Document:

apex-ex102_6.htm

Exhibit 10.2

 

Execution Version

CREDIT PARTY REPRESENTATIVE AGREEMENT

This Credit Party Representative Agreement (this “Agreement”), dated as of February 16, 2021, is entered into by and among Apex Global Brands Inc., a Delaware corporation (together with all of its Subsidiaries, the “Company”), the Credit Parties (as defined in the Merger Agreement (as defined below)) set forth on Schedule I hereto, Eugene Robin (the “Credit Party Representative”), Galaxy Universal LLC, a Delaware limited liability company (“Parent”), and Galaxy Apex Merger Sub, Inc., a Delaware corporation and a wholly-owned Subsidiary of Parent (“Merger Sub”).  Terms used but not defined herein shall have the meaning assigned to such terms in the Merger Agreement. 

W I T N E S S E T H

WHEREAS, the Company, the Credit Party Representative, Parent, and Merger Sub intend to enter into an Agreement and Plan of Merger (the “Merger Agreement”) whereby upon the Effective Time Merger Sub will merge with and into the Company (the “Merger”) and the Company will continue its corporate existence as the surviving corporation in the Merger and a wholly-owned Subsidiary of Parent;

WHEREAS, the execution and delivery of this Agreement is a condition to the willingness of the Company, Parent and Merger Sub to enter into the Merger Agreement; 

WHEREAS, at the Closing, the Parent shall pay to accounts designated by the Credit Party Representative (on behalf of the Credit Parties) the Credit Party Closing Payment Amount in accordance with Section 2.09 of the Merger Agreement;

WHEREAS, in connection with the Merger, the Credit Party Representative shall have the duties, authorizations and rights set forth in this Agreement and the Merger Agreement; and

WHEREAS, in connection with the transactions contemplated by the Merger Agreement, the Credit Parties and the Credit Party Representative wish to regulate certain matters among themselves. 

NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter set forth, the parties hereto do hereby agree as follows:

1.Appointment of Credit Party Representative.  The Credit Parties hereby irrevocably appoint Eugene Robin as their representative, attorney-in-fact and agent to represent the Credit Parties, their successors and assigns in connection with the Merger, and the transactions contemplated by the Merger Agreement, as follows:

(a) Credit Party Representative.  Each Credit Party hereby appoints the Credit Party Representative as such Credit Party’s true and lawful agent, attorney-in-fact and representative, with full power of substitution and resubstitution, in such Credit Party’s name, place and stead, (i) with respect to any and all matters designated to the Credit Party Representative in the Merger Agreement, (ii) to designate the accounts of the Credit Parties to which their 

 

 

respective portions of the Credit Party Closing Payment Amount, the Adjustment Escrow Amount and the PPP Loan Escrow Amount, payable to the Credit Parties under the Merger Agreement as set forth in Section 2 hereof and (iii) to act on behalf of each Credit Party in any amendment of or litigation or arbitration involving the Merger Agreement and to do or retrain from doing all such further acts and things, and to execute all such documents, as such Credit Party Agreement shall deem appropriate or necessary in conjunction with any of the transactions contemplated by this Agreement or the Merger Agreement.  Subject to the terms of this Agreement, the Credit Party Representative shall have full power and authority to do and perform each and every act and thing requisite and necessary to be done in the fulfillment of the Credit Party Representative’s duties and responsibilities set forth above as fully to all intents and purposes as such Credit Party might or could do in person.  The Credit Party Representative shall not have any duties, responsibilities, rights, powers or authority except those expressly set forth in this Agreement and the Merger Agreement, and no implied covenants, functions, responsibilities, duties, obligations, liabilities, rights, powers or authority shall be read into this Agreement or shall otherwise exist against the Credit Party Representative.

(b) Resignation of Credit Party Representative.  In the event that the then current Credit Party Representative resigns, the Credit Parties representing more than a majority of the amount of the aggregate Credit Party Closing Payment Amount (the “Majority Credit Parties”) shall select a new Credit Party Representative; provided that the Credit Party Representative may not resign after its receipt of any amounts representing the Credit Party Closing Payment Amount until such amounts have either been paid to the Credit Parties pursuant to Section 2 or deposited into an account as directed by the Majority Credit Parties.  Such new Credit Party Representative shall notify Parent in writing within two (2) Business Days of such resignation and appointment.

(c) Binding Nature.  Subject to the limitations provided herein, all actions taken by the Credit Party Representative pursuant to this Agreement shall be binding upon the Credit Parties, their successors, heirs, representatives and assigns as if expressly confirmed and ratified in writing by each of them.

2.Payment of Credit Party Closing Payment Amount; Release. 

(a) At least three (3) Business Days before the Closing Date, the Credit Party Representative hereby agrees that it shall deliver to Parent a certified statement apportioning the Credit Party Closing Payment Amount to each Credit Party in the amount equal to the Credit Party Closing Payment Amount multiplied by the percentage listed next to such Credit Party’s name set forth in Schedule II attached hereto.  Within five (5) Business Days after the final determination of the Adjustment Amount pursuant to Section 2.09 of the Merger Agreement, to the extent any amount of the Adjustment Escrow Amount is payable to the Credit Parties thereunder, the Credit Party Representative shall deliver to the Escrow Agent a certified statement apportioning to each Credit Party an amount equal to the Adjustment Escrow Amount payable to the Credit Parties multiplied by the percentage listed next to such Credit Party’s name set forth in Schedule II attached hereto.  Upon receipt by the Company of the PPP Forgiveness Notice pursuant to Section 6.23 of the Merger Agreement, to the extent any amount of the PPP Loan Escrow Amount is payable to the Credit Parties thereunder, the Credit Party Representative shall deliver to the PPP Loan Escrow Agent a certified statement apportioning to each Credit Party an amount equal to the 

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PPP Loan Escrow Amount payable to the Credit Parties multiplied by the percentage listed next to such Credit Party’s name set forth in Schedule II attached hereto.     

(b) Each of the Credit Parties hereby agrees that immediately upon the Effective Time of the Merger and the payment to the Credit Parties of the Credit Party Closing Payment Amount, (i) all obligations, liabilities and indebtedness (including but not limited to any principal, interest, fees, premiums (if any), costs, and expenses) (collectively, the “Obligations”) under any promissory note (including any Subordinated Exchange Note issued by the Company to the Credit Parties pursuant to that certain Exchange Agreement, dated as of August 3, 2018 (as amended, restated, supplemented or otherwise modified from time to time)) and any other financing, note, credit and loan documents, and any collateral documents relating thereto entered into between the Company and such Credit Party or its Affiliates (the “Financing Documents”) shall be irrevocably satisfied and discharged in full, in each case, without any further action, (ii) the Financing Documents and all commitments thereunder shall automatically terminate, and all guaranties, liens, pledges, mortgages, account control agreements and any other security interests securing the Obligations shall automatically be deemed to be forever fully released, satisfied and discharged, in each case without further action of any party, and (iii) each Credit Party, at the Company’s sole cost and expense, will promptly deliver to the Company or such other party as the Company may direct (A) customary UCC-3 termination statements, intellectual property release documents and other releases pertaining to any liens and security interests of such Credit Party or its Affiliates on and in any property of the Company, (B) all possessory collateral with respect to the Financing Documents which are in the possession of any Credit Party or its Affiliates, and (C) such other termination statements, releases and other agreements, in form and substance reasonably satisfactory to the Company, as the Company may reasonably request in connection with the above described release and termination of liens and security interests on and in any of the property of the Company.  Each Credit Party authorizes the Company (and its agents and designees) to, upon the Effective Time of the Merger and the payment to the Credit Parties of any Credit Party Closing Payment Amount, file customary UCC-3 termination statements, intellectual property release documents and other release documents evidencing the release of liens and security interests of such Credit Party or its Affiliates on and in any property of the Company.

