Document:

Exhibit 10.9

 

LEASE

 

 

BETWEEN

 

 

GARY A. HOVEY AND BARRY J. SIEGEL, AS TRUSTEES OF THE

PROMENADE TRUST, A TRUST FORMED UNDER THE LAWS OF THE

STATE OF TENNESSEE, As Landlord

 

 

AND

 

 

ELVIS PRESLEY ENTERPRISES, INC., As Tenant

 

 

Dated as of February 1, 2005

 

 

 

Premises:

 

GRACELAND

Memphis, Tennessee

 

 

TABLE OF CONTENTS

 

	
  Article

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEMISE AND DEMISED
  PREMISES

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  TERM

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  USE

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  RENT

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  REAL ESTATE TAXES

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  INSURANCE AND INDEMNITY

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  IMPROVEMENTS AND
  ALTERATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  REPAIRS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  COMPLIANCE WITH
  LEGAL REQUIREMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  ASSIGNMENT AND SUBLETTING

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  DEFAULT;
  LIMITATION OF REMEDIES AND RIGHT TO TERMINATE

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  NO
  WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  LANDLORD’S
  BANKRUPTCY OR INSOLVENCY

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  EMINENT DOMAIN

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  COVENANT OF QUIET
  ENJOYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  LANDLORD’S
  REPRESENTATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  RESTRICTION
  ON ALIENATION, TRANSFER AND MORTGAGES BY LANDLORD

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  ESTOPPELS

  	
   

  
	
   

  	
   

  	
   

  
	
  20.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  21.

  	
  DELAYS

  	
   

  
	
   

  	
   

  	
   

  
	
  22.

  	
  MEMORANDUM OF LEASE

  	
   

  
	
   

  	
   

  	
   

  
	
  23.

  	
  ACCESS

  	
   

  
	
   

  	
   

  	
   

  
	
  24.

  	
  CONFIDENTIALITY

  	
   

  
	
   

  	
   

  	
   

  
	
  25.

  	
  HOLDOVER

  	
   

  

 

i

 

	
  26.

  	
  END OF
  TERM SURRENDER OF DEMISED PREMISES

  	
   

  
	
   

  	
   

  	
   

  
	
  27.

  	
  RIGHTS OF LEASEHOLD
  MORTGAGEE

  	
   

  
	
   

  	
   

  	
   

  
	
  28.

  	
  WAIVER OF TRIAL BY JURY

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A LEGAL
  DESCRIPTION OF THE LAND

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B
  MEMORANDUM OF LEASE

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  4(A) BASIC RENT PAYMENT ALLOCATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  4(B) BASIC RENT PAYMENT ALLOCATIONS

  	
   

  

 

ii

 

LEASE

 

THIS LEASE (this “Lease”)
is made and entered as of February 1, 2005 (the “Effective Date”) by and
between GARY A. HOVEY AND BARRY J. SIEGEL, AS
TRUSTEES OF THE PROMENADE TRUST, A GRANTOR TRUST CREATED UNDER THE LAWS OF THE
STATE OF TENNESSEE PURSUANT TO THAT CERTAIN SECOND RESTATED AND AMENDED TRUST
AGREEMENT DATED DECEMBER 15, 2004 (“Landlord”), and Elvis
Presley Enterprises, Inc. (“Tenant”), a Tennessee corporation.  Landlord and Tenant are sometimes
collectively referred to herein as the “Parties” and individually as a “Party”.

 

W  I 
T  N  E 
S  S  E 
T  H :

 

WHEREAS, Landlord, Sports Entertainment
Enterprises, Inc., an affiliate of Tenant (“Publico”) and RFX
Acquisition LLC, have entered into a certain Contribution and Exchange
Agreement dated December 15, 2004 (the “Contribution Agreement”),
pursuant to which, among other things, Landlord, as seller, contributed to
Publico an interest in the assets, properties and rights of Landlord, and
Publico assumed the liabilities and obligations of Landlord related thereto as
contemplated thereunder (the business operations and activities transferred
pursuant to Contribution Agreement collectively, the “Business”), and
also entered in certain other agreements in furtherance of the transactions
contemplated by the Contribution Agreement and the future operation of the
Business (the “Business Transfer”); and

 

WHEREAS, all the transactions, contributions,
transfers and assignments contemplated by the Contribution Agreement in
furtherance of the Business Transfer were entered into as, and intended by the
parties thereto to be, a single integrated transaction and this Lease is a part
of that integrated transaction; and

 

WHEREAS, Landlord is the owner in fee simple of
the Land (defined below) and the owner of the Demised Premises (defined below),
and in connection with the Business Transfer has agreed to lease to Tenant, and
Tenant has agreed to rent from Landlord, the Demised Premises, on the terms and
conditions hereinafter set forth; and

 

WHEREAS, it is the desire of Landlord and Tenant
to reduce the terms of the agreement to lease to a writing.

 

NOW,
THEREFORE, in
consideration of the covenants, conditions, stipulations and consideration
exchanged in the Contribution Agreement and this Lease and for the Business
Transfer, and for other good and valuable consideration the receipt and
sufficiency of which the Parties hereby acknowledge, Landlord and Tenant,
intending to be legally bound, agree as follows:

 

1.   DEMISE AND DEMISED PREMISES

 

Landlord does
hereby demise and lease to Tenant, and Tenant hereby leases from Landlord,
subject to the provisions of this Lease: 
(a) the land and premises located in the City of Memphis, State of
Tennessee which is more particularly described on Exhibit A annexed hereto (the “Land”); (b) all
buildings, including the former Elvis Presley family residence and current
museum buildings known as “Graceland” (the “Mansion”), and all ancillary
buildings, and all 

 

1

 

other structures and improvements, including all signs, statuary,
walls, fences, monuments, markers and landscaping, now existing on, in under or
about the Land, and including all buildings, structures and improvements shown
on that certain “as-built” ALTA/ACSM Land Title Survey made by The Reaves Firm,
Incorporated, dated January 1, 2005 and signed and sealed by Ronald R. Williams
on February 3, 2005 under Job No.: 04-0726 and further described as Parcel 1 on
Sheet No.’s 2 and 3 (collectively, the “Improvements”); (c) all building
systems and real property fixtures of every kind and nature whatsoever, located
on the Land, or which are a part of the Improvements, or both (the “Equipment”);
(d) all rights, privileges and appurtenances, and rights to the same, if any,
belonging to and appurtenant to the Land; (e) all easements and rights-of-way
in, to, upon or over the Land, and all rights of ingress and egress appurtenant
thereto; and (f) all right, title and interest of Seller in and to any award
made or to be made in lieu thereof and in and to any unpaid award for damage to
the Demised Premises by reason of change of grade of any street (collectively,
the “Demised Premises”).

 

2.   TERM

 

The term of
this Lease (the “Term”) shall commence on the Effective Date and shall
terminate at 11:59 p.m. on the earlier to occur of: (i) January 31, 2095, and
(ii) the day prior to the date which is twenty-one (21) years after the death
of the now living (as of the Effective Date) last descendent of Elizabeth, the
current Queen of England.

 

3.   USE.

 

(a)     During
the Term, the Demised Premises may be used for any lawful use or purpose
whatsoever, other than uses prohibited by Section 3(b)
and Section 3(c) of this
Lease, and Landlord specifically acknowledges and agrees that, subject solely
to the restrictions set forth in Section 3(b)
and Section 3(c),
during the Term Tenant shall have the right to exercise all rights and
privileges with respect to the Demised Premises and the use and operation
thereof as if Tenant were the sole owner thereof, subject however, to the
provisions of this Lease.

 

(b)     Notwithstanding
the provisions of Section 3(a),
during the Term, no portion of the Demised Premises shall be used for any of
the following purposes:

 

(i)            The
manufacture, sale or distribution or advertising of tobacco and tobacco
products (including cigarettes, cigars, pipe tobacco, chewing tobacco and
snuff);

 

(ii)           The
manufacture, sale or distribution or advertising of narcotics and related
paraphernalia;

 

(iii)          The
manufacture, sale or distribution or advertising of breath-testing devices,
products that purport to mask the effects of alcohol or other substances, and
products or services designed to treat alcohol or substance dependence;

 

(iv)          Any
advertising or other message related to matters of political, public policy,
public health or industrial controversy (including advertising for political
candidates or causes);

 

(v)           Child
adoption solicitations and offers;

 

2

 

(vi)          Religious
bodies, related products and services and any product or service that could
reasonably be expected to offend religious beliefs;

 

(vii)         The
occult (e.g., clairvoyants, psychics, hypnosis, mediums, tarot card reading,
horoscope services, faith healing, etc.);

 

(viii)        The
manufacture, sale or distribution or advertising of feminine hygiene and other
sanitary protection products and services (including products or services
relating to excretory bodily functions or ailments);

 

(ix)           The
manufacture, sale or distribution or advertising of diet and weight loss
products, services and clinics;

 

(x)            The
storage or sale of, or advertising related to the storage or sale of, human parts
and remains;

 

(xi)           The
manufacture, sale or distribution or advertising of contraceptives,
pregnancy-testing kits and other family planning services;

 

(xii)          The
manufacture, sale or distribution or advertising of pharmaceuticals, medicines,
dietary supplements and other health treatments;

 

(xiii)         Pornography
and other “adult only” or sexually explicit products and services (including
videotapes, books, magazines, tapes, software and online and telephone services
and other mediums now in existence or hereinafter devised);

 

(xiv)        Prostitution,
dating, escort, introduction or marriage agencies and services;

 

(xv)         The
manufacture, sale or distribution or advertising of products and services (or
advertisements therefor) that denigrate or discriminate against individuals
based on race, national origin, gender, religion, disability or age;

 

(xvi)        A
massage parlor;

 

(xvii)       A
mortuary, cemetery (other than the family gravesite) and other products and
services relating to death; and

 

(xviii)      The
manufacture, sale or distribution or advertising of any other product or
service (other than any product or service that is consistent with the past
practice of the Business) that is offensive, immoral, derogatory or in poor
taste or that, if associated with Elvis Presley, would tarnish the reputation
or public image of Elvis Presley, Landlord or the Beneficiary, or the Business.

 

(c)     Notwithstanding
the provisions of Section 3(a),
during the Term neither Tenant nor any party whose rights in or to the Demised
Premises derive by through or under Tenant shall open to the public or
otherwise commercially exploit the second floor of the Mansion which Tenant
acknowledges has not been generally open to the public or otherwise
commercially exploited in the operation of the Business prior to the Effective
Date (the “Restricted to the Public Premises”); provided, however, that
Tenant and all parties claiming by 

 

3

 

through or under Tenant or designated by Tenant,
including Tenant’s employees, agents, contractors, representatives,
consultants, engineers, lenders and prospective lenders, and any other party
involved or assisting in the Business, the maintenance of the Demised Premises
or the performance of Tenant’s obligations under this Lease at all times during
the Term, have free and unrestricted access to the Restricted to the Public
Premises.

 

4.   RENT

 

(a)     During
the Term, Tenant shall pay to Landlord at Landlord’s address for notices set
forth in Article 18 (or to
such other person or at such other address as Landlord may direct) as and for
the entire annual rent due hereunder, the sum of One Dollar ($1.00) per month
(the “Annual Rent”) payable annually in advance, without notice, demand,
abatement, deduction, setoff, counterclaim, defense, or deferral whatsoever,
except as may be provided in this Lease, on or before the tenth (10th)
day of each month of March during the Term. 
In addition to the Annual Rent the parties agree that two million, nine
hundred fifty-three thousand six hundred three Dollars and seventy-eight cents
($2,953,603.78) paid to Landlord upon the execution and delivery of this Lease
(hereinafter, the “Prepayment Rent”) is additional rent with respect to
this Lease.  The Annual Rent and the
Prepayment Rent are collectively referred to herein as the “Basic Rent”)
and are specified in Schedule 4(a).

 

(b)     The
amounts and periods of Tenant’s liability for Basic Rent in respect of the use
of the Demised Premises during the Term shall be as allocated in accordance
with the column entitled “Allocation of Basic Rent” in Schedule 4(b) annexed hereto.  It is the intention of the parties hereto
that the allocation of Basic Rent as provided in this Section 4 and as provided
in Schedule 4(b) constitutes
a specific allocation of fixed rent within the meaning of Treasury Regulation
§1.467-1(c)(2)(ii)(A) with the effect that, pursuant to Treasury Regulation
§§1.467-1(d) and 1.467-2, Landlord and Tenant, on any federal income tax
returns filed by them (or on any return on which their income is included),
shall accrue the amounts of rental income and rental expense, respectively, set
forth for each period under the column entitled “Proportional Rent” on Schedule 4(b) (the “Proportional
Rent”).  Because there shall be from
time to time a difference between (A) the cumulative amount of Basic Rent paid
by Tenant (as provided in Schedule 4(a)
and Schedule 4(b)), and (B)
the cumulative amount of Basic Rent allocated (as provided in Schedule 4(b)), there shall be
considered to exist a loan solely for purposes of Section 467 of the Internal
Revenue Code (the “Code”), the amount of which is based on the
cumulative amount of Basic Rent paid by Tenant and the cumulative amount of the
Proportional Rent accrued by Tenant adjusted to account for an interest
component, as provided in Treasury Regulation §1.467-4(b) (the “Section 467
Loan”).  If there is an amount in
excess of zero set forth under the column entitled “Landlord 467 Loan Balance”
on Schedule 4(b), such amount
(the “Landlord 467 Loan Balance”) represents a loan from Tenant to
Landlord solely for purposes of Section 467 of the Code.  If there is an amount in excess of zero set
forth under the column entitled “Tenant 467 Loan Balance” on Schedule 4(b), such amount (the “Tenant
467 Loan Balance”) represents a loan from Landlord to Tenant solely for
purposes of Section 467 of the Code.  If
there shall be a Landlord 467 Loan Balance, Landlord shall deduct as interest expense
and Tenant shall accrue as interest income, in each case, in an amount equal to
the amount set forth under the caption entitled “Landlord 467 Loan Interest”
for the applicable period identified on Schedule 4(b)
(the “Landlord 467 Loan Interest”).  If there shall be a Tenant 467 Loan Balance,
Landlord shall accrue as interest income and Tenant shall deduct as interest

 

4

 

expense, in each case, in an amount equal to the
amount set forth for the applicable period identified on Schedule 4(b) (the “Tenant 467 Loan
Interest”).

 

(c)     It
is the purpose and intent of both Landlord and Tenant that this Lease is and
shall be a “net” lease for Landlord, so that this Lease shall yield to Landlord
the Annual Rent free of all costs, expenses and charges relating to the Demised
Premises which may be attributed to or become due during the Term, except as
otherwise provided in this Lease.

 

5.   REAL ESTATE TAXES

 

(a)     Prior
to the Effective Date, Landlord shall instruct all taxing authorities, in
writing and in compliance with all of the requirements of such all taxing
authorities, to issue and send all real estate tax invoices, bills, notices of
assessment or reassessment, and all other notices, correspondence and
communications with respect to the Demised Premises to Tenant at Tenant’s
address for notices set forth in Article 18
(or to such other person or such other addresses as Tenant may from time to
time instruct the taxing authorities). 
Landlord’s notice to the taxing authorities shall authorize the taxing
authorities to accept all directions, correspondence and communications from
Tenant (or Tenant’s designee) with respect to the real estate taxes upon the
Demised Premises as if Tenant were the sole owner of the Demised Premises, and
for the duration of the Term, Landlord hereby irrevocably appoints Tenant as
Landlord’s attorney-in-fact, coupled with an interest with respect to all such
directions, correspondence and communications and all matters involving the
real estate taxes upon the Demised Premises, including any “tax protest” (as
hereinafter defined).

 

(b)     During
the Term, Tenant shall pay directly to the taxing authorities all real estate
taxes with respect to the Demised Premises and the Improvements from time to
time located thereon.  To the extent
permitted by Legal Requirements (hereinafter defined) Tenant may pay real
estate taxes or assessments in installments over the longest period of time
available.  Real estate taxes and
assessment shall be pro rated on the basis of a three hundred sixty-five (365)
day year so that Tenant shall pay only that portion of the real estate taxes or
installments thereof which are attributable to periods that fall within the
Term, and any refunds (net of Tenant’s expenses with respect thereto) for
periods after the expiration of the Term shall belong to and be paid over to
Landlord as set forth below.

