Document:

Exhibit 10.2

    
      

    

    Exhibit
      10.2

     

    

     

    BRAND
      LICENSE AGREEMENT

     

    THIS
      BRAND LICENSE AGREEMENT
      (this
“Agreement”) is entered into as of June __, 2006 (the “Effective Date”), by and
      between CNL
      INTELLECTUAL PROPERTIES, INC.,
      a
      Florida corporation (“Licensor”) and CNL
      HOTELS & RESORTS, INC.,
      a
      Maryland corporation (“CHO”) (CHO and the CHO Affiliates (as defined in Section
      11(a)(iii)) below are collectively referred to herein as
“Licensee”).

     

    Preliminary
      Statement

     

    WHEREAS,
      Licensor is a wholly-owned subsidiary of CNL Financial Group, Inc., a Florida
      corporation (“CFG”); and 

     

    WHEREAS,
      Licensor owns the mark “CNL,” as applied to various services, and the service
      marks and registrations and applications therefor set forth on Appendix “A”
attached hereto (collectively, the “Marks”); the Policies & Standards (as
      hereinafter defined) (collectively, the “Proprietary Materials”); and brand
      content, including Licensor’s tag lines and descriptors, domain names, including
      but not limited to the domain names set forth on Appendix “B” attached hereto,
      trade names, corporate names, designs, typography, color palettes, internet
      sites, stationery, signage, promotional items, tradeshow booths, sponsorships,
      events, and copyrightable works including but not limited to press releases,
      quarterly and annual reports, photographs, forms, advertising and marketing
      materials, presentations, and awards (collectively, the “Brand Content”);
      and

     

    WHEREAS,
      Licensor is an owner of the Core Values & Key Behaviors set forth on
      Appendix “C” attached hereto (the “Core Values”) and, upon any exercise by
      Licensee of the option set forth in Section 1, the Core Values shall, for
      purposes of this Agreement, be included in the term “Proprietary Materials”;
      and

     

    WHEREAS,
      CHO is
      a real estate investment trust (REIT), and Licensee is engaged primarily in
      the
      ownership and leasing of interests in hotels and resort properties, including,
      but not limited to, full service hotels and resorts, limited service hotels,
      extended stay hotels, and their associated amenities such as golf courses,
      spas,
      ballrooms and water parks (collectively, including the management thereof,
      referred to as “Licensee’s Business”); and

     

    WHEREAS,
      CHO
      wishes to obtain an exclusive license for Licensee to incorporate Licensor’s
      Mark “CNL” into and use the names “CNL Hotels & Resorts,” “CNL Hotel” and
“CNL Resort” (the “CHO Names”) and to obtain a license for Licensee to use the
      Marks, Proprietary Materials and Brand Content (collectively, the “Licensed
      Materials”) in connection with Licensee’s Business, which license shall be
      exclusive as to any activities that are prohibited by the covenant not to
      compete in Section 9.5 of the Merger Agreement (as defined in Section 1(d)
      below) during the term of said covenant, and which license shall otherwise
      be
      non-exclusive, and Licensor is willing to grant to Licensee such license of
      its
      rights provided that CHO agrees to comply (and cause the CHO Affiliates (as
      defined in Section 11(a)(iii) below) to comply) at all times during the Term
      (as
      defined in Section 5(a) below) with the terms and conditions of this Agreement;
      and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    WHEREAS,
      Licensor now licenses, and will continue to license in the future, some or
      all
      of the Licensed Materials, excluding the CHO Names, to various entities that
      are
      affiliated in some way with CFG and/or its parent company; and

     

    WHEREAS,
      CHO is
      therefore willing at all times during the Term to comply with, and to cause
      the
      CHO Affiliates to comply at all times during the Term with, the Policies &
Standards and the other terms and conditions of this Agreement.

     

    NOW,
      THEREFORE,
      for
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged by the parties, the parties agree as follows:

     

    1.  Grant.
      Licensor grants to Licensee during the Term (as defined in Section 5(a) below),
      for use only in connection with Licensee’s Business: 

     

    (a)  an
      exclusive, license to incorporate the mark “CNL” into and to use the “CHO Names”
in the Territory (as defined below); and

     

    (b)  a
      non-exclusive license to use the Proprietary Materials in the Territory;
      and

     

    (c)  a
      non-exclusive license to use the Brand Content in the Territory. 

     

    (d)  a
      license
      to use the Marks in connection with Licensee’s Business in the Territory, which
      license shall be exclusive as to any activity prohibited by the covenant not
      to
      compete in Section 9.5(a) of that certain Amended and Restated Agreement and
      Plan of Merger entered
      into as of April 3, 2006 by and among CHO, CNL Hotels & Resorts Acquisition,
      LLC; CNL Hospitality Corp. (“CHC”); the stockholders of CHC; CNL Financial
      Group, Inc.; and CNL Hospitality Properties Acquisition Corp. (the “Merger
      Agreement”) during the term of said covenant not to compete, and such license
      shall otherwise be nonexclusive.

     

    CHO
      shall
      have options, exercisable at any time during the term of this Agreement by
      giving written notice to Licensor, to (i) obtain a non-exclusive license for
      Licensee to use the Core Values in the Territory, and/or (ii) require Licensor
      to register any CHO Name(s) and/or any Mark(s) in appropriate classifications
      for Licensee’s Business at Licensee’s expense.

     

    For
      purposes of this Agreement, the term “Territory” shall mean the United States,
      Canada, and any other country that (y) Licensee notifies Licensor in writing
      that it intends to use any of the CHO Names and/or the Marks in such country,
      and (z) the registration of such CHO Names and/or Marks is available in such
      country. Upon such notification Licensor shall use commercially reasonable
      efforts promptly to verify the availability of the CHO Names and/or the Marks
      for use by Licensee, and register such CHO Names and/or the Marks, in such
      country at Licensee’s expense.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      license granted herein does not obligate Licensee to use any CHO Name or any
      Mark, nor is it intended to prohibit Licensee from adopting or using any other
      trade name, trademark or service mark, whether owned or licensed by CHO, so
      long
      as any use by Licensee of any CHO Name(s) and/or any Mark(s) complies with
      the
      terms of this Agreement. 

     

    2.  Restrictions.

     

    (a)  The
      licenses set forth in Section 1 above (the “Licenses”) may not be assigned,
      pledged, encumbered or otherwise transferred by Licensee, voluntarily or
      involuntarily, by operation of law or otherwise, without Licensor’s prior
      written consent, which consent may be withheld in Licensor’s sole and absolute
      discretion, and any attempt to assign any of the Licenses in violation of this
      Agreement will immediately void the Licenses granted under this Agreement;
      provided, however, that in the event of an assignment or transfer of any of
      the
      Licenses as a result of a transaction described in Section 5(c)(ii) below,
      the
      termination provisions of Section 5(c) shall govern and provided, further,
      that
      to the extent that there is any conflict between this Section and Section 5(c),
      the terms of Section 5(c) shall govern.

     

    (b)  Licensor
      does not grant to Licensee, and nothing in this Agreement shall be construed
      as
      granting to Licensee, the right to license, sublicense or authorize others
      to
      use the CHO Names and the Licensed Materials. Notwithstanding the foregoing,
      Licensee may (i) authorize its agents and service providers to use the CHO
      Names
      and the Licensed Materials in the ordinary course of Licensee’s Business, solely
      as necessary to assist Licensee in Licensee’s Business and provided that such
      agent or service provider complies with all of the applicable terms and
      conditions of this Agreement; and (ii) use the CHO Names and the Licensed
      Materials on its properties even if such properties are leased to or managed
      by
      third parties; provided,
      however,
      that
      any such third party comply with all of the applicable terms and conditions
      of
      this Agreement in connection with its use of the CHO Names.

     

    (c)  Subject
      to Section 1(d), Licensor shall retain the sole and absolute right to grant
      other non-exclusive licenses of some or all of the Licensed Materials to other
      entities not affiliated with Licensee (provided that Licensor shall not use
      nor
      allow, directly or indirectly, another to use any of the CHO Names) so long
      as
      any such grant does not otherwise violate the terms hereof, and Licensor shall
      retain ownership of the Licensed Materials.