(c) The parties hereto acknowledge and agree that notwithstanding the termination and release of the Obligations pursuant to Section 2(b) above, the Credit Parties shall be entitled, subject to the terms and conditions of the Merger Agreement and the applicable escrow agreement, payment of any Adjustment Amount, the Adjustment Escrow Amount, and/or the PPP Loan Escrow Amount, if applicable.

3.Representations and Warranties of the Credit Parties. Each of the Credit Parties hereby represents and warrants to the Credit Party Representative, the Company, Parent and Merger Sub as of the date hereof and as of the Closing Date as follows:

(a) Organization. Each of the Credit Parties that is not a natural person is duly organized, validly existing, and in good standing under the Laws of the jurisdiction of its incorporation.  

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(b) Authority; Non-Contravention; Governmental Consents; Board Approval.

(i)Authority. Each of the Credit Parties that is not a natural person has all requisite corporate power and authority to enter into and to perform its obligations under this Agreement. For each of the Credit Parties that is not a natural person, the execution and delivery of this Agreement by each Credit Party have been duly and validly authorized by all necessary corporate action on the part of such Credit Party and no other corporate proceedings on the part of such Credit Party are necessary to authorize the execution and delivery of this Agreement. This Agreement has been duly executed and delivered by each of the Credit Parties and, assuming due execution and delivery by the other parties hereto, constitutes the legal, valid, and binding obligation of each Credit Party, enforceable against such Credit Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium, and other similar Laws affecting creditors’ rights generally and by general principles of equity. 

(ii)Non-Contravention. The execution, delivery, and performance of this Agreement by each of the Credit Parties, do not and will not: (i) contravene or conflict with, or result in any violation or breach of, the organizational documents of such Credit Party; or (ii) conflict with or violate any Law applicable to such Credit Party or any of its properties or assets.

(c) Governmental Consents. No Consent of any Governmental Entity is required to be obtained or made by any of the Credit Parties in connection with the execution, delivery, and performance by such Credit Party of this Agreement.

(d) Payoff Amounts. Each of the Credit Parties agrees that the amounts set forth in Schedule III hereto represent the entirety of the Obligations of the Company with respect to each Credit Party.  Each of the Credit Parties has not transferred or assigned (including, without limitation, any transfer, assignment or grant of any participation interest in), or entered into any agreement to transfer or assign, any Financing Document entered into by the Company or its Affiliates in favor of such Credit Party or all or any portion of the Obligations (or any interest therein).   

4. Compensation; Limitation of Liability; Indemnification.  

(a) The Credit Party Representative shall serve without compensation.  The Credit Party Representative shall not be liable to any Credit Party for the performance of any act or failure to act so long as its action or failure to act was taken or omitted in good faith within what the Credit Party Representative reasonably believed to be the scope of its authority and for a purpose which it reasonably believed to be in the best interest of the Credit Parties and does not constitute gross negligence or willful misconduct.  The Credit Party Representative shall not be responsible to the Credit Parties for the value, validity, effectiveness, enforceability or sufficiency of the Merger Agreement or any documents or instrument ancillary thereto or delivered in connection therewith, nor shall it be under any obligation to any Credit Party to ensure the observance or performance by the Parent or Merger Sub of any of its obligations under the Merger Agreement.  The Credit Parties agree to indemnify the Credit Party Representative in its capacity 

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as such, severally on a pro-rata basis in accordance with the percentages set forth in Schedule II, and not jointly, from and against any and all liabilities, obligations, damages, deficiencies, expenses, actions, suits, proceedings, demands, assessments, judgments, costs and expenses, including reasonable attorneys’ fees (collectively, “Losses”), which may at any time be imposed on, incurred by or asserted against the Credit Party Representative in any way relating to or arising out of this Agreement or the Merger Agreement or any action taken or omitted to be taken by the Credit Party Representative under or in connection therewith, except to the extent such Losses resulted from the gross negligence or willful misconduct of the Credit Party Representative or from any action or inaction beyond the  scope of the Credit Party Representative’s authority as set forth in this Agreement; provided, however, that the maximum aggregate liability of any Credit Party to the Credit Party Representative under this Agreement shall be an amount equal to the amount received by such Credit Party pursuant to the Merger Agreement.  The Credit Parties further agree that Parent and its Affiliates (including the Surviving Company after the Closing) shall have no liability for, and the Credit Parties shall indemnify Parent and its Affiliates (including the Surviving Company after the Closing), severally on a pro-rata basis in accordance with the percentages set forth in Schedule II, and not jointly, with respect to, any Liability or claims related to or arising from the calculation set forth in Schedule II attached hereto.

(b) Each Credit Party hereby agrees that it shall be liable for, and shall timely pay, all income taxes owed by such Credit Party, if any, with respect to any amounts received by such Credit Party pursuant to the Merger Agreement.   

5.Release of Credit Party Representative.  Each Credit Party hereby releases the Credit Party Representative from any and all claims and agrees not to bring or threaten to bring or otherwise join in any claim against the Credit Party Representative relating to, arising out of or in connection with any action taken, or non-action (so long as such action or inaction was taken or omitted in good faith within what the Credit Party Representative reasonably believed to be the scope of its authority under this Agreement), solely in its capacity as the Credit Party Representative in accordance with this Agreement or the Merger Agreement, except for fraud or gross negligence by the Credit Party Representative. 

6.Irrevocable Appointment.  Each Credit Party agrees that the agency granted to the Credit Party Representative is coupled with an interest and is, therefore, irrevocable without the consent of the Credit Party Representative and shall survive the death, incapacity, bankruptcy, dissolution or liquidation of such Credit Party.  All decisions and actions by the Credit Party Representative (to the extent authorized by this Agreement) shall be binding upon all of the Credit Parties, and no Credit Party shall have the right to object, dissent, protest or otherwise contest the same.  Parent, Merger Sub and any other Person may conclusively and absolutely rely (without inquiry or further evidence of any kind whatsoever) upon any decision, act, consent or instruction of the Credit Party Representative on behalf of all Credit Parties relating to this Agreement or the other transaction documents as being the decision, act, consent or instruction of such Credit Parties, and on any document or instrument executed or delivered by the Credit Party Representative on behalf of any or all of the Credit Parties relating to this Agreement or the other transaction documents as having been executed or delivered by such Credit Parties.  