 

(c)     Subject
to the exclusions provided for below, “real estate taxes” as used in
this Lease shall mean all taxes and other impositions, including real estate
and personal property taxes and betterment assessments assessed, levied,
confirmed, or imposed on the Demised Premises, levied by municipal, county, and
district governmental authorities against the owners of real property, which
taxes are measured on a flat rate basis separately from any other property of the
owner of the subject property, including ad valorem taxes and betterment
assessments, imposed or assessed upon or against the Demised Premises and all
Improvements thereon; provided, however that if any betterment assessment is
payable in installments, the real estate taxes for any tax year shall include
only such installments of such betterment assessment as is allocable to said
tax year.  Real estate taxes shall not in
any case include any income, profit, estate, inheritance, succession, transfer,
franchise or capital tax or assessment upon Landlord or, except as is
hereinafter provided with respect to an “alternative tax”, a tax upon the
rentals payable under this Lease, all of which shall be the obligation of
Landlord; provided, however, if the present system of taxation of real estate
is changed with the result that the whole or a part of 

 

5

 

the original real estate taxes (i.e., those taxes
defined above as “real estate taxes”) is substituted in whole or in part for by
a tax imposed against Landlord, including a tax measured by the Annual Rent
received under this Lease, and clearly determinable as tax on real property (an
“alternate tax”), then all such alternative tax or the part thereof so
measured or based, shall be deemed to be included within “real estate taxes”
and Tenant shall pay and discharge the alternative tax as herein provided in
respect of the payment of real estate taxes. 
Nevertheless, the amount of any such alternate tax which may be taken
into consideration for the purposes of determining the real estate taxes
attributable to the Demised Premises (or for determining Tenant’s liability
with respect to the alternate tax) shall be no greater than would be the case
if the Demised Premises were the only property of Landlord subject to the
alternate tax.

 

(d)     Tenant
shall have the sole right during the Term to initiate and prosecute a tax
protest for any tax year in Tenant’s name, or in Landlord’s name if required by
Legal Requirements.  Landlord, without
any out-of-pocket cost to Landlord, shall cooperate reasonably in the
prosecution of any tax protest undertaken by Tenant, and shall promptly execute
and deliver to Tenant any documents or pleadings required or appropriate for
such purposes.  In connection with any
such tax protest Tenant shall not take or fail to take any action if the effect
of such would be to expose the Demised Premises to any tax lien or tax
sale.  All refunds (and any interest
thereon) obtained as a result of a tax protest shall be and remain the sole
property of Tenant; provided, however, that any refund which is applicable both
for a period during the Term and either before the Effective Date or after the
expiration of the Term shall be equitably apportioned, and the portion thereof
attributable to the period of time before the Effective Date or after the
termination of the Term shall be payable to Landlord, and any portion thereof
attributable to the period of time during the Term shall be payable to Tenant.  If, prior to the Effective Date, Landlord
filed an application for a tax protest with respect to the Demised Premises for
the tax year in which the Effective Date occurs, Landlord shall not withdraw,
compromise or settle such tax protest proceeding without the Tenant’s prior
consent, which consent shall not be unreasonably withheld or delayed.  Tenant shall have no interest in any sums
refunded or collected, except as to the tax year during which the Effective
Date occurs, as to which the net sum collected or tax saved after all costs,
fees and expenses including attorneys’ fees with respect thereto shall have
been paid, shall be apportioned.  The
term “tax protest” shall mean and include all proceedings permitted by
Legal Requirements, including appellate proceedings, to obtain any form of
reduction of real estate taxes assessed against the Demised Premises or of the
assessment or reassessment therefore, or of any special assessment, or the
validity of either, or of any change in assessments or the tax rate.  The provisions of this Section 5(d) shall survive the
expiration of the Term.

 

6.   INSURANCE AND INDEMNITY

 

(a)     During
the Term, but subject to the provisions of Section
6(c), Tenant shall maintain with respect to the Demised Premises:

 

(i)            comprehensive
commercial general liability insurance with limits of not less than Five
Million Dollars ($5,000,000.00) per occurrence and in the aggregate, and
property damage insurance in an amount not less than Two Million Dollars
($2,000,000.00) per occurrence and in the aggregate, insuring against claims
for bodily or personal injury, death or property damage occurring on, in or
about the Demised Premises; and

 

6

 

(ii)           fire and
extended coverage insurance on an occurrence basis insuring against loss by
fire and all of the other risks and perils as are included under the ISO
Special Form coverage as such term is known on the date of this Lease, for one
hundred percent (100%) of the replacement cost of the Improvements at the time
in question (excluding cost of excavations, foundations, footings, underground
pipes, conduits, flues and drains); and

 

(iii)          workman’s
compensation insurance to the extent required by Legal Requirements.

 

(b)     Tenant’s
general commercial liability insurance policy shall be endorsed so as to name
Landlord as an additional insured, and Tenant’s fire and extended coverage
insurance, as respects the Mansion only, shall be endorsed so as to name
Landlord as an additional insured, solely as its interest may appear.  Notwithstanding anything in this Lease or any
Legal Requirement to the contrary, except as is specifically hereinafter set
forth, Tenant or parties designated by Tenant shall have the sole right to
adjust any loss under the fire and casualty insurance policy maintained by
Tenant, and in all events, regardless of which party shall adjust the loss, all
proceeds of such insurance shall be payable solely to, or as directed by,
Tenant, and Tenant shall be the sole loss payee under such fire and casualty
insurance policy.  In no event shall
Landlord or any third party be entitled to, or have any interest in, such
insurance proceeds or any part thereof. 
Notwithstanding the foregoing, if within a reasonable time following a
fire or other casualty which damages or destroys all or any part of the
Mansion, and which loss is a loss covered by Tenant’s fire and casualty
insurance policy (a “Mansion Loss”), Tenant fails to file a claim under
its fire and casualty insurance policy to adjust and recover upon the Mansion
Loss, unless such failure is due to a delay as contemplated under Article 21 of this Lease, Landlord may
give to Tenant a notice (a “Loss Adjustment Notice”) requiring that
Tenant file a claim with its fire and casualty insurer to adjust and recover
upon the Mansion Loss within sixty (60) days after Tenant’s receipt of the Loss
Adjustment Notice.  If Tenant shall fail
to file and thereafter prosecute a claim to adjust and recover upon the Mansion
Loss within such sixty (60) day period, Landlord may do so in its capacity as
an additional insured under Tenant’s fire and extended coverage insurance
policy.  In such event, Landlord shall
prosecute such claim in good faith so as to cause insurance proceeds sufficient
to complete a Casualty Restoration (hereinafter defined) with respect to the
damages to the Mansion to be paid to Tenant, which proceeds shall be deposited
in escrow or applied to the Casualty Restoration to the Mansion as contemplated
by Article 8 this Lease.

 

(c)     Notwithstanding
the foregoing, Tenant shall have the absolute right to self-insure against its
obligations under this Article 6
or maintain any deductible amount or self insurance retention as to all or any
part of the insurance required by this Article 6
pursuant to any plan of self insurance maintained by Tenant, individually or
together with Tenant’s affiliates.  If
Tenant elects or is deemed to have elected to self insure, all of the
provisions relating to insurance required to be maintained by Tenant, shall
apply as if Tenant had in fact maintained policies of insurance in lieu of
self-insurance.

 

(d)     To
the extent not covered by Tenant’s insurance for which Landlord is named as an
additional insured (if such policy or policies have been obtained) or would
have been covered if Tenant had obtained the required insurance coverage
hereunder instead of self insuring, Tenant agrees to indemnify, defend and hold
Landlord and any trustee, beneficiary, manager, owner, 

 

7

 

beneficial owner, partner, member, officer, director
or shareholder of Landlord (collectively, the “Landlord Indemnified Parties”),
harmless from and against any and all losses, damages, claims, suits or
actions, judgments and costs arising out of any injury to or death of persons
or damage to property on or about the Demised Premises due to or arising
from:  (i)  Tenant’s use of, and operations at, the
Demised Premises; (ii) a third party’s claim against Landlord solely by reason
of Landlord’s estate in the Demised Premises; or (iii) Tenant’s breach of its
obligations hereunder or Tenant’s negligence. 
Tenant’s indemnification hereunder specifically excludes and shall not
cover any and all losses, damages, claims, suits or actions, judgments and
costs arising out of or relating to:  (1)
Landlord’s breach of its obligations pursuant to this Lease or any Legal
Requirement; (2) claims made by a third party whose claim is based upon such
party’s presence at the Demised Premises at the invitation or with the
permission of any of the Landlord Indemnified Parties, the Beneficiary or the
Family Permittees (hereinafter defined); or (3) due to the negligence of any of
the Landlord Indemnified Parties, the Beneficiary or the Family
Permittees.  As a condition to Tenant’s
indemnification obligations hereunder, the Landlord Indemnified Parties shall
provide to Tenant reasonably prompt notice of any claim for which
indemnification is sought.  Tenant shall
have the right to settle any such claim on any terms acceptable to Tenant,
provided that such settlement does not impose any obligation on the Landlord
Indemnified Parties or adversely affect any rights or interests of the Landlord
Indemnified Parties.  The indemnification
contained in this Section 6(d)
shall include reasonable attorneys’ fees and disbursements incurred by the
Landlord Indemnified Parties arising due to a breach of Tenant’s duty to
defend.

 

(e)     Landlord
agrees to indemnify, defend and hold Tenant and each member, manager, owner,
beneficial owner, partner, officer, director, shareholder or employee of Tenant
(collectively, the “Tenant Indemnified Parties”), harmless from and
against any and all losses, damages, claims, suits or actions, judgments and
costs arising out of any injury to or death of persons or damage to property on
or about the Demised Premises arising out of or relating to:  (1) the negligence of any of the
Landlord Indemnified Parties; (2) relating to Landlord’s breach of its
obligations pursuant to this Lease;  (3)
claims by a third party whose claim is based upon such party’s presence at the
Demised Premises at the invitation of any of the Landlord Indemnified
Parties.  As a condition to Landlord’s
indemnification obligations hereunder, the Tenant Indemnified Parties shall
provide to Landlord reasonably prompt notice of any claim for which
indemnification is sought.  Landlord
shall have the right to settle any such claim on any terms acceptable to
Landlord, provided that such settlement does not impose any obligation on the
Tenant Indemnified Parties or the Business, or adversely affect any rights or
interests of the Tenant Indemnified Parties or of the Business.  The indemnification contained in this Section 6(e) shall include reasonable
attorneys’ fees and disbursements incurred by the Tenant Indemnified Parties
arising due to a breach of Landlord’s duty to defend.

 

7.   IMPROVEMENTS AND ALTERATIONS

 

(a)     During
the Term, Tenant may alter the Demised Premises, including the Improvements and
Equipment, in any manner Tenant may elect (except as is specifically
hereinafter set forth), add additional buildings or structures or any building
or other improvements of any type and kind which Tenant chooses to construct on
the Demised Premises (collectively, “Alterations”), all without Landlord’s
consent, provided that:  (i) Tenant shall
obtain all governmental permits and approvals required in connection therewith;
(ii) all of 

 

8

 

Tenant’s work shall be done in compliance with this
Lease and Legal Requirements. 
Alterations to the exterior of the Mansion and to the Restricted to the
Public Premises shall be performed, subject to the provisions of the
immediately succeeding sentence, in a manner which shall preserve the
architectural appearance and design of the exterior of the Mansion and the
nature and character of the Restricted to the Public Premises, substantially as
each exists on the Effective Date. 
Tenant’s obligations pursuant to the immediately preceding sentence with
respect to Alterations to the exterior of the Mansion and the Restricted to the
Public Premises are subject to, in all events, and Tenant shall be permitted to
make Alterations to the exterior of the Mansion and the Restricted to the
Public Premises due to:  (1) the
requirements of any insurance company with which Tenant maintains insurance
with respect to the Demised Premises; (2) the requirements of any Governmental
Authority (hereinafter defined); (3) Legal Requirements (including any Legal
Requirements applicable to the then use or uses of the Mansion of the Demised Premises);
(4) the requirements and standards of any local or statewide fire underwriters
and the requirements of all insurance rating bureaus and insurance inspection
bureaus having jurisdiction; (5) changes in construction practices and design
techniques; (6) substitution of materials (provided that the substituted
materials are new and of good quality); and (7) the costs of maintaining the
architectural appearance and design of the exterior of the Mansion and the
nature and character of the Restricted to the Public Premises shall no longer
be commercially reasonable.  No Material
Alteration (hereafter defined) shall be made without Landlord’s prior consent,
which consent shall not be unreasonably withheld, delayed or conditioned, and
shall be deemed given if Landlord does not reasonably object (which shall
include an explanation for such objection in sufficient in scope and detail for
Tenant to respond) to Tenant’s request therefor within ten (10) business days
after Tenant makes such request.  A “Material
Alteration” shall mean any voluntary, material and permanent demolition of
any material portion of the Mansion, other than in connection with Tenant’s
right to make Casualty Restorations or a restoration following a Taking
(hereinafter defined).

 

(b)     All
Alterations and capital improvements made to the Demised Premises shall belong
solely to Tenant; provided, however, that those Alterations to the Mansion
which are permanently a part of the Demised Premises and which shall exist at
the end of the Term, if any, shall become the property of Landlord upon the
expiration of the Term.  All other
Alterations or improvements may be removed by Tenant, and all salvage value in
connection therewith shall belong solely to Tenant.

 

(c)     In
connection with any Alterations or the use, operation or occupancy of the
Demised Premises, Landlord hereby grants to Tenant, as Landlord’s
attorney-if-fact, coupled with an interest, the absolute right and privilege
to:

 

(i)            grant to
public, quasi-public and private or municipal utilities, entities or public
service corporations, for lines, poles or conduits for telephone, electricity,
water, sanitary sewers, storm sewers, and for other utilities and municipal or
special district services, for the purpose of serving the Demised Premises and
to grant rights of way or easements on, over or under the Demised Premises; and

 

(ii)           enter into
any covenant or declaration and grant any easement, cross easement, operating
agreement, right of way, access agreement, restriction and similar rights with
respect to the Demised Premises reasonably required by Tenant from time to time
during the Term; provided that any easement, cross easement, right of way,
access agreement or 

 

9

 

similar right shall, by its terms, provide that it shall terminate upon
the expiration of the Term, unless Landlord shall elect to continue any such
easement, cross easement, right of way, access agreement or similar right
beyond the expiration of the Term.

 

Landlord
covenants and agrees to cooperate with Tenant and shall execute and deliver,
upon request of Tenant, such instrument or instruments, applications,
agreements, or other consents therefor as may be reasonably required in order
to effectuate and implement the foregoing.

 

(d)     If
any contractor’s, mechanic’s, laborer’s or materialmen’s lien for work done or
materials furnished to Tenant with respect to the Demised Premises is filed
against the Demised Premises, Tenant shall cause such lien to be discharged
whether by payment, release, bond, deposit, order of a court of competent
jurisdiction or otherwise, within the later of (i) one hundred twenty (120)
days after the expiration of the Term, and (ii) thirty (30) days after
receiving notice of the filing thereof. 
Tenant may contest the validity or amount of any such lien.  Notwithstanding the foregoing, if a judgment
shall be entered with respect to any lien for work done or materials furnished
to Tenant with respect to the Demised Premises which lien attaches to Landlord’s
interests in the Land or the Improvements, and the lienor seeks to enforce such
judgment by foreclosure of Landlord’s interests in the Land or the
Improvements, Tenant shall cause such judgment and lien to be discharged,
whether by payment, release, bond, deposit, order of a court of competent
jurisdiction or otherwise, at least thirty (30) days prior to the date Landlord’s
interests in the Land or Improvements may be sold by auction or otherwise to
satisfy such judgment.

