Document:

fp0011112_4-1.htm

 

PARKERVISION, INC.

 

2011 Long-Term Incentive Equity Plan

 

(As Amended and Restated)

 

Section 1. Purpose; Definitions.

 

1.1. Purpose. The purpose of the Parkervision, Inc. 2011 Long-Term Incentive Equity Plan (“Plan”) is to enable the Company to offer to its employees, officers, directors and consultants whose past, present and/or potential contributions to the Company and its Subsidiaries have been, are or will be important to the success of the Company, an opportunity to acquire a proprietary interest in the Company. The various types of long-term incentive awards that may be provided under the Plan will enable the Company to respond to changes in compensation practices, tax laws, accounting regulations and the size and diversity of its businesses.

 

1.2. Definitions. For purposes of the Plan, the following terms shall be defined as set forth below:

 

(a) “Agreement” means the agreement between the Company and the Holder, or such other document as may be determined by the Committee, setting forth the terms and conditions of an award under the Plan.

 

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

 

(c) “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

(d) “Committee” means the committee of the Board designated to administer the Plan as provided in Section 2.1.

 

(e) “Common Stock” means the Common Stock of the Company, par value $0.01 per share.

 

(f) “Company” means Parkervision, Inc., a corporation organized under the laws of the State of Florida.

 

(g) “Disability” means physical or mental impairment as determined under procedures established by the Committee for purposes of the Plan.

 

(h) “Effective Date” means the date determined pursuant to Section 11.1.

 

(i) “Fair Market Value,” unless otherwise required by any applicable provision of the Code or any regulations issued thereunder, means, as of any given date: (i) if the Common Stock is listed on a national securities exchange or The Nasdaq Stock Market, LLC (“Nasdaq”), the last sale price of the Common Stock in the principal trading market for the Common Stock on such date, as reported by the exchange or Nasdaq, as the case may be; (ii) if the Common Stock is not listed on a national securities exchange or Nasdaq, but is traded in the over-the-counter market, the closing bid price for the Common Stock on such date, as reported by the OTC Bulletin Board or Pink Sheets, LLC or similar publisher of such quotations; and (iii) if the fair market value of the Common Stock cannot be determined pursuant to clause (i) or (ii) above, such price as the Committee shall determine, in good faith.

 

  

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(j) “Holder” means a person who has received an award under the Plan.

 

(k) “Incentive Stock Option” means any Stock Option intended to be and designated as an “incentive stock option” within the meaning of Section 422 of the Code.

 

(l) “Non-qualified Stock Option” means any Stock Option that is not an Incentive Stock Option.

 

(m) “Normal Retirement” means retirement from active employment with the Company or any Subsidiary on or after such age which may be designated by the Committee as “retirement age” for any particular Holder. If no age is designated, it shall be 65.

 

(n) “Other Stock-Based Award” means an award under Section 8 that is valued in whole or in part by reference to, or is otherwise based upon, Common Stock.

 

(o) “Parent” means any present or future “parent corporation” of the Company, as such term is defined in Section 424(e) of the Code.

 

(p) “Plan” means the Parkervision, Inc. 2011 Long-Term Incentive Equity Plan, as hereinafter amended from time to time.

 

(q) “Repurchase Value” shall mean the Fair Market Value if the award to be settled under Section 2.2(e) or repurchased under Section 5.2(k) or 9.2 is comprised of shares of Common Stock and the difference between Fair Market Value and the Exercise Price (if lower than Fair Market Value) if the award is a Stock Option or Stock Appreciation Right; in each case, multiplied by the number of shares subject to the award.

 

(r) “Restricted Stock” means Common Stock received under an award made pursuant to Section 7 that is subject to restrictions under Section 7.

 

(s) “SAR Value” means the excess of the Fair Market Value (on the exercise date) over (a) the exercise price that the participant would have otherwise had to pay to exercise the related Stock Option or (b) if a Stock Appreciation Right is granted unrelated to a Stock Option, the Fair Market Value of a share of Common Stock on the date of grant of the Stock Appreciation Right, in either case, multiplied by the number of shares for which the Stock Appreciation Right is exercised.

 

(t) “Stock Appreciation Right” means the right to receive from the Company, without a cash payment to the Company, a number of shares of Common Stock equal to the SAR Value divided by the Fair Market Value (on the exercise date).

 

  

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(u) “Stock Option” or “Option” means any option to purchase shares of Common Stock which is granted pursuant to the Plan.

 

(v) “Subsidiary” means any present or future “subsidiary corporation” of the Company, as such term is defined in Section 424(f) of the Code.

 

(w) “Vest” means to become exercisable or to otherwise obtain ownership rights in an award.

 

Section 2. Administration.

 

2.1. Committee Membership. The Plan shall be administered by a Committee of the Board of at least two directors, all of whom are “outside directors” within the meaning of the regulations issued under Section 162(m) of the Code and “non-employee” directors within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934, as amended. Committee members shall serve for such term as the Board may in each case determine and shall be subject to removal at any time by the Board.

 

2.2. Powers of Committee. The Committee shall have full authority to award, pursuant to the terms of the Plan: (i) Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock, and/or (iv) Other Stock-Based Awards. For purposes of illustration and not of limitation, the Committee shall have the authority (subject to the express provisions of this Plan):

 

(a) to select the officers, employees, directors and consultants of the Company or any Subsidiary to whom Stock Options, Stock Appreciation Rights, Restricted Stock and/or Other Stock-Based Awards may from time to time be awarded hereunder;

 

(b) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder (including, but not limited to, number of shares, share exercise price or types of consideration paid upon exercise of such options, such as other securities of the Company or other property, any restrictions or limitations, and any vesting, exchange, surrender, cancellation, acceleration, termination, exercise or forfeiture provisions, as the Committee shall determine);

 

(c) to determine any specified performance goals or such other factors or criteria which need to be attained for the vesting of an award granted hereunder;

 

(d) to determine the terms and conditions under which awards granted hereunder are to operate on a tandem basis and/or in conjunction with or apart from other equity awarded under this Plan and cash and non-cash awards made by the Company or any Subsidiary outside of this Plan; and

 

(e) to make payments and distributions with respect to awards (i.e., to “settle” awards) through cash payments in an amount equal to the Repurchase Value.

 

The Committee may not modify or amend any outstanding Option or Stock Appreciation Right to reduce the exercise price of such Option or Stock Appreciation Right, as applicable, below the exercise price as of the date of grant of such Option or Stock Appreciation Right. In addition, no payment of cash or other property having a value greater than the Repurchase Value may be made, and no Option or Stock Appreciation Right with a lower exercise price may be granted, in exchange for, or in connection with, the cancellation or surrender of an Option or Stock Appreciation Right.

 

  

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Notwithstanding anything to the contrary, the Committee shall not grant to any one Holder in any one calendar year awards for more than 1,500,000 shares in the aggregate.

 

2.3. Interpretation of Plan.

 

(a) Committee Authority. Subject to Section 10, the Committee shall have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable to interpret the terms and provisions of the Plan and any award issued under the Plan (and to determine the form and substance of all agreements relating thereto), and to otherwise supervise the administration of the Plan. Subject to Section 10, all decisions made by the Committee pursuant to the provisions of the Plan shall be made in the Committee’s sole discretion and shall be final and binding upon all persons, including the Company, its Subsidiaries and Holders.

 

(b) Incentive Stock Options. Anything in the Plan to the contrary notwithstanding, no term or provision of the Plan relating to Incentive Stock Options (including but not limited to Stock Appreciation rights granted in conjunction with an Incentive Stock Option) or any Agreement providing for Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to disqualify the Plan under Section 422 of the Code or, without the consent of the Holder(s) affected, to disqualify any Incentive Stock Option under such Section 422.

 

Section 3. Stock Subject to Plan.

 

3.1. Number of Shares. Subject to Section 7.1(d), the total number of shares of Common Stock reserved and available for issuance under the Plan shall be 12,000,000 shares. Shares of Common Stock under the Plan (“Shares”) may consist, in whole or in part, of authorized and unissued shares or treasury shares. If any shares of Common Stock that have been granted pursuant to a Stock Option cease to be subject to a Stock Option, or if any shares of Common Stock that are subject to any Stock Appreciation Right, Restricted Stock award or Other Stock-Based Award granted hereunder are forfeited, or any such award otherwise terminates without a payment being made to the Holder in the form of Common Stock, such shares shall again be available for distribution in connection with future grants and awards under the Plan. Shares of Common Stock that are surrendered by a Holder or withheld by the Company as full or partial payment in connection with any award under the Plan, as well as any shares of Common Stock surrendered by a Holder or withheld by the Company or one of its Subsidiaries to satisfy the tax withholding obligations related to any award under the Plan, shall not be available for subsequent awards under the Plan.

 

3.2. Adjustment Upon Changes in Capitalization, Etc. In the event of any common stock dividend payable on shares of Common Stock, Common Stock split or reverse split, combination or exchange of shares of Common Stock, or other extraordinary or unusual event which results in a change in the shares of Common Stock of the Company as a whole, the Committee shall determine, in its sole discretion, whether such change equitably requires an adjustment in the terms of any award in order to prevent dilution or enlargement of the benefits available under the Plan (including number of shares subject to the award and the exercise price) or the aggregate number of shares reserved for issuance under the Plan. Any such adjustments will be made by the Committee, whose determination will be final, binding and conclusive.