7.Assignment.  This Agreement and the rights and obligations hereunder shall not be assignable or transferable by any party (including by operation of law in connection with a merger 

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or consolidation of such party or otherwise) without the prior written consent of the other parties hereto; provided, that nothing herein shall preclude the Credit Party Representative from resigning at its sole discretion subject to the requirements explicitly set forth in Section 1(b).  Any attempted assignment in violation of this Section 7 shall be void.  So long as this Agreement is in effect, no Credit Party shall enter into or consummate (or engage in any negotiations in respect of) any transaction that would result in any transfer or assignment of (including, without limitation, any transfer, assignment or grant of any participation interest in) any Financing Document or all or any portion of the Obligations (or any interest therein). 

8.Attorney’s Fees.  Other than in respect of Section 18, a party in breach of this Agreement shall, on demand, indemnify and hold harmless the other parties for and against all reasonable out-of-pocket expenses, including legal fees, incurred by such other parties by reason of the enforcement and protection of its rights under this Agreement.  The payment of such expenses is in addition to any other relief to which such other parties may be entitled. 

9.Notices.  All notices and other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent by facsimile (receipt of which is confirmed, followed by delivery via overnight courier service) or sent, postage prepaid, by registered, certified or express mail or overnight courier service and shall be deemed given when so delivered by hand or facsimile, or if mailed, three days after mailing (one Business Day in the case of express mail or overnight courier service), as follows:

(a) if to Credit Party Representative:

 

Eugene Robin

Cove Street Capital

2101 East El Segundo Blvd., Suite 302

El Segundo, CA 90245

Email: erobin@covestreetcapital.com

 

(b)  if to the Company:

 

Apex Global Brands Inc.

5990 Sepulveda Blvd., Suite 600

Sherman Oaks, CA 91411

Attention: Henry Stupp, Chief Executive Officer

Email: henrys@apex-gb.com

 

with a copy (which will not constitute notice to the Company) to:

 

Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C.

3580 Carmel Mountain Road, Suite 300

San Diego, CA 92130

Attention: Scott M. Stanton

Email: smstanton@mintz.com

 

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(c) if to Parent or Merger Sub:

c/o Gainline Capital Partners LP

700 Canal Street, 5th Floor

Stamford, CT 06902

Attention: Allan Weinstein

Email: Allan@GainlineCapital.com

with a copy (which will not constitute notice to Parent or Merger Sub) to:

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Attention: Gregory B. Astrachan

Email: gastrachan@willkie.com

(d) if to any Credit Party, to such Credit Party at the address set forth on Schedule I opposite the name of such Credit Party.

10.Governing Law.  This Agreement, and all Legal Actions (whether based on contract, tort, or statute) arising out of, relating to, or in connection with this Agreement or the actions of any of the parties hereto in the negotiation, administration, performance, or enforcement hereof, shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of Laws of any jurisdiction other than those of the State of Delaware.

11.Consent to Jurisdiction.  Each of the parties hereto irrevocably agrees that any Legal Action with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by any other party hereto or its successors or assigns shall be brought and determined exclusively in any state court located in the Court of Chancery of the State of Delaware, or in the event (but only in the event) that such court does not have subject matter jurisdiction over such Legal Action, in the United States District Court for the District of Delaware. Each of the parties hereto agrees that mailing of process or other papers in connection with any such Legal Action in the manner provided in Section 9 or in such other manner as may be permitted by applicable Laws, will be valid and sufficient service thereof. Each of the parties hereto hereby irrevocably submits with regard to any such Legal Action for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any Legal Action relating to this Agreement or any of the transactions contemplated by this Agreement in any court or tribunal other than the aforesaid courts. Each of the parties hereto hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim, or otherwise, in any Legal Action with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder: (a) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process in accordance with this Section 11; (b) any claim that it or its property is 

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exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise); and (c) to the fullest extent permitted by the applicable Law, any claim that (i) the suit, action, or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action, or proceeding is improper, or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

12.Waiver of Jury Trial.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT: (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION; (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY; AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.

13.Interpretation.  The section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the parties and shall not in any way affect the meaning or interpretation of this Agreement.  The words “include,” “includes” and “including” are deemed to be followed by the phrase “without limitation.”  Any reference to the masculine, feminine or neuter gender shall include such other genders and any reference to the singular or plural shall include the other, in each case unless the context otherwise requires.  

14.Entire Agreement.  This Agreement and the Merger Agreement contain the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to such subject matter.  None of the parties shall be liable or bound to any other party in any manner by any representations, warranties or covenants relating to such subject matter except as specifically set forth herein or therein.

15.Severability.  If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

16.Amendment and Modification; Waiver.  This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.  No waiver by 

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any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving.  No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. 

17.Termination.  This Agreement shall immediately terminate upon termination of the Merger Agreement in accordance with Article VIII thereof. Upon termination of this Agreement, it will become void and of no further force and effect, with no liability on the part of any party to this Agreement (or any stockholder, director, officer, employee, agent or Representative of such party) to any party hereto, except for any indemnification obligations pursuant to Section 4 hereof, which shall remain in full force and effect.

18.Covenants of the Company. Between the date hereof and the Effective Time (or the earlier valid termination of the Merger Agreement in accordance with its terms), the Company shall:

(a) from the date of this Agreement through the Effective Time, the Company shall provide to the Credit Party Representative every Friday a report which includes the following: (1) the Company’s then-outstanding accounts payable; (2) the Company’s then-outstanding accounts receivable; (3) the Company’s then-outstanding Indebtedness (including all accrued interest); (4) the Company’s Cash balance as of the date of the report; and (5) a statement confirming that the Company has not taken or committed to take any action which would violate Sections 18(b), (c) or (d) of this Agreement;

(b) not pay, cause to be paid or approve any bonuses to any directors, officers or employees of the Company; 

(c) not prepay any Indebtedness other than as required by any applicable financing document; and

(d) not affirmatively agree in writing to any waiver or delay in payment of any receivable owed to the Company.

Any claim of a breach by the Company under this Section 18 must be made in writing and received by the Company and Parent prior to the Closing or shall be null and void, and the damages (if any) awarded in respect of such claim shall be limited to monetary damages which shall in no event exceed the amount of any bonus, prepayment or receivable in question.  In the event of litigation relating to this Section 18, the non-prevailing party will reimburse the prevailing party for its costs and expenses (including, without limitation, legal fees and expenses) incurred in connection with all such litigation.

19.Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Credit Party signatories hereto and their respective successors and permitted assigns. 

20.Counterparts.  This Agreement may be executed by facsimile or via email as a portable document format (.pdf) and in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Agreement or the terms hereof to produce or account for more than one of such counterparts.

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21.No Reliance on Credit Party Representative by Credit Party.  The decision of each Credit Party to be bound by the terms and conditions of this Agreement has been made by such Credit Party independently of the Credit Party Representative or any other Credit Party and independently of any information, materials, statements or opinions as to the terms and conditions of this Agreement that may have been made or given by the Credit Party Representative, any other Credit Party or by any agent, employee or other representative of the Credit Party Representative, or any other Credit Party, and neither the Credit Party Representative nor any Credit Party or any of their respective agents, employees or other representatives shall have any liability to any other Credit Party (or any Person) relating to or arising from any such information, materials, statement or opinions.  Each Credit Party has had the opportunity to have this Agreement reviewed by counsel for such Credit Party.

[Signature Pages Follow]

 

 

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IN WITNESS WHEREOF, the undersigned have executed this instrument as of the date and year first above written.