 

8.   REPAIRS.

 

(a)     During
the Term, Tenant shall maintain the Mansion in substantially the same condition
as it was in on the Effective Date:  (i)
reasonable wear and tear, (ii) damage due to a Casualty or a Taking (both
hereinafter defined), and (iii) Tenant’s rights under Article 7 of this Lease,
excepted.  Landlord shall not be
obligated to make any repairs, or replacements of any kind, nature or
description whatsoever to the Demised Premises.

 

(b)     If
during the Term, the Improvements shall be damaged or destroyed by fire, flood
or any other casualty or cause (a “Casualty”), upon becoming aware
thereof, Tenant shall give notice thereof to Landlord, and Tenant may, in
Tenant’s sole discretion, but shall not be obligated, to restore, repair,
replace or rebuild the damaged or destroyed Improvements (a ”Casualty
Restoration”) and in so doing make such Alterations as may be desired by
Tenant, in conformity with the provisions of this Lease.  If Tenant elects not to undertake a Casualty
Restoration, Tenant shall be entitled to such portion of the net insurance
proceeds (or self insurance funds), after deduction of all costs incurred in
adjusting the loss and collecting the proceeds, as may be necessary to demolish
what may remain of any damaged Improvements and remove any debris.  Except as set forth in Section 8(c), the balance of the net
insurance proceeds shall belong solely to Tenant.

 

(c)     If
the Mansion shall be damaged or destroyed by a Casualty and Tenant elects not
to undertake a Casualty Restoration of the Mansion, Tenant shall be entitled to
use such portion of the insurance proceeds (or self insurance funds) as may be
necessary to demolish what may remain of the Mansion, remove any Equipment and
debris and leave the building area in a 

 

10

 

reasonably safe and secure condition, as determined by
Tenant.  The balance of the insurance
proceeds shall be delivered by Tenant in escrow to an escrow agent selected by
Tenant, which shall be either a bank, trust company, savings and loan
association, insurance company, pension or retirement fund, real estate
investment trust or any other organization whose business is to make loans on
real estate, a title company or other institution which customarily acts as an
escrow agent with respect to real property. 
The escrow agent shall retain the escrowed funds in an investment or
account designated by Tenant.  If at any
time during the Term, Tenant determines to undertake a Casualty Restoration
with respect to the Mansion, Tenant shall have the absolute right to receive
the entire amount of the escrowed funds, together with any interest accrued
thereon and any capital appreciation with respect thereto, and the escrow agent
shall have the absolute right and obligation to pay such funds to Tenant.  If, upon the expiration of the Term, Tenant
has not undertaken a Casualty Restoration with respect to the Mansion, the
entire amount of the escrowed funds, together with any interest accrued thereon
and any capital appreciation with respect thereto, less any amounts which may
be owed at such time by Landlord to Tenant and unpaid, upon the joint written
instructions of Landlord and Tenant, shall be paid to Landlord.

 

9.   COMPLIANCE WITH LEGAL
REQUIREMENTS.

 

(a)     To
the extent that: (i) the Demised Premises are in compliance with Legal
Requirements on the Effective Date, and (ii) Tenant’s non-compliance with such
Legal Requirements would materially, adversely affect Landlord’s reversionary
interest in the Demised Premises or rights under this Lease, Tenant shall
comply with all such Legal Requirements applicable to Tenant’s occupancy, use
or manner of use of the Demised Premises and the performance by Tenant of its
obligations under this Lease.  As used in
this Lease, “Legal Requirements” shall mean all applicable statutes, ordinances,
laws, rules, regulations and requirements of any municipal, county, state and
federal authorities and quasi-governmental authorities (collectively, “Governmental
Authorities” and individually, a “Governmental Authority”) having
jurisdiction, including laws relating to architectural barriers affecting the
disabled (collectively, “Legal Requirements”).

 

(b)     Tenant
shall have the absolute right to contest by appropriate legal proceedings or
otherwise, the validity of any such Legal Requirement, provided that such
contest will not subject Landlord to any criminal liability.  In addition, if compliance with such Legal
Requirement may be held in abeyance without subjecting Landlord to any criminal
liability for a failure to comply during such contest, Tenant may postpone
compliance therewith until the final determination of any such
proceedings.  Landlord shall cooperate
with Tenant in such contest and shall execute any documents reasonably required
in connection therewith.  If any such
contest must, due to Legal Requirements, be brought in the name of Landlord,
Tenant may do so in Landlord’s name, and Landlord hereby appoints Tenant as
Landlord’s attorney-in-fact coupled with an interest to do so.

 

10. ASSIGNMENT AND SUBLETTING

 

Tenant shall
have the absolute and unrestricted right to assign, mortgage, pledge,
hypothecate, encumber or otherwise transfer this Lease, and to sublet (and to
grant occupancy rights and licenses of any kind with respect to) the whole or
any part of the Demised Premises or

 

11

 

of the Term, in all events without Landlord’s consent.  Any such assignment or sublease shall be
subject to the terms and conditions of this Lease.  Tenant shall notify Landlord of any
assignment of this Lease and shall forward a copy of any assignment documents
to Landlord within thirty (30) days thereafter. 
From and after the effective date of any sale, assignment or other
transfer of Tenant’s interest in this Lease, and the assumption by the
transferee of Tenant’s obligations under this Lease, Tenant shall be released
and discharged from any and all of its obligations and liabilities under this
Lease and with respect to the Demised Premises accruing from and after the
effective date of such sale, assignment or transfer, without the requirement of
any further act by Landlord or Tenant or the execution of any further document
or instrument.

 

11. DEFAULT; LIMITATION OF
REMEDIES AND RIGHT TO TERMINATE

 

(a)     LANDLORD
EXPRESSLY ACKNOWLEDGES AND AGREES THAT THE PRIMARY AND MATERIAL CONSIDERATION
TO LANDLORD FOR THIS LEASE IS THE CONSIDERATION PAID AND TRANSFERRED PURSUANT
TO THE CONTRIBUTION AGREEMENT AND TENANT HAVING ENTERED INTO AND CONCLUDED THE
BUSINESS TRANSFER, ALL OF WHICH OCCURRED PRIOR TO THE EFFECTIVE DATE.  ACCORDINGLY, EXCEPT FOR THE RIGHTS AND
REMEDIES SPECIFICALLY AND EXPRESSLY GRANTED TO LANDLORD BY THE EXPRESS TERMS
AND CONDITIONS OF THIS LEASE, LANDLORD HEREBY WAIVES IN ALL RESPECTS ANY AND
ALL PROTECTIONS NOW OR HEREAFTER AFFORDED TO LANDLORD BY LAW, IN EQUITY OR
OTHERWISE, INCLUDING THOSE ARISING UNDER ANY AUTHORITY PROVIDING FOR THE
MUTUALITY OF REMEDIES UNDER TENNESSEE, AND THAT A TERMINATION OF THIS LEASE BY
LANDLORD FOR ANY REASON EXCEPT AS OTHERWISE IS SPECIFICALLY SET FORTH HEREIN,
AND ONLY STRICTLY IN ACCORDANCE WITH THE EXPRESS PROVISIONS OF THIS ARTICLE 11,
IS NOT A REMEDY AVAILABLE TO LANDLORD.

 

(b)     Tenant
shall be deemed to be in Default only if Tenant (i) fails to pay any
installment of Annual Rent or to pay real estate taxes as provided in this
Lease and fails to cure any such breach within one hundred twenty (120) days
after notice thereof from Landlord, or (ii) breaches any other material
obligation or agreement set forth herein, specifically including a Mansion
Related Breach (hereinafter defined), but specifically excluding an Article 23
Breach (hereinafter defined), and Tenant fails to cure any such breach within
one hundred eighty (180) days after notice thereof from Landlord, provided,
however, Tenant shall not be deemed in default with respect to any matter
which, by its nature, may not be cured within one hundred eighty (180) days, if
Tenant shall reasonably promptly within such one hundred eighty (180) day
period commence to cure such default and thereafter prosecutes the cure to completion
(the breach set forth in clauses (i) and (ii) of this Section 11(b) including the Mansion
Related Breach are hereinafter referred to as a “Default”).  If an alleged default is a of a material
obligation or agreement relating to: (1) the repair or maintenance of the
Mansion as required by this Lease, (2) Tenant’s obligations under Article 3 of this Lease, or (3) Tenant’s
obligations under Section 7(a)
of this Lease (each of the foregoing breaches described in clauses (1), (2) and
(3) herein a “Mansion Related Breach”), and Landlord intends to seek to
terminate this Lease (on the terms hereinafter provided) if Tenant shall fail
to cure such Default, the notice alleging the breach of this Lease shall make
specific reference to this Lease and shall contain a statement in fourteen
pitch, boldfaced type as follows:

 

12

 

“If Tenant shall fail to cure the Mansion Related

Breach alleged in this notice within the cure period

provided in, and otherwise in accordance with the

Lease, Landlord intends to seek to terminate the

Lease and recover legal possession of the Demised

Premises.”

 

(c)     If
a Default shall have occurred and be continuing, Landlord may, upon not less
than thirty (30) days prior notice to Tenant, or such longer notice period as
may be required by any Legal Requirements, apply to a court of competent
jurisdiction (a “Court”) for a final non-appealable order either: (x)
requiring specific performance by Tenant of the obligations of Tenant hereunder
then in Default, or (y) granting to Landlord declaratory, injunctive or other
equitable relief with respect to such Default, but in no event shall such
declaratory, injunctive or other equitable relief seek a termination of this
Lease or a re-entry or repossession of the Demised Premises.  If: 
(1) Landlord shall prevail in any such specific performance,
declaratory, injunctive or other equitable action, (2) the Default is a Mansion
Related Breach, and (3) Tenant shall fail to comply with such order,
Landlord may, upon not less than one hundred eighty (180) days’ prior notice to
Tenant, apply to a Court for the right to terminate this Lease, re-enter and
repossess the Demised Premises and remove all persons and property therefrom by
summary proceedings, ejectment and any other legal action (the “Dispossess
Proceeding”), and to recover an award for all direct damages recoverable
pursuant to applicable law. 
Notwithstanding anything herein, at law or in equity to the contrary,
Landlord shall not have the right to cause Tenant to be physically dispossessed
of the Demised Premises or to recover any such damages unless and until the
Court in such Dispossess Proceeding has entered a final, non-appealable order
granting exclusive possession of the Demised Premises to Landlord, the
enforcement of which shall be stayed, by its terms, for a period of ninety (90)
from the date notice of entry of the order is duly served on Tenant (the “Final
Order”), which Final Order may terminate this Lease and Tenant’s right to
possession of the Demised Premises upon the expiration of such ninety (90) day
period if Tenant has not, during such ninety (90) day period, cured or
corrected all of the occurrences or events which the Court found to be the
Mansion Related Breach(s) which were the basis of the Dispossess Proceeding (a “Cure”).  If a Cure is timely completed, Landlord shall
cause the Final Order to be vacated, shall revoke any notices of default
hereunder and notwithstanding anything in the Final Order this Lease shall be,
and Landlord shall declare this Lease to be, in good standing and full force
and effect.  If the Cure is not timely
completed, Landlord shall have the right to cause the Final Order to be
enforced and may re-enter and repossess the Demised Premises and remove all
persons and property therefrom in any peaceable manner permitted by applicable
law (a “Permitted Termination”).

 

(d)     If
Landlord gives to Tenant notice alleging that Tenant is in default of Tenant’s
obligations under Article 23
of this Lease (an “Article 23 Breach”), and Tenant fails to cure any
such alleged Article 23 Breach or seek injunctive or declaratory relief from a
Court with respect to such alleged Article 23 Breach within thirty (30) days
after notice thereof from Landlord, Landlord may, following the expiration of
such thirty (30) day period, apply to a Court for a final non-appealable order
requiring specific performance by Tenant of its obligations under Article 23 of this Lease.  Under no circumstances whatsoever shall
Landlord or any party whose rights derive by, through or under Landlord have
the right to, or seek in any way to, terminate this Lease or repossess the
Demised Premises whether by Dispossess Proceedings or otherwise, 

 

13

 

or recover any damages of any nature as a result of an
Article 23 Breach or the failure to cure such Article 23 Breach, Landlord
acknowledging and agreeing that Landlord’s sole and exclusive remedy for any
such Article 23 Breach shall be an action seeking specific performance as
aforesaid, and the enforcement of any judgment granting to Landlord such
specific performance.

 

(e)     Notwithstanding
anything contained herein to the contrary or any default damages that may be
permitted or authorized by applicable law, in no event shall damages
recoverable from Tenant as a consequence of a Default under this Lease include,
nor shall Landlord ever seek to recover from Tenant: (i) consequential or
punitive damages; (ii) loss of business or profits by Landlord; or (iii)
diminution of the value of the Demised Premises or any portion thereof.  Landlord shall not have the right to, nor
shall Landlord seek to terminate this Lease, to re-enter and repossess the
Demised Premises (with or without having sought a termination of this Lease) or
to remove any persons or property therefrom whether by summary proceedings,
ejectment or any other legal action or any other manner, including to enforce
any judgment against the Demised Premises or Tenant’s interests therein, by
foreclosure or otherwise, except pursuant to a Permitted Termination.  Without limiting the foregoing, Landlord
acknowledges and agrees that except in connection with a Permitted Termination,
the liability of Tenant with respect to any judgment in favor of Landlord shall
be satisfied solely out Tenant’s interest in Tenant’s assets other than the
Demised Premises, and any such judgment shall not give rise to any right of
execution or levy against this Lease or Tenant’s leasehold estate or other
interests in the Demised Premises; provided, however, that the proceeds of any
assignment, sale or other transfer of the Demised Premises shall be subject to
a right of execution or levy with respect to a judgment obtained against the
transferring Tenant with respect to its obligations hereunder.

 

(f)      Tenant
acknowledges that the Mansion carries a special meaning to Lisa Marie Presley
(the “Beneficiary”) and the equitable remedies granted to Landlord
pursuant to this Article 11
with respect to the Mansion are required to ensure that the Mansion, and access
thereto, is maintained as and to the extent specifically agreed to in this
Lease.

 

(g)     If
Landlord shall default in the performance of any obligation under this Lease,
and Landlord does not cure such default within thirty (30) days after notice
thereof by Tenant (it being intended in connection with (A) a default not
susceptible of being cured with due diligence within said thirty (30) day
period that the time allowed Landlord within which to cure same shall be
extended for such period as may be necessary to complete same with all due
diligence; provided that Landlord commences to remedy the default within the
required cure period and diligently and continuously pursues the remedy
thereof, and (B) that Tenant may cure any such default prior to the expiration
of said waiting period, but after said notice to Landlord, if the curing of
such default prior to the expiration of said waiting period is reasonably
necessary to protect Tenant’s interest in the Demised Premises, to prevent
imminent injury or damage to persons or property, or to enable Tenant to
conduct its business in the Demised Premises, then Tenant may, in addition to
all other rights and remedies available to Tenant at law and in equity, cure
such default on behalf of and at the reasonable expense of Landlord and do all
necessary work and make all necessary payments in connection therewith to the
extent necessary in Tenant’s discretion, reasonably exercised, to protect
Tenant’s leasehold interest and continued use and occupancy of the Demised
Premises.  Landlord shall, within thirty
(30) days following written demand accompanied by reasonable supporting
documentation, pay Tenant the amount so paid by Tenant together with interest
thereon at the maximum rate allowed by law. 
Tenant 

 

14

 

shall at all times have the right without prior demand
or notice except as required by applicable Legal Requirements to seek any
declaratory, injunctive or other equitable relief, and specifically enforce
this Lease or restrain or enjoin a violation of any provision hereof.

 

(h)     The
provisions of this Article 11
shall survive the expiration or termination of the Term.

 

12. NO WAIVER.

 

Neither the
failure of a Party to complain of any act or omission on the part of the other
Party (however long the same may continue), nor the payment or acceptance of
rent, nor the performance of any obligation, shall be deemed to be a waiver of
any rights hereunder or of the right to recover the amount of any payment or
the cost of any performance made or done under protest, whether or not such
protest was made in writing.  No waiver
by either Party shall be effective unless in writing and signed by the Party
asserted to have made such waiver.  No
waiver of any breach of any provision of this Lease shall be deemed a waiver of
a breach of any other provision of this Lease or a consent to any subsequent
breach of the same or any other provision.

