Document:

Exhibit 10.2

 

CUSTOMER AND SERVICE PROVIDER CONFIDENTIAL

 

EXHIBIT A

 

FORM OF WORK ORDER

 

This Work Order (the “Work Order”)
is made effective as of August 20, 2015 (“Work Order Effective Date”), by and between Walker Digital,
LLC, a Delaware limited liability company having its principal office located at 2 High Ridge Park, Stamford, CT 06905 (“Customer”)
and Walker Innovation Inc., a Delaware corporation having its principal office located at 2 High Ridge Park, Stamford, CT 06905
(“Service Provider”), and is incorporated by reference into and made a part of that certain Engagement Agreement,
dated August 20, 2015 (the “Agreement”), by and between Customer and Service Provider.

 

		1.	Definitions

 

Any capitalized
terms that are not defined in this Work Order shall have the meanings set forth in the Agreement. In addition, the following terms
shall have the following meanings for the purpose of this Work Order:

 

		1.1	“Work Order Services” has the meaning given
in Section 4 below.

 

 

		2.	Management
                                         Summary

 

		2.1	Financial Summary

 

Below is
a summary of the charges for this Work Order. For a more detailed breakdown of the charges please refer to Section 5 of this
Work Order:

 

	First payment - $1,000,000	Payment date –
August 21, 2015
	Second payment - $500,000	Payment date – December 21, 2015
	Third payment - $500,000	Payment date – March 21, 2016
	Fourth payment - $750,000	Payment date – June 21, 2016
	Fifth payment - $250,000	Payment date – September 21, 2016

 

		3.	Term
                                         and Termination

 

The term of this Work Order shall
commence on the Work Order Effective Date and shall continue until December 31, 2016, unless terminated earlier or extended
in accordance with this Work Order or the Agreement.

 

		4.	Services-SUBCONTRACTOR SERVICES AGREEMENT

 

Service
Provider shall provide the following services under this Work Order (“Work Order Services”): Customer has a
contract with a third party located outside Connecticut to provide certain services as are discussed more fully herein and
wishes to subcontract such services to Service Provider. Service Provider’s services are integral, inseparable
components of the services to be provided by Customer and such services are essential to complete the performance of
Customer’s service and without which such service could not be rendered. Accordingly, Customer will fully resell
Service Provider’s services to such customer. The services to be provided hereunder include: Business prototype
development services in connection with the Prototype Development Plan dated July 6, 2015, including Supplement A thereto
dated July 15, 2015 previously provided to Service Provider.

 

		4.1	Milestone/Deliverables

 

The Work Order Services shall
be provided by Service Provider to Customer in accordance with the following timetable:

 

    	Exhibit 18 (Form of Work Order)
 Execution Version

     

    

  

CUSTOMER
AND SERVICE PROVIDER CONFIDENTIAL

 

 

	Month	Check Point	Benchmarks (see below)	Payment
	0	21-Aug-15	Signing of contractual agreements 	$1,000,000
	4	21-Dec-15	
        Approved prototype plan

        (1)    
        Design and document user experience

        (2)    
        Successful completion of 5 out of 7 of the following tasks:

        a.      
        Determine initial product name and positioning

        b.      
        Establish insurance technology, creative and media partners

        c.       
        Finalize launch marketing and media plan

        d.      
        Establish initial team

        e.       
        Complete technology requirements, design and user interface

        f.       
        Develop and execute pre-launch research

        g.       
        Begin site development
	$500,000
	7	21-Mar-16	
        Acquire >500 test groups at <$250 per group

        (1)    
        Sell at least 500 test groups at an acquisition cost of less than $250 per group

        (2)    
        Successful completion of the following tasks:

        a.      
        Launch consumer website and online presence

        b.      
        Launch marketing and media campaigns

        c.       
        Develop and execute post launch research

        d.      
        Deliver marketing metrics reporting package
	$500,000
	10	21-Jun-16	
        Cross-sell >200 contracts at <150% First Year Premium
        (“FYP”)