 

	
	
EUGENE ROBIN,

	
as the Credit Party Representative

	
 

	
 

	
/s/ Eugene Robin

 

 

		
	
Apex Global Brands Inc.

	
 

	
 

	
By:
	
/s/ Henry Stupp

	
Name:
	
Henry Stupp

	
Its:
	
Chief Executive Officer

 

 

		
	
Galaxy Universal LLC

	
 

	
 

	
By:
	
/s/ Allan Weinstein

	
Name:
	
Allan Weinstein

	
Its:
	
President

 

 

		
	
Galaxy Apex Merger Sub, Inc.

	
 

	
 

	
By:
	
/s/ Allan Weinstein

	
Name:
	
Allan Weinstein

	
Its:
	
President

 

 

 

 

 

 

		
	
CREDIT PARTIES:

	
 
	
 

	
COVE STREET CAPITAL SMALL CAP VALUE FUND

	
 
	
 

	
 
	
 

	
By:
	
/s/ Jeff Bronchick

	
Name:
	
Jeff Bronchick

	
Its:
	
Principal

 

 

	
	
HENRY STUPP

	
 

	
 

	
/s/ Henry Stupp

 

 

		
	
RAVICH REVOCABLE TRUST OF 1989

	
 
	
 

	
 
	
 

	
By:
	
/s/ Jess Ravich

	
Name:
	
Jess Ravich

	
Its:
	
Trustee

 

 

	
	
JESS RAVICH

	
 

	
 

	
/s/ Jess Ravich

 

 

		
	
SQUARE DEAL GROWTH, LLC

	
 

	
 

	
By:
	
/s/ Jeff Bronchick

	
Name:
	
Jeff Bronchick

	
Its:
	
Principal

 

 

 

 

Schedule I

		
	
Name
	
Address

	
Cove Street Capital Small Cap Value Fund
	
2101 East El Segundo Blvd, Suite 302

El Segundo, CA 90245

	
Henry Stupp
	
[ ] 

	
Ravich Revocable Trust of 1989
	
[ ]

	
Jess Ravich
	
[ ]

	
Square Deal Growth, LLC
	
2101 East El Segundo Blvd, Suite 302

El Segundo, CA 90245

 

 

 

 

Schedule II

 

Credit Parties

 

		
	
Credit Party Name
	
Percentage of Aggregate Credit Party

Closing Payment Amount

	
 
	
 

	
Cove Street Capital Small Cap Value Fund
	
37.8%

	
 
	
 

	
Henry Stupp
	
0.7%

	
 
	
 

	
Ravich Revocable Trust of 1989
	
32.3%

	
 
	
 

	
Jess Ravich
	
0.9%

	
 
	
 

	
Square Deal Growth, LLC
	
28.3%

 

 

 

 

 

Schedule III

 

Credit Parties’ Obligations

 

			
	
Credit Party Name
	
Agreement Name and Date
	
Amount of Obligation*

	
 
	
 
	
 

	
Cove Street Capital Small Cap 

Value Fund
	
Subordinated Exchange Note, dated August 3, 2018, by and between the Company and Cove Street Capital Small Cap Value Fund
	
$5,772,697

	
Henry Stupp
	
Subordinated Exchange Note, dated August 3, 2018 by and between the Company and Henry I. Stupp
	
$112,247

	
Ravich Revocable Trust of 1989
	
Subordinated Exchange Note, dated August 3, 2018, by and between the Company and Ravich Revocable Trust of 1989
	
$4,938,864

	
Jess Ravich
	
Promissory Note, dated June 18, 2020 executed by the Company in favor of Jess Ravich
	
$131,593

	
Square Deal Growth, LLC
	
Subordinated Exchange Note, dated August 3, 2018, by and between the Company and Square Deal Growth, LLC
	
$4,329,522

 

 

* Reflects the Obligations as of March 31, 2021.​

Exhibit 10.30
​
NONQUALIFIED STOCK OPTION AGREEMENT
​
THIS NONQUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) is made and effective as of the date specified in Schedule I hereto (the “Grant Date”), by and between the issuer specified in Schedule I hereto (the “Company”) and you.   
The Company has adopted the incentive plan that governs the Options specified in Schedule I hereto (as has been or may hereafter be amended, the “Plan”), a copy of which is attached via a link at the end of this online Agreement as Exhibit A and, by this reference, made a part hereof.  Capitalized terms used and not otherwise defined in this Agreement will have the meanings ascribed to them in the Plan.
Pursuant to the Plan, the Plan Administrator has determined that it would be in the interest of the Company and its stockholders to grant you an Award of Options, subject to the conditions and restrictions set forth in this Agreement and in the Plan, in order to provide you with additional remuneration for services rendered, to encourage you to remain in the service or employ of the Company or its Subsidiaries and to increase your personal interest in the continued success and progress of the Company.  
The Company and you therefore agree as follows:
1.Definitions.  The following terms, when used in this Agreement, have the following meanings, except as otherwise defined in Schedule I hereto:
“Agreement” has the meaning specified in the preamble to this Agreement.
“Business Day” means any day on which stock exchanges in the United States are open for trading.
“Cause” has the meaning specified as “cause” in Section 10.2(b) of the Plan. 
“Close of Business” means, on any day, 4:00 p.m., New York, New York time.   
“Common Stock” has the meaning specified in Schedule I hereto.
“Company” has the meaning specified in the preamble to this Agreement.
“Confidential Information” has the meaning specified in Section 11 (Confidential Information).
“Disability” has the meaning specified as “Disability” in Section 2.1 of the Plan. 
 “Employment Termination Date” means the date of termination of your employment with the Company or a Subsidiary, as applicable. 
“Exercise Notice” has the meaning specified in Section 4(i)(1) (Manner of Exercise).
“Forfeitable Benefits” has the meaning specified in Section 29 (Forfeiture for Misconduct and Repayment of Certain Amounts).

1
​

​

“Grant Date” has the meaning specified in the preamble to this Agreement.
“Misstatement Period” has the meaning specified in Section 29 (Forfeiture for Misconduct and Repayment of Certain Amounts).
“Option(s)” has the meaning specified in Section 2 (Award).
“Option Exercise Price” means, with respect to each type of Common Stock for which Options are granted hereunder, the amount specified in Schedule I hereto as the Option Exercise Price for such Common Stock.
“Option Termination Date” has the meaning specified in Schedule I hereto.
“Plan” has the meaning specified in the preamble to this Agreement.
“Plan Administrator” has the meaning specified in Section 13 (Plan Administrator).
“Required Withholding Amount” has the meaning specified in Section 5 (Mandatory Withholding for Taxes).
“Section 409A” has the meaning specified in Section 28 (Code Section 409A).
“Year of Continuous Service” means a consecutive 12-month period, measured by your  hire date (as determined by the Company) and the anniversaries of that date, during which you are employed by the Company or a Subsidiary (or an applicable predecessor of the Company) without interruption.  If you were employed by a Subsidiary at the time of such Subsidiary’s acquisition by the Company, your employment with the Subsidiary prior to the acquisition date will be included in determining your Years of Continuous Service unless the Plan Administrator, in its sole discretion, determines that such prior employment will be excluded.
2.Award.  In consideration of your covenants and promises herein, the Company hereby awards to you as of the Grant Date nonqualified Options to purchase from the Company at the applicable Option Exercise Price the number and type of shares of Common Stock authorized by the Plan Administrator and set forth in the notice of online grant delivered to you pursuant to the Company’s online grant and administration program, subject to the conditions and restrictions set forth in this Agreement and in the Plan (the “Options”).    
3.Vesting.  Unless otherwise determined by the Plan Administrator in its sole discretion, the Options will vest and become exercisable in accordance with the General Vesting provisions specified in Schedule I hereto, subject to your continuous employment with the Company or a Subsidiary from the Grant Date through the applicable vesting dates. Notwithstanding the foregoing, unless otherwise determined by the Plan Administrator in its sole discretion or except as otherwise specified in Schedule I hereto:
(a)Termination for any Reason Other than Disability, Death or for Cause.  All unvested Options will be forfeited on the Employment Termination Date if your employment terminates for any reason other than by reason of your Disability (when Cause does not then exist) or your death, or for Cause.

