Document:

Exhibit 10.4

 Exhibit 10.4 
 THIRD AMENDMENT TO EMPLOYMENT AGREEMENT 
 This Third Amendment to Employment Agreement is made this
24th day of April 2007, by Highland Hospitality Corporation, a Maryland Corporation (the “REIT”), with its principal place of business at 8405 Greensboro Drive, Suite 500, McLean, VA 22102 and Douglas W. Vicari, residing at 464 Oradell
Avenue, Oradell, New Jersey 07649 (the “Executive”). 
 WHEREAS, the Company and the REIT entered into that certain
Employment Agreement dated October 24, 2003 and amended on March 29, 2004 and May 23, 2006 (as amended, the “Employment Agreement”) with the Executive; 
 WHEREAS, the parties have agreed to amend the Employment Agreement to provide for orderly determination and payment of any adjustments to the
Gross-Up Amount (as defined in the Employment Agreement) and indemnification of the Executive with respect to legal and accounting costs related thereto; and 
 WHEREAS, Highland Hospitality, L.P. has consented to this Third Amendment. 
 NOW THEREFORE,
the parties agree that Section 6(d)(v)(C) of the Employment Agreement shall be amended by the addition of new Sub-Sections 6(d)(v)(C)(a)-(c) which shall read as follows: 
 (a) In order to provide for orderly determination and payment of any adjustments required by the preceding paragragh, the following rules shall apply. In
the event that the Company (or its successor) elects not to contest a claim by the Internal Revenue Service (or state or local revenue authorities) or exhausts its remedies pursuant to Section 6(d)(v)(C)(b) and the Executive thereafter is
required to make a payment of any additional excise tax or income tax (and penalties or interest), the Accounting Firm shall determine the amount of the underpayment of the Gross-Up Amount that has occurred and any such underpayment shall be
promptly paid by the Company (or its successor) to or for the benefit of the Executive. In addition to the obligations of the Company (or its successor) described in this Section 6(d)(v)(C), and without regard to whether the Company (or its
successor) determines that the claim should be contested, the Company (or its successor) shall indemnify and hold the Executive harmless for the cost of reasonable legal or accounting fees incurred by the Executive with respect to such claim of
Internal Revenue Service (or state or local revenue authorities). If it is determined that a Gross-Up Amount that is initially paid by the Company to the Executive was made in an amount that is greater than what should have been made, the Executive
shall promptly pay to the Company the amount of such overpayment as soon as administratively practicable after the Company notifies the Executive of (i) the Accounting Firm’s determination that such an overpayment was made and
(ii) the amount to be repaid; provided however, that if the Executive has already filed a tax return with respect to such overpayment or paid withholding or estimated tax payments based on such overpayment, then such claim for 

 
reimbursement of an overpayment shall be treated as a claim for repayment upon receipt of a refund described in Section 6(d)(v)(C)(c) and the Executive
shall repay such amount following receipt of any such refund, and, provided further, that the Executive shall be required to refund as an overpayment only that amount as does not result in the Executive receiving an aggregate benefit that is net of
all taxes (and penalties and interest) no less than what the Executive would have received had no overpayment been made. 
 (b) The Executive
shall notify the Company (or its successor) in writing of any claim by the Internal Revenue Service (or state or local revenue authorities) that, if successful, would require the payment by the Company (or its successor) of an additional Gross-Up
Amount. Such notification shall be given as soon as practicable but no later than ten (10) business days after the Executive receives notice in writing of such claim and shall apprise the Company (or its successor) of the nature of such claim
and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the thirty (30) day period following the date on which it gives such notice to the Company (or its successor) (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company (or its successor) notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, the
Executive shall: 
 (i) give the Company (or its successor) any information reasonably requested by the Company (or its successor) relating to
such claim, 
 (ii) take such action in connection with contesting such claim as the Company (or its successor) shall reasonably request in
writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company (or its successor), 
 (iii) cooperate with the Company (or its successor) in good faith in order effectively to contest such claim, and 
 (iv) permit the Company (or its successor) to participate in any proceedings relating to such claim; provided, however, that the Company (or its
successor) shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any excise tax or
income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 6(d)(v)(C), and provided that the
Company (or its successor) complies with this Section 6(d)(v)(C), the Company (or its successor) shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed 

  