     

    3.  Quality
      Control.

     

    (a)  CHO
      acknowledges that it is vital to the culture, reputation, systems and manner
      of
      conducting business of Licensor and Licensor’s Affiliates (as defined in Section
      11(a)(ii) below) that the entities to which Licensor licenses some or all of
      the
      Licensed Materials comply with certain policies and standards and other
      requirements established by Licensor, that the uniform administration of such
      policies, standards and requirements among Licensee and other entities in a
      like
      or similar position to that of Licensee is necessary to uphold (i) the
      reputation of Licensor and Licensor’s Affiliates; (ii) the value associated with
      the Marks; (iii) the value of the Licensed Materials to Licensor; and (iv)
      the
      value of the Licensed Materials to Licensee and other entities in like or
      similar position to that of Licensee, and that the failure to require such
      compliance and uniform administration may damage the value of the Licensed
      Materials to Licensor, Licensor’s Affiliates, Licensee and such entities in like
      or similar position to that of Licensee. CHO acknowledges that Licensor has
      provided to Licensee certain policies and standards in print or electronic
      media, a copy of which is attached hereto as Appendix “D” attached hereto,
      necessary for the value associated with the Licensed Materials and the goodwill
      and reputation associated with the Marks, and CHO acknowledges by its execution
      and delivery of this Agreement that Licensee has received and reviewed those
      policies and standards as of the Effective Date. Furthermore, CHO acknowledges
      that Licensor shall have the right from time to time, in its reasonable
      discretion, to adopt new policies and standards or amend any existing policies
      and standards; provided that such new and/or amended policies and standards
      apply equally to other licensees of the Licensed Materials. Licensor shall
      give
      notice to Licensee by electronic transmission or other means of any such
      subsequently adopted or amended policies and standards and, if requested by
      Licensor, CHO shall promptly execute and deliver to Licensor, in the manner
      requested by Licensor, a written acknowledgment of Licensee’s receipt and review
      of any such subsequently adopted or amended policies and standards issued by
      Licensor (the policies and standards described in this Section 3(a), together
      with any subsequently adopted policies and standards, and any amendments to
      such
      policies and standards, are collectively called the “Policies & Standards”).
      Licensor shall use all commercially reasonable efforts to require other
      licensees of any of the Licensed Materials to comply with the Policies &
Standards and shall not impose on Licensee any requirements for adherence to
      the
      Policies & Standards that Licensor does not impose on other licensees of the
      Licensed Materials. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  CHO
      shall
      comply at all times during the Term with, and shall cause the CHO Affiliates
      to
      comply at all times during the Term with, the Policies & Standards, provided
      that CHO shall be obligated to use commercially reasonable efforts to comply
      with any newly adopted Policies & Standards that incorporate significant
      changes over a reasonable time period not to exceed ninety (90) days, so long
      as
      other licensees of any of the Licensed Materials are required to achieve
      compliance during the same period. All services and products, if any, sold
      by
      Licensee shall comply with the Policies & Standards and the other terms and
      conditions of this Agreement.

     

    (c)  CHO
      shall
      provide to each employee, manager, executive and contractor of Licensee a copy
      of those portions of the Policies & Standards (the “Relevant Policies &
Standards”) that are specified in writing by Licensor as being applicable to
      such employee, manager, executive or contractor or categories of employees,
      managers, executives and contractors. CHO shall be responsible for
      non-compliance with the Relevant Policies & Standards by any employee,
      manager, executive or contractor of Licensee.

     

    (d)  Licensee
      shall have the right to adopt additional policies and standards regarding the
      Licensed Materials (“Licensee’s Policies”) that do not conflict with the
      Policies & Standards, and Licensee shall provide Licensor with a copy of any
      such Licensee’s Policies prior to their effective date. If, within five (5)
      business days after Licensor’s first receipt of any of Licensee’s Policies,
      Licensor notifies CHO in writing that such Licensee’s Policies conflict with any
      of the Policies & Standards, as determined by Licensor in its reasonable
      discretion, Licensee shall not implement such Licensee’s Policies or, if
      applicable, shall discontinue use of such conflicting Licensee’s Policies as
      promptly as practicable.

     

    (e)  Licensor
      shall have the right, upon at least two (2) business days prior written notice
      to Licensee and at Licensor’s sole expense, to have a qualified and independent
      third party, selected by Licensor, audit Licensee to determine compliance or
      non-compliance with the Policies & Standards and the other terms and
      conditions of this Agreement and to inspect and make copies of the business
      records of Licensee relevant to its present or past compliance with the Policies
      & Standards or the other terms and conditions of this Agreement; provided
      that such auditor shall not interfere with Licensee’s operations and shall keep
      all Licensee information examined during any such audit confidential in
      accordance with the provisions of Section 11(c).

     

    (f)  Licensee
      shall not make or use any modification to any of the Brand Content without
      the
      prior express written approval of Licensor; provided, however, that Licensee
      may
      incorporate the Brand Content into newly created Internet sites, promotional
      items, advertising and marketing materials and the like, subject to Licensor’s
      right to review and approve such new materials pursuant to Section
      2(h).

     

    (g)  If
      Licensee desires to begin using, after the Effective Date, the designation
“CNL”
in the name of a corporation, company, partnership, joint venture, or other
      entity or in the name of a product or service that (i) is materially different
      from any prior such use or (ii) does not otherwise comply with the Agreement
      (each, an “Intended Use”), Licensee shall, not less than thirty (30) days prior
      to the Intended Use, submit to Licensor a detailed statement of the Intended
      Use
      and receive Licensor’s express written permission to use such designation, which
      permission shall not be unreasonably withheld, conditioned or delayed.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h)  At
      least
      ten (10) business days prior to the distribution or dissemination of the Marks
      or Brand Content in any printed media, electronic media or any other format
      that
      either (i) has not previously been approved by Licensor, or (ii) is materially
      different from any use that has previously been approved by Licensor, or any
      shorter time that may be necessary to enable Licensee to comply with applicable
      law or to avert material adverse consequences, each as described by Licensee
      to
      Licensor in reasonable detail, Licensee shall provide to Licensor proofs of
      materials showing the proposed use of the Marks and Brand Content for review
      and
      approval by Licensor (the “Proposal”). Such review and approval cannot be
      unreasonably delayed, conditioned or withheld by Licensor, and any proposed
      use
      not rejected by Licensor within five (5) business days following submittal
      of a
      Proposal to Licensor by Licensee shall be deemed approved. Licensor shall be
      the
      final arbiter as to compliance herewith of any text or design proposed for
      use
      by Licensee. Within thirty (30) days after the first production of any materials
      using any of the Marks or Brand Content that have been approved by Licensor
      pursuant to this Section 2(h), Licensee will provide Licensor with ten (10)
      final copies of all such materials. Licensee shall add Licensor to all mailing
      lists (other than mailings to stockholders, confidential mailings and mailings
      for which disclosure is restricted by applicable law) and survey lists
      comprising mass mailings and surveys to customers, clients and vendors. Once
      Licensor has approved a particular format for use of the Marks or Brand Content,
      Licensee may continue to use that format in other media. Notwithstanding the
      foregoing provisions of this Section 3(h), the use of any CHO Name(s) by
      Licensee for Licensee’s Business in accordance with the Policies & Standards
      in any printed media, electronic media or any other format that includes no
      other Marks or Brand Content shall not require Licensor’s approval in accordance
      with this Section 3(h).

     

    (i)  If
      Licensee uses any of the Marks or Brand Content without having sought and
      obtained actual or deemed prior approval from Licensor in accordance with
      Section 2(h), and if Licensor, in its reasonable discretion, determines that
      such use is a material misuse of the Marks or Brand Content, then Licensor
      shall
      give written notification of such misuse to Licensee. For any such material
      misuse, Licensor may, in its reasonable discretion, take any one or more of
      the
      following options: (i) require Licensee, within thirty (30) days of receipt
      of
      notification, to correct the misuse and submit the corrected use to Licensor
      for
      review and approval; (ii) audit Licensee’s operations that relate to the misuse
      of the Marks and Brand Content to insure compliance with the Policies &
Standards; (iii) demand that Licensee stop production of materials that include
      the Marks or Brand Content not in compliance with the Policies & Standards
      at Licensee’s sole expense; (iv) require that Licensee prohibit or halt
      distribution of any materials that include the Marks or Brand Content not in
      compliance with the Policies & Standards at Licensee’s sole expense; (v)
      demand and enforce correction or revision of materials that include the Marks
      or
      Brand Content not in compliance with the Policies & Standards at Licensee’s
      sole expense; or (vi) terminate this Agreement in accordance with the provisions
      of Section 5(b)(ii) below.

     

    4.  Ownership.

     

    (a)  Licensor
      is the legal and beneficial owner of all right, title and interest in the
      Licensed Materials and, as of the date of this Agreement, is the owner of record
      of all applications and registrations for the Marks listed on Appendix “A”
attached hereto at the United States Patent and Trademark Office
      (“USPTO”).