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(b)Disability and Death. All Options will vest and become exercisable on the Employment Termination Date if (i) your employment terminates by reason of your Disability (when Cause does not then exist) or (ii) you die while employed by the Company or a Subsidiary.
(c)Termination for Cause. All vested and unvested Options will be forfeited on the Employment Termination Date if your employment with the Company or a Subsidiary is terminated for Cause.
(d)Approved Transaction, Board Change or Control Purchase.  The Options may become vested and exercisable in accordance with Section 10.1(b) of the Plan in the event of an Approved Transaction, Board Change or Control Purchase following the Grant Date. 
(e)Miscellaneous.
(i)Rounding. Any fractional portions of an Option that do not vest because of rounding down will vest and become exercisable on the earliest succeeding vesting date on which the cumulative fractional portions of such Options equals or exceeds one whole Option, with any excess fractional portions remaining subject to future vesting accordingly.
(ii)Qualifying Service. For purposes of this Agreement, continuous employment means the absence of any interruption or termination of employment or service as an employee, officer or consultant of or to the Company or a Subsidiary, as applicable, and references to termination of employment (or similar references) shall include termination of employment or service as an employee, officer or consultant of or to the Company or a Subsidiary, as applicable. Unless the Plan Administrator otherwise determines in its sole discretion, a change of your employment or service from the Company to a Subsidiary or from a Subsidiary to the Company or another Subsidiary will not be considered a termination of your employment for purposes of this Agreement if such change of employment or service is made at the request or with the express consent of the Company.  Unless the Plan Administrator otherwise determines in its sole discretion, however, any such change of employment or service that is not made at the request or with the express consent of the Company will be a termination of your employment within the meaning of this Agreement.
4.Manner of Exercise.  You may exercise the Options that vest and become exercisable, in whole or in part, at any time and from time to time, except as otherwise provided herein.  Options will be considered exercised (as to the number and type of Options specified in the Exercise Notice defined below in subclause (i)(1) of this Section 4) on the latest of (a) the date of exercise designated in the Exercise Notice, (b) if the date so designated is not a Business Day, the first Business Day following such date or (c) the earliest Business Day by which: 
(i)the Company has received all of the following:
(1)written or electronic notice, in such form as the Plan Administrator may require, containing such representations and warranties as the Plan Administrator may require and designating, among other things, the date of 

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exercise and the number and type of shares of Common Stock to be purchased by exercise of the Options (the “Exercise Notice”); 
(2)payment of the applicable Option Exercise Price for each share of Common Stock to be purchased by exercise in any (or a combination) of the following forms: (A) cash, (B) check, or (C) at the option of the Company, the delivery of irrevocable instructions via the Company’s online grant and administration program for the Company to withhold the number of shares of Common Stock (valued at the Fair Market Value of such Common Stock on the date of exercise) required to pay such Option Exercise Price (and, if applicable, the Required Withholding Amount as described in Section 5 (Mandatory Withholding for Taxes)) that would otherwise be delivered by the Company to you upon exercise of the Options; and
(3)any other documentation that the Plan Administrator may reasonably require; and 
(ii)you have satisfied any other conditions established or adopted by the Plan Administrator from time to time, as contemplated by Section 3.3 of the Plan, with respect to the exercise of Options.
5.Mandatory Withholding for Taxes.  You acknowledge and agree that the Company will deduct from the shares of Common Stock otherwise payable or deliverable upon exercise of any Options that number of shares of the applicable Common Stock (valued at the Fair Market Value of such Common Stock on the date of exercise) that is equal to the amount of all national, federal, state and other local or governmental taxes and social security costs and charges or similar contributions (wheresoever arising) required to be withheld by the Company or any Subsidiary of the Company upon such exercise, as determined by the Company (the “Required Withholding Amount”), unless provisions to pay such Required Withholding Amount have been made to the satisfaction of the Company.  For the avoidance of doubt, the Company may allow for tax withholding in respect of the exercise of any Options up to the maximum withholding rate applicable to you.  
6.Payment or Delivery by the Company.  As soon as practicable after receipt of all items referred to in Section 4 (Manner of Exercise), subject to (a) the withholding referred to in Section 5 (Mandatory Withholding for Taxes), (b) Section 12 (Right of Offset), and (c) Section 17 (Amendment), and except as otherwise provided herein as may be determined by the Plan Administrator, the Company will cause to be issued and transferred to a brokerage account, or registered through the Company’s stock transfer agent for your benefit, book-entry transfers registered in your name for that number and type of shares of Common Stock purchased by exercise of the Options.  Any delivery of securities will be deemed effected for all purposes when (i) in the case of a book-entry transfer, at the time the Company’s stock transfer agent initiates the transfer of such securities to a brokerage account through the Company’s stock transfer agent for your benefit or (ii) the Plan Administrator has made or caused to be made such other arrangements for the delivery of such securities as the Plan Administrator deems reasonable.  Securities representing Common Stock purchased by exercise of the Options may be registered only to you (or during your lifetime, to your court appointed legal representative) or to a person to whom the Options have been transferred in accordance with Section 10.6 of the Plan and Section 8 below (Nontransferability).

