to employees of the Company.

 

Jeanette Clarke, Senior Vice President and Chief Capital Investments Officer

 

Ms. Clarke, age 38, joined the Apple REIT Companies in 2008 and has served as Senior Vice President of Capital Investments for the Company since March 2019. Ms. Clarke began her career with the Apple REIT Companies as an Analyst and has held various management and senior management roles since 2012. Ms. Clarke has been instrumental in the development of the Company’s capital investments team, fostering valuable relationships with brand, manager and supplier teams, leading strategic capital reinvestment initiatives, and overseeing the Company’s energy efficiency and sustainability programs. Prior to joining the Apple REIT Companies, Ms. Clarke served as a Senior Financial Analyst at Genworth Financial, and from 2003 until 2008, she served in various roles at Circuit City Stores, Inc., including Accounting Manager of Expense, Service and Advertising Payables. Within the industry, Ms. Clarke serves on the Marriott Owner & Franchise Technology Advisory Council. Ms. Clarke holds a Master of Business Administration degree from Virginia Commonwealth University and a Bachelor of Science degree, Magna Cum Laude, in Business Administration with a concentration in Finance and minor in Economics from Longwood University. In connection with her appointment, Ms. Clarke will receive an annual base salary of $300,000 in 2020 and have a target total incentive compensation award opportunity for 2020 of $600,000. Ms. Clarke will also participate in the Company’s Executive Severance Pay Plan and in the other benefit plans offered to employees of the Company.

 

Karen Gallagher, Senior Vice President and Chief Operating Officer

 

Ms. Gallagher, age 42, joined the Apple REIT Companies in 2003 and has served as Senior Vice President of Asset Management for the Company since January 2012. Ms. Gallagher began her career with the Apple REIT Companies as a Senior Asset Manager and has held various management and senior management roles since 2005. Ms. Gallagher’s leadership of the asset management team has been instrumental in fostering relationships with brand and management company teams and developing the Company’s analytical and benchmarking of property-level performance methodology, each helping to maximize profitability. Prior to joining the Apple REIT Companies, from 2000 to 2003, Ms. Gallagher served as Senior Assurance Associate with Ernst & Young, LLP, where she specialized in real estate clients. Within the industry, Ms. Gallagher serves as a member of the Hampton by Hilton Ownership Advisory Council, as well as the Global Finance Committee for the lodging industry sponsored by the Hospitality Financial and Technology Professionals and American Hotel and Lodging Association. Ms. Gallagher holds a Master of Science degree in Accounting and a Bachelor of Science degree in Commerce from the McIntire School of Commerce at the University of Virginia, and a second major in Economics from the School of Arts and Sciences at the University of Virginia. Ms. Gallagher is a Certified Public Accountant. In connection with her appointment, Ms. Gallagher will receive an annual base salary of $375,000 in 2020 and have a target total incentive compensation award opportunity for 2020 of $750,000. Ms. Gallagher will also participate in the Company’s Executive Severance Pay Plan and in the other benefit plans offered to employees of the Company.

 

Rachel Labrecque, Senior Vice President and Chief Accounting Officer

 

Ms. Labrecque, age 41, joined the Apple REIT Companies in 2015 and has served as Senior Vice President of Accounting for the Company since January 2019. Ms. Labrecque began her career with the Apple REIT Companies as a Director of Accounting and has since held various management and senior management roles. Ms. Labrecque oversees accounting, financial reporting, treasury operations and taxation for the Company. Prior to joining the Apple REIT Companies, Ms. Labrecque served as Senior Vice President of Finance and Corporate Controller (2011-2015), Vice President and Corporate Controller (2008-2011) and Director of Financial Reporting (2006-2008) of Bowlero Corporation, formerly BowlmorAMF Corporation. Ms. Labrecque also held various financial reporting, accounting and auditing roles with The Mills Corporation (a publicly traded REIT), AOL Time Warner, and Arthur Andersen, LLP. Ms. Labrecque holds a Bachelor of Science degree in Accounting from the Virginia Tech Pamplin College of Business. Ms. Labrecque is a Certified Public Accountant. Ms. Labrecque will receive an annual base salary of $360,000 in 2020 and have a target total incentive compensation award opportunity for 2020 of $720,000. Ms. Labrecque will also participate in the Company’s Executive Severance Pay Plan and in the other benefit plans offered to employees of the Company. 

 

 

 

Matthew Rash, Senior Vice President and Chief Legal Officer

 

Mr. Rash, age 40, joined the Company in 2019 and has served as Senior Vice President and General Counsel for the Company since that time. Mr. Rash oversees all legal matters for the Company. Prior to joining the Company, Mr. Rash served as a Partner (2016-2019) and Associate (2005-2015) at McGuireWoods LLP, a full-service law firm in Richmond, Virginia, where he specialized in commercial real estate transactions, including acquisitions, dispositions and lending, working on numerous transactions with the Apple REIT Companies. From 2004 to 2005, he was a law clerk with the United States District Court for the Eastern District of Virginia for the Honorable James R. Spencer. Mr. Rash holds a Juris Doctor degree from the University of Richmond and a Bachelor of Arts degree in Government and Foreign Affairs from the University of Virginia. Mr. Rash will receive an annual base salary of $360,000 in 2020 and have a target total incentive compensation award opportunity for 2020 of $720,000. Mr. Rash will also participate in the Company’s Executive Severance Pay Plan and in the other benefit plans offered to employees of the Company.

 

In addition to the compensation arrangements noted above for each newly appointed officer, the Compensation Committee approved the issuance on April 1, 2020 of restricted common shares of the Company with a value equal to one time each individual’s 2020 annual base salary at such time. The restricted shares will vest on March 31, 2023 if the individual remains an officer of the Company.

 

“Apple REIT Companies” - Below are the “former Apple REIT Companies” that were sold to a third party or merged with the Company. All of the Apple REIT Companies, founded by Glade Knight, the Company’s Executive Chairman, were REITs with ownership of primarily rooms-focused hotels.

 

Company

 

Formation Date

 

 Sale/Merger Description

Apple Suites, Inc. (“Apple Suites”)

 

1999

 

Merged with Apple Hospitality Two, Inc. in January 2003

Apple Hospitality Two, Inc. (“Apple Two”)

 

2001

 

Sold to an affiliate of ING Clarion in May 2007

Apple Hospitality Five, Inc. (“Apple Five”)

 

2002

 

Sold to Inland American Real Estate Trust, Inc. in October 2007

Apple REIT Six, Inc. (“Apple Six”)

 

2004

 

Sold to an affiliate of Blackstone Real Estate Partners VII in May 2013

Apple REIT Seven, Inc. (“Apple Seven”)

 

2005

 

Merged with the Company in March 2014

Apple REIT Eight, Inc. (“Apple Eight”)

 

2007

 

Merged with the Company in March 2014

Apple REIT Nine, Inc. (“Apple Nine”)

 

2007

 

Original name of the Company. Name changed to Apple Hospitality REIT, Inc. in March 2014

Apple REIT Ten, Inc. (“Apple Ten”)

 

2010

 

Merged with the Company in September 2016

 

Amendment to Executive Severance Pay Plan

 

On March 2, 2020, the Compensation Committee of the Board and on March 4, 2020 the Board each approved an amendment (the “Amendment”) to the Apple Hospitality REIT, Inc. Executive Severance Pay Plan (the “Severance Plan”) to provide for the participation in the Severance Plan for all of the appointed officers noted above and to clarify that participants of the Severance Plan will not be entitled to any benefits payment under the Company’s Senior Management Severance Plan. The Severance Plan generally provides severance or income protection benefits to participants in the event of their termination in connection with certain changes in control of the Company as defined in the Severance Plan.

 

The foregoing summary is not complete and is qualified in its entirety by reference to the copy of the Amendment, which is attached hereto as Exhibit 10.3 and is incorporated herein by reference.

 

Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

 

On March 4, 2020, the Board approved an amendment and restatement of the Company’s bylaws (the “Revised Bylaws”), which Revised Bylaws will become effective on April 1, 2020, to incorporate the following changes, among other things: (i) to permit the Chief Executive Officer (formerly the President, which position was held by the Chief Executive Officer) or the Board to fix the time and place of annual meetings of shareholders of the Company; (ii) to permit special meetings of the shareholders of the Company to be called by the Chief Executive Officer (formerly the President, which position was held by the Chief Executive Officer), in addition to the Chairman of the Board, a majority of the members of Board and shareholders holding not less than 10% of the eligible votes; (iii) to permit special meetings of the Board to be called by the Chief Executive Officer (formerly Vice Presidents or the President, which position was held by the Chief Executive Officer), in addition to the Secretary of the Company or any two directors of the Company; (iv) to grant the Chief Executive Officer authority to appoint certain officers of the Company; and (v) to remove the requirement for the Company to have a president officer position and to clarify that the Chief Executive Officer has general supervision, direction and control of the business, subject to control of the Board and the supervisory powers of the Chairman of the Board. The foregoing summary is not complete and is qualified in its entirety by reference to the copy of the Revised Bylaws, which is attached hereto as Exhibit 3.1 and is incorporated herein by reference.

 

 

 

Item 8.01. Other Events.

 

On March 5, 2020, the Company issued a press release announcing the effective date of the retirement of Mrs. Gathright and Mr. Peery as officers of the Company and the appointment of the officers listed above. A copy of the press release is attached hereto as Exhibit 99.1 and the information set forth therein is incorporated herein by reference.

 

Forward Looking Statements

 

This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company and its wholly-owned subsidiaries to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the ability of the Company to effectively acquire and dispose of properties; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the real estate and real estate capital markets; financing risks; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact the Company’s business, assets or classification as a real estate investment trust (“REIT”). Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this Form 8-K will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved. In addition, the Company’s qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986. Readers should carefully review the risk factors described in the Company’s filings with the Securities and Exchange Commission, including but not limited to, those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Any forward-looking statement that the Company makes speaks only as of the date of this Form 8-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.  

 

Item 9.01.  Financial Statements and Exhibits.

 

(d) Exhibits

 

3.1

Third Amended and Restated Bylaws of Apple Hospitality REIT, Inc.

10.1

Separation Agreement and General Release, dated as of March 4, 2020, by and between Apple Hospitality REIT, Inc. and Kristian Gathright.

10.2

Separation Agreement and General Release, dated as of March 4, 2020, by and between Apple Hospitality REIT, Inc. and Bryan Peery.

10.3

Second Amendment to the Apple Hospitality REIT, Inc. Executive Severance Pay Plan.

99.1

Press Release dated March 5, 2020.

104

Cover Page Interactive Data File (formatted as Inline XBRL).

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Apple Hospitality REIT, Inc.

 

 

By:

/s/ Justin G. Knight

 

Justin G. Knight

President and Chief Executive Officer

 

 

 

 March 5, 2020

 

 

 

 

 

 

false --12-31 0001418121 0001418121 2020-03-02 2020-03-02
ex_175529.htm

Exhibit 3.1

 

 


 

 

SECOND THIRD AMENDED AND RESTATED
 

BYLAWS

 

OF

 

APPLE HOSPITALITY REIT, INC.