        (1)    
        Cross-sell at least 200 individual contracts at <150% FYP

        (2)    
        Successful completion of the following tasks:

        e.       
        Deliver technology reporting package

        f.       
        Launch phase 2 of site functionality (cross-sell functionality)

        g.       
        Launch testing of cross-sell engine
	$750,000
	13	21-Sep-16	
        Approved business plan for scaling into 2017 and beyond

        (1)    
        Approved scale-up plan and rollout decision, including consideration of corporate structure for business
	$250,000
	16	31-Dec-16	
        Cross-sell >1,500 contracts at <150% FYP

        (1)    
        Continued marketing campaigns (phase 2 of media spend)

        (2)    
        Continued testing of upsell engine
	TBD per Plan

 

 

		4.2	Meetings

 

The
parties shall engage in meetings as specified below during the term of this Work Order:

 

(a) monthly
milestone checkpoints where Service Provider shall review with Customer or its designee milestone progress and tracking towards
prospective capital injections and (b) weekly standups where Service Provider shall review with Customer or its designee tactical
activities and milestone progress.

  

    	 	Exhibit A - 2	Work Order
 Execution Version

     

    

 

CUSTOMER
AND SERVICE PROVIDER CONFIDENTIAL

 

		4.3	Customer-Provided Resources and Responsibilities

 

Customer or
its designee shall provide the following resources and fulfill the following responsibilities to enable Service Provider to provide
the Work Order Services:

 

	Resource
	Subject matter experts covering actuarial product design, experimental design and other functions as deemed necessary to the prototype team

 

 

		5.	Charges
                                         and Other Fees/Invoicing

 

		5.1	Charges and Other Fees

 

Customer shall pay Service Provider
the following charges for the Work Order Services:

 

	First payment - $1,000,000	Payment date –
August 21, 2015
	 	 
	Second payment - $500,000	Payment date –
December 21, 2015
	 	 
	Third payment - $500,000	Payment date – March
21, 2016
	 	 
	Fourth payment - $750,000	Payment date –
June 21, 2016
	 	 
	Fifth payment - $250,000	Payment date – September
21, 2016

  

After the first and second payments
have been made, Customer may by written notice to Service Provider elect to discontinue its payments to the Service Provider if
at least 500 groups (as described in the Plan) have not been sold prior to March 19, 2016 at a media acquisition cost of less than
$250 per group. After the first, second and third payments have been made to the Service Provider, Customer may by written notice
to Service Provider elect to discontinue its payments to the Service Provider if at least 200 policies (as described in the Plan)
have not been sold prior to June 19, 2016 at an acquisition cost of no more than 150% of the year one premium value for such policies.

 

		5.2	Termination for Convenience Fee

 

None.

 

    	 	Exhibit A - 3	Work Order
 Execution Version

     

    

 

CUSTOMER
AND SERVICE PROVIDER CONFIDENTIAL

 

 

Customer and Service
Provider agree that the complete agreement between them regarding this Work Order consists of the Agreement, this Work Order and
any other documents attached hereto and expressly incorporated by reference herein. If a conflict occurs between the terms of the
Agreement (including its Exhibits) and the terms of this Work Order, the terms of the Agreement shall control; provided, however,
that this Work Order may modify any provision of the Agreement provided that such modification specifically identifies by Section
number the provision to be modified and expressly identifies such modification as a modification to the Agreement. Such modification
by a Work Order shall be as to such Work Order only.

 

IN WITNESS WHEREOF,
each of Customer and Service Provider have executed or caused this Work Order to be executed as of the date set forth above by
its duly authorized representative.

 

 

	WALKER DIGITAL, LLC	 	WALKER INNOVATION iNC.
	 	 	 