     

    (b)  CHO
      acknowledges and agrees that the CHO Names and the Marks and the goodwill
      associated therewith, are the exclusive property of Licensor and can be used
      only with Licensor’s prior written license or consent; provided, however, that
      nothing herein is intended, or shall be construed, to restrict or limit
      Licensee’s right to use the words “hotel,” “resort” or “hotels & resorts,”
either alone or as part of any trade name, trademark or service mark that does
      not include the Mark “CNL” or any trademark or service mark that is confusingly
      similar to the Mark “CNL.” 

     

    (c)  CHO
      further acknowledges and agrees that Licensee will not at any time do, or cause
      to be done, any act or thing contesting or in any way impairing or intending
      to
      impair the validity of or Licensor’s exclusive right, title and interest in the
      Marks.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)  Except
      for corporate name registrations of the CHO Names, Licensee will not register
      or
      apply to register, in any country, state or other jurisdiction, (i) any part
      or
      component of the Marks, either alone or in combination with any other words
      or
      designs; or (ii) the copyrights in any materials containing any of Licensed
      Materials, unless ownership in the Licensed Materials is disclaimed by
      Licensor.

     

    (e)  Licensee
      will not in any manner represent that it owns the CHO Names or the Licensed
      Materials in whole or in part; provided, however, that nothing herein is
      intended to, or shall, be construed to restrict or limit Licensee’s right to use
      the words “hotel,” “resort” or “hotels & resorts” either alone or as part of
      any trade name, trademark or service mark that does not include the Mark “CNL”
or any trademark or service mark that is confusingly similar to the Mark “CNL,”
and CHO hereby acknowledges that the use of the Marks by Licensee shall not
      create any right, title, or interest in or to the Marks in favor of Licensee,
      but that all use by Licensee of the Marks shall inure to the sole benefit of
      Licensor. If Licensee uses any part or component of the Marks (other than any
      of
      the words “hotel,” “resort” or “hotels & resorts”) outside of Licensee’s
      Business in violation of this Agreement, Licensee shall execute and deliver
      to
      Licensor an assignment of all rights, if any, that Licensee might have in the
      Marks with respect to such expanded services, together with the goodwill
      associated with the Marks for such expanded services.

     

    (f)  CHO
      further acknowledges Licensor’s assertion that the Proprietary Materials
      incorporate confidential information and trade secrets developed by Licensor
      or
      one or more of Licensor’s Affiliates. Accordingly, CHO further acknowledges and
      agrees that the Proprietary Materials are the sole and exclusive property of
      Licensor and Licensor’s Affiliates, and upon the termination of this Agreement
      Licensee shall have no interest in or right to use any of said Proprietary
      Materials, except to the extent that the same have become part of the public
      domain through no fault of Licensee.

     

    5.  Term
      and Termination.

     

    (a)  The
      term
      of this Agreement shall commence on the Effective Date and continue until
      terminated by either party as set forth in Sections 5(b), (c), (d), (e), or
      (f)
      below (the “Term”).

     

    (b)  Either
      party may terminate this Agreement upon giving thirty (30) days prior written
      notice to the other party in the event that the other party

     

    (i)  becomes
      insolvent, makes a general assignment for the benefit of its creditors, executes
      a voluntary petition under the United States Bankruptcy Code, or if an
      involuntary petition under the United States Bankruptcy Code is executed
      regarding the other party and is not stayed or dismissed within ninety (90)
      days
      thereafter; or

     

    (ii)  is
      in
      material breach of or in default under this Agreement and such breach or default
      has continued for a period of (A) forty-five (45) days after the terminating
      party gives written notice specifying such breach or default to the other party
      in the event of a non-monetary breach or default, or (B) thirty (30) days after
      the terminating party gives written notice specifying such breach or default
      to
      the other party in the event of a monetary breach or default.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Notwithstanding
      Section 5(b) above, Licensor may terminate this Agreement upon twelve (12)
      months prior written notice to CHO in the event that:

     

    (i)  James
      M.
      Seneff, Jr. is involuntarily removed as a member of CHO’s Board of Directors by
      an action of the stockholders of CHO or by CHO’s Board of
      Directors.

     

    (ii)  Any
      of
      the following occur: (A) a merger, consolidation or reorganization of CHO with
      one or more other corporations, partnerships, limited liability companies,
      joint
      ventures or other organizations or entities (individually, a “Person” and
      collectively, “Persons”) in which the CHO is not the surviving corporation
      (other than a merger, consolidation, or reorganization of CHO effected for
      the
      sole purpose of changing the jurisdiction of incorporation of CHO, which shall
      not be grounds for terminating this Agreement); (B) a sale of all or
      substantially all of the assets of CHO to one or more individuals or Persons
      who
      are not an affiliate of CHO; (C) a merger, consolidation or reorganization
      in
      which CHO is the surviving corporation that results in any individual or Person
      (or group of related or affiliated individuals and/or Persons) that immediately
      prior to such transaction was not a stockholder of CHO owing fifty percent
      (50%)
      or more of the voting power of CHO; (D) the dissolution or liquidation of CHO;
      (E) the acquisition by any individual or Person (or group of related or
      affiliated individuals and/or Persons) of direct or indirect beneficial
      ownership of CHO’s common stock representing fifty percent (50%) or more of the
      voting power of CHO; or (F) a majority of the CHO’s Board of Directors are
      persons other than persons for whose election proxies have been solicited by
      CHO’s Board of Directors.

     

    (iii)  That
      certain Lease Agreement between CNL Plaza II, Ltd., a Florida limited
      partnership, as landlord, and CHO, as the assignee of CNL Hospitality Corp.,
      a
      Florida corporation, as tenant, dated as of November 23, 2005, for the
“Premises” (as defined therein) (the “Tower II Lease”) is terminated by CHO;
      provided, however, if the Tower II Lease is terminated by CHO by reason of
      a
      material breach thereof by the landlord and Licensor exercises its right under
      this Section 5(c)(iii) to terminate this Agreement, then, as a condition
      precedent to such termination, CFG shall pay to CHO upon the termination of
      this
      Agreement two million dollars ($2,000,000.00), in cash or other immediately
      available funds, as a termination fee, which fee shall be in lieu of any other
      damages related to the termination of this Agreement but in addition, and
      without prejudice, to any other remedies that may be available to CHO under
      the
      Tower II Lease by reason of such breach.

     

    (d)  This
      Agreement may be terminated by Licensor, as to the recipient of the termination
      notice, upon thirty (30) days prior written notice (i) to CHO if CHO or any
      of
      the CHO Affiliates is convicted by a court of having committed fraud or other
      criminal misconduct and such conviction is affirmed on appeal or the time for
      appeal has expired, or (ii) to any CHO Affiliate if such CHO Affiliate is
      convicted by a court of having committed fraud or other criminal misconduct
      and
      such conviction is affirmed on appeal or the time for appeal has
      expired.

     

    (e)  This
      Agreement shall automatically terminate upon written notice by Licensor to
      CHO
      if CHO ceases to use or abandons the name “CNL Hotels &
Resorts”.

     

    (f)  This
      Agreement may be terminated by CHO, without cause, effective upon thirty (30)
      days prior written notice to Licensor.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g)  Sections
      4(d), 4(e), 4(f), 4(g), 6, 8, 9, 10, 11 and 12 of this Agreement shall survive
      the expiration or any earlier termination of this Agreement.

     

    (h)  A
      termination of this Agreement shall not excuse any prior failure to perform
      or
      breach of this Agreement by Licensee or Licensor, and Licensee and Licensor
      shall each be entitled to all remedies under this Agreement and at law or equity
      with respect to such failure or breach.

     

    (i)  Upon
      termination of this Agreement in any manner provided herein, Licensee will
      promptly and permanently (i) discontinue all use of the Licensed Materials
      any
      corporate identification using the designation “CNL” whether obtained under
      Section 3(g) above or otherwise; and (ii) refrain from using any other mark,
      name, design, or any other designation confusingly similar to any of the CHO
      Names, the designation “CNL”, or any of the other Marks; provided, however, that
      nothing herein is intended, or shall be construed, to restrict or limit
      Licensee’s right to use the words “hotel,” “resort” or “hotels & resorts,”
either alone or as part of any trade name, trademark or service mark that does
      not include the term “CNL” or any trademark or service mark that is confusingly
      similar to the Mark “CNL.”

     

    6.  Indemnification.

     

    (a)  Except
      to
      the extent, if any, otherwise expressly provided in this Agreement, Licensor
      assumes no liability to Licensee or to third parties with respect to Licensee’s
      Business, or the products and services advertised and sold by Licensee, under
      or
      using the Marks or Brand Content.