 

 

 

 

  

  

 

 

TABLE OF CONTENTS

 

  

Page

 

 

ARTICLE I THE COMPANY; DEFINITIONS

1

 

 

1.1

Name

1

1.2

Nature of Company

1

1.3

Definitions

1

 

 

ARTICLE II OFFICES; FISCAL YEAR

2

 

 

2.1

Principal Office

2

2.2

Other Offices

2

2.3

Taxable Year

2

 

 

ARTICLE III MEETINGS OF SHAREHOLDERS

2

 

 

3.1

Place of Meetings

2

3.2

Annual Meetings

2

3.3

Special Meetings

2

3.4

Notice; Affidavit of Notice

3

3.5

Record Date for Shareholder Notice, Voting and Giving Consents

3

3.6

Adjourned Meetings; Notice

3

3.7

Voting at Meetings of Shareholders

4

3.8

Quorum and Voting

4

3.9

Waiver of Notice or Consent of Absent Shareholders

4

3.10

Action Without Meeting

4

3.11

Proxies

4

3.12

Inspectors of Election

5

 

 

ARTICLE IV DIRECTORS

5

 

 

4.1

Powers

5

4.2

Number, Tenure and Qualifications

5

4.3

Nomination of Directors

6

4.4

Vacancies

6

4.5

Place of Meeting

7

4.6

Organization Meeting

7

4.7

Special Meetings

7

4.8

Adjournment

7

4.9

Notice of Adjournment

7

4.10

Entry of Notice

7

4.11

Waiver of Notice

7

4.12

Quorum and Voting

7

4.13

Fees and Compensation

8

4.14

Action Without Meeting

8

4.15

Removal of Director for Cause

8

4.16

Removal of Director Without Cause

8

4.17

Committees

8

4.18

Fiduciary Relationship

8

4.19

Preferred Shares and Other Securities

8

 

 

ARTICLE V OFFICERS

9

 

 

5.1

Officers

9

5.2

Election

9

5.3

Subordinate Officers

9

5.4

Removal and Resignation

9

5.5

Vacancies

9

5.6

Chairman of the Board

9

  

i

 

5.7

Chief Executive Officer

9

5.8

President

9

5.95.8

Vice Presidents

9

5.105.9

Secretary

10

5.115.10

Assistant Secretaries

10

5.125.11

Chief Financial Officer

10

5.135.12

Assistant Chief Financial Officers

10

 

 

ARTICLE VI SHARES OF STOCK

10

 

 

6.1

Registered Ownership, Share Certificates and Shares in “Unissued Certificate” Form

10

6.2

Transfer of Shares

11

6.3

Disclosures by Holders of Shares; Redemption of Shares

11

6.4

Right to Refuse to Transfer the Shares

12

6.5

Limitation on Acquisition of Shares

12

6.6

Lost or Destroyed Certificates

13

6.7

Dividend Record Date and Closing Stock Books

13

6.8

Applicability of Certain Sections of Article VI

13

 

 

ARTICLE VII TRANSACTIONS WITH AFFILIATES; CERTAIN DUTIES AND LIABILITIES OF DIRECTORS, SHAREHOLDERS AND AFFILIATES

13

 

 

7.1

Transactions with Affiliates

13

7.2

Restriction of Duties and Liabilities

14

7.3

Persons Dealing with Directors or Officers

14

7.4

Reliance

14

7.5

Income Tax Status

15

 

 

ARTICLE VIII MISCELLANEOUS

15

 

 

8.1

Competing Programs

15

8.2

Control Share Acquisitions

15

8.3

Corporate Seal

15

8.4

Inspection of Bylaws

15

8.5

Inspection of Corporate Records

15

8.6

Checks, Drafts, Etc.

15

8.7

Contracts, Etc., How Executed

15

8.8

Representation of Shares of Other Corporations

15

8.9

Severability

15

8.10

Voluntary Dissolution

16

8.11

Distributions

16

8.12

Shareholder Liability

16

8.13

Return of Offering Proceeds

16

 

 

ARTICLE IX AMENDMENTS TO BYLAWS

16

 

 

9.1

Amendments

16

 

 

ARTICLE X CONDUCT OF BUSINESS THROUGH SUBSIDIARIES

16

 

 

10.1

Subsidiaries

16

10.2

Interpretation and Application of Bylaws

16

 

  

ii

 

ARTICLE I

THE COMPANY; DEFINITIONS

 

1.1           Name.  The name of the corporation is Apple Hospitality REIT, Inc. and is referred to in these Bylaws as the “Company.” As far as practicable and except as otherwise provided in the Organizational Documents, the Directors shall direct the management of the business and the conduct of the affairs of the Company, execute all documents and sue or be sued in the name of the Company.  If the Directors determine that the use of that name is not practicable, legal or convenient, they may use such other designation or may adopt another name under which the Company may hold property or conduct all or part of its activities.

 

1.2           Nature of Company.  The Company is a corporation organized under the laws of the Commonwealth of Virginia.  It is intended that the Company shall carry on business as a “real estate investment trust” (“REIT).

 

1.3           Definitions.  Whenever used in these Bylaws, the terms defined in this Section 1.3 shall, unless the context otherwise requires, have the respective meanings specified in this Section 1.3.  In these Bylaws, words in the singular number include the plural and in the plural number include the singular.

 

(a) Affiliate.  Means (i) any Person directly or indirectly controlling, controlled by or under common control with another Person, (ii) any Person owning or controlling 10% or more of the outstanding voting securities or beneficial interests of such other Person, (iii) any officer, director, trustee or general partner of such Person, and (iv) if such other Person is an officer, director, trustee or partner of another entity, then the entity for which that Person acts in any such capacity.  Affiliated means being an Affiliate of a specified Person.

 

(b) Articles of Incorporation.  The Articles of Incorporation of the Company, including all amendments, restatements or modifications thereof.

 

(c) Bylaws.  These Bylaws, including all amendments, restatements or modifications hereof.

 

(d) Directors.  As of any particular time, the directors of the Company holding office at such time.

 

(e) Organizational Documents.  The Articles of Incorporation and these Bylaws.

 

(f) Person.  An individual, corporation, partnership, joint venture, association, company, trust, bank or other entity, or government and any agency and political subdivision of a government.

 

(g) REIT.  A real estate investment trust, as defined in Section 856 of the Internal Revenue Code of 1986, as amended.

 

(h) REIT Provisions of the Internal Revenue Code.  Part II, Subchapter M of Chapter 1, of the Internal Revenue Code of 1986, as amended, or successor statutes, and regulations and rulings promulgated thereunder.

 

(i) Securities.  Any stock, shares, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities.”

 

(j) Shares or Common Shares.  All of the common shares of the Company, no par value.

 

(k) Shareholders.  As of any particular date, all holders of record of outstanding Common Shares at such time.

  

 

 

ARTICLE II

OFFICES; FISCAL YEAR

 

2.1           Principal Office.  The principal executive office of the Company shall be located at 814 East Main Street, Richmond, Virginia 23219, until otherwise established by a vote of a majority of the Board of Directors.

 

2.2           Other Offices.  The Board of Directors may at any time establish other offices at any place or places they deem appropriate.

 

2.3           Taxable Year.  The annual accounting period of the Company shall be the calendar year.

 

ARTICLE III

MEETINGS OF SHAREHOLDERS

 

3.1           Place of Meetings.  All annual and all other meetings of Shareholders shall be held at such place, either within or outside of the Commonwealth of Virginia as from time to time may be fixed by the President Chief Executive Officer or by the Board of Directors.

 

3.2           Annual Meetings.  The annual meetings of Shareholders shall be held on such date as is fixed by the President Chief Executive Officer or the Board of Directors; provided however, that if no such date and time is fixed by the President Chief Executive Officer or the Board of Directors, the meeting for any calendar year shall be held on the first Tuesday in May in such year, if not a legal holiday under the laws of Virginia.  If the date fixed by the President Chief Executive Officer or the Board of Directors falls upon a legal holiday, then any annual meeting of Shareholders shall be held at the same time and place on the next day that is not a legal holiday.  At each annual meeting of Shareholders, only such business shall be conducted as is proper to consider and has been brought before the meeting (i) pursuant to the Company’s notice of the meeting, (ii) by or at the direction of the Board of Directors, or (iii) by a Shareholder who is a Shareholder of record of a class of Shares entitled to vote on the business such Shareholder is proposing, both at the time of the giving of the Shareholder’s notice hereinafter described in this Section 3.2 and on the record date for such annual meeting, and who complies with the notice procedures set forth in this Section 3.2.

 

In order to bring before an annual meeting of Shareholders any business which may properly be considered and which a Shareholder has not had included in the Company’s proxy statement for the meeting, a Shareholder who meets the requirements set forth in the preceding paragraph must give the Company timely written notice.  To be timely, a Shareholder’s notice must be given, either by personal delivery to the Secretary of the Company at the principal office of the Company, or by first class United States mail, with postage thereon prepaid, addressed to the Secretary of the Company at the principal office of the Company.  Any such notice must be received (i) on or after February 1st and before March 1st of the year in which the meeting will be held, if clause (ii) is not applicable, or (ii) not less than 60 days before the date of the meeting if the date of such meeting is earlier than May 1 or later than May 31 in such year.

 

Each such Shareholder’s notice shall set forth as to each matter the Shareholder proposes to bring before the annual meeting (i) the name and address, as they appear on the Company’s stock transfer books, of the Shareholder proposing business, (ii) the class and number of Shares of stock of the Company beneficially owned by such Shareholder, (iii) a representation that such Shareholder is a Shareholder of record at the time of the giving of the notice and intends to appear in person or by proxy at the meeting to present the business specified in the notice, (iv) a brief description of the business desired to be brought before the meeting, including the complete text of any resolutions to be presented and the reasons for wanting to conduct such business, and (v) any interest which the Shareholder may have in such business.

 

The Secretary of the Company shall deliver each Shareholder’s notice that has been timely received to the Chairman for review.

 

3.3           Special Meetings.  Special meetings of the Shareholders may be called at any time for any purpose or purposes whatsoever by the President Chief Executive Officer, by a majority of the Board of Directors, by the Chairman of the Board or by one or more Shareholders holding not less than 10% of the eligible votes.  If a meeting is called by any Person or Persons other than the Board of Directors, the Chairman of the Board, or the President Chief Executive Officer, a request shall be made in writing, specifying the time of the meeting and the general nature of the business proposed to be transacted, and shall be delivered personally or sent by registered mail or by telegraphic or other facsimile transmission to the Chairman of the Board, the President Chief Executive Officer, or the Secretary of the Company.  The officer receiving the request shall cause notice to be promptly given to the Shareholders entitled to vote, in accordance with the provisions of Section 3.3.

 

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3.4           Notice; Affidavit of Notice.  Notice of meetings of the Shareholders of the Company shall be given in writing to each Shareholder entitled to vote thereat, either personally or by first class mail, or, if the Company has 500 or more Shareholders or beneficial owners of Common Shares, by third-class mail, by electronic transmission or other means of written communication, charges prepaid, addressed to the Shareholder at his or its address appearing on the books of the Company or given by the Shareholder to the Company for the purpose of notice.  Notice of any such meeting of Shareholders shall be sent to each Shareholder entitled thereto not less than 10 nor more than 60 days before the meeting, except that notice of meetings in which Shareholders are to act on an amendment to the Articles of Incorporation, a plan of merger, share exchange, domestication or entity conversion a proposed sale of assets as specified in Section 13.1-724 of the Virginia Stock Corporation Act or a dissolution of the Company shall be given not less than 25 nor more than 60 days before the meeting; provided, however, that within 10 business days after receipt by the Company, in person, or by registered mail, of a written request for a meeting by Shareholders holding not less than 10% of the outstanding Shares entitled to vote at such meeting, the Company shall provide written notice of such meeting to all Shareholders, and such meeting shall be held not less than 20 nor more than 60 days after the Company’s receipt of such written Shareholder request; and, provided further, that if such notice is not given within 10 business days after receipt of the request, the Person or Persons requesting the meeting may give the notice.  Nothing contained in this Section 3.4 shall be construed as limiting, fixing or affecting the time when a meeting of Shareholders called by action of the Board of Directors may be held.  All notices given pursuant to this Section 3.4 shall state the place, date and hour of the meeting and, (i) in the case of special meetings, the general nature of the business to be transacted, and no other business may be transacted, or (ii) in the case of annual meetings, those matters which the Board of Directors, at the time of the mailing of the notice, intends to present for action by the Shareholders, and (iii) in the case of any meeting at which Directors are to be elected, the names of the nominees intended at the time of the mailing of the notice to be presented by management for election.  An affidavit of the mailing or other means of giving any notice of any Shareholders’ meeting shall be executed by the Secretary, Assistant Secretary or any transfer agent of the Company giving the notice, and shall be filed and maintained in the minute book of the Company.