 

13. LANDLORD’S BANKRUPTCY OR
INSOLVENCY.

 

If Landlord
shall become a debtor in a case filed under Chapter VII or XI of the United
States Bankruptcy Code ( or any successor or substitute statute):

 

(a)     Landlord’s
trustee or Landlord as Debtor-in-Possessions shall file a motion to assume this
Lease within ten (10) days from entry of the Order for Relief in the Bankruptcy
case, and request a hearing on such motion at the earliest date available to
the Bankruptcy Court.  In connection with
such motion to assume, Landlord or its trustee shall immediately: (i) cure any
default under the Lease, (ii) compensate tenant for any actual pecuniary loss
resulting from such default, and (iii) provide adequate assurance of future
performance under this Lease; and

 

(b)     If
this Lease is rejected in such bankruptcy case: (i) the order rejecting this
Lease shall automatically be stayed pending any timely filed motion for
rehearing or reconsideration, notice of appeal, petition for certiorari or
other review to any court having jurisdiction to entertain such review, without
necessity of any motion or application for stay or the posting of any bond by
tenant under federal rule of Bankruptcy Procedure 8005 (or any successor rule),
and, (ii) at all times following the entry of such order rejecting this Lease,
Tenant shall be entitled to all of the protections of Section 365(h) of the
United States Bankruptcy Code, 11 U.S.C. §365(h), or any successor
statute, without limitation or restriction whatsoever.

 

14. EMINENT DOMAIN.

 

(a)     In
the event of a taking by condemnation, eminent domain or similar law, by any
public or quasi-public authority under the power of eminent domain, or under
the threat thereof, including a conveyance in lieu thereof by agreement with
the taking authority, other than as a direct result of Tenant’s actions (each,
a “Taking”): (i) of any part of the Demised Premises so as to render the
remainder thereof unusable in Tenant’s sole determination for the operation of
any 

 

15

 

business therein or thereon, or (ii) which materially
adversely affects ingress or egress to or from the Demised Premises, Tenant
shall have the option to terminate this Lease as of the date possession shall
be taken by such authority.  The Annual
Rent and real estate taxes shall be paid up to that date with a proportionate
refund by Landlord of any Annual Rent and real estate taxes paid in
advance.  Tenant may exercise this right
of termination by notice given within ninety (90) days after the later of the
date on which title vests in the condemning authority or the date Tenant
receives notice of said vesting of title.

 

(b)     Under
no circumstance shall Landlord, or shall Landlord have the right to enter into
any agreement in respect of a Taking, including a conveyance in lieu thereof by
agreement with the taking authority, without Tenant’s prior consent, which
consent Tenant may withhold in Tenant’s sole discretion.

 

(c)     In
the event of a Taking of all of the Demised Premises, the Term shall expire
when Landlord shall be divested of its title, and all Annual Rent and real
estate taxes shall be apportioned as of such date.  In the event of a Taking which does not
result in a termination of this Lease, Tenant shall have the right to
either:  (i) restore, repair, replace or
rebuild the Demised Premises, with such Alterations, made in compliance with
the terms of this Lease, as Tenant may elect to make, or (ii) demolish what
remains of any Improvements on the Demised Premises and remove all debris.

 

(d)     In
the event of any Taking, the entire condemnation proceeds shall be paid to and
belong solely to Tenant and Landlord hereby expressly, irrevocably assigns to
Tenant all of Landlord’s interest in and to any such condemnation proceeds or
award.  Tenant shall have the sole right
to make any claim for damages as a result of a Taking, bring any suit or
action, appeal from any award or judgment, and settle and compromise any such
claims, suits or actions, and Landlord hereby appoints Tenant as Landlord’s
attorney-in-fact coupled with an interest to do so.

 

15. COVENANT OF QUIET ENJOYMENT

 

Landlord
covenants and warrants that throughout the Term, except solely with respect to
a Permitted Termination, Tenant shall peacefully and quietly have, hold, occupy
and enjoy (i) sole use, occupancy and possession of the Demised Premises,
subject to the terms and provisions of this Lease, and (ii) all of Tenant’s
rights and privileges hereunder, including those rights in and to the
Improvements, without hindrance or molestation of any kind by, and free from
the adverse claims of Landlord, or any person claiming by, through or under
Landlord.

 

16. LANDLORD’S REPRESENTATIONS.

 

Landlord
warrants and represents to Tenant that it has entered into this Lease with
proper authority, and that Landlord and each person executing this Lease on
behalf of Landlord (or in any representative capacity) have full right and
lawful authority to execute this Lease.

 

17. RESTRICTION ON ALIENATION,
TRANSFER AND MORTGAGES BY LANDLORD

 

Landlord
covenants, warrant, acknowledges and agrees that during the Term neither
Landlord nor Landlord’s successors, by operation of law or otherwise, shall
have the right, power 

 

16

 

or authority to, and hereby expressly waive any right, power or
authority which may be available at law, in equity or otherwise, to sell,
assign, mortgage, pledge, hypothecate, encumber, permit any lien to attach to,
or otherwise transfer (individually and collectively, a “Transfer”), nor
shall Landlord Transfer or attempt to in any way to Transfer, all or any
interest which Landlord has or may have in and to the fee estate in the Land,
the Improvements or any portion of the Demised Premises, this Lease or its
interest in this Lease.  As used herein,
the word “Transfer” includes any transaction whereby Landlord
contributes all or any portion of the Demised Premises, or Landlord’s interest
in either this Lease or the Demised Premises, to a partnership, corporation,
limited liability company, trust or other entity, in exchange for an interest
in such entity, but a Transfer shall not include a transfer (i) to another
trust for the benefit of Beneficiary or members of Beneficiary’s immediate
family or her direct descendants, or any combination thereof, or (ii) to any
single individual member of Beneficiary’s immediate family or a direct descendant,
in either case without any consideration for such transfer.  Any Transfer or purported Transfer shall be
null, void and of no force or effect. 
Landlord acknowledges that each of the foregoing covenants, warranties
and agreements were a material inducement for Tenant to execute this Lease, the
Contribution Agreement and conclude the Business Transaction.

 

18. NOTICES.

 

Any notices,
demands or requests which Landlord or Tenant are required or desire to give to
the other hereunder shall be in writing and delivered personally or by
reputable overnight courier which provides for receipted delivery (e.g. Federal Express, Airborne, UPS), or
sent by certified United States mail, return receipt requested postage prepaid,
to the following addresses:

 

	
  To Landlord:

  	
  Promenade Trust

  
	
   

  	
  c/o Provident
  Financial Management

  
	
   

  	
  2850 Ocean Park
  Blvd., Suite 300

  
	
   

  	
  Santa Monica,
  California 90405

  
	
   

  	
  Attention: Barry
  J. Siegel

  
	
   

  	
   

  
	
  with a copy (which

  shall not constitute

  notice) to:

  	
  Proskauer Rose LLP

  
	
   

  	
  2049 Century
  Park East, Suite 3200

  
	
   

  	
  Los Angeles,
  California 90067

  
	
   

  	
  Attention:
  Michael A. Woronoff, Esq.

  
	
   

  	
   

  
	
  To Tenant:

  	
  Elvis Presley Enterprises, Inc.

  
	
   

  	
  650 Madison
  Avenue

  
	
   

  	
  New York, New
  York 10022

  
	
   

  	
  Attention: Board
  of Directors

  
	
   

  	
   

  
	
  with a copy (which

  shall not constitute

  notice) to:

  	
  Sports Entertainment Enterprises, Inc.

  
	
   

  	
  d/b/a CKX, Inc.

  
	
   

  	
  650 Madison
  Avenue

  
	
   

  	
  New York, New
  York 10022

  
	
   

  	
  Attention: General Counsel

  

 

17

 

Any notice
given hereunder by personal delivery or overnight courier shall be deemed
delivered when received or when receipt is refused as evidenced by the records
of the courier service.  Any properly
addressed notice given herein by certified mail shall be deemed delivered when
the return receipt thereof is signed, except that any notice which is
(according to the terms of this Article 18)
correctly addressed, but which is returned by the postal service as
undeliverable shall be deemed to have been received on the earliest date on
which the postal service attempted delivery as indicated by postal service
endorsement on the return receipt form. 
Either Party, by notice to the other, may designate other (and
additional) addresses to which notices for the designating Party shall be sent,
but such notice shall only be deemed given upon receipt and shall be effective
fifteen (15) business days after receipt.

 

19. ESTOPPELS.

 

Within fifteen
(15) days following request therefore from Tenant, Landlord shall execute,
acknowledge and deliver to Tenant or Tenant’s designee, a certificate stating: (i)
that this Lease is unmodified and in force and effect (or if there have been
modifications, that this Lease is in force and effect as modified, and
identifying the modification agreements); (ii) the date to which Annual Rent
has been paid; (iii) whether there is any existing Default by the Tenant, and
if there is any such Default, specifying the nature and extent thereof, and the
actions taken to cure such Default, if any; and (iv) other items that may be
reasonably requested.  Any such
certificate may be relied upon by Tenant or third party designated by Tenant.

 

20. MISCELLANEOUS.

 

(a)     Costs of Performance.  Wherever this Lease requires the performance
of an act by either Party, such Party shall perform the act at its own cost and
expense, unless expressly provided to the contrary.

 

(b)     Partial Invalidity. If any term, covenant,
or condition of this Lease or the application thereof to any person or
circumstance shall to any extent be invalid or unenforceable, the remainder of
this Lease, or the application of such term, covenant or condition to persons
or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term, covenant, or
condition of this Lease shall be valid and be enforced to the fullest extent
permitted by Legal Requirements.

 

(c)     The Parties.  Any pronoun referring to Landlord, Tenant or
a third party shall be read in such number and gender as the context may
require.  The word “Landlord”
shall be deemed to include the originally named Landlord and each successor
which is specifically permitted, or not prohibited, by this Lease.  The word “Tenant” shall be deemed to
include the originally named Tenant and each successive holder of the lessee’s
interest in this Lease.

 

(d)     No Partnership.  No provision of this Lease shall be deemed to
render Landlord and Tenant partners or participants in any other type of joint
enterprise.

 

(e)     Index and Cross References.  Any index or table of contents attached to
this Lease or heading references or title of sections is used only as a matter
of convenience for reference and is not to be deemed part of this Lease or used
to determine the intent of the Parties. 
Any reference made in this Lease to an Article, Section or other type of
subdivision of this Lease shall 

 

18

 

be construed as a reference to the entire section
(including all of its subsections and other subdivisions).

 

(f)      Prior Representations; Prior and Preliminary
Agreements.  The Parties
acknowledge that in the course of negotiating this Lease their respective
representatives have gradually reached preliminary agreement on the several
terms set forth in this instrument.  The
Parties acknowledge and agree that at all times they have intended that none of
such preliminary agreements (either singly or in combination) shall be binding
on either Party, and that they shall be bound to each other only by a single,
formal, comprehensive document containing all of the agreements of the Parties,
in final form, which has been executed by a duly authorized officer of Tenant
and a duly authorized officer of Landlord. 
The Parties acknowledge that none of the prior oral and written
agreements between them (and none of the representations on which either of
them has relied) relating to the subject matter of this Lease shall have any
force or effect whatever, except as and to the extent that such agreements and
representations have been incorporated in this Lease.

 

(g)     Monetary Disputes.  If at any time a dispute shall arise as to
any amount or sum of money to be paid by one Party to the other Party under the
provisions hereof, the Party against whom the obligation to pay the money is
asserted shall have the right to make payment of the disputed amount “under
protest,” which payment shall not be regarded as a voluntary payment, and
there shall survive the right on the part of such Party to institute suit for
recovery of such sum.  If it shall be
adjudged that there was no legal obligation on the part of such Party to pay
such sum or any part thereof, such Party shall be entitled to recover from the
other Party such sum or so much thereof as it was not legally required to pay
under the provisions of this Lease.

 

(h)     Performance Disputes.  If at any time a dispute shall arise between
the Parties as to any work to be performed by either of them under the
provisions hereof, the Party against whom the obligation to perform the work is
asserted may perform the disputed portion of such work and pay the cost thereof
“under protest,” performance of such work in no event to be regarded as
a voluntary performance, and there shall survive the right on the part of such
Party to institute suit for recovery of the cost of such work.  If it shall be adjudged that there was no
obligation on the part of such Party to perform such work or any part thereof,
such Party shall be entitled to recover from the other Party the cost of such
work or the cost of, under the provisions of this Lease, so much thereof as
such Party was not legally required to perform under this Lease.

 

(i)      Interpretation of Lease; Construction of Terms.

 

(i)            Whenever
in this Lease the words “herein”, “hereunder”, “hereinabove”, “hereinafter”, or
similar words are used, the same shall be deemed to refer to this entire Lease,
unless expressly stated to the contrary. 
The terms “include”, “including” and words of similar import shall be
construed as if followed by the phrase “without limitation”. The use in this
Lease of the words “such as” and “including” shall not be deemed to limit the
generality of the term or clause to which it has reference, whether or not non-limiting
language (such as import) is used with reference thereto, but rather shall be
deemed to refer to all other items or matters that would reasonably fall within
the broadest possible scope of such general statement, term or matter.

 

19

 

(ii)           “affiliate”
means, with respect to any person or entity, any other person or entity that,
directly or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such first person or
entity.  The term “control” means the
possession, directly or indirectly, of the power, whether or not exercised, to
direct or cause the direction of the management or policies of a person or an
entity, whether through the ownership of stock or other equity ownership
interest, by contract or otherwise and the terms “controlled” and “common
control” have correlative meanings.

 

(iii)          This
Lease shall not be interpreted or construed more strictly against one Party or
the other merely by virtue of the fact that it was drafted by counsel to
Landlord or Tenant; it being hereby acknowledged and agreed that Landlord and
Tenant have both contributed materially and substantially to the negotiations
and drafting of this Lease.

 

(iv)          This Lease,
and all questions of interpretation hereof and all controversies hereunder,
shall be construed in accordance with and governed by the laws of the State of
Tennessee applicable to agreements made and to be performed wholly with said
state.

 

(j)      Recitals and Exhibits Incorporated.  The recitals first set forth in this Lease
and the Exhibits attached to this Lease are by this reference incorporated into,
and shall be deemed for all purposes part of this instrument, with the same
force and effect as if fully set forth herein.

 

(k)     Non-Merger.  There shall be no merger of this Lease, nor
of the leasehold estate created by this Lease, with the fee estate in the Land
or any superior leasehold estate by reason of the fact that this Lease or the
leasehold estate created by this Lease or any interest in this Lease or any
such leasehold estate may be held, directly or indirectly, by or for the
account of any person or persons who shall own the fee estate in the Land, or
any superior leasehold estate or any interest therein.  No such merger shall occur unless and until
all persons at the time having an interest in the fee estate in the land, or
any such superior leasehold estate, and all persons having an interest in this
Lease, or in the leasehold estate created by this Lease, shall join in a
written instrument effecting such merger and shall duly record the same.

 

21. DELAYS.

 

The time for
the performance of any act required to be done by either Party shall be
extended by a period equal to any delay caused by or resulting from act of God,
war, terrorism, civil commotion, fire, casualty, labor difficulties, shortages
of labor or materials or equipment, governmental regulation, a restraint of law
(e.g. injunctions, court or administrative orders or a legal moratorium imposed
by a Governmental Authority), inability to obtain government permits or
approvals provided a party diligently pursues such permits, act or default of
the other Party, or other causes beyond such Party’s reasonable control (which
shall not, however, include the availability of funds), whether such time be
designated by a fixed date, a fixed time or otherwise provided, however,
that no party shall be entitled to relief under this Article 21 by reason of any event unless such Party shall have
given the other Party notice of such event and the nature of such event within
a reasonable time after the occurrence of such event.