     

    (b)  CHO
      shall
      indemnify and hold Licensor, Licensor’s Affiliates (as defined in Section
      11(a)(ii) below), and their Representatives (as defined in Section 11(a)(v)
      below) harmless from and against, and reimburse Licensor, Licensor’s Affiliates,
      or Licensor’s Representatives (as the case may be) for any and all third-party
      claims, losses, costs, liabilities, damages and expenses (including, but not
      limited to, reasonable attorneys’ fees and the costs, whether prior to, during
      or after trial, on appeal or in bankruptcy proceedings) which it or they may
      pay, suffer or incur to the extent arising out of, resulting from, or connected
      to: (i) any claims, actions, or lawsuits by third-parties against Licensor,
      any
      of Licensor’s Affiliates, or any of Licensor’s Representatives involving or
      arising from Licensee’s Business or any of the products or services advertised
      or sold by Licensee to the extent not directly attributable to (A) any fault
      of
      Licensor, or (B) Licensee’s compliance with any of the Policies & Standards
      or (C) breach by Licensor of this Agreement; (ii) any material breach by
      Licensee of its representations, warranties, and covenants in this Agreement
      or
      the failure by Licensee to comply in all material respects with any of the
      terms
      or conditions of this Agreement; (iii) any disclosure or use of Confidential
      Information (as defined in Section 11(a)(i) below) by CHO, any CHO Affiliate
      (as
      defined in Section 11(a)(iii) below), or any of CHO’s Representatives (as
      defined in Section 11(a)(v) below) that is not permitted under the terms of
      Section 11 below; or (iv) the failure by Licensee to materially comply with
      any
      of the Policies & Standards.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Licensor
      agrees to indemnify and hold CHO, the CHO Affiliates, and their Representatives
      (as defined in Section 11(a)(v) below) harmless from and against, and reimburse
      CHO, the CHO Affiliates and their Representatives (as the case may be) for
      any
      and all third-party claims, damages, losses, costs, expenses and liabilities
      (including, but not limited to, reasonable attorneys’ fees and costs, whether
      prior to, during or after trial, on appeal or in bankruptcy proceedings) which
      it or they may pay, suffer or incur, to the extent arising out of, resulting
      from or connected to: (i) any material breach by Licensor of its
      representations, warranties and covenants in this Agreement or the failure
      by
      Licensor to comply in all material respects with any of the terms or conditions
      of this Agreement; or (ii) any disclosure or use of Confidential Information
      (as
      defined in Section 11(a)(iii) below) by Licensor, any Licensor’s Affiliate (as
      defined in Section 11(a)(ii) below) or Licensor’s Representatives (as defined in
      Section 11(a)(v) below) that is not permitted under the terms of Section 11
      below.

     

    7.  Infringement.

     

    (a)  CHO
      shall
      promptly notify Licensor of any conflicting use or infringement of the Marks
      or
      the Brand Content by a third party of which Licensee may become aware and will
      cooperate with Licensor, at Licensor’s sole expense, in every reasonable way to
      prosecute all acts or conduct that Licensor may deem necessary or advisable
      to
      protect the validity and exclusivity of Licensor’s rights in the Marks. Licensee
      will not take action independently of Licensor to prosecute any such acts or
      conduct without obtaining the prior, express, written approval of
      Licensor.

     

    (b)  In
      the
      event that an unauthorized third-party within the Territory uses any of the
      Marks, and such use is brought to Licensor’s attention by Licensee, Licensor
      will take reasonable steps to abate such use in the United States at Licensor’s
      sole cost and expense if Licensor, after investigation and evaluation of such
      unauthorized use, concludes in its reasonable discretion that such use
      constitutes an infringement of its or Licensee’s rights to the Marks and that
      there is a reasonable probability of success in taking action to abate such
      infringement. In the event such unauthorized use is outside of the United
      States, then Licensor shall have the first option to take reasonable steps
      to
      abate such unauthorized use, and the cost and expense thereof shall be borne
      solely by Licensor. If Licensor declines to abate such unauthorized use, then
      Licensee shall have the right to take reasonable steps to abate such
      unauthorized use at its sole cost and expense and may join Licensor in any
      action to enforce such abatement provided that such joinder is at Licensee’s
      sole cost and expense.

     

    8.  Dispute
      Resolution.

     

    (a)  Except
      as
      provided in Section 3(i)(i) and (ii), in the event of a dispute between Licensor
      and Licensee with respect to an issue relating to use of any of the Marks or
      the
      Brand Content, either party shall give notice to the other party of the dispute
      and reasonable details of such dispute to the extent known by the party giving
      notice of the dispute.

     

    (b)  Within
      ten (10) days after notice of such dispute is given to the other party, a senior
      executive officer of each party shall meet in an effort to resolve the
      dispute.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  In
      the
      event that the representatives of the parties are unable to resolve the dispute
      at such meeting, then within fifteen (15) days after such meeting, the chief
      executive officers of each of the parties shall meet in person or speak with
      each other by telephone in an effort to resolve the dispute.

     

    (d)  In
      the
      event that the dispute is not resolved under the procedure set forth above,
      either party may commence legal proceedings. The procedures of this Section
      8
      must be followed as a condition precedent to the commencement of legal
      proceedings with respect to such dispute; provided,
      however,
      that
      equitable relief may be sought by either party pursuant to Section 9 at any
      time
      whether or not the dispute resolution procedures of this Section 8 have been
      followed.

     

    9.  Equitable
      Remedies.
      Licensor and CHO acknowledge and agree that (a) a material breach or threatened
      material breach by CHO, the CHO Affiliates or any of their Representatives
      (as
      defined in Section 11(a)(v) below) of any of the terms or conditions contained
      in this Agreement, or (b) a material breach or threatened material breach by
      Licensor of the terms and conditions contained in Section 2(c) or 11, will
      cause
      immediate and irreparable harm and damage to Licensor or CHO, as the case may
      be, and that monetary damages will be inadequate to compensate Licensor or
      CHO
      for such breach. Accordingly Licensor and CHO agree that Licensor and CHO shall,
      in addition to any other remedies available to them at law or in equity, be
      entitled, without posting bond or other security, to an injunction from any
      court of competent jurisdiction enjoining and restraining any breach or
      threatened breach of the terms or conditions of this Agreement by CHO, any
      of
      the CHO Affiliates or any of their Representatives, or by Licensor, any of
      the
      Licensor Affiliates or any of their Representatives.

     

    10.  Insurance.

     

    (a)  During
      the Term, and for a period of three (3) years thereafter, CHO shall maintain
      in
      full force and effect all commercially reasonably necessary liability insurance
      coverage for itself and the CHO Affiliates. Upon the written request of
      Licensor, CHO shall furnish Licensor with a certificate or certificates of
      insurance evidencing such coverage. CHO shall notify Licensor in advance of
      any
      termination, cancellation, nonrenewal or material modification of any such
      insurance coverage.

     

    (b)  During
      the Term, and for a period of three (3) years thereafter, Licensor shall
      maintain in full force and effect all commercially reasonably necessary
      liability insurance coverage for itself. Upon the written request of CHO,
      Licensor shall furnish CHO with a certificate or certificates of insurance
      evidencing such coverage. Licensor shall notify CHO in advance of any
      termination, cancellation, nonrenewal, or material modification of any such
      insurance coverage.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    11.  Confidentiality.

     

    (a)  For
      purposes of this Agreement: (i) “Confidential Information” means the Proprietary
      Materials; all “trade secrets” as defined in Section 688.002(4), Florida
      Statutes; any other confidential or proprietary information, financial or
      otherwise, about the business, affairs, and assets of Licensor, Licensor’s
      Affiliates, CHO or any CHO Affiliate that are marked by the owner as
“confidential” or “proprietary”; and any other information, documents, or
      materials clearly identified by the owner as “confidential” or “proprietary”;
      (ii) “Licensor’s Affiliate” means any entity, other than CHO or any of the CHO
      Affiliates, that now or hereafter controls, is controlled by, or is under common
      control with, Licensor; (iii) “CHO Affiliates” means any entity that is now or
      hereafter controlled by CHO; (iv) the terms “control” and “controlled by” mean
      the possession, directly or indirectly, of the power to direct or cause the
      direction of the management and policies of a person or entity, whether though
      the ownership of voting shares, by contract, or otherwise; and (v)
“Representative” means the employees, contractors, vendors, agents, directors,
      officers, legal counsel, accountants and financial advisors of a
      party.