 

  

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Section 4. Eligibility.

 

Awards may be made or granted to employees, officers, directors and consultants who are deemed to have rendered or to be able to render significant services to the Company or its Subsidiaries and who are deemed to have contributed or to have the potential to contribute to the success of the Company and which recipients are qualified to receive options under the regulations governing Form S-8 registration statements under the Securities Act of 1933, as amended (“Securities Act”). No Incentive Stock Option shall be granted to any person who is not an employee of the Company or an employee of a Subsidiary at the time of grant or so qualified as set forth in the immediately preceding sentence. Notwithstanding the foregoing, an award may also be made or granted to a person in connection with his hiring or retention, or at any time on or after the date he reaches an agreement (oral or written) with the Company with respect to such hiring or retention, even though it may be prior to the date the person first performs services for the Company or its Subsidiaries; provided, however, that no portion of any such award shall vest prior to the date the person first performs such services and the date of grant shall be deemed to be the date hiring or retention commences.

 

Section 5. Stock Options.

 

5.1. Grant and Exercise. Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-qualified Stock Options. Any Stock Option granted under the Plan shall contain such terms, not inconsistent with this Plan, or with respect to Incentive Stock Options, not inconsistent with the Plan and the Code, as the Committee may from time to time approve. The Committee shall have the authority to grant Incentive Stock Options or Non-qualified Stock Options, or both types of Stock Options which may be granted alone or in addition to other awards granted under the Plan. To the extent that any Stock Option intended to qualify as an Incentive Stock Option does not so qualify, it shall constitute a separate Non-qualified Stock Option.

 

5.2. Terms and Conditions. Stock Options granted under the Plan shall be subject to the following terms and conditions:

 

(a) Option Term. The term of each Stock Option shall be fixed by the Committee; provided, however, that an Incentive Stock Option may be granted only within the ten-year period commencing from the Effective Date and may only be exercised within ten years of the date of grant (or five years in the case of an Incentive Stock Option granted to an optionee who, at the time of grant, owns Common Stock possessing more than 10% of the total combined voting power of all classes of voting stock of the Company (“10% Shareholder”)).

 

  

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(b) Exercise Price. The exercise price per share of Common Stock purchasable under a Stock Option shall be determined by the Committee at the time of grant and may not be less than 100% of the Fair Market Value on the date of grant (or, if greater, the par value of a share of Common Stock); provided, however, that the exercise price of an Incentive Stock Option granted to a 10% Shareholder will not be less than 110% of the Fair Market Value on the date of grant.

 

(c) Exercisability. Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee. The Committee intends generally to provide that Stock Options be exercisable only in installments, i.e., that they vest over time, typically over a three-year period. The Committee may waive such installment exercise provisions at any time at or after the time of grant in whole or in part, based upon such factors as the Committee determines. Notwithstanding the foregoing, in the case of an Incentive Stock Option, the aggregate Fair Market Value (on the date of grant of the Option) with respect to which Incentive Stock Options become exercisable for the first time by a Holder during any calendar year (under all such plans of the Company and its Parent and Subsidiaries) shall not exceed $100,000.

 

(d) Method of Exercise. Subject to whatever installment, exercise and waiting period provisions are applicable in a particular case, Stock Options may be exercised in whole or in part at any time during the term of the Option by giving written notice of exercise to the Company specifying the number of shares of Common Stock to be purchased. Such notice shall be accompanied by payment in full of the purchase price, which shall be in cash or, if provided in the Agreement, either in shares of Common Stock (including Restricted Stock and other contingent awards under this Plan) or partly in cash and partly in such Common Stock, or such other means which the Committee determines are consistent with the Plan’s purpose and applicable law. Cash payments shall be made by wire transfer, certified or bank check or personal check, in each case payable to the order of the Company; provided, however, that the Company shall not be required to deliver certificates for shares of Common Stock with respect to which an Option is exercised until the Company has confirmed the receipt of good and available funds in payment of the purchase price thereof (except that, in the case of an exercise arrangement approved by the Committee and described in the last sentence of this paragraph, payment may be made as soon as practicable after the exercise). The Committee may permit a Holder to elect to pay the Exercise Price upon the exercise of a Stock Option by irrevocably authorizing a third party to sell shares of Common Stock (or a sufficient portion of the shares) acquired upon exercise of the Stock Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire Exercise Price and any tax withholding resulting from such exercise.

 

(e) Stock Payments. Payments in the form of Common Stock shall be valued at the Fair Market Value on the date of exercise. Such payments shall be made by delivery of stock certificates in negotiable form that are effective to transfer good and valid title thereto to the Company, free of any liens or encumbrances.

 

(f) Transferability. Except as may be set forth in the next sentence of this Section or in the Agreement, no Stock Option shall be transferable by the Holder other than by will or by the laws of descent and distribution, and all Stock Options shall be exercisable, during the Holder’s lifetime, only by the Holder (or, to the extent of legal incapacity or incompetency, the Holder’s guardian or legal representative). Notwithstanding the foregoing, a Holder, with the approval of the Committee, may transfer a Non-Qualified Stock Option (i) (A) by gift, for no consideration, or (B) pursuant to a domestic relations order, in either case, to or for the benefit of the Holder’s “Immediate Family” (as defined below), or (ii) to an entity in which the Holder and/or members of Holder’s Immediate Family own more than fifty percent of the voting interest, in exchange for an interest in that entity, subject to such limits as the Committee may establish and the execution of such documents as the Committee may require, and the transferee shall remain subject to all the terms and conditions applicable to the Non-Qualified Stock Option prior to such transfer. The term “Immediate Family” shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, any person sharing the Holder’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent beneficial interest, and a foundation in which these persons (or the Holder) control the management of the assets. The Committee may, in its sole discretion, permit transfer of an Incentive Stock Option in a manner consistent with applicable tax and securities law upon the Holder’s request.

 

  

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(g) Termination by Reason of Death. If a Holder’s employment by, or association with, the Company or a Subsidiary terminates by reason of death, any Stock Option held by such Holder, unless otherwise determined by the Committee and set forth in the Agreement, shall thereupon automatically terminate, except that the portion of such Stock Option that has vested on the date of death may thereafter be exercised by the legal representative of the estate or by the legatee of the Holder under the will of the Holder, for a period of one year (or such other greater or lesser period as the Committee may specify in the Agreement) from the date of such death or until the expiration of the stated term of such Stock Option, whichever period is shorter.

 

(h) Termination by Reason of Disability. If a Holder’s employment by, or association with, the Company or any Subsidiary terminates by reason of Disability, any Stock Option held by such Holder, unless otherwise determined by the Committee and set forth in the Agreement, shall thereupon automatically terminate, except that the portion of such Stock Option that has vested on the date of termination may thereafter be exercised by the Holder for a period of one year (or such other greater or lesser period as the Committee may specify in the Agreement) from the date of such termination or until the expiration of the stated term of such Stock Option, whichever period is shorter.

 

(i) Termination by Reason of Normal Retirement. Subject to the provisions of Section 12.3, if such Holder’s employment by, or association with, the Company or any Subsidiary terminates due to Normal Retirement, any Stock Option held by such Holder, unless otherwise determined by the Committee and set forth in the Agreement, shall thereupon automatically terminate, except that the portion of such Stock Option that has vested on the date of termination may thereafter be exercised by the Holder for a period of one year (or such other greater or lesser period as the Committee may specify in the Agreement) from the date of such termination or until the expiration of the stated term of such Stock Option, whichever period is shorter.

 

(j) Other Termination. Subject to the provisions of Section 12.3, if such Holder’s employment by, or association with, the Company or any Subsidiary terminates for any reason other than death, Disability or Normal Retirement, any Stock Option held by such Holder, unless otherwise determined by the Committee and set forth in the Agreement, shall thereupon automatically terminate, except that, if the Holder’s employment is terminated by the Company or a Subsidiary without cause, the portion of such Stock Option that has vested on the date of termination may thereafter be exercised by the Holder for a period of three months (or such other greater or lesser period as the Committee may specify in the Agreement) from the date of such termination or until the expiration of the stated term of such Stock Option, whichever period is shorter.

 

  

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(k) Buyout and Settlement Provisions. The Committee may at any time, in its sole discretion, offer to repurchase a Stock Option previously granted, at a purchase price not to exceed the Repurchase Value, based upon such terms and conditions as the Committee shall establish and communicate to the Holder at the time that such offer is made.

 

(l) Rights as Shareholder. A Holder shall have none of the rights of a Shareholder with respect to the shares subject to the Option until such shares shall be transferred to the Holder upon the exercise of the Option.

 

Section 6. Stock Appreciation Rights.

 

6.1. Grant and Exercise. Subject to the terms and conditions of the Plan, the Committee may grant Stock Appreciation Rights in tandem with an Option or alone and unrelated to an Option. The Committee may grant Stock Appreciation Rights to participants who have been or are being granted Stock Options under the Plan as a means of allowing such participants to exercise their Stock Options without the need to pay the exercise price in cash. In the case of a Non-qualified Stock Option, a Stock Appreciation Right may be granted either at or after the time of the grant of such Non-qualified Stock Option. In the case of an Incentive Stock Option, a Stock Appreciation Right may be granted only at the time of the grant of such Incentive Stock Option.