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7.Expiration.  The Options will terminate automatically and without further notice on the Option Termination Date or, unless otherwise determined by the Plan Administrator in its sole discretion or except as otherwise specified in Schedule I hereto, effective as of the following times, if earlier: 
(a)Unvested Options.  With respect to those Options which are then unexercisable (after taking into account any applicable accelerated or continued vesting treatment), the Close of Business on the Employment Termination Date. 
(b)Vested Options.  With respect to those Options which are then exercisable (after taking into account any applicable accelerated or continued vesting treatment):
(i)Termination for any Reason Other than Disability, Death or for Cause. In the event of termination of your employment for any reason other than your Disability (when Cause does not then exist), your death, or for Cause, at the Close of Business on the last day of the period beginning on the Employment Termination Date and ending 90 days thereafter; provided, however, that if you die during such period, such Options will terminate at the Close of Business on the last day of the one-year period beginning on the date of your death;
(ii)Disability. In the event of termination of your employment with the Company or a Subsidiary by reason of your Disability (when Cause does not then exist), at the Close of Business on the last day of the one-year period beginning on the Employment Termination Date; provided, however, that if you die during such period, such Options will terminate at the Close of Business on the last day of the one-year period beginning on the date of your death; or
(iii)Death. In the event of your death, at the Close of Business on the last day of the one-year period beginning on the date of your death.
(c)Termination for Cause. With respect to all your then outstanding Options, whether exercisable or unexercisable, the date upon which your employment with the Company or a Subsidiary is terminated for Cause.
Notwithstanding any period of time referenced in this Section 7 or Schedule I hereto or any other provision of this Agreement that may be construed to the contrary, the Options will in any event terminate at the Close of Business on the Option Termination Date.  Notwithstanding anything herein or the Plan to the contrary, if the Options would otherwise expire when trading in the Common Stock is prohibited by law or the Company’s insider trading policy pursuant to an event-specific occurrence (as determined by the Company), then the Options shall instead expire on the 30th day after the expiration of such prohibition.
8.Nontransferability.  Options are not transferable (either voluntarily or involuntarily), before or after your death, except as follows: (a) during your lifetime, pursuant to a Domestic Relations Order, issued by a court of competent jurisdiction, that is not contrary to the terms and conditions of the Plan or this Agreement, and in a form acceptable to the Plan Administrator; or (b) after your death, by will or pursuant to the applicable laws of descent and distribution, as may be the case.  Any person to whom Options are transferred in accordance with the provisions of the preceding sentence shall take such Options subject to all of the terms and conditions of the Plan and this Agreement, including that the vesting and termination provisions of this Agreement will continue to be applied with respect to you.  

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Options are exercisable only by you (or, during your lifetime, by your court appointed legal representative) or a person to whom the Options have been transferred in accordance with this Section 8 and Section 10.6 of the Plan. 
9.No Stockholder Rights.  Prior to the exercise of Options in accordance with the terms and conditions set forth in this Agreement, you will not be deemed for any purpose to be, or to have any of the rights of, a stockholder of the Company with respect to any shares of Common Stock represented by the Options, nor will the existence of this Agreement affect in any way the right or power of the Company or its stockholders to accomplish any corporate act, including, without limitation, the acts referred to in Section 10.16 of the Plan.
10.Adjustments. The Options will be subject to adjustment (including, without limitation, as to the Option Exercise Price) in such manner as the Plan Administrator, in its sole discretion, deems equitable and appropriate in connection with the occurrence of any of the events described in Section 4.2 of the Plan following the Grant Date.
11.Confidential Information.  During your employment or service with the Company or a Subsidiary, you will acquire, receive, and/or develop Confidential Information (as defined below) in the course of performing your job duties or services. You will not, during or after your employment or service with the Company or a Subsidiary, without the prior express written consent of the Company, directly or indirectly use or divulge, disclose or make available or accessible any Confidential Information to any person, firm, partnership, corporation, trust or any other entity or third party other than when required to do so in good faith to perform your duties and responsibilities to the Company and provided that nothing herein shall be interpreted as preventing you from (a) doing so when required to do so by a lawful order of a court of competent jurisdiction, any governmental authority or agency, or any recognized subpoena power, (b) doing so when necessary to prosecute your rights against the Company or its Subsidiaries or to defend yourself against any allegations, or (c) communicating with, filing a charge with, reporting possible violations of federal law or regulation to, or participating in an investigation or proceeding conducted by, a government agency, including providing documents or other information to such agency without notice to the Company.  You will also proffer to the Company, any time upon request by the Company or upon termination, to be provided no later than the effective date of any termination of your employment or engagement with the Company for any reason, and without retaining any copies, notes or excerpts thereof, all memoranda, computer disks or other media, computer programs, diaries, notes, records, data, customer or client lists, marketing plans and strategies, and any other documents consisting of or containing Confidential Information that are in your actual or constructive possession or which are subject to your control at such time (other than contracts between you and the Company, pay stubs, benefits information, and copies of documents or information that you require in order to prepare your taxes).  At the time of termination or otherwise upon request by the Company, you agree to permanently delete Confidential Information from all of your personal electronic devices and provide certification to the Company that you are in compliance with this sentence.  For purposes of this Agreement, “Confidential Information” will mean all information respecting the business and activities of the Company or any Subsidiary, including, without limitation, the clients, customers, suppliers, employees, consultants, computer or other files, projects, products, computer disks or other media, computer hardware or computer software programs, marketing plans, financial information, methodologies, know-how, processes, practices, approaches, projections, forecasts, formats, systems, trade secrets, data gathering methods and/or strategies of the Company or any Subsidiary.  Notwithstanding the immediately preceding sentence, Confidential Information will not include any information that is, or becomes, generally available to the public (unless such availability occurs as a result of your breach of any of your obligations under this Section 11).  If you are in breach 

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of any of the provisions of this Section 11 or if any such breach is threatened by you, in addition to and without limiting or waiving any other rights or remedies available to the Company at law or in equity, the Company shall be entitled to immediate injunctive relief in any court, domestic or foreign, having the capacity to grant such relief, without the necessity of posting a bond, to restrain any such breach or threatened breach and to enforce the provisions of this Section 11.  You agree that there is no adequate remedy at law for any such breach or threatened breach and, if any action or proceeding is brought seeking injunctive relief, you will not use as a defense thereto that there is an adequate remedy at law.
12.Right of Offset.  You hereby agree that the Company shall have the right to offset against its obligation to deliver shares of Common Stock, cash or other property under this Agreement to the extent that it does not constitute “non-qualified deferred compensation” pursuant to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or a Subsidiary.
13.Plan Administrator.  For purposes of this Agreement, the term “Plan Administrator” means the Compensation Committee of the Board of Directors of the Company or any different committee appointed by the Board of Directors as described more fully in Section 3.1 of the Plan.
14.Restrictions Imposed by Law.  Without limiting the generality of Section 10.8 of the Plan, you will not exercise the Options, and the Company will not be obligated to make any cash payment or issue or cause to be issued any shares of Common Stock, if counsel to the Company determines that such exercise, payment or issuance would violate any applicable law or any rule or regulation of any governmental authority or any rule or regulation of, or agreement of the Company with, any securities exchange or association upon which shares of Common Stock are listed or quoted.  The Company will in no event be obligated to take any affirmative action in order to cause the exercise of the Options or the resulting payment of cash or issuance of shares of Common Stock to comply with any such law, rule, regulation or agreement.  Any certificates representing any such securities issued or delivered under this Agreement may bear such legend or legends as the Company deems appropriate in order to assure compliance with applicable securities laws.
15.Tax Representations.  You hereby acknowledge that the Company has advised you that you should consult with your own tax advisors regarding the national, federal, state and other local or governmental tax consequences or social security costs and charges or similar contributions (wheresoever arising) of receiving the Award. You hereby represent to the Company that you are not relying on any statements or representations of the Company, its Affiliates or any of their respective agents with respect to the national, federal, state and other local or governmental tax consequences or social security costs and charges or similar contributions (wheresoever arising) of receiving the Award. If, in connection with the Award, the Company is required to withhold any amounts by reason of any national, federal, state and other local or governmental tax or social security costs and charges or similar contributions (wheresoever arising), such withholding shall be effected in accordance with Section 10.9 of the Plan and Section 5 (Mandatory Withholding for Taxes).
16.Notice.  Unless the Company notifies you in writing of a different procedure or address, any notice or other communication to the Company with respect to this Agreement will be in writing and will be delivered personally or sent by first class mail, postage prepaid, to the address specified for the Company in Schedule I hereto.  Any notice or other communication to you with respect to this Agreement will be provided to you electronically pursuant to the online grant and administration program or via email, unless the Company elects to notify you  in writing, which will be delivered personally, or will be sent by first class mail, postage prepaid, to your address as listed in the records of 