     

    (b)  CHO,
      the
      CHO Affiliates, and their Representatives shall not disclose or use any
      Confidential Information which is furnished, or to be furnished, to any of
      them
      by Licensor, any Licensor’s Affiliates or any of their Representatives at any
      time or in any manner other than as permitted by this Agreement. Notwithstanding
      the foregoing, CHO shall be entitled to disclose Confidential Information:
      (i)
      to the CHO Affiliates and its and their Representatives to the extent necessary
      to permit CHO, the CHO Affiliates or their Representatives to conduct Licensee’s
      Business and to comply with Licensee’s obligations under this Agreement; (ii) to
      the extent such information becomes lawfully part of the public domain or is
      obtained by CHO, any of the CHO Affiliates or any of their Representatives
      from
      a third-party other than in violation of this Agreement or any agreement with
      Licensor, any of Licensor’s Affiliates, or any other party; or (iii) as
      compelled or required by a valid subpoena or other legal mandate; provided,
      however, in the event that CHO or any of the CHO Affiliates, or their
      Representatives receives such a subpoena or other legal mandate, it shall
      provide Licensor with prompt written notice of same as far in advance as
      practicable of the date such party is required to make such disclosure so that
      Licensor or any of Licensor’s Affiliates may seek an appropriate protective
      order for the Confidential Information or waive compliance with the provisions
      of this Section 11(b). However, if in the absence of a protective order or
      the
      receipt of a waiver hereunder CHO, any of the CHO Affiliates or any of their
      Representatives is nonetheless, in the opinion of such party’s legal counsel, so
      compelled to disclose the Confidential Information, such party may disclose
      only
      that portion of the Confidential Information that is, based on the written
      advice of its legal counsel, legally required to be disclosed.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Licensor,
      Licensor’s Affiliates, and their Representatives shall not disclose or use any
      Confidential Information which is furnished, or to be furnished, to any of
      them
      by CHO, any CHO Affiliates, or any of their Representatives at any time or
      in
      any manner other than as permitted by this Agreement. Notwithstanding the
      foregoing, Licensor shall be entitled to disclose Confidential Information:
      (i)
      to Licensor’s Affiliates and its and their Representatives to the extent
      necessary to permit Licensor, Licensor’s Affiliates or their Representatives to
      exercise Licensor’s rights under this Agreement; (ii) to the extent such
      information becomes lawfully part of the public domain or is obtained by
      Licensor, any of Licensor’s Affiliates or any of their Representatives from a
      third-party other than in violation of this Agreement or any agreement with
      CHO,
      any of the CHO Affiliates, or any other party; or (iii) as compelled or required
      by a valid subpoena or other legal mandate; provided, however, in the event
      that
      Licensor or any of Licensor’s Affiliates or their Representatives receive such a
      subpoena or other legal mandate, it shall provide CHO with prompt written notice
      of same as far in advance as practicable of the dates such party is required
      to
      make such disclosure so that CHO or any of the CHO Affiliates may seek an
      appropriate protective order for the Confidential Information or waive
      compliance with the provisions of this Section 11(c). However, in the absence
      of
      a protective order or the receipt of a waiver hereunder, if Licensor, any of
      Licensor’s Affiliates or any of their Representatives is nonetheless, in the
      opinion of such party’s legal counsel, so compelled to disclose the Confidential
      Information, such party may disclose only that portion of the Confidential
      Information that is, based on the written advice of its legal counsel, legally
      required to be disclosed.

     

    (d)  Upon
      a
      termination of this Agreement for whatever reason, (i) each party shall promptly
      return to the other party (the “Disclosing Party”), in the manner directed by
      the Disclosing Party, all of the Confidential Information that has been
      furnished to such party (the “Receiving Party”), the Receiving Party’s
      Representatives, any Licensor’s Affiliates (if Licensor is the Receiving Party),
      or any CHO Affiliates (if CHO is the Receiving Party); (ii) the Receiving Party
      shall promptly destroy copies of all documents or materials in the possession
      or
      control of the Receiving Party, their Representatives, the Licensor’s Affiliates
      (in the case of Licensor), and the CHO Affiliates (in the case of CHO), that
      contain Confidential Information or portions of Confidential Information, in
      whatever form or medium such copies or portions are contained, whether tangible,
      electronic, or otherwise, except to the extent that retention of such documents
      or materials is necessary to maintain appropriate business records or to comply
      with applicable government requirements or regulations; and (iii) the Receiving
      Party shall timely furnish to the Disclosing Party a written certificate to
      the
      reasonable satisfaction of the Disclosing Party certifying that such destruction
      has taken place.

     

    12.  Representations,
      Warranties and Covenants.

     

    (a)  Licensor
      represents, warrants and covenants the following:

     

    (i)  Licensor
      is a corporation duly organized and in good standing under the laws of the
      State
      of Florida;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii)  Licensor
      has full corporate power and authority, and has taken all corporate actions
      and
      has obtained all necessary approvals or authorizations from any other third
      party and government authority, to enter into this Agreement, to perform its
      obligations under this Agreement, and to grant the rights granted under this
      Agreement, which will not constitute or result in a violation, conflict or
      breach of or default under (A) its organizational documents; (B) any enforceable
      and effective laws, orders or judgments or (C) any agreement to which it is
      a
      party;

     

    (iii)  This
      Agreement constitutes a legal, valid and binding agreement of Licensor,
      enforceable against Licensor in accordance with its terms;

     

    (iv)  Licensor
      has, and during the Term will have, the exclusive ownership of and control
      over
      the Marks set forth in Appendix “A”, and no claims of infringement have been
      made against Licensor with respect to the Marks and the CHO Names by any third
      party.

     

    (v)  All
      applications or registrations for the Marks set forth in Appendix “A” are valid
      and in good standing and Licensor has filed or paid, and during the Term will
      continue to file or pay, all necessary documents, fees or payments due and
      payable to any trademark registries relating to applications or registrations
      for the Marks.

     

    13.  General
      Provisions.

     

    (a)  This
      Agreement and all questions of interpretation, construction and enforcement
      hereof, and all controversies hereunder shall be governed by the laws of the
      State of Florida without regard to conflicts of interests rules or principles
      that could result in the application of the laws of any other
      jurisdiction.

     

    (b)  No
      waiver
      of any provision or any default by any party shall be deemed, or shall
      constitute, a waiver of any other provision, whether or not similar, nor shall
      any waiver constitute a continuing waiver. No waiver by any party shall be
      binding unless executed in writing by such party.

     

    (c)  All
      notices, consents and other communications under this Agreement (other than
      Licensor’s transmission of the Policies & Standards) must be given either by
      facsimile with proof of receipt; hand delivery; United States certified mail,
      return receipt requested, postage prepaid; or by an overnight commercial courier
      service, addressed as follows:

     

    If
      to
      Licensor:

    

    CNL
      Intellectual Properties, Inc.

    Attention:
      President

    CNL
      Center at City Commons

    450
      South
      Orange Avenue - 14th Floor

    Orlando,
      Florida 32801-3336

    Facsimile:
      (407) 540-2699

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    If
      to CHO
      or Licensee:

    

    CNL
      Hotels & Resorts, Inc.

    Attention:
      Chief Executive Officer

    420
      South
      Orange Avenue

    Suite
      700

    Orlando,
      Florida 32801-3313

    Facsimile:
      (407) 835-3229

    

     

    With
      a
      copy to:

    

    CNL
      Hotels & Resorts, Inc.

    Attention:
      General Counsel

    420
      South
      Orange Avenue

    Suite
      700

    Orlando,
      Florida 32801-3313

    Facsimile:
      (407) 835-3229

    

     

    Any
      party
      may change its address for purposes of this Section 13(c) by giving the other
      parties written notice of the new address in the manner set forth above. Any
      notice given as set forth in this Section 13(c) will be effective on the day
      of
      hand delivery; two (2) business days after mailing; the next business day if
      sent by overnight commercial courier service; or the day of receipt by the
      other
      party if given by facsimile letter (or the next business day if the day of
      receipt is not a business day).

     

    (d)  This
      Agreement and Appendices “A”, “B”, “C” and “D” constitute the entire agreement
      between the parties pertaining to this subject matter and supersedes all prior
      and contemporaneous agreements, representations and understandings of the
      parties with respect to such subject matter, whether oral or written. No
      supplement, modification or amendment to this Agreement shall be binding unless
      executed in writing by all of the parties.

     

    (e)  In
      the
      event any term or provision of this Agreement shall be held illegal,
      unenforceable or inoperative as a matter of law, the remaining terms and
      conditions of this Agreement shall remain in full force and effect if the
      essential terms and conditions of this Agreement for each party remain valid,
      binding and enforceable.

     

    (f)  Time
      is
      of the essence of this Agreement.

     

    (g)  This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and all of which shall constitute one and the same
      instrument.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h)  In
      the
      event of any conflict between the terms of this Agreement and the Policies
&
Standards, this Agreement shall control.