 

6.2. Terms and Conditions. Stock Appreciation Rights shall be subject to the following terms and conditions:

 

(a) Exercisability. Stock Appreciation Rights shall be exercisable as shall be determined by the Committee and set forth in the Agreement, subject, for Stock Appreciation Rights granted in tandem with an Incentive Stock Option, to the limitations, if any, imposed by the Code with respect to related Incentive Stock Options.

 

(b) Termination. All or a portion of a Stock Appreciation Right granted in tandem with a Stock Option shall terminate and shall no longer be exercisable upon the termination or after the exercise of the applicable portion of the related Stock Option.

 

(c) Method of Exercise. Stock Appreciation Rights shall be exercisable upon such terms and conditions as shall be determined by the Committee and set forth in the Agreement and, for Stock Appreciation Rights granted in tandem with a Stock Option, by surrendering the applicable portion of the related Stock Option. Upon exercise of all or a portion of a Stock Appreciation Right and, if applicable, surrender of the applicable portion of the related Stock Option, the Holder shall be entitled to receive a number of shares of Common Stock equal to the SAR Value divided by the Fair Market Value on the date the Stock Appreciation Right is exercised.

 

  

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 (d) Shares Available Under Plan. The granting of a Stock Appreciation Right in tandem with a Stock Option shall not affect the number of shares of Common Stock available for awards under the Plan. The number of shares available for awards under the Plan will, however, be reduced by the number of shares of Common Stock acquirable upon exercise of the Stock Option to which such Stock Appreciation Right relates.

 

Section 7. Restricted Stock.

 

7.1. Grant. Shares of Restricted Stock may be awarded either alone or in addition to other awards granted under the Plan. The Committee shall determine the eligible persons to whom, and the time or times at which, grants of Restricted Stock will be awarded, the number of shares to be awarded, the price (if any) to be paid by the Holder, the time or times within which such awards may be subject to forfeiture (“Restriction Period”), the vesting schedule and rights to acceleration thereof and all other terms and conditions of the awards.

 

7.2. Terms and Conditions. Each Restricted Stock award shall be subject to the following terms and conditions:

 

(a) Certificates. Restricted Stock, when issued, will be represented by a stock certificate or certificates registered in the name of the Holder to whom such Restricted Stock shall have been awarded. During the Restriction Period, certificates representing the Restricted Stock and any securities constituting Retained Distributions (as defined below) shall bear a legend to the effect that ownership of the Restricted Stock (and such Retained Distributions) and the enjoyment of all rights appurtenant thereto are subject to the restrictions, terms and conditions provided in the Plan and the Agreement. Such certificates shall be deposited by the Holder with the Company, together with stock powers or other instruments of assignment, each endorsed in blank, which will permit transfer to the Company of all or any portion of the Restricted Stock and any securities constituting Retained Distributions that shall be forfeited or that shall not become vested in accordance with the Plan and the Agreement.

 

(b) Rights of Holder. Restricted Stock shall constitute issued and outstanding shares of Common Stock for all corporate purposes. The Holder will have the right to vote such Restricted Stock and to exercise all other rights, powers and privileges of a holder of Common Stock with respect to such Restricted Stock, with the exceptions that (i) the Holder will not be entitled to delivery of the stock certificate or certificates representing such Restricted Stock until the Restriction Period shall have expired and unless all other vesting requirements with respect thereto shall have been fulfilled; (ii) the Company will retain custody of the stock certificate or certificates representing the Restricted Stock during the Restriction Period; (iii) the Company will retain custody of all dividends and distributions (“Retained Distributions”) made, paid or declared with respect to the Restricted Stock (and such Retained Distributions will be subject to the same restrictions, terms and conditions as are applicable to the Restricted Stock) until such time, if ever, as the Restricted Stock with respect to which such Retained Distributions shall have been made, paid or declared shall have become vested and with respect to which the Restriction Period shall have expired; (iv) a breach of any of the restrictions, terms or conditions contained in this Plan or the Agreement or otherwise established by the Committee with respect to any Restricted Stock or Retained Distributions will cause a forfeiture of such Restricted Stock and any Retained Distributions with respect thereto.

 

  

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(c) Vesting; Forfeiture. Upon the expiration of the Restriction Period with respect to each award of Restricted Stock and the satisfaction of any other applicable restrictions, terms and conditions (i) all or part of such Restricted Stock shall become vested in accordance with the terms of the Agreement, and (ii) any Retained Distributions with respect to such Restricted Stock shall become vested to the extent that the Restricted Stock related thereto shall have become vested. Any such Restricted Stock and Retained Distributions that do not vest shall be forfeited to the Company and the Holder shall not thereafter have any rights with respect to such Restricted Stock and Retained Distributions that shall have been so forfeited.

 

Section 8. Other Stock-Based Awards.

 

Other Stock-Based Awards may be awarded, subject to limitations under applicable law, that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, shares of Common Stock, as deemed by the Committee to be consistent with the purposes of the Plan, including, without limitation, purchase rights, shares of Common Stock awarded which are not subject to any restrictions or conditions, convertible or exchangeable debentures, or other rights convertible into shares of Common Stock and awards valued by reference to the value of securities of or the performance of specified Subsidiaries. These other stock-based awards may include performance shares or options, whose award is tied to specific performance criteria. Other Stock-Based Awards may be awarded either alone or in addition to or in tandem with any other awards under this Plan or any other plan of the Company. Each other Stock-Based Award shall be subject to such terms and conditions as may be determined by the Committee.

 

Section 9. Accelerated Vesting and Exercisability.

 

9.1. Non-Approved Transactions. If any one person, or more than one person acting as a group, acquires the ownership of stock of the Company that, together with the stock held by such person or group, constitutes more than 50% of the total fair market value or combined voting power of the stock of the Company, and the Board does not authorize or otherwise approve such acquisition, then the vesting periods of any and all Stock Options and other awards granted and outstanding under the Plan shall be accelerated and all such Stock Options and awards will immediately and entirely vest, and the respective holders thereof will have the immediate right to purchase and/or receive any and all Common Stock subject to such Stock Options and awards on the terms set forth in this Plan and the respective Agreements respecting such Stock Options and awards. An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Company acquires its stock in exchange for property is not treated as an acquisition of stock for purposes of this Section 9.1.

 

  

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9.2. Approved Transactions. The Committee may, in the event of an acquisition by any one person, or more than one person acting as a group, together with acquisitions during the 12-month period ending on the date of the most recent acquisition by such person or persons, of assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions, or if any one person, or more than one person acting as a group, acquires the ownership of stock of the Company that, together with the stock held by such person or group, constitutes more than 50% of the total fair market value or combined voting power of the stock of the Company, which has been approved by the Company’s Board of Directors, (i) accelerate the vesting of any and all Stock Options and other awards granted and outstanding under the Plan, or (ii) require a Holder of any award granted under this Plan to relinquish such award to the Company upon the tender by the Company to Holder of cash in an amount equal to the Repurchase Value of such award. For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

9.3. Code Section 409A. Notwithstanding any provisions of this Plan or any award granted hereunder to the contrary, no acceleration shall occur with respect to any award to the extent such acceleration would cause the Plan or an award granted hereunder to fail to comply with Code Section 409A.

 

Section 10. Amendment and Termination.

 

The Board may at any time, and from time to time, amend alter, suspend or discontinue any of the provisions of the Plan, but no amendment, alteration, suspension or discontinuance shall be made that would impair the rights of a Holder under any Agreement theretofore entered into hereunder, without the Holder’s consent, except as set forth in this Plan.

 

Section 11. Term of Plan.

 

11.1. Effective Date. The Plan shall be effective as of September 28, 2011, subject to the approval of the Plan by the Company’s shareholders within one year after the Effective Date. Any awards granted under the Plan prior to such approval shall be effective when made (unless otherwise specified by the Committee at the time of grant), but shall be conditioned upon, and subject to, such approval of the Plan by the Company’s shareholders and no awards shall vest or otherwise become free of restrictions prior to such approval.

 

11.2. Termination Date. Unless terminated by the Board, this Plan shall continue to remain effective until such time as no further awards may be granted and all awards granted under the Plan are no longer outstanding. Notwithstanding the foregoing, grants of Incentive Stock Options may be made only during the ten-year period beginning on the Effective Date.

 

Section 12. General Provisions.

 

12.1. Written Agreements. Each award granted under the Plan shall be confirmed by, and shall be subject to the terms of, the Agreement executed by the Company and the Holder, or such other document as may be determined by the Committee. The Committee may terminate any award made under the Plan if the Agreement relating thereto is not executed and returned to the Company within 10 days after the Agreement has been delivered to the Holder for his or her execution.

 

  

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12.2. Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Holder by the Company, nothing contained herein shall give any such Holder any rights that are greater than those of a general creditor of the Company.