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the Company or any Subsidiary of the Company on the Grant Date, unless the Company has received written notification from you of a change of address.
17.Amendment.  Notwithstanding any other provision hereof, this Agreement may be supplemented or amended from time to time as approved by the Plan Administrator as contemplated by Section 10.7(b) of the Plan.  Without limiting the generality of the foregoing, without your consent:
(a)this Agreement may be amended or supplemented from time to time as approved by the Plan Administrator (i) to cure any ambiguity or to correct or supplement any provision herein that may be defective or inconsistent with any other provision herein, (ii) to add to the covenants and agreements of the Company for your benefit or surrender any right or power reserved to or conferred upon the Company in this Agreement, subject to any required approval of the Company’s stockholders, and provided, in each case, that such changes or corrections will not adversely affect your rights with respect to the Award evidenced hereby (other than if immaterial) or (iii) to make such other changes as the Company, upon advice of counsel, determines are necessary or advisable because of the adoption or promulgation of, or change in the interpretation of, any law or governmental rule or regulation, including any applicable federal or state securities laws; and
(b)subject to any required action by the Board of Directors or the stockholders of the Company, the Options granted under this Agreement may be canceled by the Plan Administrator and a new Award made in substitution therefor, provided that the Award so substituted will satisfy all of the requirements of the Plan as of the date such new Award is made and no such action will adversely affect any Options (other than if immaterial) to the extent then exercisable.
18.Employment.  Nothing contained in the Plan or this Agreement, and no action of the Company or the Plan Administrator with respect thereto, will confer or be construed to confer on you any right to continue in the employ or service of the Company or any Subsidiary or interfere in any way with the right of the Company or any employing Subsidiary to terminate your employment or service at any time, with or without Cause, subject to the provisions of any employment or consulting agreement between you and the Company or any Subsidiary.
19.Nonalienation of Benefits.  Except as provided in Section 8 (Nontransferability) and Section 12 (Right of Offset), (a) no right or benefit under this Agreement will be subject to anticipation, alienation, sale, assignment, hypothecation, pledge, exchange, transfer, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign, hypothecate, pledge, exchange, transfer, encumber or charge the same will be void, and (b) no right or benefit hereunder will in any manner be subjected to or liable for the debts, contracts, liabilities or torts of you or other person entitled to such benefits.
20.No Effect on Other Benefits.  Any payments made pursuant to this Agreement will not be counted as compensation for purposes of any other employee benefit plan, program or agreement sponsored, maintained or contributed to by the Company or a Subsidiary unless expressly provided for in such employee benefit plan, program, agreement, or arrangement.
21.Governing Law; Venue.  This Agreement will be governed by, and construed in accordance with, the internal laws of the State designated in Section 10.13 of the Plan.  Each party irrevocably submits to the general jurisdiction of the state and federal courts located in the State of Colorado and in the State of Delaware in any action to interpret or enforce this Agreement and 

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irrevocably waives any objection to jurisdiction that such party may have based on inconvenience of forum.
22.Waiver.  No waiver by the Company at any time of any breach by you of, or compliance with, any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver of the same term or condition, or of any similar or any dissimilar term or condition, whether at the same time or at any prior or subsequent time.
23.Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.
24.Construction.  References in this Agreement to “this Agreement” and the words “herein,” “hereof,” “hereunder” and similar terms include all Exhibits and Schedules attached hereto, including the Plan.  All references to “Sections” in this Agreement shall be to Sections of this Agreement unless explicitly stated otherwise.  The word “include” and all variations thereof are used in an illustrative sense and not in a limiting sense.  All decisions of the Plan Administrator upon questions regarding the Plan or this Agreement will be conclusive.  Unless otherwise expressly stated herein, in the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan will control.  The headings of the sections of this Agreement have been included for convenience of reference only, are not to be considered a part hereof and will in no way modify or restrict any of the terms or provisions hereof.
25.Rules by Plan Administrator.  The Plan Administrator, in its discretion and as contemplated by Section 3.3 of the Plan, may adopt rules and regulations it deems consistent with the terms of the Plan and as necessary or advisable in its operation and administration of the Plan and this Award.  You acknowledge and agree that your rights and the obligations of the Company hereunder, including with respect to any exercise of the Options, will be subject to any further conditions and such reasonable rules and regulations as the Plan Administrator may adopt from time to time.
26.Entire Agreement.  This Agreement is in satisfaction of and in lieu of all prior discussions and agreements, oral or written, between the Company and you regarding the Award.  You and the Company hereby declare and represent that no promise or agreement not expressed herein has been made and that this Agreement contains the entire agreement between the parties hereto with respect to the Award and replaces and makes null and void any prior agreements between you and the Company regarding the Award.  Subject to the restrictions set forth in Sections 8 (Nontransferability) and 19 (Nonalienation of Benefits), this Agreement will be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns.
27.Acknowledgment.  You will signify acceptance of the terms and conditions of this Agreement by acknowledging the acceptance of this Agreement via the procedures described in the online grant and administration program utilized by the Company.  By your electronic acknowledgment of the Options, you are acknowledging the terms and conditions of the Award set forth in this Agreement as though you and the Company had signed an original copy of the Agreement.
28.Code Section 409A.  The Awards made hereunder are intended to be “stock rights” exempt from Section 409A and this Agreement shall be interpreted and administered accordingly.  Notwithstanding the foregoing, to the extent that Section 409A of the Code or the related regulations and Treasury pronouncements (“Section 409A”) are applicable to you in connection with the Award, 