     

    (i)  Except
      as
      otherwise provided herein, neither Licensor nor CHO shall assign any of its
      rights or delegate any of its duties under this Agreement without the prior
      written consent of the other, which consent may be granted or withheld in the
      sole and absolute discretion of such other party. Notwithstanding the foregoing,
      Licensor may assign this Agreement to a Licensor’s Affiliate without the prior
      written consent of Licensee. This Agreement shall be binding on the parties
      to
      this Agreement and their successors and permitted assigns.

     

    (j)  The
      captions used in this Agreement are intended solely for reference and shall
      not
      be used to interpret any of the terms or conditions of this
      Agreement.

     

    (k)  In
      connection with any litigation, including appellate proceedings or bankruptcy
      proceedings, arising under this Agreement, the prevailing party in such
      litigation shall be entitled to recover its reasonable attorneys fees and costs
      from the non-prevailing party.

     

    (l)  The
      parties have participated jointly in the negotiation and drafting of this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the parties
      and no presumption or burden of proof shall arise favoring or disfavoring any
      party by virtue of the authorship of any of the provisions of this
      Agreement.

     

    

     

    

     

    

     

    

     

    

     

    

     

    [SIGNATURE
      PAGE TO FOLLOW]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have duly executed and delivered this Brand License Agreement effective
      as of the date first written above.

     

    

     

     

      	 	 	 

              “Licensor”

            
	 	

              CNL
                INTELLECTUAL PROPERTIES, INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ James
              M. Seneff, Jr.
	 	
              
Name:
              James M. Seneff, Jr.
	 	Title: Chief
              Executive Officer

    

    

    
      	 	 	 

              “CHO”

            
	 	

              CNL
                HOTELS & RESORTS, INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ Greerson
              G. McMullen
	 	
              
Name:
              Greerson G. McMullen
	 	Title:
              Senior Vice President, General Counsel and Corporate
              Secretary

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    APPENDIX
      “A”

     

    SERVICE
      MARKS REGISTRATIONS AND APPLICATIONS

     

    Registrations

     

    
      	
              Mark

               

            	
              Services

               

            	
              U.S.
                Reg. No.

               

            	
              Issue
                Date

               

            
	
              CNL

               

            	
              Providing
                financial services, namely, providing real estate leaseback financing
                to
                others, as well as investing funds for others

               

            	
              1,478,007

               

            	
              2/23/88

               

            
	 	 	 	 
	 	 	 	 
	
              Squares
                within Squares Design

               

            	
              Business
                strategic planning and consulting services; planning and consulting
                services in the development and growth of new businesses, particularly
                technology and e-commerce businesses; real estate investment, brokerage,
                consulting and management services; real estate investment trust
                services;
                mortgage and commercial financing services; investment and commercial
                banking services; broker/dealer services in the field of investment
                securities, franchise, mortgage, mergers and acquisitions, real estate
                and
                investment advisory services; financial advisory services; insurance
                underwriting, brokerage and agency services in the field of commercial
                liability, casualty and property; real estate development services;
                educational services, namely classes, workshops and seminars in the
                field
                of business and project management, computer software and information
                systems, word processing, research skills, human resources and personnel,
                insurance, finance, mergers and acquisitions, organizational development,
                public speaking and communication, real estate, and sales and
                marketing.

               

            	
              2,985,632

               

            	
              8/16/05

               

            
	
              CNL
                & Squares within Squares Design

               

            	
              Business
                strategic planning and consulting services; planning and consulting
                services in the development and growth of new businesses, particularly
                technology and e-commerce businesses; real estate investment, brokerage,
                consulting and management services; real estate investment trust
                services;
                mortgage and commercial financing services; investment and commercial
                banking services; broker/dealer services in the field of investment
                securities, franchise, mortgage, mergers and acquisitions, real estate
                and
                investment advisory services; financial advisory services; insurance
                underwriting, brokerage and agency services in the field of commercial
                liability, casualty and property; real estate development services;
                educational services, namely classes, workshops and seminars in the
                field
                of business and project management, computer software and information
                systems, word processing, research skills, human resources and personnel,
                insurance, finance, mergers and acquisitions, organizational development,
                public speaking and communication, real estate, and sales and
                marketing.

               

            	
              2,917,587

               

            	 
	
              CNL

               

            	
              Business
                strategic planning and consulting services; planning and consulting
                services in the development and growth of new businesses, particularly
                technology and e-commerce businesses; real estate investment, brokerage,
                consulting and management services; real estate investment trust
                services;
                mortgage and commercial financing services; investment and commercial
                banking services; broker/dealer services in the field of investment
                securities, franchise, mortgage, mergers and acquisitions, real estate
                and
                investment advisory services; financial advisory services; insurance
                underwriting, brokerage and agency services in the field of commercial
                liability, casualty and property; real estate development services
                educational services, namely classes, workshops and seminars in the
                field
                of business and project management, computer software and information
                systems, word processing, research skills, human resources and personnel,
                insurance, finance, mergers and acquisitions, organizational development,
                public speaking and communication, real estate, and sales and
                marketing.

               

            	
              3,006,086

               

            	 

    

    

     

    Application

     

    

     

    
      	
              Mark

               

            	
              Services

               

            	
              U.S.
                Serial No.

               

            	
              Filing
                Date

               

            
	
              Square
                Network

               

            	
              Distribution
                of information on a wide variety of subjects over a computer network,
                in
                International Class 42.

               

            	
              78/408,433

               

            	
              04/27/04
                (F)

               

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    APPENDIX
      “B”

     

    DOMAIN
      NAMES

     

    

     

    cnlhotelsandresorts.com

     

    

     

    cnlhotelsandresorts.net

     

    

     

    cnlhotelsandresorts.org

     

    

     

    cnlhotelsandresorts.us

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    APPENDIX
      “C”

     

    CORE
      VALUES

     

    

     

    

     

    

     

    [To
      be
      Inserted]

     

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    APPENDIX
      “D”

     

    POLICIES
      & STANDARDS

     

    

     

    

     

    

     

    

     

    

     

    

     

    [To
      be
      Inserted]2006 Employee Stock Option Plan

    Exhibit
      10.1

    Appendix
      “A”

    

    SulphCo,
      Inc. 2006 Stock Option Plan

    

    1.
       Purpose. 

    

    This
      Stock Option Plan (the "Plan")
      is
      intended to allow designated employees, executive officers, directors,
      consultants, advisors and other corporate and divisional officers (all of whom
      are sometimes collectively referred to herein as "Employees")
      of
      SulphCo, Inc., a Nevada corporation ("SulphCo"
      or the
“Company”),
      and
      its subsidiaries which it may have from time to time (SulphCo and such
      subsidiaries being together referred to herein as the "Company") to receive
      certain options ("Stock
      Options")
      to
      purchase SulphCo's common stock, $.001 par value ("Common
      Stock"),
      as
      herein provided. The purpose of the Plan is to provide Employees with additional
      incentives to make significant and extraordinary contributions to the long-term
      performance and growth of the Company and to attract and retain Employees of
      exceptional ability. 

    

    2.
       Administration.
      

    

    (a)
       The
      Plan
      shall be administered by a Committee of three or more persons ("Committee")
      established by the Board of Directors of SulphCo (the "Board")
      from
      time to time, which may consist of the Compensation Committee, the full Board
      of
      Directors or such persons as the Board shall designate. A majority of its
      members shall constitute a quorum. The Committee shall be governed by the
      provisions of SulphCo's By-Laws and of Nevada law applicable to the Board,
      except as otherwise provided herein or determined by the Board. 

    

    (b)
       The
      Committee shall have full and complete authority, in its discretion, but subject
      to the express provisions of the Plan: to approve the Employees nominated by
      the
      management of the Company to be granted Stock Options; to determine the number
      of Stock Options to be granted to an Employee; to determine the time or times
      at
      which Stock Options shall be granted; to establish the terms and conditions
      upon
      which Stock Options may be exercised; to remove or adjust any restrictions
      and
      conditions upon Stock Options; to specify, at the time of grant, provisions
      relating to the exercisability of Stock Options and to accelerate or otherwise
      modify the exercisability of any Stock Options; and to adopt such rules and
      regulations and to make all other determinations deemed necessary or desirable
      for the administration of the Plan. All interpretations and constructions of
      the
      Plan by the Committee, and all of its actions hereunder, shall be binding and
      conclusive on all persons for all purposes. 