 

12.3. Employees.

 

(a) Engaging in Competition With the Company; Solicitation of Customers and Employees; Disclosure of Confidential Information. If a Holder’s employment with the Company or a Subsidiary is terminated for any reason whatsoever, and within 12 months after the date thereof such Holder either (i) accepts employment with any competitor of, or otherwise engages in competition with, the Company or any of its Subsidiaries, (ii) solicits any customers or employees of the Company or any of its Subsidiaries to do business with or render services to the Holder or any business with which the Holder becomes affiliated or to which the Holder renders services or (iii) uses or discloses to anyone outside the Company any confidential information or material of the Company or any of its Subsidiaries in violation of the Company’s policies or any agreement between the Holder and the Company or any of its Subsidiaries, the Committee, in its sole discretion, may require such Holder to return to the Company the economic value of any award that was realized or obtained by such Holder at any time during the period beginning on the date that is six months prior to the date such Holder’s employment with the Company is terminated. In such event, Holder agrees to remit to the Company, in cash, an amount equal to the difference between the Fair Market Value of the Shares on the date of termination (or the sales price of such Shares if the Shares were sold during such six month period) and the price the Holder paid the Company for such Shares.

 

(b) Termination for Cause. If a Holder’s employment with the Company or a Subsidiary is terminated for cause, the Committee may, in its sole discretion, require such Holder to return to the Company the economic value of any award that was realized or obtained by such Holder at any time during the period beginning on that date that is six months prior to the date such Holder’s employment with the Company is terminated. In such event, Holder agrees to remit to the Company, in cash, an amount equal to the difference between the Fair Market Value of the Shares on the date of termination (or the sales price of such Shares if the Shares were sold during such six month period) and the price the Holder paid the Company for such Shares.

 

(c) No Right of Employment. Nothing contained in the Plan or in any award hereunder shall be deemed to confer upon any Holder who is an employee of the Company or any Subsidiary any right to continued employment with the Company or any Subsidiary, nor shall it interfere in any way with the right of the Company or any Subsidiary to terminate the employment of any Holder who is an employee at any time.

 

  

A-12

  

 

12.4. Investment Representations; Company Policy. The Committee may require each person acquiring shares of Common Stock pursuant to a Stock Option or other award under the Plan to represent to and agree with the Company in writing that the Holder is acquiring the shares for investment without a view to distribution thereof. Each person acquiring shares of Common Stock pursuant to a Stock Option or other award under the Plan shall be required to abide by all policies of the Company in effect at the time of such acquisition and thereafter with respect to the ownership and trading of the Company’s securities.

 

12.5. Additional Incentive Arrangements. Nothing contained in the Plan shall prevent the Board from adopting such other or additional incentive arrangements as it may deem desirable, including, but not limited to, the granting of Stock Options and the awarding of Common Stock and cash otherwise than under the Plan; and such arrangements may be either generally applicable or applicable only in specific cases.

 

12.6. Withholding Taxes. Not later than the date as of which an amount must first be included in the gross income of the Holder for Federal income tax purposes with respect to any Stock Option or other award under the Plan, the Holder shall pay to the Company, or make arrangements satisfactory to the Committee regarding the payment of, any Federal, state and local taxes of any kind required by law to be withheld or paid with respect to such amount. If permitted by the Committee, tax withholding or payment obligations may be settled with Common Stock, including Common Stock that is part of the award that gives rise to the withholding requirement. The obligations of the Company under the Plan shall be conditioned upon such payment or arrangements and the Company or the Holder’s employer (if not the Company) shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Holder from the Company or any Subsidiary.

 

12.7. Governing Law. The Plan and all awards made and actions taken thereunder shall be governed by and construed in accordance with the law of the State of Florida (without regard to choice of law provisions).

 

12.8. Other Benefit Plans. Any award granted under the Plan shall not be deemed compensation for purposes of computing benefits under any retirement plan of the Company or any Subsidiary and shall not affect any benefits under any other benefit plan now or subsequently in effect under which the availability or amount of benefits is related to the level of compensation (unless required by specific reference in any such other plan to awards under this Plan).

 

12.9. Non-Transferability. Except as otherwise expressly provided in the Plan or the Agreement, no right or benefit under the Plan may be alienated, sold, assigned, hypothecated, pledged, exchanged, transferred, encumbranced or charged, and any attempt to alienate, sell, assign, hypothecate, pledge, exchange, transfer, encumber or charge the same shall be void.

 

12.10. Applicable Laws. The obligations of the Company with respect to all Stock Options and awards under the Plan shall be subject to (i) all applicable laws, rules and regulations and such approvals by any governmental agencies as may be required, including, without limitation, the Securities Act, and (ii) the rules and regulations of any securities exchange on which the Common Stock may be listed.

 

  

A-13

  

 

12.11. Conflicts. If any of the terms or provisions of the Plan or an Agreement conflict with the requirements of Section 422 of the Code, then such terms or provisions shall be deemed inoperative to the extent they so conflict with such requirements. Additionally, if this Plan or any Agreement does not contain any provision required to be included herein under Section 422 of the Code, such provision shall be deemed to be incorporated herein and therein with the same force and effect as if such provision had been set out at length herein and therein. If any of the terms or provisions of any Agreement conflict with any terms or provisions of the Plan, then such terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of the Plan. Additionally, if any Agreement does not contain any provision required to be included therein under the Plan, such provision shall be deemed to be incorporated therein with the same force and effect as if such provision had been set out at length therein.

 

12.12. Certain Awards Deferring or Accelerating the Receipt of Compensation. To the extent applicable, all awards granted, and all Agreements entered into, under the Plan are intended to comply with Section 409A of the Code, which was added by the American Jobs Creation Act of 2004 and relates to deferred compensation under nonqualified deferred compensation plans. The Committee, in administering the Plan, intends, and the parties entering into any Agreement intend, to restrict provisions of any awards that may constitute deferred receipt of compensation subject to Code Section 409A requirements to those consistent with this Section. The Board may amend the Plan to comply with Code Section 409A in the future.

 

12.13. Non-Registered Stock. The shares of Common Stock to be distributed under this Plan have not been, as of the Effective Date, registered under the Securities Act or any applicable state or foreign securities laws and the Company has no obligation to any Holder to register the Common Stock or to assist the Holder in obtaining an exemption from the various registration requirements, or to list the Common Stock on a national securities exchange or any other trading or quotation system, including Nasdaq.

 

A-14EX-10.10

 Exhibit 10.10 

NON-EXCLUSIVE SLS BRAND LICENSE AGREEMENT 

(Affiliate Managed) 
 This
NON-EXCLUSIVE SLS BRAND LICENSE AGREEMENT (this “Agreement”) is made and entered into by and between SBE Hotel Licensing, LLC, a California limited liability company (“Licensor”), and Stockbridge/SBE Holdings, LLC, a Delaware
limited liability company (“Licensee”), on April 1, 2011 (the “Effective Date”). Licensor and Licensee may be referred to herein collectively as the “Parties” and individually as a “Party”. 

RECITALS 
 WHEREAS,
Licensor is the owner of all right, title and interest in and to the trademarks and copyrights for the SLS Hotel® brand (the “Brand”) including without limitation the trademarks (a
term that is used herein to include without limitation trademarks for goods, service marks for services, and trade names for businesses) and copyrights listed in Exhibit A, as may be supplemented from time-to-time by Licensor upon the written
request of Licensor, acting in Licensor’s sole and absolute discretion, upon thirty (30) days’ prior notice to Licensee (collectively, the “SLS Intellectual Property”); 

WHEREAS, Licensee desires to use the SLS Intellectual Property in connection with the development of a hotel named the “SLS Las
Vegas”, located at 2535 Las Vegas Boulevard South, Las Vegas, Nevada 89109 (the “Hotel”); 
 WHEREAS, affiliates of both
Licensor and Licensee have entered into that certain Third Amended and Restated Limited Liability Agreement dated as of June 20, 2011 (the “JV Agreement”); 

WHEREAS, Licensee and an affiliate of Licensor have entered into that certain Amended and Restated Development Management Agreement dated as
of April 1, 2011 (the “DMA”); and 
 WHEREAS, Licensee and an affiliate of Licensor have entered into that certain Amended
and Restated Management Agreement relating to the Hotel dated as of April 1, 2011 (the “HMA”). 
 NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual covenants and promises contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

1. 
 License 

1.1 Grant of License. Upon and subject to the terms and conditions contained herein, effective on the Effective Date, Licensor grants
to Licensee a royalty-free, non-exclusive, non-sublicenseable, and non-transferable (except as provided herein) license to use the SLS Intellectual Property for the marketing, operation, and/or management of the Hotel (the “License”).
Licensee shall: (a) use the SLS Intellectual Property only in accordance with this Agreement or as expressly set forth in the HMA; (b) not assert or acquire any ownership or other rights in the SLS Intellectual Property other than the
License expressly granted in this Agreement or the Transaction Agreements (defined below); (c) not take any action or assist any other person or entity in taking any action to contest Licensor’s proprietary interest in the SLS Intellectual
Property; and (d) refrain from knowingly undertaking any acts or omissions that infringe upon or 