 

3.5           Record Date for Shareholder Notice, Voting and Giving Consents.  For purposes of determining the Shareholders entitled to notice of any meeting or to vote or entitled to give consent to corporate action without a meeting, the Board of Directors may fix, in advance, a record date, which shall not be more than 60 days nor less than 10 days before the date of any meeting nor more than 60 days before any action without a meeting, and in this event only Shareholders of record on the date so fixed are entitled to notice and to vote or to give consents, as the case may be, notwithstanding any transfer of any Shares on the books of the Company after the record date.

 

If the Board of Directors does not so fix a record date:

 

(a) The record date for determining Shareholders entitled to notice of or to vote at a meeting of Shareholders shall be at the close of business on the business day next preceding the day on which notice is given or, if notice is waived, at the close of business on the business day next preceding the date on which the meeting is held.

 

(b) The record date for determining Shareholders entitled to give consent to corporate action in writing without a meeting, (i) when no prior action by the Board has been taken, shall be the day on which the first written consent in given, or (ii) when prior action of the Board has been taken, shall be at the close of business on the day on which the Board adopts the resolution relating to that action, or the 60th day before the date of the other action, whichever is later.

 

3.6           Adjourned Meetings; Notice.  Any Shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the vote of the holders of a majority of the Shares which are either present in person or represented by proxy at such meeting, but in the absence of a quorum no other business may be transacted at the meeting.  

 

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When any Shareholders’ meeting, either annual or special, is adjourned for more than 45 days or if after the adjournment a new record date is fixed for the adjourned meeting, notice of the adjourned meeting shall be given as in the case of a special meeting.  In all other cases, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at any adjourned meeting other than by announcement at the meeting at which the adjournment is taken.

 

3.7           Voting at Meetings of Shareholders.  Subject to the provisions of the Virginia Stock Corporation Act, and subject to the right of the Board of Directors to provide otherwise, only Persons in whose name Shares entitled to vote registered on the stock records of the Company on the record date shall be entitled to the notice of and to vote at the meeting, notwithstanding any transfer of any Shares on the books of the Company after the record date.

 

The vote may be via voice or by ballot; provided, however, that all elections for Directors must be by ballot upon demand made by any Shareholder at any election and before the voting begins.  Except as provided in this Section 3.7, each outstanding Share shall be entitled to one vote on each matter submitted to a vote of Shareholders.

 

3.8           Quorum and Voting.  The presence in person or by proxy of a majority of the Shares entitled to vote at the meeting shall constitute a quorum for the transaction of business.  Except as otherwise expressly provided in these Bylaws, if a quorum exists, action on a matter, other than the election of Directors, is approved if the votes cast favoring the action exceed the votes cast opposing the action unless a vote of a greater number is required by the Articles of Incorporation or by the Virginia Stock Corporation Act.  Directors shall be elected by a plurality of the votes cast by the Shares entitled to vote in the election at a meeting at which a quorum is present.  The Shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough Shareholders to leave less than a quorum, if any action taken (other than adjournment) is approved by at least a majority of the Shares required to constitute a quorum.

 

3.9           Waiver of Notice or Consent of Absent Shareholders.  The transactions of any meeting of Shareholders, either annual or special, however called and noticed, shall be as valid as though made at a meeting duly held after regular call and notice, if a quorum is present either in person or by proxy and if, either before or after the meeting, each of the Shareholders entitled to vote, not present in person or by proxy, signs a written waiver of notice or a consent to the holding of the meeting or an approval of the minutes.  All waivers, consents or approvals shall be filed with the corporate records or made a part of the minutes of the meeting.

 

3.10         Action Without Meeting.  Any action that may be taken at any annual or special meeting of Shareholders may be taken without a meeting and without action by the Board of Directors, if the action is taken by all the Shareholders entitled to vote on the action.  The action shall be evidenced by one or more written consents describing the action taken, signed by all the Shareholders entitled to vote on the action, and delivered to the Secretary of the Company for inclusion in the minutes or filing with the corporate records; provided that all such written consents are delivered to the Company within 60 days of the date the first written consent was signed.  Action taken under this Section 3.10 shall be effective when all consents are in the possession of the Company, unless the consent specifies a different effective date and states the date of execution by each Shareholder, in which event it shall be effective according to the terms of the consent.  A Shareholder may withdraw consent only by delivering a written notice of withdrawal to the Company prior to the time that all consents are in the possession of the Company.

 

3.11         Proxies.  Every Person entitled to vote or execute consents shall have the right to do so either in person or by one or more agents authorized by a written proxy executed by such Person or his duly authorized agent and filed with the Secretary of the Company, provided that no such proxy shall be valid after the expiration of 11 months from the date of its execution, unless the Person executing it specifies in the proxy the length of time for which the proxy is to continue in force.

 

A proxy shall be deemed signed if the Shareholder’s name is placed on the proxy (whether by manual signature, typewriting, electronic transmission or otherwise) by the Shareholder or the Shareholder’s attorney in fact.  A validly executed proxy which does not state that it is irrevocable shall continue in full force and effect unless revoked by the Person executing it before the vote pursuant to that proxy by (i) a writing delivered to the Company stating that the proxy is revoked, (ii) execution of a subsequent proxy, (iii) attendance at the meeting and voting in person (but only as to any items on which the Shareholder chooses to vote in person), or (iv) transfer of the Shares represented by the proxy to a transferee who becomes a Shareholder of record prior to the record date established for the vote.  A validly executed proxy otherwise may be revoked by written notice of the death or incapacity of the maker of that proxy received by the Company before the vote pursuant to that proxy is counted.

  

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3.12         Inspectors of Election.  Before any meeting of Shareholders, the Board of Directors may appoint any Persons, other than nominees for office, to act as inspectors of election at the meeting or its adjournment.  If no inspectors of election are so appointed, the chairman of the meeting may, and on the request of any Shareholder or a Shareholder’s proxy shall, appoint inspectors of election at the meeting.  The number of inspectors shall be either one or three.  If inspectors are appointed at a meeting on the request of one or more Shareholders or proxies, the holders of a majority of Shares or their proxies present at the meeting shall determine whether one or three inspectors are to be appointed.  If any Person appointed as inspector fails to appear or fails or refuses to act, the chairman of the meeting may, and upon the request of any Shareholder or a Shareholder’s proxy shall, appoint a Person to fill that vacancy.

 

These inspectors shall:

 

(a) Determine the number of Shares outstanding and the voting power of each, the Shares represented at the meeting, the existence of a quorum, and the authenticity, validity and effect of proxies;

 

(b) Receive votes, ballots or consents;

 

(c) Hear and determine all challenges and questions in connection with any determination made by the inspector and retain for a reasonable time a record of the disposition of such challenges;

 

(d) Count and tabulate all votes or consents;

 

(e) Determine when the polls shall close;

 

(f) Determine the result; and

 

(g) Do any other acts that may be proper to conduct the election or vote with fairness to all Shareholders.

 

ARTICLE IV

DIRECTORS

 

4.1           Powers.  Subject to limitations contained in the Articles of Incorporation, these Bylaws and the Virginia Stock Corporation Act relating to action required to be authorized or approved by the Shareholders, or by the holders of a majority of the outstanding Shares, and subject to the duties of Directors as prescribed by these Bylaws, all corporate powers shall be exercised by or under the authority of, and the business and affairs of the Company shall be managed under the direction of, the Board of Directors.  The Board of Directors shall establish policies on investments and borrowings and shall monitor the administrative procedures, investment operations and performance of the Company, to assure that such policies are carried out.

 

Each individual Director may engage in other business activities of the type conducted by the Company and is not required to present to the Company any investment opportunities presented to them even though the investment opportunities may be within the Company’s investment policies.

 

4.2           Number, Tenure and Qualifications.  The authorized number of Directors of the Board of Directors shall be not less than three nor more than 15 as shall be determined from time to time by resolution of the Board of Directors.

 

Except as provided in Section 4.3, the Directors elected by the holders of the Shares at a meeting of Shareholders at which a quorum is present shall be those persons who receive the greatest number of votes even though they do not receive a majority of the votes cast.  No individual shall be named or elected as a Director without his prior consent.

  

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4.3           Nomination of Directors.  No person shall be eligible for election as a Director at a meeting of Shareholders unless nominated (i) by the Board of Directors or any committee thereof or (ii) by a Shareholder who is a Shareholder of record of a class of Shares entitled to vote for the election of Directors, both at the time of the giving of the Shareholder’s notice hereinafter described in this Section 4.3 and on the record date for the meeting at which the nominee(s) will be voted upon, and who complies with the notice procedures set forth in this Section 4.3.

 

In order to nominate for election as Directors at a meeting of Shareholders any persons who are not listed as nominees in the Company’s proxy statement for the meeting, a Shareholder who meets the requirements set forth in the preceding paragraph must give the Company timely written notice.  To be timely, a Shareholder’s notice must be given, either by personal delivery to the Secretary of the Company at the principal office of the Company, or by first class United States mail, with postage thereon prepaid, addressed to the Secretary of the Company at the principal office of the Company.  Any such notice must be received (i) on or after February 1st and before March 1st of the year in which the meeting will be held if the meeting is to be an annual meeting and clause (ii) is not applicable, or (ii) not less than 60 days before an annual meeting, if the date of the applicable annual meeting is earlier than May 1 or later than May 31 in such year, or (iii) not later than the close of business on the tenth day following the day on which notice of a special meeting of Shareholders called for the purpose of electing Directors is first given to Shareholders.

 

Each such Shareholder’s notice shall set forth the following: (i) as to the Shareholder giving the notice, (a) the name and address of such Shareholder as they appear on the Company’s stock transfer books, (b) the class and number of Shares of the Company beneficially owned by such Shareholder, (c) a representation that such Shareholder is a Shareholder of record at the time of giving the notice and intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice, and (d) a description of all arrangements or understandings, if any, between such Shareholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made; and (ii) as to each person whom the Shareholder wishes to nominate for election as a Director, (a) the name, age, business address and residence address of such person, (b) the principal occupation or employment of such person, (c) the class and number of Shares of the Company which are beneficially owned by such person, and (d) all other information that is required to be disclosed about nominees for election as Directors in solicitations of proxies for the election of Directors under the rules and regulations of the Securities and Exchange Commission.  In addition, each such notice shall be accompanied by the written consent of each proposed nominee to serve as a Director if elected and such consent shall contain a statement from the proposed nominee to the effect that the information about him or her contained in the notice is correct.

 

4.4           Vacancies.  Vacancies in the Board of Directors may be filled by a majority of the remaining Directors, though less than a quorum, or by a sole remaining Director, except that a vacancy created by the removal of a Director by the vote or written consent of the Shareholders or by court order may be filled only by the vote of a majority of the Shares entitled to vote represented at a duly held meeting at which a quorum is present, or by the written consent in accordance with Section 3.10 of these Bylaws. Each Director so elected shall hold office until his successor is elected at an annual or a special meeting of the Shareholders.