 

20

 

22. MEMORANDUM OF LEASE.

 

The Parties
have executed of even date herewith a memorandum of this Lease in the form
annexed hereto as Exhibit B
(the “Memorandum”), that may be recorded by Tenant.  Tenant shall pay all recording fees, if any,
occasioned the recording of the Memorandum.

 

23. ACCESS.

 

Landlord and
Tenant agree that during the Term at all reasonable times they will permit the
Beneficiary and members of Beneficiary’s immediate family, her direct
descendants and their immediate families (the “Family Parties”), and
their invited guests who are accompanied by one or more of the Family Parties
(collectively, the “Family Permittees”), to visit the Mansion, the
Restricted to the Public Premises, and the family gravesite at the Demised
Premises, provided that Beneficiary and the Family Permittees:  (i) shall exercise such rights of access
solely for personal and family reasons, and shall not in any way exploit,
commercially or otherwise, or alter, modify or change, the Mansion, the family
gravesite, family ancestors, or use the Mansion, the Restricted to the Public
Premises, and the family gravesite for any commercial or business purpose or
reason, and (ii) shall comply with the reasonable rules and regulations from
time to time promulgated by Tenant which are intended to minimize any
interference with Tenant’s use and occupancy of the Demised Premises and its
rights under this Lease, but which shall not prevent the right of access
granted pursuant to this Article 23.  Tenant acknowledges that notwithstanding
Tenant’s rights to make Alterations to the Demised Premises, construct
Improvements thereon and use the Demised Premises in accordance with this
Lease, the provisions of this Article 23
shall be and remain binding upon Tenant and its successors and assigns.

 

24. CONFIDENTIALITY.

 

The Parties
acknowledge that the terms contained in this Lease are, to the extent not
already in the public domain, confidential information and shall remain
confidential and proprietary to the Parties, and each Party agrees to hold and
keep information confidential as and to the full extent provided herein.  Confidential information shall not include
information which (i) becomes generally available to the public (except as a
result of the disclosure by a Party or its representatives in violation of this
Article 24), or (ii) becomes
available to a Party on a non-confidential basis from a source other than the
other Party or its representatives or advisors, unless the source thereof is
known or should have been known by such Party to be bound by
confidentiality.  A Party may disclose
the confidential information to representatives and employees of such Party who
need to know the same for the purposes of performing the Party’s obligations
under this Lease, and disclose such information to its attorneys, accountants,
governmental agencies (e.g., the Internal Revenue Service); proposed or
actual purchasers, investors, partners, members; proposed or actual mortgagees
or other lenders, and, if required by interrogatories, subpoenas, civil
investigative demands or other legal process; provided, however, that in such
event, the Party against whom such judicial disclosure is sought shall not make
any disclosure without such prior notice to the other Party as shall be reasonable
in the circumstances and shall consult with the other Party on the advisability
of taking legally available steps to resist or narrow such request.  In addition, in the event of any litigation
or other legal action or proceeding between Landlord and Tenant with respect to
this Lease or their relationship as 

 

21

 

landlord and tenant, Landlord and Tenant shall have the right in such
litigation, action or proceeding to disclose matters and information required
under this Lease to be held confidential, but either Party shall have the right
to seek a protective order to maintain the confidentiality of the confidential
information and the other Party shall not oppose, and will join in, such
application.  The provisions of this Article 24 shall survive the
expiration or earlier termination of this Lease.

 

25. HOLDOVER.

 

If Tenant
remains in possession of the Demised Premises beyond the expiration or earlier
termination of the Term, such holding over in itself shall not constitute a
renewal or extension of this Lease, and Tenant shall be deemed to be a holdover
tenant, the tenancy of shall be from month to month upon the same provisions
and conditions set forth in this Lease. 
Nothing contained in this Section 25
shall limit the rights of Landlord to pursue all remedies available to Landlord
at law or equity to recover possession of the Demised Premises, except that
Tenant shall never have any liability or responsibility whatever for any
consequential or indirect damages, whether proximately or remotely related to
such holdover by Tenant.

 

26. END OF TERM SURRENDER OF
DEMISED PREMISES.

 

At the
expiration or earlier termination of the Term, Tenant shall surrender the
Demised Premises to Landlord in the same condition as it is required to be
maintained by Tenant pursuant to this Lease, reasonable wear and tear and
damage caused by a Casualty, a Taking or the negligence or willful misconduct
of Landlord, the Beneficiary, the Family Permittees and any of the Landlord
Indemnified Parties excepted.

 

27. RIGHTS OF LEASEHOLD MORTGAGEE.

 

(a)     Definitions.  Any mortgage of Tenant’s leasehold estate
under this Lease is hereinafter referred to as “Leasehold Mortgage.”  Any holder of a Leasehold Mortgage is
hereinafter referred to as “Leasehold Mortgagee.”

 

(b)     Notice to the Landlord.  The provisions of this Article 27 shall not apply in favor of
Leasehold Mortgagee unless the Leasehold Mortgagee:  (i) has duly recorded its mortgage or
notice thereof in the public office where such recording may be required in
order to charge third persons with knowledge thereof, or (ii) has given
notice to the Landlord stating Leasehold Mortgagee’s name and address and
including a true and correct copy of the Leasehold Mortgage.

 

(c)     Notice to Leasehold Mortgagees.  The Landlord, upon giving Tenant any notice
of Default or change of address under this Lease, shall simultaneously give a
copy of such notice or communication to Leasehold Mortgagee in the same manner
provided by this Lease for the giving of notices to Tenant.  No such notice by the Landlord to Tenant
shall be deemed to have been given unless and until notice has been given to
the Leasehold Mortgage.

 

(d)     Right of Leasehold Mortgagee to Cure Defaults by
Tenant.  A Leasehold Mortgagee
shall have the right to cure any default by Tenant for the same period after
receiving notice of such default from the Landlord as Tenant has after notice
to it, plus such an additional 

 

22

 

thirty (30) days. 
The Landlord shall accept a cure performed within such period by
Leasehold Mortgagee as though the cure had been done or performed in a timely
fashion by Tenant.

 

(e)     Leasehold Mortgagee’s Opportunity to Foreclose.  Except with respect to a Default by Tenant,
in the payment of any monies due hereunder, Landlord shall take no action to
enforce its rights under this Lease without first giving Leasehold Mortgagee a
notice of its intention to do so and a period of not less than six (6) months
following the date of its notice to the Leasehold Mortgagee within which
either:  (i) to obtain possession of
the Demised Premises (including possession by receiver), or (ii) to institute,
prosecute and complete foreclosure proceedings or otherwise acquire the Tenant’s
interest under this Lease.  During such
six (6) month period, as a condition to Landlord’s forbearance:  (i) Leasehold Mortgagee shall perform all
obligations of the Tenant under the Lease including payment of Annual Rent, to
the extent Leasehold Mortgagee can reasonably fulfill such obligation without
having actual possession of the Demised Premises, and (ii) take steps to
acquire Tenant’s interest in this Lease by foreclosure of the Leasehold
Mortgagee or other appropriate means and prosecute the same to completion with
due diligence.  Leasehold Mortgagee, upon
obtaining possession or acquiring Tenant’s interest under this Lease, shall
cure all Defaults reasonably susceptible of being cured by Leasehold Mortgagee,
provided that (1) Leasehold Mortgagee shall not be obligated to continue
such possession or to continue such foreclosure proceedings if the Default
shall be cured by Tenant, and (2) nothing herein shall preclude the Landlord,
subject to the provisions of this Article 27,
from exercising any rights or remedies under this Lease with respect to any
other Default by Tenant.  Any Default by
Tenant not reasonably susceptible of being cured by Leasehold Mortgagee shall
be deemed to have been waived by the Landlord upon completion of such
foreclosure proceedings or upon such acquisition of Tenant’s interest in this
Lease, except that any of such events of default which are reasonably
susceptible of being cured after such completion and acquisition shall then be
cured with reasonable diligence. 
Leasehold Mortgagee in foreclosure proceedings may become the legal
owner and holder of this Lease for foreclosure or assignment or assignment in
lieu of foreclosure.

 

(f)      No Modification.  During the term of any Leasehold Mortgage,
Landlord and Tenant shall not materially amend or voluntarily agree to an early
termination of this Lease without the express written consent of Leasehold
Mortgagee.

 

(g)     Release from Liability.  If Leasehold Mortgagee shall acquire title to
Tenant’s interest in this Lease by foreclosure, assignment in lieu of
foreclosure or otherwise, the Leasehold Mortgagee may assign this Lease and
shall thereupon be released from all liability for the performance of the
covenants and conditions in this Lease contained on Tenant’s part to be
performed and observed from and after the date of such assignment; provided,
however, that any Tenant Default existing at the time of the assignment
susceptible of cure by a successor tenant shall be cured and the assignee
delivers to Landlord a written agreement (in form reasonably acceptable to
Landlord) to be bound by the provisions of such lease.

 

28. WAIVER OF TRIAL BY JURY.

 

LANDLORD AND TENANT HEREBY WAIVE ALL RIGHT TO TRIAL BY
JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER LANDLORD OR
TENANT AGAINST EACH OTHER ON ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED
WITH THIS LEASE, THE RELATIONSHIP OF 

 

23

 

LANDLORD AND TENANT, OR
TENANT’S USE OR OCCUPANCY OF THE DEMISED PREMISES.  THIS WAIVER SHALL SURVIVE THE EXPIRATION OF
THIS LEASE.

 

IN WITNESS WHEREOF,
Landlord and Tenant have executed this Lease effective as of the Effective
Date.

 

	
   

  	
  THE
  PROMENADE TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry J. Siegel

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Barry J. Siegel

  
	
   

  	
   

  	
  Title:

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary A. Hovey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary A. Hovey

  
	
   

  	
   

  	
  Title:

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
  ELVIS
  PRESLEY ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Soden

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jack Soden

  
	
   

  	
   

  	
  Title:

  	
  President

  
							

 

24

 

EXHIBIT
A

 

Legal Description of the
Land

 

[to be supplied]

 

25

 

EXHIBIT B

 

Memorandum Of Lease

 

	
  This Instrument Prepared By:

  	
   

  
	
   

  	
   

  
	
  BAKER, DONELSON,
  BEARMAN,

  
	
  CALDWELL &
  BERKOWITZ, P.C.

  
	
  John F. Rogers, Jr,
  Esq.

  	
   

  
	
  211 Commerce Street,
  Suite 1000

  	
   

  
	
  Nashville, Tennessee
  37201

  	
   

  

 

MEMORANDUM OF LEASE

 

THIS MEMORANDUM OF LEASE (this “Memorandum”) is made as of and is
effective from the             
day of February, 2005, by and between GARY A.
HOVEY AND BARRY J. SIEGEL, as trustees of the Promenade Trust, a
grantor trust created under the laws of the State of Tennessee pursuant to that
certain Second Restated and Amended Trust Agreement dated December 15, 2004 (“Landlord”),
and ELVIS PRESLEY ENTERPRISES, INC. a
Tennessee corporation (“Tenant”).

 

W I T N E S S E T H:

 

That
in consideration of and upon the rents, covenants, and conditions more
particularly set forth in that certain Lease Agreement between Landlord and
Tenant having an Effective Date as set forth therein and restated below (the “Lease”),
Landlord has leased unto Tenant and Tenant has leased from Landlord for the
Term as defined in the Lease and herein the Demised Premises as described in
the Lease and below.  For purposes of
placing a memorandum of record as pertains to the Lease, Landlord and Tenant do
hereby further covenant and agree as follows as contemplated by the terms and
conditions of the Lease:

 

NAME AND ADDRESS OF LANDLORD:

 

GARY A. HOVEY AND BARRY J. SIEGEL, as trustees of the Promenade Trust, a grantor
trust created under the laws of the State of Tennessee pursuant to that certain
Second Restated and Amended Trust Agreement dated December 15, 2004 having its principal office c/o Provident
Financial Management, 2850 Ocean Park Blvd., Suite 300, Santa Monica,
California 90405.

 

NAME AND ADDRESS OF TENANT:

 

ELVIS PRESLEY ENTERPRISES, INC. a Tennessee corporation having its principal
office at 650 Madison Avenue, New York, New York 10022.

 

EFFECTIVE DATE OF LEASE: February      ,
2005.

 

DEMISED PREMISES:

 

The
land and premises located in the City of Memphis, Shelby County, State of
Tennessee which is more particularly described on Exhibit A annexed hereto (the “Land”); (b) all
buildings, including the former Elvis Presley family residence and current
museum buildings known as “Graceland” (the “Mansion”) and all ancillary
buildings, and all other structures and improvements, including all signs,
statuary, walls, fences, monuments, markers and landscaping, now existing on,
in under or about the Land, and including all buildings, structures and improvements
shown on that certain “as-built” ALTA/ACSM Land Title Survey made by The Reaves
Firm, Incorporated, dated January 1, 2005 and last revised                              
under Job No.: 04-0726 and further described as Parcel 1 on Sheet No.’s 2 and 3
(collectively, the “Improvements”); (c) all building systems and real
property fixtures of every kind and 

 

26

 

nature
whatsoever, located on the Land, or which are a part of the Improvements, or
both (the “Equipment”); (d) all rights, privileges and appurtenances,
and rights to the same, if any, belonging to and appurtenant to the Land; (e)
all easements and rights-of-way in, to, upon or over the Land, and all rights
of ingress and egress appurtenant thereto; and (f) all right, title and
interest of Seller in and to any award made or to be made in lieu thereof and
in and to any unpaid award for damage to the Demised Premises by reason of
change of grade of any street (collectively, the “Demised Premises”).

 

TERM:

 

The
term of this Lease (the “Term”) shall commence on February    ,
2005 and shall terminate at 11:59 p.m. on the earlier to occur of: (i) January
31, 2095, and (ii) the day prior to the date which is twenty-one (21) years
after the death of the now living (as of the Effective Date) last descendent of
Elizabeth, the current Queen of England.

 

RESTRICTION ON ALIENATION, TRANSFER AND MORTGAGES:

 

The
Lease contains a provision which prohibits any sale, assignment, mortgage,
pledge, hypothecation, encumbrance, voluntary lien and all other types of
transfer or attempted transfer by the Landlord of any interest in the Land, the
improvements thereon, or any portion of the Demised Premises, the Lease or
Landlord’s interest in this Lease for the entire term of the Lease.

 

EXECUTION IN COUNTERPARTS:

 

This
Memorandum may be executed in one or more original counterparts, each of which
shall be an original but, when taken together, shall constitute but one
document.

 

EFFECT OF THIS MEMORANDUM OF LEASE:

 

This
Memorandum of Lease is entered into by the parties, and is to be recorded, only
to set forth the Lease and certain provisions thereof as a matter of
record.  Nothing contained in this
Memorandum of Lease shall be deemed to modify, amend, alter, limit or otherwise
change any of the provisions of the Lease itself or the rights and obligations
of the parties thereto as provided therein, and the parties agree that this
Memorandum is not intended nor shall it be used to interpret the Lease or
determine the intent of the parties under the Lease.  All capitalized terms in this Memorandum of
Lease shall have the meaning ascribed in the Lease.  In the event of any conflict or ambiguity
between the terms of this Memorandum of Lease or the terms of the Lease, the
terms of the Lease shall prevail. 
Reference is hereby made to the Lease for all of the terms, covenants
and conditions thereof.

 

{REMAINDER OF PAGE INTENTIONALLY LEFT BLANK}

 

27

 

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this
Memorandum of Lease as of February    , 2005.

 

	
   

  	
  GARY A. HOVEY AND BARRY J. SIEGEL, as

  trustees of the Promenade Trust, a grantor trust created

  under the laws of the State of Tennessee pursuant to that

  certain Second Restated and Amended Trust Agreement

  dated December 15, 2004

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Barry
  J. Siegel

  
	
   

  	
   

  	
  Title:

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary
  A. Hovey

  
	
   

  	
   

  	
  Title:

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ELVIS PRESLEY ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jack
  Soden

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  STATE
  OF

  	
  }

  	
   

  	
   

  	
   

  
	
   

  	
  ss.:

  	
   

  	
   

  	
   

  
	
  COUNTY
  OF

  	
  }

  	
   

  	
   

  	
   

  
							

 

Before me,                                      
a Notary Public in and for said County and State, personally appeared Gary A. Hovey with whom I am personally
acquainted (or proved to me on the basis of satisfactory evidence), and who,
upon oath, acknowledged self to be a Trustee of the Promenade Trust, the within
named bargainor, a grantor trust created under the laws of the State of
Tennessee, and that he as such Trustee executed the foregoing instrument for the
purposes therein contained, by signing the name of the Trust by himself as such
Trustee.