  
 1 

 
tarnish the SLS Intellectual Property. The effectiveness of this License shall be contingent upon continued performance by Licensee of all its obligations under this Agreement and the Transaction
Agreements. All rights of Licensee hereunder shall be exercisable by SBEHG Las Vegas I, LLC on Licensee’s behalf. 
 1.2 Reserved
Rights. Nothing in this Agreement shall be construed as conferring upon Licensee by implication, estoppel or otherwise, any rights or license, including without limitation any right or license under intellectual property rights, except for the
rights and licenses expressly and unequivocally granted hereunder. For the avoidance of doubt, this Agreement expressly grants to Licensee, the ability to produce, manufacture, distribute and sell, exclusively at any branded-product retail stores
located within the Hotel, products containing or bearing the Brand or the SLS Intellectual Property. All rights in the SLS Intellectual Property other than those specifically granted in this Agreement are reserved by Licensor for its own use and
benefit and/or for the benefit of Licensor. Except as expressly set forth herein or in the Transaction Agreements (defined below), nothing in this Agreement shall restrict, impair, limit or otherwise affect Licensor (or any third party authorized by
Licensor) from using or exploiting the SLS Intellectual Property in any manner whatsoever. 
 1.3 Use of License. To the fullest
extent permitted by law, neither Licensor nor its affiliates shall, directly or indirectly, utilize, or allow a third party (other than Licensee) to utilize, the SLS Intellectual Property in connection with any restaurant, hotel, casino or nightclub
located in Clark County, Nevada (the “Restricted Territory”), without the prior written approval of Licensee, except as otherwise expressly set forth herein and in the Transaction Agreements. Notwithstanding the foregoing, in no event
shall the restrictions of this Section 1.3 prevent or in any way limit the rights of Licensor or its affiliates or any third party from marketing, advertising or otherwise promoting within the Restricted Territory any restaurant, hotel, casino
or nightclub which is located outside the Restricted Territory. For example, Licensor shall have the right to market or promote the “SLS at Beverly Hills” at the Bellagio Hotel and Casino or any other location within the Restricted
Territory. 
 2. 
 Use of
Intellectual Property; License Standards 
 2.1 Standards. Licensee acknowledges and agrees that use of the SLS Intellectual
Property by Licensee can have a substantial adverse affect on the reputation of, and goodwill associated with the Brand and SLS Intellectual Property. Licensee acknowledges that strict compliance with the License Standards (as defined below) is
necessary to protect and enhance the value of the Brand and SLS Intellectual Property and the associated goodwill. Therefore, Licensee agrees that use of the Brand and SLS Intellectual Property under this Agreement shall at all times be, except to
the extent in direct conflict with the HMA, DMA or the JV Agreement (in which case the terms of such agreements shall prevail), in strict accordance with the terms of this Agreement (the “License Standards”). The HMA, the DMA, and the JV
Agreement are sometimes referred to herein as the “Transaction Agreements.” 
 2.2 Ongoing Quality Control and Inspections.
For quality control evaluation and monitoring purposes, at Licensor’s request, Licensee shall make available to the Licensor, representative samples of collateral materials and other items using, displaying, embodying, advertising, promoting,
commercializing, or otherwise exploiting the Brand or SLS Intellectual Property, and permit Licensor to inspect at mutually convenient dates and time, any premises on 

  
 2 

 
which the Brand or SLS Intellectual Property is being used (the “Branded Premises”). Licensor may take photographs and video of the interior and exterior of the Branded Premises and may
use such photographs and video for such purposes as advertising, promotional, training, marketing and public relations, without any compensation to Licensee. 

2.3 Changes to the SLS Intellectual Property. From time to time and at Licensor’s sole discretion and cost, Licensor may modify
all or any part of the SLS Intellectual Property, so long as such modifications are consistent with those required by Licensor for the Brand as a whole; provided, however, Licensee’s implementation of any such modifications shall be subject to
the terms and conditions of the Transaction Agreements. 
 3. 

Intellectual Property Protection 

3.1 Rights to SLS Intellectual Property. Licensee acknowledges and agrees: (a) that Licensor is and shall remain the exclusive
licensor of all right, title and interest in and to the SLS Intellectual Property and the substantial goodwill associated therewith; (b) that Licensee shall acquire no rights in and to the SLS Intellectual Property or the goodwill associated
therewith by virtue of this Agreement and licenses granted hereunder; and (c) that any and all use of the SLS Intellectual Property by Licensee shall inure to the exclusive benefit of Licensor and Licensee in accordance with the terms hereof
and the Transaction Agreements. 
 3.2 Intellectual Property Notices. Subject to the limitations of Sections 5.2.2 and 6.2 of the
HMA, Licensee shall strictly adhere to any usage guidelines for the SLS Intellectual Property that Licensor imposes from time to time in its sole and absolute discretion including, without limitation, any guidelines relating to the form and manner
in which the SLS Intellectual Property is displayed or embodied, and any guidelines relating to trademark notices, copyright notices, or other proprietary legends or markings. 

3.3 Restrictions. Licensee shall not: (a) identify itself as the owner of the SLS Intellectual Property or any right, title or
interest therein or on any registration or application for registration thereof, except as a licensee; (b) apply for or maintain the registration of any trademark or copyright relating to the SLS Intellectual Property anywhere in the world; or
(c) apply for or maintain the registration of any trademark which is the same as, confusingly similar to, or which incorporates the SLS Intellectual Property, anywhere in the world. 

3.4 Infringement. If Licensee learns of any third party trademark which is likely to cause confusion with or dilute the SLS
Intellectual Property, Licensee shall promptly notify Licensor in writing with all the necessary particulars known to Licensee. Licensee acknowledges and agrees that ultimately Licensor shall have the right in its sole and absolute discretion to
determine what, if any, action to take against the third party including without limitation whether to institute and prosecute any actions or proceedings against the third party. Licensee shall cooperate with and provide assistance to Licensor as
reasonably requested in investigating the activities of the third party and in enforcing its rights in the SLS Intellectual Property against the third party, executing, acknowledging and delivering all documents as may be reasonably necessary or
desirable to enable Licensor to protect, defend, or register its proprietary interest in any of the SLS Intellectual Property. 

  
 3 

 3.5 Non-Disclosure of Proprietary Information. Licensee shall not disclose any non-public
information and materials relating to Licensor, the business affairs of Licensor or any hotel, resort, restaurant, spa, night club or other similar operation or facility that Licensor owns, leases, operates or franchises other than the Hotel and the
operations and facilities therein, including without limitation: (a) proprietary software relating specifically and uniquely to the Brand alone; (b) guest lists and guest history files; (c) operational manuals relating specifically
and uniquely to the proprietary instructions, requirements, guidance or policy statements of the Brand alone; (d) material relating to the operation and design standards; and (e) all trade secrets and copyrightable or patentable subject
matter developed, acquired or licensed by Licensor in the operation of any hotel, resort, restaurant, spa, night club or other similar operation or similar facility Licensee, leased, operated or franchised by Licensor or any of its affiliates other
than the Hotel and the operations and facilities therein (“Licensor Proprietary Information”) other than as required under the Loan Documents (as defined in the JV Agreement) or any future loan agreement, as expressly permitted by the
Transaction Agreements, or in connection with the sale of the Hotel. Licensee, at all times during the Term (as defined in Section 5.1 below) of this Agreement and thereafter, shall use all commercially reasonable means to protect the
confidentiality of the Licensor Proprietary Information and shall not communicate or make the Licensor Proprietary Information available to, or use it for the benefit of, any unauthorized persons or entities. If Licensee or any of its affiliates
receives a request to disclose any Licensor Proprietary Information by subpoena, oral question, interrogatory, request for information or documents, civil investigative demand, order, or similar process from the U.S. Securities and Exchange
Commission, the New York or California Attorney General, the Nevada Gaming Commission or any other applicable regulatory agency or governmental authority or from Licensee’s direct or indirect investors, owners or partners, Licensee shall:
(i) promptly notify Licensor; (ii) consult with Licensor on the advisability of taking steps to resist or narrow such request; and (iii) if disclosure is required or deemed advisable, cooperate with Licensor in any attempt Licensor
may make to obtain an order or other assurance that confidential treatment will be accorded to the matters disclosed. Except as set forth in the Transaction Agreements or required by legal counsel, upon the termination or expiration of this
Agreement for any reason whatsoever, Licensee shall promptly, to the extent reasonably practicable, return to Licensor all Licensor Proprietary Information in tangible form that Licensee received from or on behalf of Licensor and shall not retain
any copies or extracts therefrom. 
 4. 

Representations and Warranties 

4.1 Representations of the Parties. Each of Licensor and Licensee represents as to itself as follows: 

4.1.1 It has been duly organized and is validly existing in good standing under the laws of the state of its organization. 

4.1.2 It is duly qualified to do business in all jurisdictions which require such qualification to conduct the business to be conducted under
this Agreement. 
 4.1.3 It has the power and authority to enter into and perform its respective obligations created by this Agreement. 

4.1.4 This Agreement has been duly authorized by all necessary action on its part and has been duly executed and delivered by it. 