 

A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any Director or if the authorized number of Directors is increased or if the Shareholders fail, at any annual or special meeting of Shareholders at which any Director or Directors are elected, to elect the full authorized number of Directors to be voted for at that meeting.

 

Any Director may resign effective on giving written notice to the Chairman of the Board, the Secretary, or the Board of Directors.  The Shareholders may elect a Director or Directors at any time to fill any vacancy or vacancies not filled by the Directors.  Any election by written consent to fill a vacancy shall require the consent of a majority of the outstanding Shares entitled to vote.

 

If the Board of Directors accepts the resignation of a Director tendered to take effect at a future time, the Board or the Shareholders shall have the power to elect a successor to take office when the resignation is to become effective.

  

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No reduction of the authorized number of Directors shall have the effect of removing any Director prior to the expiration of his term of office.

 

4.5           Place of Meeting.  Regular meetings of the Board of Directors shall be held at any place within or without the Commonwealth of Virginia that has been designated from time to time by the Chairman of the Board or by written consent of all members of the Board.  In the absence of a designation, regular meetings shall be held at the principal office of the Company.  Special meetings of the Board may be held either at a place so designated or at the principal office.  Members of the Board may participate in a meeting through use of conference telephone or similar communication equipment, so long as all members participating in such meeting can hear one another.  Participation in a meeting by telephone or similar communication equipment shall constitute presence in person at the meeting.

 

4.6           Organization Meeting.  Immediately following each annual meeting of Shareholders, the Board of Directors shall hold a regular meeting for the purpose of organization, election of officers and the transaction of other business.  Notice of that meeting is hereby dispensed with.

 

4.7           Special Meetings.  The Chairman of the Board, the President or Vice President Chief Executive Officer or the Secretary or any two Directors shall call special meetings of the Board of Directors for any purpose or purposes at any time.

 

Written notice of the time and place of special meetings shall be delivered personally to the Directors or sent to each Director by mail, electronic transmission or by other form of written communication, charges prepaid, addressed to him at his address as it appears upon the records of the Company or, if it is not so shown or is not readily ascertainable, at the place in which the meetings of Directors are regularly held.  In case the notice is mailed, it shall be deposited in the United States mail in the place in which the principal office of the Company is located at least four days prior to the time of the meeting.  In case the notice is delivered personally, telegraphed or communicated by electronic means, it shall be delivered, deposited with the telegraph company or communicated at least 48 hours prior to the time of the meeting.  Mailing, telegraphing or delivery, as above provided, shall be due legal and personal notice to the Director.

 

4.8           Adjournment.  A majority of the Directors present, whether or not a quorum is present, may adjourn any Directors’ meeting to another time and place.

 

4.9           Notice of Adjournment.  If a meeting is adjourned for more than 24 hours, notice of any adjournment to another time or place shall be given prior to the time of the adjourned meeting to the Directors who were not present at the time of adjournment.

 

4.10         Entry of Notice.  Whenever any Director has been absent from any special meeting of the Board of Directors, an entry in the minutes to the effect that notice has been duly given shall be conclusive and incontrovertible evidence that due notice of the special meeting was given to that Director as required by law and the Bylaws of the Company.

 

4.11         Waiver of Notice.  The transactions of any meeting of the Board of Directors, however called and noticed, or wherever held, shall be as valid as though authorized at a meeting duly held after regular call and notice if a quorum is present and if, either before or after the meeting, each of the Directors not present signs a written waiver of notice of or consent to holding the meeting or an approval of the minutes.  All waivers, consents or approvals shall be filed with the corporate records or made a part of the minutes of the meeting.

 

4.12         Quorum and Voting.  A majority of the directors then in office shall be necessary to constitute a quorum for the transaction of business, except to adjourn or to fill a vacancy, as provided above.  Every act or decision done or made by a majority of the Directors at a meeting duly held at which a quorum is present shall be regarded as an act of the Board of Directors unless a greater number be required by law or by the Articles of Incorporation or these Bylaws.  However, a meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of Directors, if any action taken after such withdrawal is approved by at least a majority of the Directors required to constitute a quorum for the meeting.

  

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4.13         Fees and Compensation.  The non-employee Directors shall be entitled to receive such reasonable compensation for their services as Directors as the Directors may fix or determine from time to time by resolution of the Board of Directors.  The Directors shall also be entitled to receive remuneration for services rendered to the Company, either directly or indirectly, in any other capacity.  Those services may include, without limitation, services as an officer of the Company, legal, accounting or other professional services, or services as a broker, transfer agent or underwriter, whether performed by a Director or any Person Affiliated with a Director.

 

4.14         Action Without Meeting.  Any action required or permitted to be taken by the Board of Directors under the Virginia Stock Corporation Act and these Bylaws may be taken without a meeting if all members of the Board individually or collectively consent in writing to such action.  The Directors may execute and deliver such consents by means of one or more electronic transmissions. The consent or consents shall be filed with the minutes of the meetings of the Board.  Any certificate or other document filed under the provision of the Virginia Stock Corporation Act which relates to action so taken shall state that the action was taken by unanimous written consent of the Board of Directors without a meeting.

 

4.15         Removal of Director for Cause.  The Board of Directors may declare vacant the office of a Director who has been declared of unsound mind by an order of court, or who has pled guilty or nolo contendere to or been convicted of a felony involving moral turpitude.  In addition, throughout the term of the existence of the Company, any Director may be removed for cause by: (i) a vote or written consent of all Directors other than the Director who is to be removed, or (ii) the vote of the holders of a majority of the outstanding Shares of the Company at a meeting of the Shareholders called for such purpose.  The notice for such special meeting of Shareholders shall state that the purpose, or one of the purposes, of the meeting is to vote on the removal of a Director.  “For cause” shall mean, for purposes of this Section 4.15, a willful violation of the Articles of Incorporation or these Bylaws, or gross negligence in the performance of a Director’s duties.

 

4.16         Removal of Director Without Cause.  Any or all Directors may be removed without cause upon the affirmative vote of a majority of the outstanding Shares entitled to vote.  A Director may be removed by the Shareholders only at a meeting called for the purpose of removing him and the meeting notice must state that the purpose, or one of the purposes of the meeting, is removal of the Director.  Any reduction of the authorized number of Directors shall not operate to remove any Director prior to the expiration such Director’s term of office.

 

4.17         Committees.  The Board of Directors may, by resolution adopted by a majority of the authorized number of Directors, designate one or more committees, each consisting of two or more Directors, to serve at the pleasure of the Board of Directors.  The Board of Directors may designate one or more Directors as alternate members of any committee, who may replace any absent member at any meeting of the committee.  The appointment of members or alternate members of a committee requires the vote of a majority of the directors then in office.  Any such committee, to the extent provided in the resolution of the Board of Directors, shall have all the authority of the Board of Directors in the management of the business and affairs of the Company, except that no committee shall have authority to take any action with respect to (i) the approval or recommendation of any action requiring Shareholders’ approval or approval of the outstanding Shares, (ii) the filling of vacancies of the Board or any committee, (iii) the fixing of compensation of Directors for serving on the Board or a committee, (iv) the adoption, amendment or repeal of these Bylaws, (v) the amendment or repeal of any resolution of the Board that by its express terms is not so amendable or repealable, (vi) a distribution to Shareholders, except at a rate or in a periodic amount or within a price range determined by the Board, and (vii) the appointment of other committees of the Board or the members thereof.

 

4.18         Fiduciary Relationship.  The Directors of the Company have a fiduciary relationship to the Shareholders as provided by applicable Virginia law.

 

4.19         Preferred Shares and Other Securities.  Notwithstanding anything to the contrary in this Article IV or elsewhere in these Bylaws, holders of any preferred shares or other Securities of the Company who, pursuant to the documents duly creating such preferred shares or other Securities, are granted voting rights, including rights to nominate and elect Directors, shall have such rights as set forth in the documents creating such preferred shares or other Securities.  Furthermore, notwithstanding anything to the contrary in these Bylaws, the Directors may interpret these Bylaws and may propose and adopt amendments to these Bylaws as they deem necessary or convenient to give effect to the foregoing provision of this Section 4.19.

  

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ARTICLE V

OFFICERS

 

5.1           Officers.  The officers of the Company shall be as determined by the Board of Directors and shall include a President Chief Executive Officer and Secretary, and may include a Chairman of the Board, Chief Executive Officer, Chief Financial Officer (Treasurer) and such other officers with such titles and duties as may be appointed in accordance with the provisions of Section 5.3.  The same person may hold any number of offices.

 

5.2           Election.  The officers of the Company, except such officers as may be appointed in accordance with the provisions of Section 5.3 or Section 5.5, shall be chosen annually by the Board of Directors to serve at the pleasure of the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve or his successor shall be elected and qualified.  All officers serve at the will of the Board of Directors and nothing in these Bylaws shall give any officer any expectation or vesting of employment.

 

5.3           Subordinate Officers.  The Board of Directors may appoint other officers as the business of the Company may require, each of whom shall hold office for the period, and have the authority and perform the duties, in each case, as are provided in these Bylaws or as the Board of Directors may from time to time determine.

 

The Chief Executive Officer may appoint one or more Vice Presidents, Assistant Secretaries, Assistant Chief Financial Officers, Assistant Treasurers or other officers of the Company, each of whom shall hold office for the period and have the authority and perform the duties, in each case, as provided in these Bylaws or as the Chief Executive Officer may from time to time determine.

 

5.4           Removal and Resignation.  Any officer may be removed, either with or without cause, by a majority of the Directors at the time in office, at any regular or special meeting of the Board or, except in the case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

 

Any officer may resign at any time by giving written notice to the Board of Directors or to the Chairman, the President Chief Executive Officer or to the Secretary of the Company.  A resignation shall take effect at the date of the receipt of the notice or any later time specified in the notice; and, unless otherwise specified, the acceptance of the resignation shall not be necessary to make it effective.

 

5.5           Vacancies.  A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

 

5.6           Chairman of the Board.  The Chairman of the Board shall, if present, preside at all meetings of the Board of Directors and Shareholders and exercise and perform all other powers and duties as may from time to time be assigned to him by the Board of Directors or prescribed by these Bylaws.

 

5.7           Chief Executive Officer.  The Chief Executive Officer shall, subject to the control of the Board of Directors and the supervisory powers of the Chairman of the Board, have general supervision, direction and control of the business of the Company and shall have responsibility for implementation of the policies of the Company, as determined by the Board of Directors, for the general management and administration of the business affairs of the Company, and for the supervision of other officers, together with any other powers and duties as may be prescribed by the Board of Directors.  He shall preside at meetings of the Shareholders or at meetings of the Board of Directors if the Chairman is absent.

 

5.8           President.  The President shall, subject to the Board of Directors and the supervisory powers of the Chairman of the Board and the Chief Executive Officer, have general supervision, direction and control of the business of the Company.  He shall preside at meetings of the Shareholders or at meetings of the Board of Directors if the Chairman and Chief Executive Officer are absent.  He shall perform all duties incident to the office of president, together with any other powers and duties as may be prescribed by the Board of Directors.