 -2- 

 
and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company (or its successor) shall determine; provided, however, that if the Company (or its successor) directs the Executive to pay such claim and
sue for a refund, the Company (or its successor) shall advance the amount of such payment to the Executive, on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any excise tax or income tax
(including interest or penalties with respect thereto) imposed with respect to the such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to
payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s (or its successors) control of the contest shall be
limited to issues with respect to which a Gross-Up Amount would be payable hereunder and the executive officer shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing
authority. 
 (c) If, after the receipt by the Executive of an amount advanced by the Company (or its successor) pursuant to
Section 6(d)(v)(C)(b), the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Company’s (or its successor’s) complying with the requirements of this
Section 6(d)(v)(C)) promptly pay to the Company (or its successor) the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company (or its successor) pursuant to Section 6(d)(v)(C)(b), a determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company (or its successor) does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of the adjusted Gross-Up Amount required to be paid. 
  

 -3- 

 IN WITNESS WHEREOF, the parties have executed this Third Amendment to Employment Agreement as of
the day and year first above written. 
  

			
	HIGHLAND HOSPITALITY CORPORATION
		
	By:	 	 /s/ James L. Francis

	Name:	 	James L. Francis
	Title:	 	President and CEO
	
	DOUGLAS W. VICARI
	
	             /s/ Douglas W. Vicari

 Consent of Highland Hospitality, L.P. 
 Highland Hospitality, L.P. hereby consents to this Third Amendment to the Employment Agreement of Douglas W. Vicari. 
  

			
	HIGHLAND HOSPITALITY, L.P.
	By: HHC GP Corporation, its general partner
		
	By:	 	 /s/ James L. Francis

	Name:	 	James L. Francis
	Title:	 	President and CEO

  

 -4-Form of Performance Share Award Agreement

 Exhibit 10.1 
 

 
 Standard Pacific Corp. 
 2007 Performance Share Award Agreement 
 This 2007 Performance Share Award Agreement (this
“Agreement”) has been entered into by and between Standard Pacific Corp. (the “Corporation”) and [Executive Officer] (the “Executive”). All capitalized terms in this Agreement shall
have the meaning assigned to them in this Agreement or in the Standard Pacific Corp. 2005 Stock Incentive Plan (the “Plan”). 
 1. Award. On January 30, 2007, the Compensation Committee (the “Compensation Committee”) of the Corporation’s Board of Directors (the “Board”) granted the Executive a performance
share award (the “Award”) under Section 8 of the Plan. Pursuant to the terms of the Award, the Corporation shall issue the Executive shares of common stock of the Corporation (the “Common Stock”) based
on the criteria established by the Compensation Committee that are described in Section 3 below. The target number of shares of Common Stock to be issued pursuant to the Award is ________ shares (the “Target Shares”).

 2. Shares Issued Pursuant to the Award. 
 (a) Definitions. 
 (i) “Inventory” means the sum of the Corporation’s total inventory balance plus total joint venture investments, as reflected on the Corporation’s consolidated balance sheet at December 31,
2007, but excluding inventory not owned and the impact of inventory and joint venture impairments; 
 (ii) “Net
New Orders” means customer orders for new homes constructed by the Corporation and its consolidated subsidiaries that occur during calendar 2007 less customer home order cancellations that occur during calendar 2007, calculated in accordance
with the procedures for home sale order and cancellation reporting set forth in Sections 4.4 and 4.5 of the Corporation’s Internal Control Manual, excluding joint venture sales and cancellations; and 
 (iii) “EBITDA” has the meaning ascribed to it in that certain Revolving Credit Facility, dated as of August 31, 2005, by
and among the Corporation, Bank of America, N.A., and the several lenders thereto (as such agreement has been or may be amended to the date hereof), calculated for the year ended December 31, 2007. 