  
 4 

 4.1.5 Neither the execution and delivery of this Agreement by it, nor compliance by it with any
of the provisions hereof, will: (a) violate or conflict with any provision of its organizational documents; (b) violate, alone or with notice or the passage of time, result in the breach or termination of, or otherwise give any contracting
party the right to terminate, or declare a default under, the terms of any contract, agreement, understanding or commitment to which it is a party or by which it may be bound; (c) violate any decree, order, injunction, judgment or award
against, or binding upon, it; or (d) violate any law relating to it. 
 5. 

Term and Termination 
 5.1
Term. Subject to the termination provisions below, the term of this Agreement (the “Term”) shall commence as of the Effective Date and continue until such time as the earlier of (a) ninety (90) days after the termination
of the HMA or (b) the commencement of the SLS Brand Non-Managed License Agreement (Third-Party Managed) attached to the HMA as Exhibit B. 

5.2 Right to Terminate. This Agreement may be terminated during its Term or during any renewal terms as follows: 

5.2.1 Licensor shall be entitled to terminate this Agreement immediately upon written notice delivered to Licensee if Licensee engages in an
intentional material unauthorized use of the SLS Intellectual Property and fails to cure such unauthorized use within thirty (30) days after receipt of written notice of the unauthorized use. 

5.2.2 Licensor shall be entitled to terminate this Agreement upon fifteen (15) days’ notice to Licensee if: (a) a material
breach occurs which is of the same nature, and which violates the same provision of this Agreement, as a breach of which Licensor has given Licensee written notice two (2) times within the preceding eighteen (18) months (notwithstanding
that Licensee may have subsequently cured any such prior breaches), (b) Licensee willfully and intentionally breaches this Agreement, (c) Licensee breaches a material provision of this Agreement and the breach is not reasonably capable of
being cured, or (d) Licensee uses the SLS Intellectual Property in an intentional material violation of the terms of this Agreement that is not cured within fifteen (15) days following notice thereof to Licensee. 

5.2.3 Licensee shall be entitled to terminate this Agreement upon thirty (30) days’ prior written notice to Licensor upon the
default or material breach of the HMA by Licensor or its affiliates unless cured within such thirty (30) day period; provided, however, if such default or material breach is non-monetary and cannot reasonably be cured within such thirty
(30) days, Licensee shall have the right to extend the cure period provided that Licensee commences to cure such default or material breach within thirty (30) days after such notice by Licensor and thereafter diligently complete such cure
within sixty (60) days after notice by Licensor. 
 5.3 Obligations on Termination. 

5.3.1 Immediately upon termination or expiration of this Agreement (“Termination”), Licensee shall cease to have any of the rights
granted to it under Section 1 above. 

  
 5 

 5.3.2 Any Termination shall not relieve Licensee from any obligations which accrued prior to the
date of Termination. 
 5.3.3 Licensee shall, upon Termination, take every action and execute all such documents, if any, as may be
necessary or appropriate to reflect the termination of any rights acquired by Licensee under this Agreement. 
 5.3.4 Subject to
Section 16.7.8 of the HMA, Licensee shall, upon termination of this Agreement, on its own behalf and on behalf of its members, managers, directors, officers, employees, agents representatives or any other persons or entities with whom they may
contract to create materials incorporating the SLS Intellectual Property, to promptly cease the distribution, release and use of such items until the SLS Intellectual Property appearing thereon are deleted or removed. 

6. 
 Bankruptcy 

6.1 The parties acknowledge and agree that any delay in the decision of a debtor-in-possession or trustee of the bankruptcy estate to assume
or reject the Agreement (the “Decision Period”) materially harms Licensor by interfering with their ability to alternatively exploit the rights granted under this Agreement during a Decision Period of uncertain duration. The parties
recognize that arranging appropriate alternative exploitation of the Licensed Intellectual Property is a time consuming and expensive process and that it is unreasonable for Licensor to endure a Decision Period of extended uncertainty. Therefore,
the parties agree that the Decision Period shall not exceed sixty (60) days. 
 6.2 Notwithstanding the above, if Licensee commences or
becomes the subject of any proceeding under any applicable bankruptcy or insolvency law, or if a court appoints an administrator, receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) for Licensee or for a
substantial part of its property, Licensee agrees to reimburse Licensor for all of its reasonable attorneys’ fees and litigation expenses, including travel expenses, photocopying expenses, court and deposition transcript expenses, and other
court costs and related expenses, which Licensor may incur in protecting its rights under this Agreement. 
 7. 

Assignment 
 7.1
Assignment. Neither this Agreement nor the license or any other rights granted hereunder may be directly or indirectly assigned, sublicensed, sold, or transferred by Licensee, except in connection with a Permitted Transfer (as defined under
the HMA) of the HMA or pursuant to an otherwise permitted action under the Transaction Agreements, and any such attempted assignment, sublicense, sale, or transfer, whether voluntary, by operation of law or otherwise, shall be void and of no force
or effect; provided, however, that Licensee may grant a sublicense to SBEHG Las Vegas I, LLC and Licensor. This Agreement shall inure to the benefit of and shall be binding upon the Parties, Licensor’s successors and assigns and Licensee’s
permitted successors and assigns. Licensor, on the other hand, may freely assign, upon notice to Licensee both this Agreement and Licensor’s rights, duties, and obligations under this Agreement to another, but only with the prior written
consent of any applicable lender (not to be unreasonably withheld, conditioned or delayed), including without limitation an assignment to Licensor or to any other entity controlled by Licensor. 

  
 6 

 8. 

General Provisions 
 8.1
Notices. All notices, requests, demands and other communications which may be given or are required to be given under this Agreement shall be in writing, shall be sent by (a) certified mail, with postage prepaid and return receipt
requested; (b) overnight receipted courier service; or (c) by facsimile transmission, provided that confirmation of receipt is obtained, and shall be deemed given on the date of delivery if by mail or courier service on a business day and
otherwise on the next succeeding business day and on the date of transmission if by facsimile transmission on a business day and otherwise on the next succeeding business day. All notices shall be addressed as set forth below, or to such other
address as each Party hereto may from time to time designate by written notice to the other Party as provided herein: 
  

			
	             If to Licensor:
	  	             If to Licensee:

		
	 SBE Hotel Licensing, LLC
 8000 Beverly Blvd.

Los Angeles, CA 90048

Attention:        General Counsel

Facsimile:       (323) 655-8001
	  	 Stockbridge/SBE Holdings, LLC
 c/o
Stockbridge Real Estate Partners II, LLC
 4 Embarcadero Center, Suite 3300

San Francisco, CA 94111

Attention:        Terrence E. Fancher

Facsimile:       (415) 658-3444

		
	with a copy to:	  	with a copy to:
		
	 Paul Hastings LLP
 515 South Flower Street

Los Angeles, CA 90071
 Attention:
        Rick S. Kirkbride, Esq.
 Facsimile:        (213) 996-3213
	  	 Davis Polk & Wardwell LLP
 450 Lexington
Avenue
 New York, NY 10017
 Attention:
        Thomas Patrick Dore, Jr.
 Facsimile:        (212) 701-5136

 8.2 Governing Law. This Agreement has been executed and delivered in, and shall be governed by and
construed in accordance with the laws of, the State of California, United States of America, applicable to contracts made and performed in such state and without regard to conflict of laws provisions. 

8.3 Resolution of Disputes. Except as otherwise provided herein, each of the Parties hereto (a) consents and submits to the
jurisdiction of any state or federal court of competent jurisdiction located in Los Angeles, California, in any action or proceeding arising out of or relating in any manner to this Agreement; (b) waives any claim that any such state or federal
court is an inconvenient forum; (c) irrevocably agrees that any and all actions or proceedings arising out of or relating to this Agreement or the transactions contemplated herein shall be exclusively heard only in such state or federal court.
Service of process in any such action or proceeding brought hereunder may be made by faxing and mailing copies of such process to the address of the Parties provided for hereinabove, provided that nothing herein shall affect the right of either
Party to serve legal process in any other manner permitted by law. In any action or proceeding between the Parties to resolve a dispute arising under or relating to this Agreement, the prevailing party shall be entitled to recover (in addition to
any other relief awarded or granted) its reasonable costs and expenses (including attorneys’ fees) incurred in the proceeding. 

  
 7 

 8.4 Equitable Relief. In the event that Licensee violates or threatens to violate any of
its covenants herein regarding the SLS Intellectual Property owned by Licensor and licensed to Licensee hereunder, Licensor shall be without an adequate remedy at law and, therefore, Licensee agrees that Licensor shall be entitled to enforce such
covenants by preliminary, temporary and/or permanent injunctive or mandatory relief in any court of competent jurisdiction without the necessity of proving damages, without the necessity of posting any bond or other security, and without prejudice
to any other rights and remedies which it may have at law or in equity. 
 8.5 Headings. The headings herein are for convenience of
reference only, do not constitute a part of this Agreement, and shall not be deemed to limit or affect any of the terms or provisions hereof. 

8.6 Construction. Whenever in this Agreement the context so requires, references to the masculine shall be deemed to include feminine
and the neuter, references to the neuter shall be deemed to include the masculine and the feminine, and references to the plural shall be deemed to include the singular and the singular to include the plural. As used in this Agreement, the words
“include” and “including,” and all variations thereof, shall not be deemed to be terms of limitation. 
 8.7 Entire
Agreement. This Agreement (including the schedule hereto, which is incorporated herein and made a part of this Agreement) constitutes the entire agreement and understanding of the Parties hereto and terminates and supersedes any and all prior or
contemporaneous agreements, arrangements and understandings, both oral and written, express or implied, between the Parties hereto concerning the subject matter of this Agreement. 

