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Exhibit 10.9
 
 
EXECUTION COPY
AMENDMENT NO. 1 TO
CHANGE OF CONTROL AGREEMENT

AMENDMENT NO. 1 TO CHANGE OF CONTROL AGREEMENT (“Amendment”), executed and
effective as of December 30, 2008 by and between COLLECTIVE LICENSING
INTERNATIONAL LLC (“CLI”), and Bruce Pettet (“Executive”).

WHEREAS, CLI and Executive are parties to the change of control agreement
executed in March 2007 (“Change of Control Agreement”).

WHEREAS, in order to avoid certain adverse federal income tax consequences to
Executive under the Change of Control Agreement as a result of 409A of the
Internal Revenue Code of 1986, as amended, relating to deferred compensation,
Collective desires to implement certain amendments to the Change of Control
Agreement; and

WHEREAS, CLI and its affiliates (“Collective”), and Executive desire to amend
the Change of Control Agreement.

NOW, THEREFORE:

Section 1.  Amendment to Section 4(c).  Section 4(c) will be replaced in its
entirety with the following:

“(c)  Good Reason.  The Executive’s employment may be terminated by the
Executive for Good Reason.  ‘Good Reason’ means in the absence of a written
consent by the Executive:
 
1.  
the assignment to the Executive of any duties inconsistent in any material
respect with the Executive’s position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities as contemplated
by Section 3(a) of this Agreement, or any other action by the Company that
results in a material diminution in such position, authority, duties or
responsibilities;

 
2.  
any other action or inaction that constitutes a material breach of the terms of
the Agreement;

 
3.  
the Company’s requiring the Executive to be based at any office or location
different than the office the Executive was employed immediately preceding the
Effective Date if such relocation increases Executive’s one-way commute from the
Executive’s principal residence by more than 35 miles;

 
4.  
any purported termination by the Company of the Executive’s employment otherwise
than as expressly permitted by this Agreement; or

 
 
 
 

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5.  
any failure by the Company to comply with and satisfy Section 10(c).

 
Anything in this Agreement to the contrary notwithstanding a termination by the
Executive for any reason during the 30-day period immediately following the
first anniversary of a Change of Control shall be deemed to be a termination for
Good Reason for all purposes of this Agreement.”
 

 
Section 2.  Addition of Section 4(f).  Section 4(f) shall be inserted as
follows:

 
“(f)  Notice of Good Reason.  Prior to complying with Sections 4(d) and 11(b),
(1) the Executive must provide written notification of the Executive’s intention
to resign within 90 days after the Executive knows or has reason to know of the
occurrence of any such event in Sections 4(c)(1)-(5) constituting Good Reason,
(2) the Company shall have 30 days from the receipt of such notice to effect a
cure of the condition constituting Good Reason under Section 4(c) and (3) if the
Company is unable to cure the condition constituting Good Reason within the
30-day period then the Executive must terminate his employment within two years
from the date such event constituting Good Reason occurred, otherwise the event
will no longer constitute Good Reason.  For the avoidance of doubt, Good Reason
will not include any isolated, insubstantial and inadvertent action not taken in
bad faith by the Company and that is cured promptly upon receiving notice from
the Executive.”
 
Section 3.  Amendment to Section 5(a).  The introductory language to Section
5(a)(1) shall be replaced in its entirety with the following:

“the Company shall pay to the Executive, in a lump sum in cash within 30 days
after the Date of Termination, (provided, however, that no amount shall be paid
pursuant to this Subsection 5(a)(1) after March 15 of the year following the
first anniversary of a Change of Control), the aggregate of the following
amount:”
 
Section 4.  Amendment to Section 8(a).  The following language shall be included
at the end of Section 8(a):

“The reduction of amounts payable hereunder, if applicable, shall be determined
in manner which has the least economic cost to the Executive and, to the extent
the economic cost is equivalent, then all the Payments, in the aggregate will be
reduced in the inverse order of when all the Payments, in the aggregate, would
have been made to the Executive until the reduction specified is achieved.”

Section 5.  Amendment to Section 12(f).  Section 12(f) shall be replaced in its
entirety with the following.

“(f)  From and after the Effective Date and except as expressly set forth
herein, this Agreement shall supersede any other agreement between the parties
with respect to the subject matter herein including the March 2007 employment
agreement as amended (the ‘Employment Agreement’); provided, however that, to
the extent not inconsistent with any provision hereof, the following provisions
of the Employment Agreement shall remain in effect during the Change of Control
Period: Section 5 (relating to non-competition), Section 10 (relating to certain
remedies that the Company and the Executive shall have), and Section
16 (relating to Section 409A, with any references in that provision to other
sections of the Employment Agreement also being deemed references to similar
provisions of this Agreement, as appropriate, so as to give maximum effect to
such provision).”
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Section 6.  Effectiveness of Amendment.  This Amendment shall become effective
on the date hereof.

Section 7.  Definitions. Capitalized terms that are not defined in this
Amendment shall have the meanings ascribed thereto in the Change of Control
Agreement.

Section 8.  Other Provisions Unaffected.  Except as modified by this Amendment,
the existing provisions of the Change of Control Agreement shall remain in full
force and effect.

     
COLLECTIVE LICENSING INTERNATIONAL LLC
   
By:
 
/s/ Matthew E. Rubel                             
Name:
 
Matthew E. Rubel
Its:
 
Director
 
EXECUTIVE
   
By:
 
/s/ Bruce Pettet                                       
Name:
 
Bruce Pettet
Title:
 
President & Chief Executive Officer

 
 
 
 
 
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