 (b) Award Criteria. The number of shares of Common Stock that shall be issued
pursuant to the Award (the “Performance Shares”) shall be determined based on the following criteria: 
 (i)
40% of the Target Shares based on Inventory equaling or being less than $_______ (the “Inventory Award”); provided, that, for each 1% that actual Inventory exceeds
$            , the Performance Shares to be issued in connection with the Inventory Award will be reduced by 1%; provided, further, that if actual Inventory exceeds
$            , no Performance Shares will be issued in connection with the Inventory Award; 
 (ii) 30% of the Target Shares based on Net New Orders equaling or exceeding _____ (the “Net New Orders Award”);
provided, that, for each 1% that actual Net New Orders falls short of _______, the Performance Shares to be issued in connection with the Net New Orders Award will be reduced by 1%; provided, further, that if actual Net New Orders are
less than _____, no Performance Shares will be issued in connection with the Net New Orders Award; and 
 (iii) 30% of the
Target Shares based on EBITDA equaling or exceeding $_____ million (the “EBITDA Award”); provided, that, for each 1% that actual EBITDA falls short of $_____ million, the Performance Shares to be issued in connection with the
EBITDA Award will be reduced by 1%; provided, further, that if actual EBITDA is less than $____ million, no Performance Shares will be issued in connection with the EBITDA Award. 
 (c) Committee Discretion to Reduce Award. Notwithstanding the foregoing, except in the case of a Change of Control occurring prior
to the Determination Date, the Compensation Committee has the authority to reduce the number of Performance Shares issued pursuant to this Award by up to 25% of the Target Shares based upon the Compensation Committee’s subjective evaluation of
the effectiveness of the Corporation’s management during the 2007 fiscal year. Any adjustment must be made within ten business days of the Determination Date. 
 (d) Determination Date. Actual Inventory, Net New Orders and EBITDA shall be calculated promptly after the Audit Committee of the
Board approves the Company’s financial statements for the 2007 fiscal year (the “Determination Date”). 
 (e) Change in Control. In the event a Change of Control occurs after February 16, 2006 but prior to the Determination Date, the Executive shall immediately be issued that number of Performance Shares equal to the number of
Target Shares. Notwithstanding anything contained in Section 2(c), these Shares will be fully vested upon issuance. 
 (f) Issuance of Shares. The number of shares of Common Stock issued pursuant to the Award following all determinations and adjustments, if any, shall be referred to as the “Shares.” The Shares shall automatically be
issued on the eleventh business day following the Determination Date (the “Issue Date”) and shall be held in escrow in accordance with the provisions of Section 5; provided, however, that no Shares will be issued if Executive
has not been continuously employed by the Corporation from the date of the Award to the Issue Date. 
  

 2 

 3. Vesting of Shares. One third of the Shares shall be vested immediately upon issuance.
Upon each of the next two anniversaries of the Issue Date, one third of the Shares shall vest provided that the Executive has been continuously employed by the Corporation since the Issue Date. Shares that do not vest shall automatically be
cancelled. Notwithstanding anything contained in this Agreement to the contrary, in the event a Change of Control occurs following the Determination Date but prior to the Issue Date, the Shares shall immediately be issued to the Executive and in the
event a Change of Control occurs following the Determination Date, the Shares shall immediately vest in full. 
 4. Restrictions on
Resale. Except as contemplated by Section 6, the Executive may not transfer the Shares until the earlier of (a) January 30, 2010 or (b) the date the Executive’s employment with the Corporation terminates for
any reason or no reason. The Corporation may impose the following restrictions, conditions and limitations to the timing and manner of any resales by the Executive or other subsequent transfers by the Executive of any Shares: (i) restrictions
under an insider trading policy, (ii) restrictions designed to delay and/or coordinate the timing and manner of sales by the Executive and other security holders and (iii) restrictions as to the use of a specified brokerage firm for such
resales or other transfers. The Executive hereby acknowledges that, to the extent he or she is an “affiliate” of the Corporation (as that term is defined in Rule 144 promulgated under the Securities Act of 1933, as amended) or to the
extent that the Shares have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, the Shares are subject to, and the certificates representing the Shares shall be legended to reflect, certain trading
restrictions under applicable securities laws (including particularly the Securities and Exchange Commission’s Rule 144), and the Executive hereby agrees to comply with all such restrictions and to execute such documents or take such other
actions as the Corporation may require in connection with such restrictions including, without limitation, obtaining a legal opinion, in a form satisfactory to the Corporation, that such Shares will not be transferred other than in compliance
with all applicable securities laws and regulations. 
 5. Escrow of the Shares. 
 (a) Shares Held by Corporation. Except as contemplated by Section 6, following the issuance of the Shares as
contemplated by Section 2(c), the Shares will be held by the Corporation or its agent pending release following expiration of the restrictions on resale set forth in Section 4. The Corporation may cancel all or any portion of
the Shares without further action by Executive if the Shares are forfeited or otherwise required to be transferred back to the Corporation pursuant to the terms of this Agreement. 
 (b) Release of Shares from Escrow. The Corporation will release the Shares to Executive when such Shares become free of the
restrictions on resale set forth in Section 4; provided, that, Executive has paid to the Corporation an amount sufficient (or the Corporation has repurchased a sufficient number of Shares) to satisfy any taxes or other amounts required
by any governmental entity to be withheld and paid over to such governmental entity for Executive’s account.
  