8.8 Waiver and Amendment. No waiver, amendment, modification or change of any provision of this Agreement shall be effective unless and
until made in writing and signed by Licensor and Licensee. No waiver or forbearance by any Party hereto of its right to enforce any provision of this Agreement shall be construed as constituting a continuing waiver or as a waiver in other instances.
The failure of any Party to assert any of its rights hereunder shall not constitute a waiver of any such rights. No course of conduct or method of doing business shall modify or amend the terms hereof. 

8.9 Severability. If any provision of this Agreement shall be determined to be unenforceable to any extent, the remainder of this
Agreement shall not be affected and shall continue to be valid and enforceable to the fullest extent permitted by law. If any provision is held invalid as to duration, scope, activity, or subject, such provision shall be construed by limiting and
reducing it so as to be enforceable to the extent compatible with applicable law. 
 8.10 Cooperation. Each Party hereto shall
cooperate with the other Party hereto and shall take such further action and shall execute and deliver such further documents as may be necessary or desirable in order to carry out the provisions and purposes of this Agreement. 

  
 8 

 8.11 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
 8.12 Facsimile
Signatures. This Agreement shall become binding and enforceable upon a Party at such time as a counterpart has been signed and transmitted either personally or via facsimile to the other Party. In the event of transmittal by facsimile, the
signed counterpart shall be deposited in the mail within twenty-four (24) hours thereafter, but the failure to do so shall have no effect on the enforceability of this Agreement. 

8.13 Survival of Terms. All terms, conditions, obligations and provisions capable of surviving the termination or expiration of this
Agreement, other than any rights or licenses granted to Licensee under Section 1 above, shall so survive. 
 8.14
Interpretation. Any rule or law or any legal decision that would require the interpretation of any claimed ambiguities in this Agreement against the Party that drafted it has no application and is expressly waived by the Parties. The
provisions of this Agreement shall be interpreted in a reasonable manner to give effect to the intent of the Parties hereto. 
 8.15 Full
Execution. This document will neither be a binding agreement, nor constitute a note or memorandum of the material terms of an agreement, until each Party has received a copy executed by duly authorized officers of all the Parties. 

8.16 Insurance. Licensee, at its expense, shall obtain and maintain in full force and effect at all times throughout the Term the types
and limits of insurance covering the Hotel enumerated in the HMA and any loan agreement of Licensee with respect to a mortgage of the Hotel, unless otherwise agreed to by Licensor or its affiliates or any current or future lender. All insurance
policies shall include Licensor as an additional insured thereunder. Licensee’s maintenance of such insurance shall not relieve Licensee of any liability or obligation to Licensor under Section 8.17. 

8.17 Indemnification of Licensor. Licensee hereby indemnifies and holds Licensor and its respective members, managers, directors,
officers, employees, agents and representatives harmless from and against any and all liabilities, fines, suits, claims, obligations, damages, penalties, demands, actions, costs and expenses of any kind or nature (collectively, “Claims”)
arising out of: (a) the use of the SLS Intellectual Property by Licensee or any of its affiliates or their members, managers, directors, officers, employees, agents or representatives in violation of the terms of this Agreement;
(b) Licensee’s breach of any of its obligations under this Agreement; or (c) the violation by Licensee or its affiliates or any of their members, managers, directors, officers, employees, agents and representatives of any laws,
statutes, ordinances, orders, rules, regulations, permits, licenses, authorizations, directions and requirements of all governmental authorities and public utilities which now or hereafter may be applicable to any portion of the Hotel or the
marketing and operation thereof, except to the extent such Claims are caused by the gross negligence or willful misconduct of Licensor or its affiliates. 

[Signature Page to Follow] 

  
 9 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above
written. 
  

									
	LICENSOR	 		 	LICENSEE
			
	 SBE HOTEL LICENSING, LLC,
 a
California limited liability company
	 		 	 STOCKBRIDGE/SBE HOLDINGS, LLC
 a
Delaware limited liability company

					
	By:	 	/s/ Sam Nazarian	 		 	By:	 	/s/ Darren Drake
	Name:	 	Sam Nazarian	 		 	Name:	 	Darren Drake
	Title:	 	CEO	 		 	Title:	 	Authorized Person

 EXHIBIT A 

SLS INTELLECTUAL PROPERTY—TRADEMARKS 
  

					
	 Trademark
	 	 Application No.
	 	 Registration No.

	 

 Class 43 – Hotel Services
	 	77217226	 	3558338
			
	 

 Class 43 (Banquet Services)
	 	77610299	 	3622975
			
	 

 Class 41 (Pool Services)
	 	77614331	 	3622982
			
	 

 Class 41 (Exercise Facilities)
	 	77304076	 	3565605
			
	 

 Class 41 and 43 – Hotel and Nightclub Services
	 	77304120	 	3683704
			
	 

 Class 43 – Hotel Bar and Restaurant Services
	 	77304164	 	3565608
			
	 

 Class 43 – Hotel Services
	 	77217247	 	3558339
			
	 

 Class 43 – Hotel Services
	 	77217198	 	3558337
			
	 

 Class 43 – Hotel Services
	 	77217183	 	3616680
			
	 

Class 43 – Hotel Services
	 	77217155	 	3623614
			
	 

Class 44 – Health and spa services
	 	77304098	 	3565606

  
 Exhibit A 

					
	 Trademark
	 	 Application No.
	 	 Registration No.

	 

 Class 45–Concierge Services
	 	77304137	 	3565607
			
	 

 Special Event (Class 41) and Banquet Services (Class 43)
	 	77217260	 	
	 ALTITUDE
	 	77471103	 	
	 ALTITUDE AT SLS
	 	77471105	 	
	 BAR CENTRO
	 	77471268	 	3607401
			
	 BATH

	 	77701338	 	
			
	 BODY

	 	77701428	 	3695681
	 BODY LOTION BY SLS
	 	77633526	 	
	 BODY WASH BY SLS
	 	77633317	 	
			
	 C CIEL SPA AT SLS (Design Mark)

	 	77637548	 	3650800
	 CIEL AT SLS
	 	77473603	 	
	 CIEL SPA AT SLS
	 	77586644	 	3664975
	 CIEL-SPA AT SLS
	 	77586651	 	
	 CIEL SPA AT SLS
	 	77977312	 	3665010
			
	 CONDITIONER

	 	77/701473	 	
	 CONDITIONER BY SLS
	 	77633211	 	
			
	 FACE

	 	77701616	 	3695694
	 FACE WASH BY SLS
	 	77633561	 	

  
 Exhibit A 

					
	 Trademark
	 	 Application No.
	 	 Registration No.

	 HANDS

	 	77701585	 	3695692
	 HAND WASH BY SLS
	 	77636452	 	
	 JUST AS IT SHOULD BE
	 	77314571	 	
	 JUST AS IT SHOULD BE
	 	77314507	 	
	 JUST AS IT SHOULD BE
	 	77314740	 	
	 PATISSERIE AT SLS
	 	77351147	 	3599652
	 PILLOW PARTICULARS
	 	77312486	 	3554983
	 PURE
	 	77312551	 	
	 ROJO Y BLANCA
	 	77772900	 	
	 ROJO Y BLANCA AT SLS
	 	77550035	 	3655788
	 S.L.S. HOTELS AND RESORTS
	 	78878647	 	
	 SAAM AT SLS
	 	77535160	 	
	 SAM AT SLS
	 	77471140	 	
	 SATAN LOVES SINNERS
	 	77587818	 	
	 SAVED LITTLE SPACE
	 	77681019	 	
	 SAVE LOVELY SPACE
	 	77670946	 	
	 SAVOUR LIFE SIGHTS
	 	77222618	 	
	 SAVOUR LIFE SLOWLY
	 	77223531	 	
	 SAVOUR LIFE’S SIGHTS
	 	77223572	 	
	 SCENTED LUXURY SACHET
	 	77680653	 	
	 SCORCHED LIPS SATIATED
	 	77680635	 	
	 SCRIBBLE LITTLE SECRETS
	 	77223510	 	
	 SCRIBBLE LOVE SONNETS
	 	77587177	 	
	 SCRUMPTIOUS LITTLE SNACKS
	 	77591705	 	
	 SECLUDED LITTLE SPOTS
	 	77300501	 	
	 SECLUDED LITTLE SPOTS
	 	77300478	 	
	 SECRET LITTLE STASH
	 	77223792	 	
	 SEDUCTIVE LITTLE SECRETS
	 	77671020	 	
	 SEE LIFE SIDEWAYS
	 	77637235	 	3700250
	 SEE LIFE SIDEWAYS
	 	77222562	 	3616693
	 SEE LINGERING SUNSETS
	 	77295125	 	
	 SEE LOVERS SMILE
	 	77586822	 	
	 SEEK LIGHT SUSTENANCE
	 	77587258	 	
	 SEEK LOVELY SENSATIONS
	 	77223806	 	
	 SEEKING LOST SLEEP
	 	77586810	 	
	 SEEKING LOST SOLACE
	 	77587352	 	
	 SEND LAUNDRY SERVICE
	 	77591712	 	
	 SERIOUSLY LAVISH SUITES
	 	77637211	 	
	 SERIOUSLY LAVISH SUITES
	 	77223422	 	
	 SERIOUSLY LOVELY SPACE
	 	77223643	 	
	 SERIOUSLY LOVELY SPACES
	 	77637255	 	
	 SERVE LARGE STEAKS
	 	77587748	 	
	 SEXY LATENIGHT SCENARIOS
	 	77358939	 	
	 SEXY LATENIGHT SCENARIOS
	 	77351171	 	
	 SEXY LATENIGHT SENTIMENTS
	 	77379997	 	
	 SEXY LATENIGHT SENTIMENTS
	 	77358940	 	
	 SEXY LATENIGHT SENTIMENTS
	 	77351207	 	
	 SEXY LITTLE SCENARIOS
	 	77223597	 	
	 SEXY LITTLE SCENARIOS
	 	77443303	 	
	 SEXY LITTLE SCENARIOS (35 and 41)
	 	77443269	 	
	 SEXY LITTLE SENTIMENTS
	 	77379976	 	
	 SEXY LITTLE SENTIMENTS
	 	77271962	 	
	 SEXY LITTLE SENTIMENTS (35 and 45)
	 	77443349	 	
	 SEXY LITTLE SENTIMENTS (35 and 41)
	 	77443281	 	