 

5.8           5.9 Presidents; Vice Presidents.  In the absence or disability of the President, Chief Executive Officer, the Presidents or the Vice Presidents in order of their rank as fixed by the Board of Directors or the Chief Executive Officer or, if not ranked, the President or the Vice President designated by the Board of Directors or the Chief Executive Officer, shall perform all the duties of the President Chief Executive Officer and, when so acting, shall have all the powers of and be subject to all the restrictions upon, the President Chief Executive Officer.  The Vice Presidents shall have any other powers and shall perform other duties as from time to time may be prescribed for them respectively by the Board of Directors, the Chief Executive Officer or these Bylaws.

 

5.9         5.10 Secretary.  The Secretary shall keep, or cause to be kept, a book of minutes at the principal office, or any other place as the Board of Directors may order, of all meetings of Directors or Shareholders, with the time and place of holding, whether regular or special and, if special, how authorized, the notice thereof given, the names of those present at Directors’ meetings, the number of Shares present or represented at Shareholders’ meetings and the proceedings of meetings.

  

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The Secretary shall keep, or cause to be kept, at the principal office or at the office of the Company’s transfer agent, a Share register or a duplicate Share register showing the names of the Shareholders and their addresses, the number and classes of Shares held by each (whether in certificate or “unissued certificate” form), the number and the date of certificates issues, if any, and the number and date of cancellation of every certificate surrendered for cancellation.

 

The Secretary shall give, or cause to be given, notice of all the meetings of the Shareholders and of the Board of Directors required by these Bylaws or by law to be given, shall keep the seal of the Company (if any) in safe custody and shall have such other powers and shall perform such other duties as may be prescribed by the Board of Directors or these Bylaws.

 

5.10        5.11 Assistant Secretaries.  In the absence or disability of the Secretary, the Assistant Secretaries in order of their rank as fixed by the Board of Directors or the Chief Executive Officer or, if not ranked, the Assistant Secretary designated by the Board of Directors or the Chief Executive Officer, shall perform all the duties of the Secretary and, when so acting, shall have all the powers of and be subject to all the restrictions upon, the Secretary.  The Assistant Secretaries shall have any other powers and shall perform other duties as from time to time may be prescribed for them by the Board of Directors, the Chief Executive Officer or these Bylaws.

 

5.11        5.12 Chief Financial Officer.  The Chief Financial Officer may also be designated by the alternate title of “Treasurer.” The Chief Financial Officer shall have custody of all moneys and securities of the Company and shall keep regular books of account.  Such officer shall disburse the funds of the Company in payment of the just demands against the Company, or as may be ordered by the Board of Directors, taking proper vouchers for such disbursements, and shall render to the Board of Directors from time to time as may be required of such officer, an account of all transactions as Chief Financial Officer and of the financial condition of the Company.  Such officer shall perform all duties incident to such officer or which are properly required by the President Chief Executive Officer or by the Board of Directors.

 

5.12         5.13 Assistant Chief Financial Officers.  The Assistant Chief Financial Officers or the Assistant Treasurers, in the order of their seniority, shall, in the absence or disability of the Chief Financial Officer, or in the event of such officer’s refusal to act, perform the duties and exercise the powers of the Chief Financial Officer, and shall have such powers and discharge such duties as may be assigned from time to time by the President Chief Executive Officer or by the Board of Directors.

 

 

ARTICLE VI

SHARES OF STOCK

 

6.1           Registered Ownership, Share Certificates and Shares in “Unissued Certificate” Form.

 

(a) Certificates may be issued and transferred in accordance with these Bylaws, but need not be issued if the Company elects to have Shares maintained in “unissued certificate” form.  The Persons in whose names certificates of Shares in “unissued certificate” form are registered on the records of the Company shall be deemed the absolute owners of the Shares represented thereby for all purposes of the Company; but nothing in these Bylaws shall be deemed to preclude the Directors or officers, or their agents or representatives, from inquiring as to the actual ownership of Shares.  The Shares are non-assessable.  Until a transfer is duly effected on the records of the Company, the Directors shall not be affected by any notice of transfer, either actual or constructive.  The receipt by the Person in whose name any Shares are registered on the records of the Company or of the duly authorized agent of that Person, or if the Shares are so registered in the names of more than one Person, the receipt by any one of these Persons, or by the duly authorized agent of that Person, shall be a sufficient discharge for all dividends or distributions payable or deliverable in respect of the Shares and from all liability to see the application of those funds.  The certificates of Shares of the capital stock of the Company, if any, shall be in a form consistent with the Articles of Incorporation and the laws of the Commonwealth of Virginia as shall be approved by the Board of Directors.  All certificates shall be signed by (i) the Chairman of the Board, the Chief Executive Officer, the a President or a Vice President and (ii) the Treasurer or the Secretary or any Assistant Secretary, certifying the number of Shares and the class or series of Shares owned by the Shareholder.  Any or all of the signatures on the certificate may be facsimile signatures.

  

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(b) Notwithstanding anything to the contrary in this Section 6.1 or elsewhere in these Bylaws, if the documents duly creating any preferred shares or other Securities of the Company provide that such preferred shares or other Securities of the Company are to be “uncertificated,” certificates need not be issued in respect of such preferred shares or other Securities.  The provisions of these Bylaws addressing Shares held in uncertificated form shall apply to any such preferred shares or other Securities.  Notwithstanding anything to the contrary in these Bylaws, the Directors may interpret these Bylaws and may propose and adopt such amendments to these Bylaws as shall be necessary or convenient to give effect to the foregoing provisions of this Section 6.1 (b).

 

6.2           Transfer of Shares.  Subject to the provisions of law and of Sections 6.3, 6.4 and 6.5, Shares shall be transferable on the records of the Company only by the record holder or by his agent thereunto duly authorized in writing upon delivery to the Directors or a transfer agent of the certificate or certificates (unless held in “unissued certificate” form, in which case an executed stock power duly guaranteed must be delivered), properly endorsed or accompanied by duly executed instruments of transfer and accompanied by all necessary documentary stamps together with evidence of the genuineness of each endorsement, execution or authorization and of other matters as may reasonably be required by the Directors or transfer agent.  Upon delivery, the transfer shall be recorded in the records of the Company and a new certificate, if requested, for the Shares so transferred shall be issued to the transferee and in case of a transfer of only a part of the Shares represented by any certificate or account, a new certificate or statement of account for the balance shall be issued to the transferor.  Any Person becoming entitled to any Shares in consequence of the death of a Shareholder or otherwise by operation of law shall be recorded as the holder of such Shares and shall receive a new certificate, if requested, but only upon delivery to the Directors or a transfer agent of instruments and other evidence required by the Directors or the transfer agent to demonstrate that entitlement, the existing certificate (or appropriate instrument of transfer if held in “unissued certificate” form) for the Shares and any necessary releases from applicable governmental authorities.  Nothing in these Bylaws shall impose upon the Directors or a transfer agent any duty or limit their rights to inquire into adverse claims.

 

6.3           Disclosures by Holders of Shares; Redemption of Shares.  The Holders of the Shares shall upon demand disclose to the Directors in writing such information with respect to direct and indirect ownership of their Shares as the Directors deem necessary to comply with the provisions of the Internal Revenue Code of 1986, as amended, and applicable regulations, as amended, or to comply with the requirements of any taxing authority.  If the Directors shall at any time and in good faith be of the opinion that direct or indirect ownership of the Shares of the Company has or may become concentrated to an extent which would prevent the Company from qualifying as a REIT under the REIT Provisions of the Internal Revenue Code, the Directors shall have the power by lot or other means deemed equitable by them to prevent the transfer and/or call for redemption of a number of the Shares sufficient in the opinion of the Directors to maintain or bring the direct or indirect ownership of the Shares into conformity with the requirements for a REIT.  The redemption price shall be (i) the last reported sale price of the Shares on the last business day prior to the redemption date on the principal national securities exchange on which the Shares are listed or admitted to trading, or (ii) if the Shares are not so listed or admitted to trading, the average of the highest bid and lowest asked prices on such last business day as reported by the NASDAQ, National Quotation Bureau or a similar organization selected by the Company for that purpose, or (iii) otherwise, as determined in good faith by the Directors.  The holders of any Shares and so called for redemption shall be entitled to payment of such redemption price within 21 days of the redemption date.  From and after the date fixed for redemption, the holders of such Shares shall cease to be entitled to dividends, distributions, voting rights and other benefits with respect to the Shares, excepting only the right to payment of the redemption price fixed as described above.  The redemption date with respect to any Shareholders shall be the date specified by the Directors which is not less than one week after the date postmarked on the disclosure demand made by the Directors under this Section 6.3, or, if such date is not a business day, on the next business day thereafter.  For the purpose of this Section 6.3, the term “individual” shall be construed as provided in Section 542(a)(2) of the Internal Revenue Code of 1986, as amended, or any successor provisions and “ownership” of Shares shall be determined as provided in Section 544 of the Internal Revenue Code of 1986, as amended, or any successor provision.

  

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6.4           Right to Refuse to Transfer the Shares.  Whenever it is deemed by them to be reasonably necessary to protect the tax status of the Company, the Directors may require statements or affidavits from any holder of the Shares or proposed transferee of the Shares or warrants to purchase such Shares, setting forth the number of Shares (and warrants to purchase such Shares) already owned by him or it and any related Person specified in the form prescribed by the Directors for that purpose.  If, in the opinion of the Directors, which shall be conclusive upon any proposed transferor or proposed transferee of Shares, or warrants to purchase such Shares, any proposed transfer or exercise would jeopardize the status of the Company as a REIT under the Internal Revenue Code of 1986, as amended, the Directors may refuse to permit the transfer or exercise.  Any attempted transfer or exercise as to which the Directors have refused their permission shall be void and of no effect to transfer any legal or beneficial interest in the Shares.  All contracts for the sale or other transfer or exercise of the Shares or warrants to purchase such Shares, shall be subject to this provision.

 

6.5           Limitation on Acquisition of Shares.

 

(a) Subject to the provisions of Section 6.5(b), no Person may own in excess of 9.8% of the total number of the issued and outstanding Shares of any separate class or series, and no Shares shall be transferred (or issued) to any person if, following the transfer or issuance, the Person’s direct or indirect ownership of Shares would exceed this limit.  For the purpose of this Section 6.5, ownership of Shares shall be computed in accordance with Internal Revenue Code Sections 856(h), 542(a)(2) and 544.

 

(b) If Shares are purportedly acquired by any Person in violation of this Section 6.5, the acquisition shall be valid only to the extent it does not result in a violation of this Section 6.5, and the acquisition shall be null and void ab initio with respect to the excess (“Excess Shares”) unless the Person acquiring the Excess Shares provides the Directors with evidence and an opinion of counsel so that the Directors are satisfied that the Company’s qualification as a REIT will not be jeopardized and the Board of Directors, acting in its sole discretion, determines to waive such limitation.  Excess Shares shall be deemed to have been acquired and to be held on behalf of the Company, and, as the equivalent of treasury shares for that purpose, shall not be considered to be outstanding for quorum or voting purposes, and shall not be entitled to receive dividends, interest or any other distribution.  If prior to the discovery by the Company of the acquisition or transfer of any Excess Shares dividends, interest or any other distributions are paid with respect to any Excess Shares, then such dividends, interest or any other distributions shall be repaid to the Company.

 

(c) So long as any Person holds more than 9.8% of the outstanding Shares , a lower percentage limit may be established by the Directors to the extent necessary to assure, to the extent possible, that no five persons own in the aggregate more than 50% of the outstanding Shares.

 

(d) The Company shall, if deemed necessary or desirable to implement the provisions of any portion of this Article VI, include on the face or back of each certificate issued by the Company an appropriate legend referring the holder of the certificate to the restrictions contained in any portion of this Article VII VI and stating that the complete text of Article VI, or these Bylaws, is on file with the Secretary of the Company at the Company’s offices, and/or will be furnished without charge by the Company to any Shareholder.