    

    (c)
       The
      Company hereby agrees to indemnify and hold harmless each Committee member
      and
      each employee of the Company, and the estate and heirs of such Committee member
      or employee, against all claims, liabilities, expenses, penalties, damages
      or
      other pecuniary losses, including legal fees, which such Committee member or
      employee or his or her estate or heirs may suffer as a result of his or her
      responsibilities, obligations or duties in connection with the Plan, to the
      extent that insurance, if any, does not cover the payment of such items.

    

    3.
       Eligibility
      and Participation.
      

    

    Employees
      eligible under the Plan shall be approved by the Committee from those Employees
      who, in the opinion of the management of the Company, are in positions which
      enable them to make significant and extraordinary contributions to the long-term
      performance and growth of the Company. In selecting Employees to whom Stock
      Options may be granted, consideration shall be given to factors such as
      employment position, duties and responsibilities, ability, productivity, length
      of service, morale, interest in the Company and recommendations of supervisors.
      

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    4.
       Grants.
      

    

    The
      Committee may grant Stock Options in such amounts, at such times, and to such
      Employees nominated by the management of the Company as the Committee, in its
      discretion, may determine. Stock Options granted under the Plan shall constitute
      "incentive stock options" within the meaning of Section 422 of the Internal
      Revenue Code of 1986 (the “Code"),
      if so
      designated by the Committee on the date of grant. The Committee shall also
      have
      the discretion to grant Stock Options which do not constitute incentive stock
      options and any such Stock Options shall be designated non-statutory stock
      options by the Committee on the date of grant. The aggregate fair market value
      (determined as of the time an incentive stock option is granted) of the Common
      Stock with respect to which incentive stock options are exercisable for the
      first time by any Employee during any one calendar year (under all plans of
      the
      Company and any parent or subsidiary of the Company) may not exceed the maximum
      amount permitted under 

    Section
      422 of the Code (currently $100,000.00). Non-statutory stock options shall
      not
      be subject to the limitations relating to incentive stock options contained
      in
      the preceding sentence. Subject to the provisions of paragraph 11 hereof, the
      number of shares of Common Stock issued and issuable pursuant to the exercise
      of
      Stock Options granted hereunder shall not exceed Two Million (2,000,000) shares
      of the Common Stock of SulphCo from time to time outstanding. Each Stock Option
      shall be evidenced by a written agreement (the "Option
      Agreement")
      in a
      form approved by the Committee, which shall be executed on behalf of the Company
      and by the Employee to whom the Stock Option is granted. If a Stock Option
      expires, terminates or is cancelled for any reason without having been exercised
      in full, the shares of Common Stock not purchased thereunder shall again be
      available for purposes of the Plan. 

    

    5.
       Purchase
      Price.
      

    

    The
      purchase price (the "Exercise
      Price")
      of
      shares of Common Stock subject to each Stock Option ("Option
      Shares")
      shall
      equal the fair market value ("Fair
      Market Value")
      of
      such shares on the date of grant of such Stock Option. Notwithstanding the
      foregoing, the Exercise Price of Option Shares subject to an incentive stock
      option granted to an Employee who at the time of grant owns stock possessing
      more than 10% of the total combined voting power of all classes of stock of
      the
      Company or of any parent or Subsidiary shall be at least equal to 110% of the
      Fair Market Value of such shares on the date of grant of such Stock Option.
      The
      Fair Market Value of a share of Common Stock on any date shall be equal to
      the
      closing price of the Common Stock on the date of grant, and the method for
      determining the closing price shall be determined by the Committee. In the
      case
      of a grant of Option Shares by management made subject to subsequent Committee
      approval, for purposes of determining Fair Market Value the Committee may use
      either (i) the date of Committee approval of the grant, or (ii) the date of
      grant by management if within thirty (30) days of the date of the Committee’s
      approval of such grant. Notwithstanding the foregoing, the Committee may
      authorize a grant of not more than 2,000 shares under this Plan with an exercise
      price of $7.00 regardless of the fair market value of the shares on the date
      of
      grant.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    6.
       Option
      Period.
      

    

    The
      Stock
      Option period (the "Term")
      shall
      commence on the date of grant of the Stock Option and shall be ten (10) years
      or
      such shorter period as is determined by the Committee. Notwithstanding the
      foregoing, but subject to the provisions of paragraphs 2(b) and 11(c), Stock
      Options granted to Employees who are subject to the reporting requirements
      of
      Section 16(a) of the U.S. Securities Exchange Act of 1934 ("Section
      16 Reporting Persons")
      shall
      not be exercisable until at least six months and one day from the date the
      Stock
      Option is granted, or, if later, from the date of stockholder approval of the
      Plan. If an Employee shall not in any period purchase all of the Option Shares
      which the Employee is entitled to purchase in such period, the Employee may
      purchase all or any part of such Option Shares at any time prior to the
      expiration of the Stock Option. 

    

    7.
       Exercise
      of Options.
      

    

    (a)
       Each
      Stock Option may be exercised in whole or in part (but not as to fractional
      shares) by delivering it for surrender or endorsement to the Company, attention
      of the Corporate Secretary, at the principal office of the Company, together
      with payment of the Exercise Price and an executed Notice and Agreement of
      Exercise in the form prescribed by paragraph 7(b). Payment may be made in cash,
      by cashier's or certified check. 

    

    (b)
       The
      exercise of each Stock Option is conditioned upon the agreement of the Employee
      to the terms and conditions of this Plan and of such Stock Option as evidenced
      by the Employee's execution and delivery of a Notice and Agreement of Exercise
      in a form to be determined by the Committee in its discretion. Such Notice
      and
      Agreement of Exercise shall set forth the agreement of the Employee that: (a)
      no
      Option Shares will be sold or otherwise distributed in violation of the
      Securities Act of 1933 (the "Securities
      Act")
      or any
      other applicable federal or state securities laws, (b) each Option Share
      certificate may be imprinted with legends reflecting any applicable federal
      and
      state securities law restrictions and conditions, (c) the Company may comply
      with said securities law restrictions and issue "stop transfer" instructions
      to
      its Transfer Agent and Registrar without liability, (d) if the Employee is
      a
      Section 16 Reporting Person, the Employee will furnish to the Company a copy
      of
      each Form 4 or Form 5 filed by said Employee and will timely file all reports
      required under federal securities laws, and (e) the Employee will report all
      sales of Option Shares to the Company in writing on a form prescribed by the
      Company. 

    

    (c)
       No
      Stock
      Option shall be exercisable unless and until any applicable registration or
      qualification requirements of federal and state securities laws, and all other
      legal requirements, have been fully complied with The Company will use
      reasonable efforts to maintain the effectiveness of a Registration Statement
      under the Securities Act for the issuance of Stock Options and shares acquired
      thereunder, but there may be times when no such Registration Statement will
      be
      currently effective. The exercise of Stock Options may be temporarily suspended
      without liability to the Company during times when no such Registration
      Statement is currently effective, or during times when, in the reasonable
      opinion of the Committee, such suspension is necessary to preclude violation
      of
      any requirements of applicable law or regulatory bodies having jurisdiction
      over
      the Company. If any Stock Option would expire for any reason, then if the
      exercise of such Stock Option is duly tendered before its expiration, such
      Stock
      Option shall be exercisable and exercised (unless the attempted exercise is
      withdrawn) as of the first day after the end of such suspension. The Company
      shall have no obligation to file any Registration Statement covering resales
      of
      Option Shares. 

     

    
 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    8.
       Continuous
      Employment.
      

    

    Except
      as
      provided in paragraph 10 below or unless otherwise provided by the Committee,
      an
      Employee may not exercise a Stock Option unless from the date of grant to the
      date of exercise such Employee remains continuously in the employ of the
      Company. For purposes of this paragraph 8, the period of continuous employment
      of an Employee with the Company shall be deemed to include (without extending
      the term of the Stock Option) any period during which such Employee is on leave
      of absence with the consent of the Company, provided that such leave of absence
      shall not exceed three (3) months and that such Employee returns to the employ
      of the Company at the expiration of such leave of absence. If such Employee
      fails to return to the employ of the Company at the expiration of such leave
      of
      absence, such Employee's employment with the Company shall be deemed terminated
      as of the date such leave of absence commenced. The continuous employment of
      an
      Employee with the Company shall also be deemed to include any period during
      which such Employee is a member of the military, provided that such Employee
      returns to the employ of the Company within ninety (90) days (or such longer
      period as may be prescribed by law) from the date such Employee first becomes
      entitled to discharge. If an Employee does not return to the employ of the
      Company within ninety (90) days (or such longer period as may be prescribed
      by
      law) from the date such Employee first becomes entitled to discharge, such
      Employee's employment with the Company shall be deemed to have terminated as
      of
      the date such Employee's military service ended. 