 3 

 6. Tax Elections and Withholding. 
 (a) Acknowledgment. Executive acknowledges that he or she (i) has received tax advice from Executive’s own advisors and
has not received, and is not relying upon, any tax representations or advice from the Corporation or any representative of the Corporation, and (ii) is obligated to satisfy in full any and all taxes and tax withholding requirements as may be
applicable to the issuance of the Shares, if Executive makes an election pursuant to Section 83(b) of the Internal Revenue Code (in which case a Section 83(b) IRS tax election form must be delivered to the IRS and the Company within 30
days of the Issue Date), or the vesting of the Shares, if such an election is not made, regardless of any action the Corporation takes with respect to any tax withholding obligations that arise in connection with the Shares. The Corporation does not
make any representation or undertaking regarding the treatment of any tax withholding in connection with the grant or vesting of the Shares or the subsequent sale of Shares issuable pursuant to the Award. The Corporation does not commit and is under
no obligation to structure the Award to limit the Executive’s tax liability. 
 (b) Payment of Withholding Taxes.
At the time of any event in connection with the Performance Shares (e.g., vesting) that the Corporation determines may result in any Tax Withholding Obligation (as defined below), Executive shall be deemed to have instructed and authorized
the Corporation to repurchase the whole number of Performance Shares (rounded up in the case of fractional shares) as the Corporation determines to be sufficient to satisfy the Tax Withholding Obligation. The number of Shares that will be
repurchased by the Corporation to satisfy any Tax Withholding Obligation will be determined based upon the closing price of the Corporation’s common stock on the day the Tax Withholding Obligation arises (or if not a trading day on which the
exchange listing the Corporation’s common stock is open, the immediately succeeding trading day). To the extent the value of the Shares repurchased exceeds Executive’s Tax Withholding Obligation (due to rounding up), the Corporation shall
pay such excess cash to Executive through payroll or otherwise as soon as practicable. Notwithstanding the foregoing, if the Company at any time determines that it is undesirable for the Company to repurchase the Performance Shares, the Company may
elect not to repurchase the Performance Share and in lieu thereof shall permit Executive to sell on the open market, consistent with the other provisions of this Agreement, the number of shares that would otherwise have been repurchased by the
Company pursuant to this Section 6(b). 
 (c) Definition of Tax Withholding Obligation. For purposes hereof
“Tax Withholding Obligation” means the amount the Company is required to withhold and pay over to a governmental entity for the account of Executive with respect to any domestic or foreign tax withholding obligation (whether
national, federal, state or local, including any social security tax obligation), except that, for purposes of federal and state income tax, the withholding obligation shall be deemed to be the highest federal and state marginal tax rate
irrespective of the actual withholding obligation. 
 7. Deferred Compensation Election. Pursuant to the terms of the
Corporation’s 2005 Deferred Compensation Plan (“Deferral Plan”), Executive may elect to defer receipt of all or any portion of the Shares (in accordance with the procedures and timeline established by the Company for electing
deferral under the Deferral Plan); provided, that, Executive’s initial deferral under the Deferral Plan with respect to the Shares must be for a 

  