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this Award is subject to the provisions of Section 10.17 of the Plan regarding Section 409A and each payment under this Agreement shall be treated as a separate payment under Section 409A.  Notwithstanding the foregoing, the Company makes no representations that the Award or the Plan shall be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to the Award or the Plan.  If this Agreement fails to meet the requirements of Section 409A, neither the Company nor any of its Affiliates shall have any liability for any tax, penalty or interest imposed on you by Section 409A, and you shall have no recourse against the Company or any of its Affiliate for payment of any such tax, penalty or interest imposed by Section 409A.
29.Forfeiture for Misconduct and Repayment of Certain Amounts.  If (a) a material restatement of any financial statement of the Company (including any consolidated financial statement of the Company and its consolidated Subsidiaries) is required and (b) in the reasonable judgment of the Plan Administrator, (i) such restatement is due to material noncompliance with any financial reporting requirement under applicable securities laws and (ii) such noncompliance is a result of misconduct on your part, you will repay to the Company Forfeitable Benefits you received during the Misstatement Period in such amount as the Plan Administrator may reasonably determine, taking into account, in addition to any other factors deemed relevant by the Plan Administrator, the extent to which the market value of Common Stock during the Misstatement Period was affected by the error(s) giving rise to the need for such restatement.  “Forfeitable Benefits” means (A) any and all cash and/or shares of Common Stock you received (I) upon the exercise during the Misstatement Period of any Options and SARs you held or (II) upon the payment during the Misstatement Period of any Cash Award or Performance Award you held, the value of which is determined in whole or in part with reference to the value of Common Stock, and (B) any proceeds you received from the sale, exchange, transfer or other disposition during the Misstatement Period of any shares of Common Stock you received upon the exercise, vesting or payment during the Misstatement Period of any Award you held.  By way of clarification, “Forfeitable Benefits” will not include any shares of Common Stock you received upon vesting of any Restricted Stock Units during the Misstatement Period that are not sold, exchanged, transferred or otherwise disposed of during the Misstatement Period. “Misstatement Period” means the 12-month period beginning on the date of the first public issuance or the filing with the Securities and Exchange Commission, whichever occurs earlier, of the financial statement requiring restatement.  Further, in the event that the Plan Administrator, in its reasonable judgment, determines that you breached Section 11 (Confidential Information) or any other non-competition or non-solicitation provisions included in this Agreement, the Plan Administrator may require you to forfeit, return or repay to the Company (X) all or any portion of the Options, whether exercisable or unexercisable, that remain outstanding, and any and all rights with respect to any such Options, (Y) any shares of Common Stock received upon the exercise of any Options during the 12-month period prior to such breach or any time after such breach occurs and (Z) any proceeds realized on the sale of any shares of Common Stock received upon the exercise of any Options during the 12-month period prior to such breach or any time after such breach occurs.  For the avoidance of doubt, any such forfeiture, return or repayment will not limit, restrict or otherwise affect your continuing obligations under Section 11 (Confidential Information) or any other non-competition or non-solicitation provisions included in this Agreement, or the Company’s right to seek injunctive relief or any other relief in the event of your breach of Section 11 (Confidential Information) or any other non-competition or non-solicitation provisions included in this Agreement.
30.Changes to Forfeiture Provisions and Policies.  Please note Section 29 (Forfeiture for Misconduct and Repayment of Certain Amounts), which reflects an important policy of the Company. The Plan Administrator has determined that Awards made under the Plan (including the Award represented by this Agreement) are subject to forfeiture and recoupment in certain circumstances. By accepting this Award, you agree that the Plan Administrator may change the Forfeiture section of any or 

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all of the grant agreements (including this Agreement) from time to time without your further consent to reflect changes in law, government regulation, stock exchange listing requirements or Company policy. 
31.Additional Conditions and Restrictions.  You may be subject to additional conditions and restrictions.  If a Schedule II is attached hereto, the additional conditions and restrictions specified therein are considered part of this Agreement.
32.Administrative Blackouts.  In addition to its other powers under the Plan, the Plan Administrator has the authority to suspend (a) the exercise of Options and (b) any other transactions under the Plan as it deems necessary or appropriate for administrative reasons.
33.Stock Ownership Guidelines.  This Award may be subject to any applicable stock ownership guidelines adopted by the Company, as amended or superseded from time to time.
34.Company Information.  You can access the Company’s most recent annual, quarterly and current reports as filed with the Securities and Exchange Commission on the Company’s website specified in Schedule I hereto.  Please refer to these reports as well as the Company’s future filings with the Securities and Exchange Commission (also available on the Company’s website) for important information regarding the Company and its Common Stock.
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*****
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Schedule I
to 
Nonqualified Stock Option Agreement
[Insert Grant Code]
​
	Grant Date:
	[____________]
​

	Issuer/Company:
	Liberty TripAdvisor Holdings, Inc., a Delaware corporation
​

	Plan:
	Liberty TripAdvisor Holdings, Inc. 2019 Omnibus Incentive Plan, as amended from time to time
​

	Common Stock:
	Liberty TripAdvisor Holdings, Inc. Series A Common Stock (“LTRPA Common Stock”)
​

	Option Termination Date:
	[____________]
​

	Option Exercise Price:
	LTRPA Common Stock:$[______]
​

	General Vesting Schedule:
	Subject to your continuous employment with the Company from the Grant Date through the following applicable vesting date, each class of the Options will vest and become exercisable, rounded down to the nearest whole number, on the following schedule:
​
Vesting
Date
Vesting
Percentage
[____________]
[____________]%
[____________]
[____________]%
[____________]
[____________]%
​
​
​

	​
	Each portion of the Options that relates to a particular type of Common Stock and is subject to a particular vesting date is referred to herein as an individual “Tranche” (e.g., if this Award includes Options to acquire three types of Common Stock and there are three vesting dates for each type of Common Stock, then there are nine Tranches).
​

	Vesting Terms Upon a Termination without Cause:
	Notwithstanding Section 3(a) of the Agreement, if your employment with the Company or a Subsidiary is terminated by the Company or such Subsidiary without Cause, subject to your execution of, and delivery to the Company in accordance with the notice requirements of this Agreement, a general release agreement in a form satisfactory to the Company and such release becoming irrevocable in accordance with its terms, in each case, no later than 60 days following the Employment Termination Date (the “Release Conditions”), a Pro Rata Portion (as defined below) of each remaining unvested Tranche will become vested and exercisable upon the Release Conditions being met.

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For purposes of this Agreement, a Pro Rata Portion shall be equal to the product of “A” multiplied by “B,” where “A” equals the number of Options in the applicable Tranche that are not vested on the Employment Termination Date, and “B” is a fraction, the numerator of which is the number of calendar days that have elapsed from the Grant Date through the Employment Termination Date plus (i) an additional 270 calendar days if you are an Assistant Vice President or Vice President of the Company or a Subsidiary on the Employment Termination Date or (ii) an additional 365 calendar days if you are a Senior Vice President, Executive Vice President or Chief of the Company or a Subsidiary on the Employment Termination Date, and the denominator of which is the number of days in the entire vesting period for such Tranche (in no event to exceed the total number of unvested Options in such Tranche as of the Employment Termination Date). The vesting period for each Tranche of Options is the period that begins on the Grant Date and ends on the vesting date for such Tranche.
​

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	Post-Termination without Cause Exercise Period:
	Notwithstanding Section 7(b)(i) of the Agreement, if your
employment with the Company or a Subsidiary is terminated by the
Company or such Subsidiary without Cause, subject to the Release Conditions being met, those Options which are then exercisable (after taking into account the applicable accelerated vesting treatment)  shall remain exercisable for the period of time beginning on the Employment Termination Date and continuing for the number of days that is equal to the sum of (i) 90, plus (ii) 180 multiplied by your total Years of Continuous Service.

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	Company Notice Address:
	Liberty TripAdvisor Holdings, Inc.
12300 Liberty Boulevard
Englewood, Colorado 80112
Attn:  Chief Legal Officer
​

	Company Website:
	www.libertytripadvisor.com 
​

	Plan Access:
	You can access the Plan via the link at the end of the Agreement or by contacting Liberty TripAdvisor Holdings, Inc.’s Legal Department.
​

​

13
​

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00321-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00321-of-00352.parquet"}]]