Business Context and Reporting Period
This Form 8-K is a current report filed by Apple REIT Nine, Inc. (the "Company") on June 5, 2013. The filing addresses corporate governance changes under Item 5.02, specifically the expansion of the Board of Directors and the appointment of a new director.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on personnel and governance matters rather than financial performance.
Material Changes
- Board Expansion: The Board of Directors increased its size from four (4) to five (5) directors effective June 5, 2013.
- New Appointment: James C. Barden, Jr. was elected to fill the additional director position. He will serve until the 2014 Annual Meeting of Shareholders or until a successor is elected.
- Committee Assignment: Mr. Barden was appointed to the Executive Committee of the Board of Directors.
Compensation and Management Commentary
Mr. Barden, a non-employee director, participated in the Company's Non-Employee Directors Stock Option Plan. On June 5, 2013, he received options to purchase 5,500 Units at an exercise price of $10.25 per Unit. Each Unit consists of one common share and one Series A preferred share. The filing notes Mr. Barden's extensive background in real estate advisory and commercial banking, including roles at Morrison Grove Capital Advisors, Signet Bank, and Crestar Bank.
Investor Verification Checklist
- Verify the total number of outstanding options granted to non-employee directors under the Plan.
- Confirm the specific terms of the Series A preferred shares included in the Unit grants.
- Review the Company's bylaws regarding the process for filling additional board seats.
- Check for any related party transactions involving Mr. Barden's current employer, Morrison Grove Capital Advisors.