  
 Exhibit A 

					
	 Trademark
	 	 Application No.
	 	 Registration No.

	 SHADY LITTLE SANCTUARY
	 	77637336	 	
	 SHADY LITTLE SANCTUARY
	 	77586816	 	
	 SHAMPOO

	 	77/701491	 	3695686
	 SHAMPOO BY SLS
	 	77633278	 	
	 SHARE LOVELY SAUVIGNON
	 	77587554	 	
	 SHARE LOVING SENTIMENT
	 	77587196	 	
	 SHE LOOKS SPELLBINDING
	 	77587712	 	
	 SHE LOOKS STUNNED
	 	77587678	 	
	 SHINY LEATHER SHOES
	 	77637545	 	
	 SHOES LOVE SHINING
	 	77536659	 	
	 SHOES LOVE SHINING
	 	77536660	 	
	 SIGN LETTERS SINCERELY
	 	77222578	 	
	 SILLY LITTLE SAYINGS
	 	77223550	 	
	 SINCERE LITTLE SORRY
	 	77670933	 	
	 SINFULLY LATE SUNDAYS
	 	77223771	 	
	 SING LIKE SOPRANOS
	 	77587290	 	
	 SIP LATTE SLOWLY
	 	77587697	 	
	 SIP LIQUIDS SLOWLY
	 	77778583	 	
	 SIP LIQUOR SLOWLY
	 	77587227	 	
	 SLAP LECHEROUS STRANGERS
	 	77591741	 	
	 SLEEPY LITTLE SIGH
	 	77587326	 	
	 SLS
	 	77311393	 	3689950
	 SLS
	 	77215966	 	
	 SLS LOGO ONLY

	 	77215934	 	3616676
	 SLS AT BEVERLY HILLS
	 	77311376	 	3677160
	 SLS BAZAAR
	 	77312588	 	
	 SLS HOTEL
	 	77311414	 	3680479
	 SLS HOTEL AT BEVERLY HILLS
	 	77311335	 	3573631
	 SLS HOTELS
	 	77207312	 	3570468
	 SLS HOTELS PLUS CHANDELIER DESIGN

	 	77216002	 	3635912
	 SLS HOTELS
	 		 	
	 SLS HOTELS AND RESORTS
	 	78960708	 	
	 SMALL LITTLE SCRATCH
	 	77680648	 	
	 SMOOCH LARGE SAILORS
	 	77591695	 	
	 SO LONG SUCKER
	 	77222603	 	
	 SO LONG SWEETIE
	 	77637632	 	
	 SOCIETY’S LATEST SCANDALS
	 	77586835	 	
	 SOCIETY’S LATEST SCANDAL
	 	77/684256	 	
	 SOFT LIKE SILK
	 	77586813	 	
	 SOME LIGHT SNACKS
	 	77300447	 	3565597
	 SOME LIKE SHOPPING
	 	77224663	 	
	 SOME LITTLE SECRETS
	 	77223485	 	
	 SOME LITTLE SURPRISES
	 	77295072	 	
	 SOME LOVELY SPA
	 	77671026	 	3651127
	 SOME LUXURIOUS SURPRISES
	 	77637341	 	
	 SOME LUXURIOUS SURPRISES
	 	77295097	 	

  
 Exhibit A 

					
	 Trademark
	 	 Application No.
	 	 Registration No.

	 SOMEONE’S LINGERING SMILE
	 	77587340	 	
	 SOMETHING LOVELY’S STARTED
	 	77679323	 	3651130
	 SOMETHING LOVELY’S STARTING
	 	77289879	 	3554948
	 SOOTHE LONELY STARLETS
	 	77586676	 	
	 SOOTHING LEISURELY SWIM
	 	77640070	 	
	 SOOTHING LEISURELY SWIM
	 	77586818	 	
	 SOULS LARGELY SATISFIED
	 	77585861	 	
	 SPA LIFE SERENITY – Class 44
	 	77684875	 	
	 SPARKLE LIKE SUNSHINE –
	 	77637261	 	
	 SPARKLE LIKE SUNSHINE – Class 43
	 	77585860	 	
	 SPECIAL LITTLE SCENT
	 	77223819	 	
	 SPECIAL LITTLE SOMETHINGS
	 	77670653	 	3651126
	 SPECIAL LOVELY SPACES
	 	77300549	 	
	 SPECIAL LOVELY SPACES
	 	77300529	 	
	 SPEEDILY LAUNDERED SHIRTS
	 	77591715	 	
	 SPEEDY L.A. SERVICE
	 	77637346	 	
	 STAR LIT SOIREE
	 	77295147	 	
	 STAR LIT SOIREE
	 	77794576	 	
	 STARE LONGINGLY SOUTHWARD
	 	77587218	 	
	 START LISTENING SOON
	 	77591734	 	
	 START LIVING SLOWLY
	 	77223444	 	3623634
	 START LIVING SMART
	 	77375518	 	
	 START LIVING SMART
	 	77375497	 	
	 START LIVING SMARTLY
	 	77375574	 	
	 START LIVING SMARTLY
	 	77375544	 	3696512
	 STEAMY LIAISON STARTING
	 	77587377	 	
	 STROLL LAZILY SOMEWHERE
	 	77587244	 	
	 STYLISH LINEN SUIT
	 	77587738	 	
	 SUGARED LITTLE SNACKS
	 	77637343	 	
	 SUPER LARGE SCOTCH
	 	77591720	 	
	 SURF LOVELY SITES
	 	77/671530	 	
	 SWEET LITTLE SURPRISES
	 	77670931	 	
	 SWEET LITTLE SURRENDER
	 	77675269	 	
	 SWEET LITTLE SNACKS
	 	77786557	 	
	 SWEET LITTLE STRAWBERRIES
	 	77591686	 	
	 SWEETHEARTS LOVINGLY SHARE
	 	77670806	 	
	 SWIFT LAUNDRY SERVICE
	 	77637370	 	
	 THE BAZAAR
	 	77312609	 	3588270
	 TRES AT SLS
	 	77586622	 	

  
 Exhibit A 

 EXHIBIT A (CONTINUED) 

SLS INTELLECTUAL PROPERTY—COPYRIGHTS 
  

					
	 NAME OF COPYRIGHT
	 	 COPYRIGHT

REGISTRATION NO.
	 	 COPYRIGHT

REGISTRATION DATE

	 Ciel Spa Logo
	 	VA0001666162	 	2009
	 SLS Bell Image
	 	VA0001663650	 	2008
	 SLS Monkey Chandelier
	 	VA0001665973	 	2007
	 SLS Monkey Bell Logo
	 	VAu000959993	 	2007
	 SLS Monkey Dancing Logo
	 	VA0001622951	 	2007
	 SLS Monkey Key Logo
	 	VA0001623858	 	2007
	 SLS Monkey Mirror Logo
	 	VAu000960007	 	2007
	 SLS Monkey with Cup for Drinking Logo
	 	VA0001622884	 	2007
	 SLS Monkey with Magnifying Glass Logo
	 	VA0001622889	 	2007
	 SLS Monkey with Ring Logo
	 	VA0001622918	 	2007
	 SLS Monkey Fork Logo
	 	VAu000955052	 	2007
	 SLS Writing Instrument Image
	 	VA0001650715	 	2008
	 SLS Goblet Image
	 	VA0001685934	 	2008
	 SLS Monkey Writing Logo
	 	VA0001623856	 	2007
	 SLS Mirror Image
	 	VA0001650719	 	2008
	 SLS Key Image
	 	VA0001639699	 	2008
	 SLS Fork Image
	 	VA0001640494	 	2008

  
 Exhibit A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00233-of-00352.parquet"}]]