 

WITNESS my hand and seal at office, on this      
day of February    ,
2005

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

	
  My Commission Expires:

  
	
   

  
	
   

  	
   

  

 

28

 

	
  STATE
  OF

  	
  }

  	
   

  
	
   

  	
  ss.:

  	
   

  
	
  COUNTY
  OF

  	
  }

  	
   

  

 

Before me,                                         
a Notary Public in and for said County and State, personally appeared Barry J. Siegel with whom I am personally
acquainted (or proved to me on the basis of satisfactory evidence), and who,
upon oath, acknowledged self to be a Trustee of the Promenade Trust, the within
named bargainor, a grantor trust created under the laws of the State of
Tennessee, and that he as such Trustee executed the foregoing instrument for
the purposes therein contained, by signing the name of the Trust by himself as
such Trustee.

 

WITNESS my hand and seal at office, on this      
day of February    ,
2005

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

	
  My Commission Expires:

  
	
   

  
	
   

  	
   

  

 

 

	
  STATE
  OF

  	
  }

  	
   

  
	
   

  	
  ss.:

  	
   

  
	
  COUNTY
  OF

  	
  }

  	
   

  

 

Before me,  a
Notary Public in and for the State and County aforesaid, personally appeared Jack Soden with whom I am personally
acquainted (or proved to me on the basis of satisfactory evidence), and who,
upon oath, acknowledged himself to be the President of Elvis Presley
Enterprises, Inc., the within named bargainor, a Tennessee corporation, and
that he as such President being duly authorized so to do, executed the
foregoing instrument for the purposes therein contained, by signing the name of
the corporation by himself as such President.

 

WITNESS my hand and seal at office, on this      
day of February    ,
2005

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

	
  My Commission Expires:

  
	
   

  
	
   

  	
   

  

 

 

[Insert legal description]

 

29

 

SCHEDULE 4(a)

 

Basic Rent Payment
Allocations

 

(Expressed as a
Percentage of Landlord’s Cost)

 

	
  Payment Dates

  	
   

  	
  Basic Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

30

 

SCHEDULE 4(b)

 

Basic Rent Payment
Allocations

 

BASIC RENT PAYMENT
ALLOCATIONS

(expressed as Percentage of Landlord’s Cost)

 

	
  Lease Periods

  	
   

  	
  Allocation of

  Basic Rent

  	
   

  	
  Proportional

  Rent

  	
   

  	
  Landlord 467

  Loan Balance

  	
   

  	
  Tenant 467

  Loan Balance

  	
   

  	
  Landlord 467

  Loan Interest

  	
   

  	
  Tenant 467

  Loan Interest

  	
   

  
	
  From

  	
   

  	
  Through (and including)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

31Exhibit 10.10

 

SHAREHOLDERS AGREEMENT

 

SHAREHOLDERS
AGREEMENT, dated as of February 7, 2005, by and among Elvis Presley
Enterprises, Inc., a Tennessee corporation (the “Company”), the holder
(the “Series B Investor”) of the Company’s $1.00 par value per share
Series B Cumulative Convertible Preferred Shares, par value $1.00 per share
(the “Series B Preferred Shares”), listed on Schedule A hereto,
and those holders (the “Series A Investors”) of the Company’s $1.00 par
value per share Series A Preferred Shares, par value $1.00 per share (the “Series
A Preferred Shares”), listed on Schedule B hereto.  The Series B Investors, the Series A
Investors and any Person who executes a counterpart to this Agreement in
accordance with Article VI hereof are collectively referred to herein as the “Shareholders”.

 

PREAMBLE

 

WHEREAS,
pursuant to the terms of the Exchange Agreement (as defined below), the
Promenade Trust agreed to: (i) amend and restate the charter of the Company to
provide for the issuance of the Series A Preferred Shares and Series B
Preferred Shares; and (ii) contribute to Parent (x) 85% of the common shares,
par value $1.00 per share of Company (the “Common Shares”) and (y) 100%
of the Series A Preferred Shares, in each case, issued and outstanding on the Closing
Date (as defined in the Exchange Agreement);

 

WHEREAS, one
of the conditions to the closing of the transactions contemplated by the
Exchange Agreement is the execution of this Agreement; and

 

WHEREAS, the
Shareholders desire to accept the rights created pursuant hereto.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1        Definitions.  

 

(a)           Capitalized terms used herein but not otherwise
defined shall have the respective meanings ascribed to such terms in the Operating
Agreement (as defined in Section 1.1(b) below).

 

(b)           The
terms defined in this Section 1.1(b) shall have the meanings herein specified:
“Act” means the Tennessee Business Corporation Act (Ten. Code. tit 48
§§11-101 through 27-103).

 

(ii)           “Annual Audit Report” means the audited balance
sheet and the related statement of income, changes in members’ equity and cash
flows for the Company for each Fiscal Year, audited by Deloitte & Touche or
such other 

 

 

nationally
recognized auditing firm designated by Company, and prepared in accordance with
GAAP, consistently applied, together with a calculation of the Operating Cash
Flow for such Fiscal Year certified by the chief financial officer of the
Company.

 

(iii)          “Amended and Restated Charter” means the Amended
and Restated Charter of the Company, as in effect from time to time.

 

(iv)          “Board” means the Board of Directors of the
Company.

 

(v)           “Closing” has the meaning set forth in Section 5.3.

 

(vi)          “Code” shall have the meaning set forth in the
Operating Agreement.

 

(vii)         “Common Shares” means the common shares of the
Company, par value $1.00 per share.

 

(viii)        “Company” has the meaning set forth in the
Recitals.

 

(ix)           “Fiscal Year” has the meaning set forth in the
Amended and Restated Charter.

 

(x)            “Independent Appraiser” means the independent
appraiser selected pursuant to Section 5.2(b).

 

(xi)           “LLC” has the meaning set forth in the Amended
and Restated Charter.

 

(xii)          “Non-Transferring Shareholders” has the meaning
set forth in Section 4.1.

 

(xiii)         “Operating Agreement” has the meaning set forth
in the Amended and Restated Charter.

 

(xiv)        “Option Notice” has the meaning set forth in
Section 3.2(a).

 

(xv)         “Permitted Transferee” means a Person who
acquires Shares in a Transfer by a Shareholder in accordance with the terms set
forth in Articles IV, V and VI hereof.

 

(xvi)        “Preferred Shares” means the Series A Preferred
Shares and the Series B Preferred Shares.

 

(xvii)       “Put Interest” has the meaning set forth in
Section 5.1.

 

2

 

(xviii)      “Put Notice” means the notice delivered by the
Series B Investor pursuant to Article V.

 

(xix)         “Put Shares” has the meaning set forth in
Section 5.1.

 

(xx)          “Remaining Shareholders” has the meaning set
forth in Section 5.1.

 

(xxi)         “Series A Investor” has the meaning set forth
in the introductory paragraph.

 

(xxii)        “Series A Investor Shares” means the Common
Shares and Series A Preferred Shares held by such Series A Investor.

 

(xxiii)       “Series A Preferred Shares” has the meaning set
forth in the introductory paragraph.

 

(xxiv)       “Series B Investor” has the meaning set forth
in the introductory paragraph.

 

(xxv)        “Series B Preferred Shares” has the meaning set
forth in the introductory paragraph.

 

(xxvi)       “Shareholders” has the meaning set forth in the
introductory paragraph.

 

(xxvii)      “Shares” means the Series A Preferred Shares,
Series B Preferred Shares or Common Shares held by the Shareholders.

 

(xxviii)     “Tag-Along Notice” means the notice delivered
by the Transferring Shareholders pursuant to Article IV.

 

(xxix)       “Tag-Along Option Period” means the 30-day
period commencing on the date the Tag-Along Notice is deemed delivered to the
Series B Investor pursuant to Article IV.

 

(xxx)        “Taxing Jurisdiction” means any Federal, state,
local or foreign government that collects tax or any similar assessments,
interest or penalties, however designated, on any Shares.

 

(xxxi)       Transferring Shareholders” means, collectively, Parent and
any Affiliate of Parent.

 

(b)           Interpretation.

 

(i)            Any provision of this Agreement which refers to an
action which 

 

3

 

may
be taken by any Person, or which a Person is prohibited from taking, shall
include any such action taken directly or indirectly by or on behalf of such Person,
including by or on behalf of any Affiliate, partner or agent of such Person.

 

(ii)           Any provision of this Agreement which refers to the
words “include,” “includes,” or “including” shall be deemed to be followed by
the words “without limitation”.

 

(iii)          All captions in this Agreement are inserted for
reference only and are not to be considered in the construction or
interpretation of any provision hereof.

 

(iv)          In the event that any claim is made by any Person
relating to any conflict, omission or ambiguity in this Agreement, no
presumption or burden of proof or persuasion shall be implied by virtue of the
fact that this Agreement was prepared by or at the request of a particular
Person or its counsel.

 

(v)           References to numbered or letter articles, sections,
and subsections refer to articles, sections and subsections, respectively, of
this Agreement unless expressly stated otherwise.  All references to this Agreement include,
whether or not expressly referenced, the exhibits and appendices attached hereto.

 

ARTICLE II

 

COVENANTS OF THE COMPANY

 

Section 2.1        Meetings.

 

(a)           Annual Meeting.  The Company
shall hold an annual meeting of the shareholders within 90 days after the end
of each Fiscal Year.  No other regular
meetings of the shareholders are required to be held.  All meetings shall be noticed, held and
conducted pursuant to section 48-17-101 et.
seq. of the Act.  Except as
otherwise specifically provided for herein, in any instance under this
Agreement that requires the consent of the Shareholders, such consent may be
obtained in any manner permitted by the Act.

 

(b)           Power to Call Meetings. 
Upon written demand of any Shareholder, meetings shall be called for any
purpose; provided, that unless the Company is in material default
hereunder or under the Amended and Restated Charter, the Series B Investor
shall not be entitled to call more than two (2) meetings in any given calendar
year.

 

(c)           Notice of Meeting.  Written
notice of a meeting of shareholders shall be sent or otherwise given to each
shareholder not less than five nor more than 60 days before the date of the
meeting.  The notice shall specify the
place, date and hour of the meeting.  The
Shareholder requesting such meeting shall promptly cause notice to be given to
the shareholders that a 

 

4

 

meeting will be held at the time requested by
the Shareholder requesting the meeting, not less than five nor more than 60
days after the receipt of the request.

 

(d)           Manner of Giving Notice. 
Notice of any meeting of shareholders shall be given in accordance with
the provisions of, and shall be addressed to each shareholder of the Company at
the address set forth in Section 7.8 below or in the register of the Company.

 

(e)           Quorum.  The presence
in person or by proxy of the Series B Investor and the holders of a majority of
the outstanding Common Shares shall constitute a quorum at a meeting of
shareholders.

 

(f)            Waiver of Notice or Consent. 
The actions taken at any meeting, however called and noticed, and wherever
held, have the same validity as if taken at a meeting duly held after regular
call and notice, if, either before or after the meeting, each of the
shareholders entitled to vote who was not present in person or by proxy signs a
written waiver of notice or consents to the holding of the meeting and approves
the minutes of the meeting.  All such
waivers, consents or approvals shall be filed with the Company records or made
a part of the minutes of the meeting. 
Attendance of a shareholder at a meeting shall constitute a waiver of
notice of that meeting, except when the shareholder objects at the beginning of
the meeting to the transaction of any business because the meeting is not
lawfully called or convened.

 

(g)           Telephonic Participation by Shareholder at Meetings. 
Shareholders may participate in any shareholders’ meeting through the
use of any means of conference telephones or similar communications equipment
as long as all shareholders participating can hear one another.  A shareholder so participating is deemed to
be present in person at the meeting.

 

(h)           Place of Meetings.  Meetings of
the shareholders shall be held at the principal office of Parent, unless the
Shareholders shall agree upon some other appropriate and convenient location
for that purpose from time to time.

 

Section 2.2        Information,
Accounts and Publicity.

 

(a)           Books and Records.  The books and
records of the Company shall be kept, and the financial position and the
results of its operations recorded, in accordance with GAAP.  The books and records of the Company shall
reflect all the Company’s transactions and shall be appropriate and adequate
for the business conducted by the Company.

 

(b)           Delivery to Shareholders and Inspection. 
Upon the written request stating the reason of such request of any
Shareholder for purposes reasonably related to the interest of that Person as a
Shareholder, the Company shall promptly deliver to the requesting Shareholder,
at the expense of the Company, a copy of the following:

 

(i)            a current list of the full name and last known
business or residence address of each shareholder, former shareholder and other
holder of an equity interest or capital stock of the Company, set forth in
alphabetical order;

 

5

 

(ii)           copies of the Company’s federal, foreign, state, and
local income tax or information returns and reports, if any, for each Fiscal
Year;

 

(iii)          copies of the financial statements of the Company, if
any, for the six (6) most recent Fiscal Years;

 

(iv)          a copy of the Amended and Restated Charter and bylaws
and all amendments thereto, this Agreement and all amendments thereto, together
with executed copies of any written powers of attorney pursuant to this
Agreement and all amendments thereto have been executed; and

 

(v)           any other information regarding the affairs of the
Company as is reasonable, including true and full information regarding the
business and financial condition of the Company.

 

(c)           Inspection.  Each
Shareholder has the right, upon reasonable request for the purposes reasonably
related to the interest of the Person as a Shareholder, to (i) inspect and copy
during normal business hours any of the Company records maintained by the
Company pursuant to this Section 2.2; and (ii) obtain from the Company, promptly
after their becoming available, a copy of the Company’s federal, state, and
local income tax or information returns for each Fiscal Year.

 

(d)           Additional Records.  The Company
shall deliver, at the expense of the Company, the following to the Series B
Investor:

 

(i)            Copies of the Annual Audit Report within 90 days
following the end of each Fiscal Year, together with the calculation of the
Series B Year End Dividend for such Fiscal Year;

 

(ii)           Copies of the unaudited financial statements of the
Company within 45 days following the end of each calendar quarter;

 

(iii)          Annual budgets covering at least a period of one
Fiscal Year no later than 60 days after the beginning of such period
accompanied by a certificate signed by the President or other officer acting in
a similar capacity certifying that (i) such projections have been prepared
on the basis of sound financial planning and practice, consistent with past
budgets and financial statements and (ii) the President or other officer
acting in a similar capacity has no reason to question the reasonableness of
any material assumptions on which such projections were prepared;

 

(iv)          A copy of the monthly financial reports to the extent
such reports are prepared by the Company in the ordinary course of business, in
each case certified by the chief accounting officer of the Company or, if none,
the President or other officer acting in a similar capacity, within 30 days
after the end of each 

 

6

 

calendar month, including
unaudited financial statements on a monthly basis and material updates and
changes (if any) to the budget or business plan;

 

(v)           Immediate notification of any material litigation or
governmental order;

 

(vi)          a copy of the Company’s federal, state, and local
income tax or information returns for each Fiscal Year within 90 days after the
end of each Fiscal Year;

 

(vii)         copies of any notices, statements or reports delivered
or required to be delivered to the holders of the Class B Interest pursuant to
the terms of the Operating Agreement in effect on the date hereof; provided,
that copies of any such notice, statement or report delivered to the Class B
Member shall be deemed delivered to the Series B Investor for purposes hereof;
and

 

(viii)        any other information regarding the affairs of the
Company as is reasonably requested.

 

(e)           Bank Accounts.  The Company
shall maintain the funds of the Company and its subsidiaries in one or more
separate bank accounts in the name of the Company or its subsidiaries, and
shall not, other than with its subsidiaries, permit the funds of the Company to
be commingled in any fashion with the funds of any other Person.