 4 

 
period of at least two (2) years from the Issue Date. When Executive becomes eligible to receive the deferred Shares pursuant to the terms of the
Deferral Plan, the Corporation shall issue the deferred Shares to the Executive in shares of Common Stock and pay the amount of any credited dividends thereon to Executive in cash. Executive acknowledges that if he or she elects to defer receipt of
the Shares as contemplated by this Section 7, he or she will not have any rights as a stockholder of the Corporation but will be credited an amount equal to the amount of any dividends that would have been paid had Executive elected to
receive the Shares. 
 8. Non-transferability. The Executive shall not transfer, assign, encumber or otherwise dispose of the
Award or any portion thereof. 
 9. Disputes. The Corporation’s goal is to quickly resolve any disputes that may arise
with its employees. Therefore, the Executive and the Corporation agree that all disputes, disagreements, claims or controversies which relate in any manner to this Agreement shall be resolved exclusively by final and binding arbitration before a
single arbitrator who is a retired judge in accordance with the then existing Rules and Procedures of JAMS/Endispute (or, if JAMS/Endispute does not offer arbitration services in the applicable jurisdiction, in accordance with the then existing
Rules and Regulations of the American Arbitration Association). The parties shall pay their own costs of arbitration; provided, however, that the Corporation shall pay the costs of arbitration if it is required to do so to make this arbitration
provision enforceable. Any request for arbitration must be made within one-year of the date on which the dispute first arose (unless a longer period of time is required by law), or any right to bring a claim (in arbitration or otherwise) with
respect to such dispute will be deemed waived by both parties. The parties shall be entitled to conduct adequate discovery and to obtain all remedies available to the parties as if the matter had been tried in court. The arbitrator shall issue a
written decision which provides the findings and conclusions on which the award is based. The decision of the arbitrator shall be final and binding on all parties, and may be entered as a judgment by any party with any federal or state court of
competent jurisdiction. 
 10. Plan and Other Agreements. The provisions of the Plan are incorporated into this Agreement by
this reference. In the event of a conflict between the terms and conditions of this Agreement and the Plan, the Plan controls. Certain capitalized terms not otherwise defined herein are defined in the Plan. This Agreement and the Plan constitute the
entire understanding between the Executive and the Corporation regarding the Award. Any prior agreements, commitments or negotiations concerning the Award are superseded. 
 11. Stockholder Rights. The Executive (individually or as a member of a group) shall not have any right, title, interest, or privilege in or to any shares of Common Stock allocated or reserved for the
purpose of the Plan or subject to this Agreement except as to any Shares issued to Executive pursuant to the Award. Except as set forth herein, following the issuance of any Shares to Executive (but excluding any shares deferred pursuant to
Section 7 above) and during the period prior to vesting and the lapse of the restrictions on resale of the Shares, Executive will have all of the rights of a stockholder of the Corporation, including, without limitation, the right to vote and
to receive all dividends or other distributions with respect to the Shares. 
  

 5 

 12. Not a Contract for Employment. Nothing in the Plan, in this Agreement or any other
instrument executed pursuant to the Plan shall (a) confer upon the Executive any right to continue in the employ of the Corporation or any of its subsidiaries, (b) affect the right of the Corporation and each of its subsidiaries to
terminate the employment of the Executive, with or without cause, or (c) confer upon the Executive and right to participate in any employee welfare or benefit plan or other program of the Corporation or any of its subsidiaries other than the
Award under the Plan. The Executive hereby acknowledges and agrees that the Corporation and each of its subsidiaries may terminate the employment of the Executive at any time and for any reason, or for no reason, unless the Executive and the
Corporation or such subsidiary are parties to a written employment agreement that expressly provides otherwise. 
 13.
Notices. All notices, requests, demands and other communications pursuant to this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered, telexed or telecopied to, or, if mailed, when received
by, the other party at the following addresses (or at such other address as shall be given in writing by either party to the other): 
  

			
	If to the Corporation to:	  	 Standard Pacific Corp.
 15326 Alton Parkway
 Irvine, California 92618
 Attention: Secretary
 Facsimile No.: (949) 789-1608

 If to the Executive, to the address or fax number set forth below the Executive’s signature
on this Agreement. 
 14. Severability. In the event that any provision of this Agreement is declared to be illegal, invalid or
otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of this Agreement shall not be
affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision. 
 15. Headings.
The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect. 
 16. Further Assurances. Each party shall cooperate and take such action as may be reasonably requested by another party in order to carry
out the provisions and purposes of this Agreement including, without limitation, delivery of such duly executed certificates, instruments and documents in furtherance of the transactions contemplated by this Agreement as such other party may
reasonably request. 
 17. Binding Effect. This Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective permitted heirs, beneficiaries, successors and assigns. 
  

 6 

 18. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties
have executed this Agreement on the day and year first indicated above. 
  

			
	STANDARD PACIFIC CORP.
		
	By:	 	  
	Name:	 	Stephen J. Scarborough
	Title:	 	Chairman & Chief Executive Officer
	Date:	 	  

			
	
	EXECUTIVE
		
	Signature:	 	  

			
	Name:	 	  
	Date:	 	  

 Address: Standard Pacific Corp. 
 15326 Alton Parkway 
 Irvine, CA 92618 
 Facsimile No.: (949)789-1608 
  

 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]