 

(e) Nothing in these Bylaws shall limit the ability of the Directors to impose, or to seek judicial or other imposition of additional restrictions if deemed necessary or advisable to protect the Company and the interests of its Shareholders by preservation of the Company’s status as a qualified REIT.

 

(f) If any provision of this Section 6.5 is determined to be invalid, in whole or in part, by any federal or state court having jurisdiction, the validity of the remaining provisions shall not be affected and the provision shall be affected only to the extent necessary to comply with the determination of the court.

 

(g) For purposes of Sections 6.3, 6.4 and 6.5, “Shares” means the Common Shares of the Company and any other stock of the Company (as “stock” is defined in applicable Internal Revenue Code Sections addressing stock ownership requirements for REITs).

 

(h) The Company shall have the right to issue fractional Shares.

  

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6.6           Lost or Destroyed Certificates.  The holder of any Shares shall immediately notify the Company of any loss or destruction of the Share certificates, and the Company may issue a new certificate in the place of any certificate alleged to have been lost or destroyed upon approval of the Board of Directors.  The Board may, in its discretion, as a condition to authorizing the issue of such new certificate, require the owner of the lost or destroyed certificate, or his legal representative, to make proof satisfactory to the Board of Directors of the loss or destruction and to give the Company a bond or other security, in such amount and with such surety or sureties, as the Board of Directors may determine as indemnity against any claim that may be made against the Company on account of the certificate alleged to have been lost or destroyed.

 

6.7           Dividend Record Date and Closing Stock Books.  The Board of Directors may fix a date in the future as a record date for the determination of the Shareholders entitled to receive any dividend or distribution or any allotment of rights or to exercise rights with respect to any change, conversion or exchange of Shares.  The record date so fixed shall not be more than 60 days or less than 10 days prior to the date of the event for the purposes of which it is fixed.  When a record date is so fixed, only Shareholders of record on that day shall be entitled to receive the dividend, distribution or allotment of rights or to exercise the rights, as the case may be, notwithstanding any transfer of any Shares on the books of the Company after the record date.

 

6.8           Applicability of Certain Sections of Article VI.  Sections 6.2, 6.3, 6.4 and 6.5 of the Company’s Bylaws shall apply only to Shares (as defined in Section 6.5(g) of these Bylaws) as to which the provisions of Article X of the Articles of Incorporation do not apply because the provisions of Article X of the Articles of Incorporation do not meet the requirements of Section 13.1-649 of the Virginia Stock Corporation Act as to such Shares.

 

ARTICLE VII

TRANSACTIONS WITH AFFILIATES; CERTAIN DUTIES AND LIABILITIES

OF DIRECTORS, SHAREHOLDERS AND AFFILIATES

 

7.1           Transactions with Affiliates.

 

(a) All transactions, whether such transaction involves the transfer of property, the lending of money or the rendition of any services, in which any Affiliate of the Company has any direct or indirect interest shall be permitted only if:

 

(i) the Affiliate reported to the Board of Directors any such related party transaction where the amount involved exceeds $120,000; and

 

(ii) such transaction has been approved by the affirmative vote of the majority of the Directors; and

 

(iii) if the transaction involves the purchase or acquisition of property, the purchase or acquisition from any such Person is on terms not less favorable to the Company than those then prevailing for arms-length transactions concerning comparable property (based upon a determination of a majority of the Directors); and

 

(iv) each such transaction is in all respects on such terms at the time of the transaction and under the circumstances then prevailing, fair and reasonable to the shareholders of the Company and, in the case of a purchase or acquisition of property, at a price to the Company no greater than the cost of the asset to such Persons (based upon a determination of a majority of the Directors) or, if the price to the Company is in excess of such cost, then substantial justification for such excess must exist and such excess is not unreasonable (based upon a determination of a majority of the Directors).

 

(b) Notwithstanding anything to the contrary in these Bylaws, the Company (which term includes, for purposes of this Section 7.1(b) any of its direct or indirect subsidiaries) shall be permitted to and may, without the need to comply with any other provisions of this Article VII, both make and accept assignments of purchase agreements or other contracts, or any rights, powers, duties or obligations arising thereunder, to or from any of the Company’s Affiliates (including, without limitation, Glade M. Knight, or any company owned or controlled by Glade M. Knight), provided that there is no consideration for any such assignment other than the reimbursement to the assignor of the assignor’s direct costs related to such agreement or contract; it being the general intention of this provision that the Company be permitted to make and accept assignments of purchase agreements or other contracts or any such rights, powers, duties or obligations from any such Affiliates in circumstances where such an Affiliate initially enters into any such contract and it is thereafter determined that such contract or such rights, powers, duties or obligations thereunder shall be assigned to the Company, with the Company thereafter proceeding to close on the acquisition or otherwise exercise any of such rights or powers.  Further, notwithstanding anything to the contrary in these Bylaws, the Company (including any of its direct or indirect subsidiaries) shall be permitted to and may, without the need to comply with any other provisions of this Article VII, allow the use of any Company airplane by any of the Company’s Affiliates (including without limitation the parties listed above), on the condition that any such other party provide to the Company appropriate reimbursement of expenses associated with such party’s use of the airplane.  Further, the Company may assign any agreement, contracts, license or other documents pertaining to any such airplane (or any rights, powers, duties or obligations related thereto) to any of the Company’s Affiliates subject to the terms of this Section 7.1(b) of these Bylaws.

  

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7.2           Restriction of Duties and Liabilities.  The duties and liabilities of Shareholders, Directors and officers shall in no event be greater than the duties and liabilities of shareholders, directors and officers of a Virginia corporation.  The Shareholders, Directors and officers shall in no event have any greater duties or liabilities than those imposed by applicable law as shall be in effect from time to time.  However, in no event shall the duties and liabilities of Shareholders, Directors and officers be inconsistent with the standards contained in the Articles of Incorporation.

 

7.3           Persons Dealing with Directors or Officers.  Any act of the Directors or officers purporting to be done in their capacity as such shall, as to any Persons dealing in good faith with the Directors or officers, be conclusively deemed to be within the purposes of this the Company and within the powers of the Directors and officers.

 

The Directors may authorize any officer or officers or agent or agents to enter into any contract or execute any instrument in the name and on behalf of the Company and/or Directors.

 

No Person dealing in good faith with the Directors or any of them or with the authorized officers, employees, agents or representatives of the Company, shall be bound to see to the application of any funds or property passing into their hands or control.  The receipt of the Directors, or any of them, or of authorized officers, employees, agents, or representatives of the Company, for moneys or other considerations, shall be binding upon the Company.

 

7.4           Reliance.  The Directors and officers may consult with counsel and the advice or opinion of the counsel shall be full and complete personal protection to all of the Directors and officers in respect of any action taken or suffered by them in good faith and in reliance on and in accordance with such advice or opinion.  In discharging their duties, Directors and officers, when acting in good faith, may rely upon financial statements of the Company represented to them to be correct by the Chairman or the officer of the Company having charge of its books of account, or stated in a written report by an independent certified public accountant fairly to present the financial position of the Company.  The Directors may rely, and shall be personally protected in acting upon any instrument or other document believed by them to be genuine.

 

7.5           Income Tax Status.  Without limitation of any rights of indemnification or non-liability of the Directors, the Directors by these Bylaws make no commitment or representation that the Company will qualify for the dividends paid deduction permitted by the Internal Revenue Code of 1986, as amended, and the Rules and Regulations pertaining to real estate investment trusts REITs under the Internal Revenue Code of 1986, as amended, and any such failure to qualify shall not render the Directors liable to the Shareholders or to any other Person or in any manner operate to annul the Company.

  

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ARTICLE VIII

MISCELLANEOUS

 

8.1           Competing Programs.  Nothing in these Bylaws shall be deemed to prohibit any Affiliate of the Company from dealing, or otherwise engaging in business with, Persons transacting business with the Company or from providing services relating to the purchase, sale, management, development or operation of real property and receiving compensation therefor, not involving any rebate, reciprocal arrangement or other transaction which would have the effect of circumventing any restrictions set forth herein relating to the dealings between the Company and its Affiliates.  The Company shall not have any right, by virtue of these Bylaws, in or to such other ventures or activities or to the income or proceeds derived therefrom, and the pursuit of such ventures, even if competitive with the business of the Company, shall not be deemed wrongful or improper.  No Affiliate of the Company shall be obligated to present any particular investment opportunity to the Company, even if such opportunity is of a character which, if presented to the Company, could be taken by the Company.

 

8.2           Control Share Acquisitions.  Article 14.1 of the Virginia Stock Corporation Act (“Control Share Acquisitions”) shall not apply to acquisitions of shares of stock of the Corporation.

 

8.3           Corporate Seal.  The Company may, but shall not be required to, have a corporate seal in the form of a circle containing the name of the Company and such other details as may be specified by the Board of Directors.

 

8.4           Inspection of Bylaws.  The Company shall keep at its principal office in this Commonwealth for the transaction of business, a list of the names and addresses of the Company’s Shareholders and the original or a copy of the Bylaws, as amended, certified by the Secretary, which shall be open to inspection by Shareholders at any reasonable time during office hours.

 

8.5           Inspection of Corporate Records.  Shareholders of the Company, or any holders of a voting trust certificate, shall have the right to inspect the accounting books and records of the Company, and the minutes of proceedings of the Shareholders and the Board and committees of the Board as provided by the Virginia Stock Corporation Act.

 

8.6           Checks, Drafts, Etc. All checks, drafts or other orders for payment of money, notes or other evidences of indebtedness, issued in the name of or payable to the Company, shall be signed or endorsed by the Person or Persons and in the manner as from time to time shall be determined by resolution of the Board of Directors.

 

8.7           Contracts, Etc., How Executed.  The Board of Directors, except as provided elsewhere in these Bylaws, may authorize any officer or officers or agent or agents to enter into any contract or execute any instrument in the name of and on behalf of the Company.  That authority may be general or confined to specific instances.  Unless so authorized by the Board of Directors or as otherwise provided in these Bylaws, no officer, agent or employee shall have any power or authority to bind the Company by any contract or engagement or to pledge its credit to render it liable for any purpose or to any amount.

 

8.8           Representation of Shares of Other Corporations.  The Chairman or the Chief Executive Officer, or, in the event of their absence or inability to serve, the any President, any Vice President and the Secretary or Assistant Secretary of this the Company, are authorized to vote, represent and exercise, on behalf of the Company, all rights incidental to any and all shares of any other company registered in the name of the Company.  The authority granted to such officers to vote or represent on behalf of the Company any and all shares held by the Company in any other company may be exercised by any authorized Person in person or by proxy or power of attorney duly executed by the officers.

 

8.9           Severability.  If any provisions of these Bylaws shall be held invalid or unenforceable, the invalidity or unenforceability shall attach only to that provision and shall not in any manner affect or render invalid or unenforceable any other provision, and these Bylaws shall be carried out as if the invalid or unenforceable provision were not present.

  

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8.10         Voluntary Dissolution.  The Company may elect to wind up and dissolve by the vote of Shareholders entitled to exercise a majority of the voting power of the Company.

 

8.11         Distributions.  The payment of distributions on Shares shall be at the discretion of the Directors and shall depend upon the earnings, cash flow and general financial condition of the Company, and such other facts as the Directors deem appropriate.

 

8.12         Shareholder Liability.  The holders of the Company’s Shares shall not be personally liable on account of any obligation of the Company.