 

Section 2.3        Series
B Statement.

 

(a)           If the Series B Investor disagrees with the
calculation of the Series B Year End Dividend or the Class B Year End
Distribution, it shall, within 30 days after its receipt of the Annual Audit
Report, notify the Company of such disagreement in writing, setting forth the
particulars of such disagreement; provided, that failure to provide a
notice of disagreement shall not waive any rights that the Series B Investor
may have under this Agreement or otherwise.

 

(b)           If any such notice of disagreement is provided, the
Series B Investor and the Company shall use reasonable good faith efforts to
resolve such dispute.  If, at the end of
a 10-day period (or such longer period as they may mutually agree), they are
unable to resolve such disagreement, then an Independent Financial Advisor
mutually selected by (i) the Series B Investor, on one hand, and (ii) the
Company and the Manager, on the other hand, shall resolve any remaining
disagreements regarding the Series B Year End Dividend or the Class B Year End
Distribution.  The Independent Financial
Advisor shall determine as promptly as practicable, only with respect to the
disagreements submitted, whether and to what extent (if any) the Series B Year
End Dividend and/or the Class B Year End Distribution requires adjustment.  The Independent Financial Advisor shall
promptly deliver to the Series B Investor, the Company and the Manager its
determination in writing, which determination shall be made subject to the
definitions and principles set forth in this Agreement and the Amended and
Restated Charter.  The determination of
the Independent Financial Advisor shall be final, binding and conclusive 

 

7

 

for purposes of this Agreement.  Notwithstanding anything to the contrary
herein, an amount equal to the Series B Year End Dividend as set forth on the
Annual Audit Report shall be paid to the Series B Investor on the applicable
Series B Dividend Payment Date and, if it is subsequently determined that an
additional payment is due, such additional payment shall be made within 10 days
following the Independent Financial Advisor’s determination.  The fees and expenses of the Independent
Financial Advisor shall be paid by the Company, unless the Independent
Financial Advisor determines that the aggregate amount of the additional
payment due to the Series B Investor in respect of the Series B Year End
Dividend or the Class B Year End Distribution is not more than the lower of (i)
$50,000 or (ii) 5% of the payment that was actually paid to the Series B
Investor, in which case, the Series B Investor shall pay the fees and expenses
of the Independent Financial Advisor.

 

Section 2.4        Financing
Growth.  Subject to Section
7.5 of the Amended and Restated Charter, the Series A Investor shall have the
right to finance efforts to grow the business of the Company by loaning capital
directly to the Company and/or arranging bona
fide third-party financing; provided,
that the Interest on any such Indebtedness owed to Parent or any Affiliate of
Parent shall not exceed the Permitted Rate.

 

Section 2.5        Business
Purpose.  The Company shall
not engage in any Improper Activity.

 

ARTICLE III

 

OTHER COVENANTS

 

Section 3.1        Covenants
Regarding Series B Dividends.

 

(a)           If the Company shall fail to pay the Series B Dividend
on or before any Series B Dividend Payment Date (because there is insufficient
cash legally available therefore or otherwise), the Series A Investors shall
pay on a pro rata basis directly
to the Series B Investor an amount equal to all unpaid Series B Dividends in
full as soon thereafter as possible, and before any dividends or other
distributions are paid to any holder of Capital Stock of the Company.

 

(b)           If the Series B Investor disputes the calculation of
the Series B Year End Dividend pursuant to Section 2.3 hereof and it is
determined that the Series B Year End Dividend should be increased, the Series
A Investors, pro rata, within 5
days following such determination, shall pay directly to the Series B Investor
such portion of the Series A Year End Dividend as is equal to the increase in
the Series B Year End Dividend.

 

Section 3.2        Right
of First Refusal.  Other than
Transfers (i) to its Affiliates or (ii) of all of the Series A Investor Shares
then held by Parent or any Affiliate of Parent to an Acquiror pursuant to a
Change of Control of Parent, each time the Series A Investor proposes to
Transfer all or any part of the Series A Investor Shares, such Series A
Investor shall first offer such Series A Investor Shares to the Series B
Investor in accordance with the following provisions, provided

 

8

 

that the grant of any permitted pledge or
mortgage of any assets of the Company to secure Indebtedness of the Company to
a person or of the Series A Investor Shares shall not constitute a Transfer or
assignment for purposes of this Section 3.2 if the holder of such pledge or
mortgage agrees to comply with the terms hereof.

 

(a)           Notice
of Proposed Transfer.  Such Series A
Investor shall deliver a written notice (“Option Notice”) to the Series
B Investor stating (i) such Series A Investor’s bona fide intention to Transfer
such Series A Investor Shares; (ii) the Series A Investor Shares to be
Transferred; (iii) the purchase price and terms of payment for which the Series
A Investor proposes to Transfer such Series A Investor Shares; (iv) the nature
of the proposed Transfer; and (iv) the name and address of the proposed
Transferee.  The Series A Investor shall
use commercially reasonable efforts to cause the Option Notice to be signed by
the proposed Transferee, if any, confirming the accuracy of the information
contained therein.

 

(b)           Series
B Investor’s Option.  The Series B
Investor shall have the right, but not the obligation, to elect to purchase
such Series A Investor Shares upon the same price and terms, including payment
of any deposit and forfeit thereof, designated in the Option Notice.  If the Option Notice provides for the payment
of non-cash consideration, the Series B Investor may elect to pay the
consideration in cash equal to the good faith estimate of the present fair
market value of the non-cash consideration offered.  Within 10 Business Days after receipt of the
Option Notice, the Series B Investor shall notify the Company in writing of its
election to purchase the Series A Investor Shares proposed to be so Transferred.  The failure to submit a notice within the
applicable period shall constitute an election not to purchase any of the
Series A Investor Shares which may be so Transferred.

 

(c)           Closing.  If the Series B Investor elects to purchase
the Series A Investor Shares designated in the Option Notice, then the closing
of such purchase shall occur within the time period and subject to the
conditions set forth in the Option Notice. 
The Transferring Shareholders, the Company and/or the other Series B
Investor shall execute such documents and instruments and make such deliveries
as may be reasonably required to consummate such purchase.

 

(d)           Failure
to Exercise Options.  If the Series B
Investor elects not to purchase all of the Series A Investor Shares designated
in the Option Notice, then the transferring Shareholders may Transfer the
portion of the Series A Investor Shares described in the Option Notice not so
purchased, to the proposed transferee but only if such Transfer (i) is
completed within 90 days after the expiration of the Series B Investor’s right
to purchase such Series A Investor Shares; (ii) is made on terms no less
favorable to the transferring Shareholders than as designated in the Option
Notice; and (iii) complies with Articles IV and VI.  If such Series A Investor Shares are not so
Transferred, the transferring shareholder must give notice in accordance with
this Section 3.2 prior to any other or subsequent Transfer of such Series A
Investor Shares.  If the Series B
Investor exercises its option under this Section 3.2 and defaults in its
obligation to purchase all of the Series A Investor Shares designated in the
Option Notice, the rights pursuant to this Section 3.2 shall terminate.

 

9

 

ARTICLE IV

 

TAG-ALONG RIGHT

 

Section 4.1        Tag-Along.

 

(a)           In addition to the other requirements hereunder, if a
Transferring Shareholder desires to transfer Preferred Shares or Common Shares
to a Third Party, the Transferring Shareholder shall deliver a Tag-Along Notice
to the other Shareholders (a “Non-Transferring Shareholder”) indicating
the amount and type (as applicable) of its Shares proposed to be Transferred
and the terms (including the form and amount of consideration to be paid) and
conditions of such proposed Transfer, provided that the grant of any
permitted pledge or mortgage of any assets of the Company to secure
Indebtedness of the Company to a person or of the Series A Investor Shares
shall not constitute a Transfer or assignment for purposes of this Section 4.1(a)
if the holder of such pledge or mortgage agrees to comply with the terms
hereof.  The Non-Transferring Shareholder
shall have the right to elect to participate in the proposed Transfer, by
delivering written notice of such election to the Transferring Shareholder
within the Tag-Along Option Period.  The
Non-Transferring Shareholder shall be entitled, but is not required, to sell to
the prospective Third Party an amount of its Shares up to the product of (i)
the number of shares of the Non-Transferring Shareholder’s Preferred Shares or
Common Shares, as applicable, and (ii) the percentage determined by dividing
(A) the number of shares of the Transferring Shareholders’ Preferred Shares or
Common Shares, as applicable, proposed to be Transferred divided by (B) the
aggregate number of shares of the Transferring Shareholders’ Shares, as
applicable, on substantially the same terms and conditions as the Transferring
Shareholders, provided, that where the Non-Transferring Shareholder is a Series
B Investor, such Series B Investor shall: (x) not be required to make any
representations or warranties other than with respect to its ownership of the
Shares held by it; and (y) agree to its pro rata share of any required
indemnification obligations solely with respect to such representations and
warranties required to be given pursuant to clause (x) above.

 

(b)           The Transferring Shareholders shall not sell any
Shares to a Third Party unless and until, simultaneously with such sale, the
Third Party purchases such Shares from the Non-Transferring Shareholder in
accordance with the terms of this Article IV.

 

(c)           Subject to Section 3.2 and the other requirements
hereunder, so long as the Transferring Shareholder complies with the conditions
set forth in this Article IV and in Article VI, the Transferring Shareholder
may Transfer such Shares to the Third Party set forth in the Tag-Along Notice,
provided that:

 

(i)            such Transfer is completed within 60 days after the
expiration of the Tag-Along Option Period,

 

(ii)           such Transfer is made for the same consideration and
on substantially the same terms and conditions as set forth in the Tag-Along
Notice,

 

10

 

(iii)          if any Series B Preferred Shares are being
transferred, such Series B Preferred Shares shall automatically convert,
without any action of the parties hereto or the transferee, into Series A
Preferred Shares, without any of the rights specifically associated with Series
B Preferred Shares, in accordance with the terms of the Amended and Restated
Charter,

 

(iv)          the requirements hereof relating to consents and the
requirements in Article VI are met,

 

(v)           if the Shares are not Transferred to the proposed
Third Party within such 60-day period, the Transferring Shareholders must give
notice in accordance with this Article IV prior to any other or subsequent
Transfer of such Shares; and

 

(vi)          the proceeds to be received by a Transferring
Shareholder are applied to any amounts due and owing the Company or the other
Shareholders hereunder or LLC under the Operating Agreement (including, in the
case of a Series B Investor, in its capacity as a Class B Member, as a Capital
Contribution in the amount of, and to reduce, any Excess Payment Balance) and
such amounts are paid to LLC concurrently with the Transferring Shareholder’s
receipt of the proceeds from the Transfer permitted hereunder; it being
understood that if there remains outstanding any Excess Payment Balance after
the application of the proceeds to be received by a Transferring Shareholder in
respect of Series B Preferred Shares, such outstanding Excess Payment Balance
shall apply in full to the remaining Series B Preferred Shares and Class B
Interest.

 

(d)           Immediately
following the transfer of Series B Preferred Shares pursuant to this Article
IV, except as provided below, all dividend and distribution calculations
relating to (x) the remaining Series B Preferred Shares held by the Series B
Investor (including all definitions and minimums relating thereto) under this
Agreement and under the Amended and Restated Charter and (y) the Series B
Investor’s continuing Class B Interest (including all definitions and minimums
relating thereto) under the Operating Agreement shall be reduced in the
aggregate proportionately on a going forward basis based on the percentage of
the Series B Preferred Shares transferred and the percentage Class B Interest
transferred.  If LLC elects to have an
interim closing of the books with respect to the related transfer of Membership
Interests, then the date of transfer shall be treated as the end of a Fiscal
Year for purposes of calculating the Series B Year End Dividend and the Class B
Year End Distribution, which amount shall be payable concurrently with the
transfer.  Otherwise, the determination
of the Amount Owed for the year of the transfer shall be the weighted average
of the Series B Investor’s percentage of Operating Cash Flow for such year. The
weighted average shall be the sum of the percentage share of Operating Cash
Flow for each day of the Fiscal Year divided by the number of days in the
Fiscal Year.  For example if the Series B
Investor’s interest in Operating Cash Flow was 15% for 125 days and 13% for 240
days, the formula would be 15x125 (1875) plus 13x240 (3120) divided by 365,
which results in a percentage of Operating Cash Flow equal to 13.68% and the “Amount
Owed” for purposes of determining the Series B Year End Dividend in the Amended
and 

 

11

 

Restated Charter shall be
adjusted accordingly.

 

ARTICLE V

 

PUT RIGHTS OF EXIT

 

Section 5.1        Put
Option.  Subject to Section
6.2, from and after January 1, 2008, the Series B Investor may, by delivery of
a written notice to the Company (the “Put Notice”), cause the Series A
Investors (the “Remaining Shareholders”) to purchase all or part of the Series
B Investor’s Series B Preferred Shares and Common Shares (the “Put Interest”)
as provided in this Article V; provided, that the Series B Investor shall not
be entitled to deliver a Put Notice more than twice in any Fiscal Year.  The Company and Parent hereby jointly
guarantee the performance of the Series A Investors of this Article V.

 

Section 5.2        Purchase
Price.

 

(a)           The purchase price for the Put Interest shall be the
fair market value thereof as determined by an independent appraiser jointly
selected by (i) the Series B Investor, on one hand, and (ii) the Company and
the Manager, on the other hand.  If the
Series B Investor, the Company and the Manager are unable to agree on an
appraiser within 10 days after delivery of the Put Interest, the Series B
Investor shall select an independent appraiser and the Company and the Manager
shall collectively select an independent appraiser, each within 5 days after
expiration of the 10-day period.  The 2
appraisers so selected shall each independently appraise the Put Interest and,
as long as the difference in the 2 appraisals does not exceed 1% of the lower
of the 2 appraisals, the fair market value shall be conclusively deemed to
equal the average of the 2 appraisals.  The
determination of such appraisers shall be binding on the parties.  If either party fails to select an
independent appraiser within the time required by this Section 5.2, the fair
market value of the Put Interest shall be conclusively deemed to equal the
appraisal of the independent appraiser timely selected by the other.

 

(b)           If the difference between the 2 appraisals exceeds 1%
of the lower of the 2 appraisals, the 2 appraisers selected shall select a
third appraiser (the “Independent Appraiser”) who shall also
independently appraise the Put Interest and choose between the other two
appraisals.  The determination of such
appraiser shall be binding on the parties. The cost of the Independent
Appraiser shall be borne by the party whose appraisal has not been chosen.

 

(c)           In determining the fair market value, the appraisers
shall consider all opinions and relevant evidence submitted to them by the
parties, or otherwise obtained by them (including future plans and
opportunities of the Company and LLC), and shall set forth their determination
in writing, together with their opinions and the considerations on which the
opinions are based, with a signed counterpart to be delivered to each party,
within 30 days after commencing the appraisal. 
In determining such fair market value: (i) the appraisers shall take
into account the amount of the Excess Payment Balance, if any, and (ii) no
discount shall be taken for non-marketability, minority ownership or other
similar factors.  The Company will
promptly provide all information requested by either party to assist in
determining fair market value.

 

12

 

(d)           The proceeds to be received by the Series B Investor
in connection with the sale of its Put Interest shall be applied to any amounts
due and owing by the Series B Investor to the Company or LLC or the Series A
Investors only to the extent such amounts
were not taken into account in determining the fair market value of the Put
Interest.

 

Section 5.3        Closing.  The purchase price for the Put Interest shall
be paid by the Remaining Shareholders in cash, at a closing (“Closing”) for the
sale of a Put Interest, to be held at 10:00 a.m. at the location specified in
the Put Notice no later than 60 days after the determination of the purchase
price, except that if the Closing date falls on a Saturday, Sunday, or legal
holiday, then the Closing shall be held on the next succeeding Business
Day.  At the Closing, the Series B
Investor shall deliver to the Remaining Shareholders an instrument of transfer
(containing warranties of title and no encumbrances) and certificates
evidencing the Series B Preferred Shares conveying the Put Interest.  The Series B Investor, the Company and the
Remaining Shareholders shall do all things and execute and deliver all papers
as may be reasonably necessary to consummate fully such sale and purchase in
accordance with the terms and provisions of this Agreement.