    

    9.
       Restrictions
      on Transfer.
      

    

    Options
      granted under this Plan shall be transferable only by will or the laws of
      descent and distribution unless otherwise determined by the Committee at any
      time at or after the date of grant of the Option, provided such transfer does
      not conflict with applicable securities laws or render the Company ineligible
      to
      use Form S-8 or any successor form to register the Options. No interest of
      any
      Employee under the Plan shall be subject to attachment, execution, garnishment,
      sequestration, the laws of bankruptcy or any other legal or equitable process.
      Each Stock Option granted under this Plan shall be exercisable during an
      Employee's lifetime (or in the event of the death of Employee, by his or her
      legal representative) only by such Employee or such Employee's permitted
      transferees or legal representative. 

    

    10.
       Termination
      of Employment.
      

    

    (a)
       Upon
      an
      Employee's Retirement, Disability or death: (a) all Stock Options to the extent
      then presently exercisable shall remain in full force and effect and may be
      exercised pursuant to the provisions thereof, including expiration at the end
      of
      the fixed term thereof, and (b) unless otherwise provided by the Committee,
      all
      Stock Options to the extent not then presently exercisable by such Employee
      shall terminate as of the date of such termination of employment and shall
      not
      be exercisable thereafter. 

    

    (b)
       Upon
      the
      termination of the employment of an Employee with the Company for any reason
      other than the reasons set forth in paragraph 10(a) hereof, unless otherwise
      provided by the Committee, (a) all Stock Options to the extent then presently
      exercisable by such Employee shall remain exercisable only for a period of
      ninety (90) days after the date of such termination of employment (except that
      the ninety (90) day period shall be extended to twelve 

    (12)
      months if the Employee shall die during such ninety (90) day period), and may
      be
      exercised pursuant to the provisions thereof, including expiration at the end
      of
      the fixed term thereof, and (b) all Stock Options to the extent not then
      presently exercisable by such Employee shall terminate as of the date of such
      termination of employment and shall not be exercisable thereafter. 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    (c)
      For
      purposes of this Plan: 

    

    (i)
      "Retirement"
      shall
      mean an Employee's retirement from the employ of the Company on or after the
      date on which such Employee attains the age of sixty-five (65) years; and

    

    (ii)
      "Disability"
      shall
      mean total and permanent incapacity of an Employee, due to physical impairment
      or legally established mental incompetence, to perform the usual duties of
      such
      Employee's employment with the Company, which disability shall be determined
      on
      medical evidence by a licensed physician designated by the Committee.

    

    11.
       Adjustments
      Upon Change in Capitalization.
      

    

    (a)
       The
      number and class of shares subject to each outstanding Stock Option, the
      Exercise Price thereof (but not the total price) and the maximum number of
      Stock
      Options that may be granted under the Plan shall be proportionately adjusted
      in
      the event of any increase or decrease in the number of the issued shares of
      Common Stock which results from a split-up or consolidation of shares, payment
      of a stock dividend or dividends exceeding a total of two and one-half percent
      (2.5%) for which the record dates occur in any one fiscal year, a
      recapitalization (other than the conversion of convertible securities according
      to their terms), a combination of shares or other like capital adjustment,
      so
      that upon exercise of the Stock Option, the Employee shall receive the number
      and class of shares such Employee would have received had such Employee been
      the
      holder of the number of shares of Common Stock for which the Stock Option is
      being exercised upon the date of such change or increase or decrease in the
      number of issued shares of the Company. 

    

    (b)
       Upon
      a
      reorganization, merger or consolidation of the Company with one or more
      corporations as a result of which SulphCo is not the surviving corporation
      or in
      which SulphCo survives as a wholly-owned subsidiary of another corporation,
      or
      upon a sale of all or substantially all of the property of the Company to
      another corporation, or any dividend or distribution to shareholders of more
      than ten percent (10%) of the Company's assets, adequate adjustment or other
      provisions shall be made by the Company or other party to such transaction
      so
      that there shall remain and/or be substituted for the Option Shares provided
      for
      herein, the shares, securities or assets which would have been issuable or
      payable in respect of or in exchange for such Option Shares then remaining,
      as
      if the Employee had been the owner of such Option Shares as of the applicable
      date. Any securities so substituted shall be subject to similar successive
      adjustments. 

    

    (c)
       In
      the
      sole discretion of the Committee, Stock Options may include provisions, on
      terms
      authorized by the Committee in its sole discretion, that accelerate the
      Employees' rights to exercise Stock Options upon a sale of substantially all
      of
      the Company's assets, the dissolution of SulphCo or upon a change in the
      controlling shareholder interest in SulphCo resulting from a tender offer,
      reorganization, merger or consolidation or from any other transaction or
      occurrence, whether or not similar to the foregoing (each, a "Change
      in Control").
      

    

    12.
       Withholding
      Taxes.
      

    

    The
      Company shall have the right at the time of exercise of any Stock Option to
      make
      adequate provision for any federal, state, local or foreign taxes which it
      believes are or may be required by law to be withheld with respect to such
      exercise ("Tax
      Liability"),
      to
      ensure the payment of any such Tax Liability. The Company may provide for the
      payment of any Tax Liability by any of the following means or a combination
      of
      such means, as determined by the Committee in its sole and absolute discretion
      in the particular case: (i) by requiring the Employee to tender a cash payment
      to the Company, (ii) by withholding from the Employee's salary, (iii) by
      withholding from the Option Shares which would otherwise be issuable upon
      exercise of the Stock Option that number of Option Shares having an aggregate
      Fair Market Value as of the date the withholding tax obligation arises that
      is
      equal to the Employee's Tax Liability or (iv) by any other method deemed
      appropriate by the Committee. Satisfaction of the Tax Liability of a Section
      16
      Reporting Person may be made by the method of payment specified in clause (iii)
      above upon satisfaction of such additional conditions as the Committee shall
      deem in its sole and absolute discretion as appropriate in order for such
      withholding of Option Shares to qualify for the exemption provided for in
      Section 16b-3 of the Exchange Act. 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    13.
       Relationship
      to Other Employee Benefit Plans.
      

    

    Stock
      Options granted hereunder shall not be deemed to be salary or other compensation
      to any Employee for purposes of any pension, thrift, profit-sharing, stock
      purchase or any other employee benefit plan now maintained or hereafter adopted
      by the Company. 

    

    14.
       Amendments
      and Termination.
      

    

    The
      Board
      of Directors may at any time suspend, amend or terminate this Plan. No amendment
      or modification of this Plan may be adopted, except subject to shareholder
      approval, which would: (a) materially increase the benefits accruing to
      Employees under this Plan, (b) materially increase the number of securities
      which may be issued under this Plan or (c) materially modify the requirements
      as
      to eligibility for participation in the Plan. 

    

    15.
       Successors
      in Interest.
      

    

    The
      provisions of this Plan and the actions of the Committee shall be binding upon
      all heirs, successors and assigns of the Company and of Employees. 

    

    16.
       Other
      Documents.
      

    

    All
      documents prepared, executed or delivered in connection with this Plan shall
      be,
      in substance and form, as established and modified by the Committee or by
      persons under its direction and supervision; provided, however, that all such
      documents shall be subject in every respect to the provisions of this Plan,
      and
      in the event of any conflict between the terms of any such document and this
      Plan, the provisions of this Plan shall prevail. All Stock Options granted
      under
      the Plan shall be evidenced by written agreements executed by the Company and
      the Employees to whom the Stock Options have been granted. 

    

    17.
       No
      Obligation to Continue Employment.
      

    

    This
      Plan
      and grants hereunder shall not impose any obligation on the Company to continue
      to employ any Employee. Moreover, no provision of this Plan or any document
      executed or delivered pursuant to this Plan shall be deemed modified in any
      way
      by any employment contract between an Employee (or other employee) and the
      Company. 

    

    18.
       Term
      of Plan.
      

    

    This
      Plan
      was adopted by the Board effective May 23, 2006. No Stock Options may be granted
      under this Plan after May 23, 2016. 

    

    
      
         

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    19.
       Governing
      Law.
      

    

    This
      Plan
      shall be construed in accordance with, and governed by, the laws of the State
      of
      Nevada. 

    

    20.
       Stockholder
      Approval.
      

    

    No
      Stock
      Option shall be exercisable unless and until the stockholders of the Company
      have approved this Plan and all other legal requirements have been fully
      complied with. 

    

    21.
       Privileges
      of Stock Ownership.
      

    

    The
      holder of a Stock Option shall not be entitled to the privileges of stock
      ownership as to any shares of the Company common stock not actually issued
      to
      such holder. 

    

    
7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]