	By: /s/ Jay Walker	 	By: /s/ Jonathan Ellenthal
	 	 	 
	 	 	 
	 	 	 
	Name: Jay Walker	 	Name: Jonathan Ellenthal
	 	 	 
	 	 	 
	 	 	 
	Title: Chairman	 	Title: Vice Chairman & CEO
	 	 	 
	 	 	 
	 	 	 
	Date: 8/20/15	 	Date: 8/20/15
	 	 	 
	 	 	 

 

    	 	Exhibit A - 4	Work Order
 Execution VersionEX-10.1

 Exhibit 10.1 
  

 
 August 19, 2015 
 Jim
Donald 
 President and Chief Executive Officer 
 Extended Stay
America, Inc. and ESH Hospitality, Inc. 
 11525 N. Community House Rd., Suite 100 

Charlotte, NC 28277 
 Dear Jim: 

Following up our previous discussions, this letter confirms the terms of your continued employment during the transition period from your leadership to Gerry
Lopez. We have received your letter of resignation from your positions as Chief Executive Officer of Extended Stay America, Inc. (“ESA”) and ESH Hospitality, Inc. (“ESH”), your positions on the ESA and ESH boards of directors,
and your officer positions in ESA’s various subsidiaries, each effective August 24, 2015. The following terms will become effective at that time: 
  

			
	Title		Senior Advisor, reporting to Gerry Lopez. You will be an employee and not an independent contractor.
		
	Period of Employment		August 24, 2015 through February 29, 2016.
		
	Duties and Responsibilities		Assistance and advice as needed and requested by Gerry to support his transition into the roles as President and CEO of ESA and ESH and as a member of the boards of directors. There is no minimum hours commitment on your
part.
		
	Facilities and Support		We will maintain a physical office for your use at the CSC in the 3rd floor C-suite. Paige will continue to support your secretarial and administrative needs, although in the
unlikely event of a conflict she will prioritize work for Gerry, Tom Bardenett, or any other executive to whom she has been assigned. You may work remotely or at CSC at your discretion except as Gerry specifically requests.
		
	Compensation – Base Salary		$320,548, representing your existing annual base salary of $900,000 prorated for the 130 days from August 24 through December 31, 2015 and paid evenly over the 190 days from August 24, 2015 through February 29, 2016. Ordinary
tax, benefit and other required payroll deductions and withholdings will continue to be taken throughout the period.
		
	Compensation - Incentive		You will be eligible for your bonus based on 2015 actual results as calculated under the Extended Stay America, Inc. Annual Incentive Plan.
		
	Expense Reimbursement		ESA will continue to reimburse you for your out-of-pocket expenses incurred in performing your duties, including commuting to and from Charlotte and up to

  

 Jim Donald 

August 19, 2015 
 Page 2 

 

			
		
		  	$3000 per month in housing expenses for your apartment in Charlotte. You agree to provide adequate notice to your landlord so that your lease will either expire or can be terminated without penalty before February 29,
2016.
		
	Vesting of Paired Shares	  	Pursuant to the Second Amended & Restated Restricted Paired Share Agreement, your outstanding 150,422 Paired Shares will vest on February 21, 2016.
		
	Severance	  	You acknowledge that you are not entitled to benefits under the Extended Stay America, Inc. Executive Severance Plan.
		
	Release	  	At the end of your period of employment, you will execute a release and and non-competition, non-solicitation and nondisparagement provisions generally consistent with those contained in the Extended Stay America, Inc. Executive
Severance Plan.

 Jim, please let me reiterate my thanks and sincere appreciation for the great work you have done at ESA and for your
cooperation and assistance in ensuring a smooth transition to Gerry’s leadership. I hope that the above terms meet your satisfaction. If so, please indicate your agreement with the terms of this letter by signing it in the space indicated below
and returning it to John Dent. 
 Warmest regards, 
 /s/ Doug
Geoga 
 Doug Geoga 
 Chairman of the Boards of Directors 

Extended Stay America, Inc. and ESH Hospitality, Inc. 
 Agreed
and accepted on August 24, 2015: 
  

	
	 /s/ Jim Donald

	Jim Donald

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