 

Section 5.4        Allocation
of Series B Year End Dividend. 
In any year in which a Put Option is exercised, the determination of the
Series B Year End Dividend and the Class B Year End Distribution shall be made
with respect to each Series B Investor based on their varying interests during
the year, reducing any amounts to which such Series B Investor is entitled, in
the aggregate proportionately for such year and on a going forward basis based
on the percentage of Class B Interest and Series B Preferred Shares as to which
the Put Option has been exercised.  For example,
if a Series B Investor holds 100% of the originally outstanding shares of
Series B Preferred Shares and Class B Interest for 125 days and 25% of such
shares of Series B Preferred Shares and Class B Interest for 240 days, the
formula would be 100x125 (12500) plus 25x240 (6000) divided by 365, which
results in a weighted percentage equal to 50.68% and accordingly, such Series B
Investor would be entitled to receive 50.68% of the Series B Year End Dividend
and Class B Year End Distribution.

 

ARTICLE VI

 

RESTRICTIONS ON TRANSFER

 

Section 6.1        Requirements
of Transfer.  In addition to
the other requirements hereunder, no Transfer of Shares in the Company shall be
effective unless and until:

 

(a)           the Company and the non-transferring Shareholders have
received written notice (including the name and address of the proposed
transferee and the date of such Transfer) of such Transfer;

 

(b)           the Company has received an opinion of counsel
reasonably satisfactory to the Company that such transfer is subject to an
effective registration under, or exempt from the registration requirements of,
the applicable state and Federal securities laws; provided, that no opinion
shall be required with respect to any transfer by a Series B Investor to the
Beneficiary, 

 

13

 

the Beneficiary’s descendants, immediate
family members or any trust or other entity formed for tax or estate planning
purposes for the benefit of any of the foregoing;

 

(c)           the Company has received from the transferee the
information and agreements that the Company may reasonably require, including
but not limited to any taxpayer identification number and any agreement that
may be required by any Taxing Jurisdiction; and

 

(d)           the proposed transferee agrees in writing for the
benefit of the Series B Investor, in form and substance reasonably satisfactory
to the Series B Investor, to comply with the obligations of the transferor set
forth in this Agreement.

 

Section 6.2        No
Transfer.  Notwithstanding
anything to the contrary in this Agreement:

 

(a)           No Shareholder shall Transfer Shares of any class or series
unless, concurrent with the Transfer of such Shares, such Shareholder Transfers
to the transferee of such Shares a number of (i) Shares of each other class or
series held by such Shareholder and (ii) Membership Interests, such that the
percentage of each class or series of Shares Transferred by such Shareholder
(x) equals the percentage of each other class or series of Shares Transferred
by such Shareholder and (y) equals the percentage of such Shareholder’s Membership
Interest Transferred.  For illustrative
purposes, if a Shareholder Transfers 1/3 of its Series A Preferred Shares, it
must also Transfer 1/3 of its Common Shares and 1/3 of its Membership Interest
to the same transferee.

 

(b)           No Series A Investor may Transfer any Shares except as
permitted by Article IV and this Article VI. 
No Series B Investor may Transfer any Shares except (i) in connection
with a Transfer by a Series A Investor under Articles IV and this Article VI
with respect to which the Series B Investor is exercising its Tag-Along rights
hereunder or (ii) pursuant to Article V.

 

Section 6.3        Restrictive Legend.

 

(a)           Each certificate representing Shares shall (unless
otherwise permitted by this Agreement) be stamped or otherwise imprinted with a
legend substantially in the following form (in addition to any legend required
under applicable state securities laws or otherwise):

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, NOR REGISTERED NOR QUALIFIED UNDER ANY
STATE SECURITIES LAWS.  SUCH SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, ASSIGNED, OR OTHERWISE
TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS QUALIFIED AND REGISTERED UNDER
APPLICABLE STATE AND FEDERAL SECURITIES LAWS OR UNLESS, IN THE OPINION OF
COUNSEL SATISFACTORY TO ELVIS PRESLEY ENTERPRISES, INC. (THE “COMPANY”), SUCH
QUALIFICATION AND REGISTRATION IS NOT REQUIRED. 
ANY TRANSFER OF THE SECURITIES REPRESENTED BY 

 

14

 

THIS
CERTIFICATE IS FURTHER SUBJECT TO OTHER RESTRICTIONS, TERMS AND CONDITIONS
WHICH ARE SET FORTH IN THE AMENDED AND RESTATED CHARTER OF THE COMPANY AND IN
THE SHAREHOLDERS AGREEMENT, DATED AS OF FEBRUARY 7, 2005, BY AND AMONG THE
COMPANY AND CERTAIN OF ITS SHAREHOLDERS.”

 

(b)           Each Shareholder consents to the Company making a
notation on its records and giving instructions to any transfer agent of the
Shares in order to implement the restrictions on transfer established in this Agreement.

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.1        Representations.

 

(a)           The Company represents that, other than as set forth
in the Amended and Restated Charter, there are no other agreements or
arrangements, whether oral or written, granting shareholders of the Company or
any of its subsidiaries rights by virtue of their ownership of capital stock of
the Company, including, without limitation, registration rights, rights of
first offer, co-sale rights, rights of first refusal, visitation rights, inspection
rights, financial information rights and other similar agreements.

 

(b)           Other than as set forth in the Amended and Restated
Charter, the Company and each Shareholder represent that they have not granted
and are not a party to any proxy, voting trust or other agreement which is
inconsistent with or conflicts with the provisions of this Agreement, and
neither the Company nor any Shareholder shall grant any proxy or become party
to any voting trust or other agreement which is inconsistent with or conflicts with
the provisions of this Agreement.

 

(c)           Each Shareholder represents, warrants and agrees that:

 

(i)            such Shareholder has acquired or is acquiring the
Shares for investment for its own account and not with a view to, or for,
resale, in connection with any distribution or public offering thereof within
the meaning of the Securities Act, and it is not a party to any agreement to
transfer the Shares;

 

(ii)           the Shares will not be registered under the Securities
Act or qualified under applicable state securities laws on the grounds that the
issuance of the Shares to such Shareholder is exempt from registration under
such laws;

 

(iii)          the Shares must be held indefinitely by such
Shareholder unless the Shares are subsequently registered under applicable
federal and state securities laws or an exemption from such registration is
available;

 

15

 

(iv)          such Shareholder is an “accredited investor” as
defined in Rule 501(a) of the Securities Act;

 

(v)           such Shareholder is familiar with the Company’s
business, properties, prospects and financial condition; and

 

(vi)          such Shareholder has not been presented with any form
of general solicitation or advertising.

 

Section 7.2        Severability.  If any provision of this Agreement or the
application of any such provision to any Person or circumstance shall be held
invalid, the remainder of this Agreement or the application of such provision
to Persons or circumstances other than those to which it is held invalid shall
not be affected thereby.

 

Section 7.3        Remedies;
Cumulative.  The remedies
under this Agreement are cumulative and shall not exclude any other remedies to
which any Person may be lawfully entitled.

 

Section 7.4        Assignability;
Binding Effect.  This
Agreement shall be binding and inure to the benefit of the Shareholders party
hereto and to their respective successors, but the rights and obligations of
the Shareholders hereunder shall not be assignable, transferable or delegable
except as expressly provided herein, and any attempted assignment, transfer or
delegation thereof which is not made in accordance with such express provisions
shall be void.  The Company may not
assign this Agreement.  Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement. 
The administrator, executor or legal representative of any deceased,
juvenile or incapacitated Shareholder shall have the right to execute and
deliver all documents and perform all acts necessary to exercise and perform
the rights and obligations of such Shareholder under the terms of this
Agreement.

 

Section 7.5        Dilution.  If, and as often as, there is any change in
the Common Shares, the Series A Preferred Shares or the Series B Preferred
Shares by way of a share split, share dividend, combination or
reclassification, or through a merger, consolidation, reorganization or
recapitalization, or by any other means, appropriate adjustment shall be made
in the provisions hereof so that the rights and privileges granted hereby shall
continue with respect to the Common Shares, the Series A Preferred Shares or the
Series B Preferred Shares as so changed.

 

Section 7.6        Modification
or Amendment.  This Agreement
may be amended or modified from time to time only by a written instrument
executed by (a) the holders of a majority of the outstanding Common Shares, (b)
the Series B Investor and (c) the holders of a majority of the outstanding
Series A Preferred Shares.  Any waiver,
or claimed waiver, sought to be enforced against a Shareholder shall not be
effective unless contained in a signed writing made by such Shareholder. Any
amendment or waiver effected in accordance with this Section 7.6 will be
binding upon the Company and each holder of any securities subject to this
Agreement (including securities into which such securities are convertible).  Any Shareholder may waive its rights or the
Company’s obligations hereunder without obtaining the consent of any other 

 

16

 

Person.

 

Section 7.7        Counterparts.  This Agreement may be executed in any number
of counterparts and by different parties to this Agreement in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same Agreement.

 

Section
7.8        Notices.  

 

(a)           Any notice to any Shareholder shall be at the address
of such Shareholder set forth in Exhibit A or Exhibit B hereto,
as applicable, or such other mailing address of which such Shareholder shall
advise the Company in writing. Any notice to the Company shall be to 3734 Elvis
Presley Boulevard, Memphis, Tennessee 38116, Facsimile: (901) 344-3124, or such
other address as determined reasonably and in good faith by the Company, upon
due notice to each Shareholder in accordance with this Section 7.8.

 

(b)           Any notice hereunder shall be in writing and shall be
deemed to have been duly given if personally delivered, sent by overnight
courier or sent by United States mail, or by facsimile transmission, and will
be deemed received, unless earlier received, (i) if sent by certified or registered
mail, return receipt requested, when actually received, (ii) if sent by
overnight courier, when actually received, (iii) if sent by facsimile
transmission (which transmission is confirmed), on the date confirmed, and (iv)
if delivered by hand, on the date of receipt.

 

Section 7.9        Charter
and Bylaws.  Neither the
Amended and Restated Charter nor the bylaws shall be amended in any manner that
would conflict with, or be inconsistent with, the provisions of this Agreement.

 

Section 7.10      Governing
Law.  This Agreement shall be
governed by, and construed under, the laws of the State of Tennessee, without
regard to any conflicts or laws or choice of laws principles that would require
the application of the laws of any jurisdiction other than the State of Tennessee,
all rights and remedies being governed by said laws.

 

Section 7.11      Arbitration.  Except as otherwise provided in this
Agreement, any controversy between the parties arising out of this Agreement
shall be submitted to a mutually-agreed upon JAMS arbitrator pursuant to the
American Arbitration Association’s Expedited Procedures for arbitration in Los
Angeles, California.  The costs of the
arbitration, including any administration fee, the arbitrator’s fee, and costs
for the use of facilities during the hearings, shall be borne equally by the
parties to the arbitration.  Attorneys’
fees may be awarded to the prevailing or most prevailing party at the
discretion of the arbitrator.  The
arbitrator shall not have any power to alter, amend, modify or change any of
the terms of this Agreement nor to grant any remedy which is either prohibited
by the terms of this Agreement, or not available in a court of law. The
arbitrator shall issue a written reasoned award and decision that shall be
consistent with and supported by the facts and the law within 90 days from the
date the arbitration proceedings are initiated. 
Judgment on the award of the arbitrator may be entered in any court
having jurisdiction thereof.

 

17

 

Section 7.12      Costs
and Expenses.  Except as
otherwise provided herein or in the Amended and Restated Charter and unless
otherwise agreed to in writing by (i) the Series B Investor, (ii) the holders
of a majority of the outstanding Common Shares and (iii) the Company, each
Shareholder shall bear the costs and expenses incurred by its officers,
directors, managers, partners, members, employees, representatives or other
agents in connection with the performance of their duties pursuant to this
Agreement or the Amended and Restated Charter.

 

Section 7.13      Titles
and Subtitles.  The titles and
subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

Section 7.14      Acknowledgement.  The Shareholders hereby expressly
acknowledge that payments to be made to the Series B Investor in respect of
Shares held by the Series B Investor pursuant to this Agreement or the Amended
and Restated Charter may be made directly to any Person designated in writing
by the Series B Investor. 

 

18

 

IN WITNESS WHEREOF, the Company and Shareholders have executed this
Shareholders Agreement in counterparts as of the date first above specified.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  ELVIS PRESLEY ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Soden

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jack Soden

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SERIES B INVESTOR:

  
	
   

  	
   

  
	
   

  	
  THE PROMENADE TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry Siegel

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Barry Siegel

  
	
   

  	
   

  	
  Title:

  	
   Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary Hovey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary Hovey

  
	
   

  	
   

  	
  Title:

  	
   Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SERIES A INVESTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EPE HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas P. Benson

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Thomas P. Benson

  
	
   

  	
   

  	
  Title: 

  	
  Executive Vice President, Chief Financial
  Officer and Treasurer

  
							

 

 

	
   

  	
  PARENT, solely with
  respect to the last sentence

  of Section 5.1:

  
	
   

  	
   

  
	
   

  	
  SPORTS ENTERTAINMENT ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas P. Benson

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Thomas P. Benson

  
	
   

  	
   

  	
  Title: 

  	
  Executive Vice President, Chief Financial
  Officer and Treasurer

  
					

 

2

 

Table of Contents

 

	
  ARTICLE
  I DEFINITIONS

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II COVENANTS OF THE COMPANY

  	
   

  
	
  Section 2.1

  	
  Meetings

  	
   

  
	
  Section 2.2

  	
  Information, Accounts and Publicity

  	
   

  
	
  Section 2.3

  	
  Series B Statement

  	
   

  
	
  Section 2.4

  	
  Financing Growth

  	
   

  
	
  Section 2.5

  	
  Business Purpose

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III OTHER COVENANTS

  	
   

  
	
  Section 3.1

  	
  Covenants Regarding Series B Dividends

  	
   

  
	
  Section 3.2

  	
  Right of First Refusal

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV TAG-ALONG RIGHT

  	
   

  
	
  Section 4.1

  	
  Tag-Along

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V PUT RIGHTS OF EXIT

  	
   

  
	
  Section 5.1

  	
  Put Option

  	
   

  
	
  Section 5.2

  	
  Purchase Price

  	
   

  
	
  Section 5.3

  	
  Closing

  	
   

  
	
  Section 5.4

  	
  Allocation of Series B Year End Dividend

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI RESTRICTIONS ON TRANSFER

  	
   

  
	
  Section 6.1

  	
  Requirements of Transfer

  	
   

  
	
  Section 6.2

  	
  No Transfer

  	
   

  
	
  Section 6.3

  	
  Restrictive Legend

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII MISCELLANEOUS

  	
   

  
	
  Section 7.1

  	
  Representations

  	
   

  
	
  Section 7.2

  	
  Severability

  	
   

  
	
  Section 7.3

  	
  Remedies; Cumulative

  	
   

  
	
  Section 7.4

  	
  Assignability; Binding Effect

  	
   

  
	
  Section 7.5

  	
  Dilution

  	
   

  
	
  Section 7.6

  	
  Modification or Amendment

  	
   

  
	
  Section 7.7

  	
  Counterparts

  	
   

  
	
  Section 7.8

  	
  Notices

  	
   

  
	
  Section 7.9

  	
  Charter and Bylaws

  	
   

  
	
  Section 7.10

  	
  Governing Law

  	
   

  

 

i

 

	
  Section 7.11

  	
  Arbitration

  	
   

  
	
  Section 7.12

  	
  Costs and Expenses

  	
   

  
	
  Section 7.13

  	
  Titles and Subtitles

  	
   

  
	
  Section 7.14

  	
  Acknowledgement

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule
  A – Series B Investors

  	
   

  
	
  Schedule
  B – Existing Holders

  	
   

  
	
  Exhibit A – Improper Activities

  	
   

  

 

ii

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