 

8.13         Return of Offering Proceeds.  The Directors shall have the right and power, at any time, to return to Shareholders offering proceeds to the extent required by applicable law, including to the extent necessary to avoid characterization of the Company as an “investment company.”

 

ARTICLE IX

AMENDMENTS TO BYLAWS

 

9.1           Amendments.  The Bylaws may be amended or repealed, or new bylaws adopted, at any time, and from time to time, (i) by the Board of Directors or (ii) upon the vote of the holders of a majority of the issued and outstanding Common Shares, and the Shareholders in amending, repealing or adopting a bylaw may, except as prohibited by applicable law, expressly provide that the Board of Directors may not amend, repeal or reinstate that bylaw.

 

ARTICLE X

CONDUCT OF BUSINESS THROUGH SUBSIDIARIES

 

10.1         Subsidiaries.  To the extent permitted by the Articles of Incorporation, these Bylaws  and applicable law (including any required consent of the Directors and Shareholders under applicable law), the Company may conduct its business through subsidiary companies owned or controlled by the Company (or its subsidiaries).  Any such subsidiary company is referred to as a “Subsidiary Company” and collectively such subsidiary companies are referred to as the “Subsidiary Companies.” It is specifically acknowledged that the conduct of the Company’s business through a Subsidiary Company or Subsidiary Companies may be effected and undertaken by the transfer by the Company of properties to, the acquisition of properties by, and the ownership and operation of properties in, a partnership all of whose interests are initially owned by the Company and/or a Subsidiary Company or Subsidiary Companies.

 

10.2         Interpretation and Application of Bylaws.  If and to the extent (i) the Company conducts its business through Subsidiary Companies, or (ii) there are properties which, in the absence of Subsidiary Companies, would be owned and operated by the Company but such properties are instead owned and operated by Subsidiary Companies, restrictions on the power of the Company to engage in certain transactions and restrictions on the authority of Directors and officers of the Company in these Bylaws, and in particular the restrictions contained in Article VII of these Bylaws, shall be interpreted and applied to Subsidiary Companies in the same manner as they apply by their terms to the Company to the extent necessary to ensure that the Bylaw provision is given the effect intended notwithstanding that the Company’s business is conducted through Subsidiary Companies instead of by the Company directly.  The Company shall exercise any rights and powers it has as an owner or partner (directly or indirectly) of a Subsidiary Company consistently with this provision.

  

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ex_175530.htm

Exhibit 10.1

 

 

 

 

Kristian Gathright

814 East Main Street

Richmond, Virginia 23219

 

Dear Krissy,

 

On behalf of Apple Hospitality REIT, Inc., a Virginia corporation (the “Company”), I am pleased to present you with this letter agreement (this “Agreement”) in connection with your planned retirement from the Company.

 

As you previously communicated to us, on March 31, 2020 (the “Separation Date”), you will retire from your position as Executive Vice President and Chief Operating Officer of the Company, as well as all of the offices, directorships, appointments, and other positions you hold with the Company and all of its subsidiaries, and affiliates, other than your position as a member of the Board of Directors of the Company; it being understood that nothing in this letter shall affect your ongoing service as a member of the Board of Directors of the Company. You will continue to receive (or have received) your salary, benefits, and other regular compensation until the Separation Date. You will receive your final paycheck in the amount of $20,672 plus benefits on March 31, 2020. You acknowledge that, as of the date you sign this Agreement, you have been paid all compensation owed (other than your final paycheck if you have not yet received it).

 

Additionally, if you sign and do not revoke this Agreement within the time period set forth below, the Company will provide or cause to be provided to you a lump sum payment of $1,225,000, less applicable taxes and withholdings, which will be paid to you within sixty (60) days following the Separation Date. You acknowledge that your entitlement to receive this benefit (the “Additional Benefit”) is subject to your execution and non-revocation of this Agreement within the time period set forth below, and that you are not entitled to the Additional Benefit absent your execution and non-revocation of this Agreement, and you hereby agree that any shares of restricted stock of the Company that you hold and that have not vested by their terms immediately prior to the date of this Agreement are hereby forfeited as of the date of this Agreement. You acknowledge that once you have received the Additional Benefit, you are not entitled to and will not seek any additional compensation for your service as an employee of the Company. For the avoidance of doubt, this Agreement does not affect your right to receive compensation as a non-employee member of the Board of Directors of the Company for your continued service as a member of the Board of Directors.

 

In exchange for the Additional Benefit, you agree, on behalf of yourself and all others who could assert a claim on your behalf, to release the Company and all of its parents, subsidiaries, affiliates, and employees, from any and all claims, whether known or unknown, arising out of or in connection with any event occurring or existing on or before the date you sign this Agreement, including claims under federal, state, or local law, and including claims under the Age Discrimination in Employment Act (“ADEA”). You also agree to assist the Company with transition of your responsibilities and to comply with other reasonable post-employment requests. This Agreement does not, however, prohibit you from engaging in activities that may not be prohibited by private agreement, such as filing a charge with the U.S. Equal Employment Opportunity Commission or similar agency (but you may not recover remuneration for filing such a charge) or reporting possible violations of law to a governmental agency or self-regulatory organization as a whistleblower or taking other actions protected under federal or state whistleblower law (including receiving a whistleblower award). In addition, nothing in this Agreement shall be construed as a waiver of any right you may have to indemnification under the charter or bylaws of the Company or any coverage provided by the Company’s Directors and Officers insurance.

 

You further agree that for two (2) years after the Separation Date or for one (1) year after your service as a member of the Board of Directors ends, whichever is later, you will not serve on a board of directors (or similar governing body) of a lodging-oriented real estate investment company that competes with the Company in the United States of America.

 

Pursuant to the ADEA, you acknowledge and understand that you (1) have read and understand this Agreement and sign it voluntarily and without coercion; (2) are being advised to consult an attorney prior to signing this Agreement and have had a full opportunity to do so; (3) have twenty-one (21) calendar days from the date you received this Agreement to consider, sign, and return the Agreement to Matt Rash, and if you sign before the end of the twenty-one (21) day period, you have done so voluntarily; and (4) have seven (7) calendar days after signing this Agreement to revoke it by providing written notice of revocation to Matt Rash no later than 11:59 p.m. on the seventh calendar day after you signed this Agreement. You further understand that if you revoke this Agreement within such 7-day period, it is null and void and of no force or effect on either you or the Company. This Agreement is not effective or enforceable until after the seven (7) day period expires without revocation.

 

 

 

This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Virginia. It may be executed in counterparts, and electronic signatures will suffice as original signatures. This Agreement (together with your resignation letter and the award agreements applicable to any vested or unvested equity awards) is the entire agreement between you and the Company as to its subject matter.

 

Krissy, I thank you for your service and dedication to the Company and look forward to continuing to work with you as a Board member.

 

Sincerely,

 

/s/ Justin Knight

 

Justin Knight

 

Accepted and Agreed

 

 

 

 /s/ Kristian Gathright____________________________

Kristian Gathright

 

 

   3/4/20                                                                     

Date

ex_175531.htm

Exhibit 10.2

 

 

 

 

Bryan Peery

814 East Main Street

Richmond, Virginia 23219

 

Dear Bryan,

 

On behalf of Apple Hospitality REIT, Inc., a Virginia corporation (together with its affiliates, the “Company”), I am pleased to present you with this letter agreement (this “Agreement”) in connection with your planned retirement from the Company.

 

As you previously communicated to us, on March 31, 2020 (the “Separation Date”), you will retire from your position as Executive Vice President and Chief Financial Officer of the Company, as well as all of the offices, directorships, appointments, and other positions, you hold with the Company and all of its subsidiaries, and affiliates, except that you will remain an at-will employee of Apple Fund Management, LLC with the title of “Advisor” following the Separation Date (a non-officer position) to assist with the transition of responsibilities. You will continue to receive (or have received) your salary, benefits, and other regular compensation at current rates until the Separation Date. After the Separation Date you will receive salary at an annual rate of $40,000 per year and maintain all of the benefits offered to employees of the Company as long as you remain an employee of the Company. You acknowledge that, as of the date you sign this Agreement, you have been paid all compensation owed to date.

 

Additionally, if you sign and do not revoke this Agreement within the time period set forth below, the Company will provide or cause to be provided to you a lump sum payment of $1,225,000, less applicable taxes and withholdings, which will be paid to you within sixty (60) days following the Separation Date. You acknowledge that your entitlement to receive this benefit (the “Additional Benefit”) is subject to your execution and non-revocation of this Agreement within the time period set forth below, and that you are not entitled to the Additional Benefit absent your execution and non-revocation of this Agreement, and, subject to your service as Advisor, you acknowledge that once you have received the Additional Benefit, you are not entitled to and will not seek any additional compensation for your service prior to the Separation Date as an employee of the Company. In addition, you hereby agree that any shares of restricted stock of the Company that you hold and that have not vested by their terms immediately prior to the date of this Agreement are hereby forfeited as of the date of this Agreement.

 

In exchange for the Additional Benefit, you agree, on behalf of yourself and all others who could assert a claim on your behalf, to release the Company and all of its parents, subsidiaries, affiliates, and employees, from any and all claims, whether known or unknown, arising out of or in connection with any event occurring or existing on or before the date you sign this Agreement, including claims under federal, state, or local law, and including claims under the Age Discrimination in Employment Act (“ADEA”). You also agree to assist the Company with transition of your responsibilities, both during and after the time you serve as Advisor, and to comply with other reasonable post-employment requests. This Agreement does not, however, prohibit you from engaging in activities that may not be prohibited by private agreement, such as filing a charge with the U.S. Equal Employment Opportunity Commission or similar agency (but you may not recover remuneration for filing such a charge) or reporting possible violations of law to a governmental agency or self-regulatory organization as a whistleblower or taking other actions protected under federal or state whistleblower law (including receiving a whistleblower award). In addition, nothing in this Agreement shall be construed as a waiver of any right you may have to indemnification under the charter or bylaws of the Company or any coverage provided by the Company’s Directors and Officers insurance.

 

 

You further agree that for two (2) years after you cease to be an employee of Apple Fund Management, LLC, you will not serve on a board of directors (or similar governing body) of a lodging-oriented real estate investment company that competes with the Company in the United States of America.

 

Pursuant to the ADEA, you acknowledge and understand that you (1) have read and understand this Agreement and sign it voluntarily and without coercion; (2) are being advised to consult an attorney prior to signing this Agreement and have had a full opportunity to do so; (3) have twenty-one (21) calendar days from the date you received this Agreement to consider, sign, and return the Agreement to Matt Rash, and if you sign before the end of the twenty-one (21) day period, you have done so voluntarily; and (4) have seven (7) calendar days after signing this Agreement to revoke it by providing written notice of revocation to Matt Rash no later than 11:59 p.m. on the seventh calendar day after you signed this Agreement. You further understand that if you revoke this Agreement within such 7-day period, it is null and void and of no force or effect on either you or the Company. This Agreement is not effective or enforceable until after the seven (7) day period expires without revocation.

 

 

 

This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Virginia. It may be executed in counterparts, and electronic signatures will suffice as original signatures. This Agreement (together with your resignation letter) is the entire agreement between you and the Company as to its subject matter.

 

 

Sincerely,

 

/s/ Justin Knight

 

Justin Knight

 

Accepted and Agreed

 

 

 

 /s/ Bryan Peery                                                               

Bryan Peery

 

 

   3/4/20                                                                

Date

ex_175532.htm

Exhibit 10.3

 

 

 

SECOND AMENDMENT TO THE

APPLE HOSPITALITY REIT, INC. EXECUTIVE SEVERANCE PAY PLAN

 

The Apple Hospitality REIT, Inc. Executive Severance Pay Plan (the “Plan”) is hereby amended, effective as of April 1, 2020, as set forth below. All capitalized terms used but not defined in this Second Amendment shall have the meanings ascribed to such terms in the Plan.

 

 

 

1.

Section 8.1 of the Plan is hereby deleted and replaced in its entirety with the following:

 

8.1 Waiver of Other Severance Rights. To the extent that payments are made to the Executive pursuant to Section 4.1 of this Plan, the Executive hereby waives the right to receive benefits under any plan or agreement of the Company or its subsidiaries which provides for severance benefits, including any severance benefits that may be provided for under any employment agreement, payable due to the termination of any employment agreement or pursuant to the terms of the Apple Hospitality REIT, Inc. Senior Management Severance Plan.

 

 

2.

Appendix A of the Plan is hereby deleted and replaced in its entirety with Appendix A attached hereto.

 

 

3.

All other terms and conditions of the Plan shall be unchanged and remain in full force and effect.

 

 

 

 

This Second Amendment was duly adopted and approved by the Board of Directors of Apple Hospitality REIT, Inc. on March 4, 2020 and shall be effective as of April 1, 2020.

 

 

Apple Hospitality REIT, Inc.

 

 

     /s/ Bryan F. Peery________

Bryan F. Peery

Executive Vice President,

Chief Financial Officer and Treasurer

 

 

 

 

Appendix A

 

Any position that includes any of the following titles at the Apple Hospitality REIT, Inc. level:

 

Executive Chairman of the Board

Chief Executive Officer

President

President, Real Estate and Investments

Chief Investment Officer

Chief Accounting Officer

Chief Capital Investments Officer

Chief Operating Officer

Chief Legal Officer

Chief Financial Officer

Executive Vice President

Any senior officer approved by the Board or the Compensation Committee to participate in the Plan

 

 

ex_175533.htm

Exhibit 99.1

 

 Apple Hospitality REIT Announces Executive Leadership Team

 

RICHMOND, Va. (March 5, 2020) – Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced the promotion, effective April 1, 2020, of six members of its senior management team. The promotions are in conjunction with the previously announced retirement of the Company’s Executive Vice President and Chief Operating Officer, Kristian Gathright, and the Company’s Executive Vice President and Chief Financial Officer, Bryan Peery, who will retire from their officer positions with the Company, effective March 31, 2020.

 

Justin Knight, President and Chief Executive Officer of the Company, commented, “We are fortunate to have a tenured senior management team with tremendous experience and a passion for driving industry leading results and maximizing value for our shareholders. I am confident they will effectively transition into their expanded roles and continue to build upon the success we have had over the years, and I look forward to the future of Apple Hospitality under their leadership. On behalf of the Company and our Board of Directors, I express sincere gratitude to Krissy and Bryan for their instrumental roles in the development of our team and their contributions to the Company over the years.”

 

The individuals promoted, their new positions, and details regarding their industry experience are included below.

 

Nelson Knight Promoted to President, Real Estate and Investments

Nelson Knight joined the Apple REIT Companies in 2005 and has served as Executive Vice President and Chief Investment Officer for the Company since May 2014. Prior to his current role, he held various senior management positions with the Company and each of the former Apple REIT Companies. Mr. Knight executes on the Company’s capital deployment strategies, including oversight of the Company’s capital reinvestment team. Mr. Knight serves on the Marriott Capital Asset Planning and Execution (CAPE) Board, on Hilton’s Product Advisory Council, on the Home2 Suites by Hilton Owners Advisory Committee, on the TownePlace Suites by Marriott Franchise Advisory Council, as an advisory member of the Hunter Hotels Investment Conference, and as chair of the TownePlace Suites by Marriott System Marketing Committee. Mr. Knight holds a Master of Business Administration degree from Texas Christian University, as well as a Bachelor of Arts degree, Cum Laude, in History with a minor in Business from Southern Virginia University.

 

Elizabeth Perkins Promoted to Senior Vice President and Chief Financial Officer

Elizabeth (“Liz”) Perkins joined the Apple REIT Companies in 2006 and has served as Senior Vice President of Corporate Strategy and Reporting for the Company since April 2015. Ms. Perkins began her career with the Apple REIT Companies as an Asset Manager and has held various management and senior management roles since 2008. Ms. Perkins has been a key part of the leadership team at the Apple REIT Companies, fostering valuable relationships, aiding in strategic investment decisions, directing corporate strategy and reporting initiatives, and overseeing the Company’s investor relations, risk management and internal audit functions. Prior to joining the Apple REIT Companies, Ms. Perkins served as Assurance Associate with Ernst & Young, LLP, where she specialized in insurance clients. Within the industry, Ms. Perkins currently serves on the Homewood Suites by Hilton Owners Advisory Council, the Residence Inn by Marriott System Marketing Fund Council, the American Hotel and Lodging Association Consumer Innovation Forum, and the distribution advisory councils for Marriott and Hilton. Ms. Perkins holds a Bachelor of Business Administration degree in Accounting from the J.M. Tull School of Accounting within the Terry College of Business at the University of Georgia.

 

 

 

Jeanette Clarke Promoted to Senior Vice President and Chief Capital Investments Officer

Jeanette Clarke joined the Apple REIT Companies in 2008 and has served as Senior Vice President of Capital Investments for the Company since March 2019. Ms. Clarke began her career with the Apple REIT Companies as an Analyst and has held various management and senior management roles since 2012. Ms. Clarke has been instrumental in the development of the Company’s capital investments team, fostering valuable relationships with brand, manager and supplier teams, leading strategic capital reinvestment initiatives, and overseeing the Company’s energy efficiency and sustainability programs. Prior to joining the Apple REIT Companies, Ms. Clarke served as a Senior Financial Analyst at Genworth Financial, and in various roles at Circuit City Stores, Inc., including Accounting Manager of Expense, Service and Advertising Payables. Within the industry, Ms. Clarke serves on the Marriott Owner & Franchise Technology Advisory Council. Ms. Clarke holds a Master of Business Administration degree from Virginia Commonwealth University and a Bachelor of Science degree, Magna Cum Laude, in Business Administration with a concentration in Finance and minor in Economics from Longwood University.

 

Karen Gallagher Promoted to Senior Vice President and Chief Operating Officer

Karen (“K.C.”) Gallagher joined the Apple REIT Companies in 2003 and has served as Senior Vice President of Asset Management for the Company since January 2012. Ms. Gallagher began her career with the Apple REIT Companies as a Senior Asset Manager and has held various management and senior management roles since 2005. Ms. Gallagher’s leadership of the asset management team has been instrumental in fostering relationships with brand and management company teams and developing the Company’s analytical and benchmarking of property-level performance methodology, each helping to maximize profitability. Prior to joining the Apple REIT Companies, Ms. Gallagher served as Senior Assurance Associate with Ernst & Young, LLP, where she specialized in real estate clients. Within the industry, Ms. Gallagher serves as a member of the Hampton by Hilton Ownership Advisory Council, as well as the Global Finance Committee for the lodging industry sponsored by the Hospitality Financial and Technology Professionals and American Hotel and Lodging Association. Ms. Gallagher holds a Master of Science degree in Accounting and a Bachelor of Science degree in Commerce from the McIntire School of Commerce at the University of Virginia, and a second major in Economics from the School of Arts and Sciences at the University of Virginia. Ms. Gallagher is a Certified Public Accountant.

 

Rachel Labrecque Promoted to Senior Vice President and Chief Accounting Officer

Rachel Labrecque joined the Apple REIT Companies in 2015 and has served as Senior Vice President of Accounting for the Company since January 2019. Ms. Labrecque began her career with the Apple REIT Companies as a Director of Accounting and has since held various management and senior management roles. Ms. Labrecque oversees accounting, financial reporting, treasury operations and taxation for the Company. Prior to joining the Apple REIT Companies, Ms. Labrecque most recently served as Senior Vice President of Finance and Corporate Controller with Bowlero Corporation (formerly BowlmorAMF Corporation). Her prior experience includes serving as Vice President and Corporate Controller and Director of Financial Reporting with Bowlero Corporation, as well as various financial reporting, accounting and auditing roles with The Mills Corporation (a publicly traded REIT), AOL Time Warner and Arthur Andersen, LLP. Ms. Labrecque holds a Bachelor of Science degree in Accounting from the Virginia Tech Pamplin College of Business. Ms. Labrecque is a Certified Public Accountant.

 

Matthew Rash Promoted to Senior Vice President and Chief Legal Officer

Matthew (“Matt”) Rash joined the Company in 2019 and has served as its Senior Vice President and General Counsel since that time. Mr. Rash oversees all legal matters for the Company. Prior to joining the Company, Mr. Rash most recently served as a Partner at McGuireWoods LLP, a full-service law firm in Richmond, Virginia, where he specialized in commercial real estate transactions, including acquisitions, dispositions and lending, working on numerous transactions with the Apple REIT Companies. He also served as a law clerk with the United States District Court for the Eastern District of Virginia, for the Honorable James R. Spencer. Mr. Rash holds a Juris Doctor degree from the University of Richmond and a Bachelor of Arts degree in Government and Foreign Affairs from the University of Virginia.

 

 

 

About Apple Hospitality REIT, Inc.

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 231 hotels with more than 29,500 guest rooms located in 87 markets throughout 34 states. Concentrated with industry-leading brands, the Company’s portfolio consists of 104 Marriott-branded hotels, 124 Hilton-branded hotels, one Hyatt-branded hotel and two independent hotels. For more information, please visit www.applehospitalityreit.com.

 

Forward-Looking Statements Disclaimer

Certain statements contained in this press release other than historical facts may be considered forward-looking statements. These forward-looking statements are predictions and generally can be identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Apple Hospitality, and its wholly-owned subsidiaries, to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the ability of Apple Hospitality to effectively acquire and dispose of properties; the ability of Apple Hospitality to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the real estate and real estate capital markets; financing risks; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact Apple Hospitality’s business, assets or classification as a real estate investment trust. Although Apple Hospitality believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Apple Hospitality or any other person that the results or conditions described in such statements or the objectives and plans of Apple Hospitality will be achieved. In addition, Apple Hospitality’s qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code. Readers should carefully review Apple Hospitality’s financial statements and the notes thereto, as well as the risk factors described in Apple Hospitality’s filings with the Securities and Exchange Commission, including, but not limited to, those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Any forward-looking statement that Apple Hospitality makes speaks only as of the date of such statement. Apple Hospitality undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.

 

 

 

 

Contact:

Apple Hospitality REIT, Inc.

Kelly Clarke, Vice President, Investor Relations

804‐727‐6321

kclarke@applereit.com

 

For additional information or to receive press releases by email, visit www.applehospitalityreit.com.

v3.19.3.a.u2
Document And Entity Information
Mar. 02, 2020
Document Information Line Items  
Entity Registrant Name APPLE HOSPITALITY REIT, INC
Trading Symbol APLE
Document Type 8-K
Current Fiscal Year End Date --12-31
Amendment Flag false
Entity Central Index Key 0001418121
Document Period End Date Mar. 02, 2020
Entity Emerging Growth Company false
Entity Incorporation, State or Country Code VA
Entity File Number 001-37389
Entity Tax Identification Number 26-1379210
Entity Address, Address Line One 814 East Main Street
Entity Address, City or Town Richmond
Entity Address, State or Province VA
Entity Address, Postal Zip Code 23219
City Area Code 804
Local Phone Number 344-8121
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Shares, no par value
Security Exchange Name NYSE