Document:

Exhibit 10.17

 

ASCENT CAPITAL GROUP, INC.

2008 INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

 

THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) is made as of November 30, 2012 (the “Effective Date”), by and between Ascent Capital Group, Inc., a Delaware corporation (the “Company”), and the individual whose name, address and social security number appear on the signature page hereto (the “Grantee”).

 

The Company has adopted the Ascent Capital Group, Inc. 2008 Incentive Plan (the “Plan”), a copy of which is attached to this Agreement as Exhibit A and by this reference made a part hereof, for the benefit of eligible employees of the Company and its Subsidiaries.  Capitalized terms used and not otherwise defined herein will have the meaning given thereto in the Plan.

 

Pursuant to the Plan, the Compensation Committee (the “Committee”) has determined that it would be in the interest of the Company and its stockholders to award Options to Grantee, subject to the conditions and restrictions set forth herein and in the Plan, in order to provide the Grantee additional remuneration for services rendered, to encourage the Grantee to remain in the employ of the Company or its Subsidiaries and to increase the Grantee’s personal interest in the continued success and progress of the Company.

 

The Committee has also determined that it would be in the best interest of the Company and its stockholders to enter into an amended and restated employment agreement with the Grantee (the “Amended Employment Agreement”), which will replace and supersede any outstanding employment agreement between Grantee and the Company in effect at the effective time of the Amended Employment Agreement.

 

The Company and the Grantee therefore agree as follows:

 

1.                                      Definitions.  The following terms, when used in this Agreement, have the following meanings:

 

“Annual Salary” means the annual base salary of Grantee as an employee of the Company.

 

“ASCMA Options” has the meaning specified in Section 2 of this Agreement.

 

“ASCMA Stock” has the meaning specified in Section 2 of this Agreement.

 

“Base Price” means $61.21, the Fair Market Value of a share of ASCMA Stock on the Effective Date.

 

“Business Day” means any day other than Saturday, Sunday or a day on which

 

 

banking institutions in Denver, Colorado, are required or authorized to be closed.

 

“Cause” means (i) any act or omission that constitutes a breach by Grantee of any of his material obligations under the Employment Agreements; (ii) the continued failure or refusal of Grantee to substantially perform the material duties required of him as an officer and/or employee of the Company; (iii) any material violation by Grantee of any policy, rule or regulation of the Company or any law or regulation applicable to the business of the Company; (iv) any act or omission by Grantee constituting fraud, dishonesty or misrepresentation; (v) Grantee’s gross negligence in the performance of his duties; (vi) Grantee’s conviction of, or plea of guilty or nolo contendere to, any crime (whether or not involving the Company) that constitutes a felony or crime of moral turpitude or is punishable by imprisonment of 30 days or more; or (g) any other misconduct by Grantee that is materially injurious to the financial condition or business reputation of, or is otherwise materially injurious to, the Company, provided, however, that with respect to any termination of Grantee’s employment with the Company within 12 months after a Change in Control of the Company, “Cause” will mean only a felony conviction for fraud, misappropriation of the Company’s funds or embezzlement.

 

“Change in Control” means any of the following that otherwise meets the definition of a “change in ownership,” a “change in effective control” or a “change in ownership of a substantial portion of the assets” of the Company within the meaning of Code Section 409A:

 

(i) the acquisition by any person or group (excluding John C. Malone and/or any family member(s) of John C. Malone and/or any company, partnership, trust or other entity or investment vehicle controlled by any of the foregoing persons or the holdings of which are for the primary benefit or any of such persons (collectively, the “Permitted Holders”)) of ownership of stock of the Company that, together with stock already held by such person or group, constitutes more than 50% of the total fair market value or more than 50% of the total voting power of the stock of the Company;

 

(ii) the acquisition by any person or group (other than the Permitted Holders), in a single transaction or in multiple transactions all occurring during the 12-month period ending on the date of the most recent acquisition by such person or group, of assets from the Company that have a total gross fair market value equal to or exceeding 40% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; or

 

(iii) the acquisition by any person or group (other than the Permitted Holders), in a single transaction or in multiple transactions all occurring during the 12-month period ending on the date of the most recent acquisition by such person or group, of ownership of stock of the Company possessing 30% or more of the total voting power of the stock of Company or the replacement of a majority of the Company’s Board of Directors during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors before the date of appointment or election.

 

“Close of Business” means, on any day, 5:00 p.m., Denver, Colorado time.

 

“Committee” has the meaning specified in the recitals to this Agreement.

 

2

 

“Company” has the meaning specified in the preamble to this Agreement.

 

“Company Subsidiary” means a subsidiary of the Company.

 

“Effective Date” has the meaning specified in the preamble to this Agreement.

 

“Employment Agreements” means this Agreement, any employment agreement between Grantee and the Company and/or any other agreement between Grantee and the Company relating to Grantee’s employment and/or compensation.

 

“Good Reason” means the occurrence of any of the following without the consent of Grantee: (i) a material diminution in Grantee’s Annual Salary below the level then in effect, other than as a result of a reduction in the portion of the time devoted by Grantee to Company activities; (ii) a material diminution in Grantee’s authority, duties or responsibilities with the Company; (iii) a material change in the office or location at which the Grantee is required to perform services pursuant to the Employment Agreements; and (iv) a material breach by the Company of the terms of the Employment Agreements.  Notwithstanding the foregoing, a termination for Good Reason will not be considered to have occurred unless: (x) within 90 days following the initial existence of the circumstances constituting Good Reason, Grantee provides written notice to the Company of such circumstances; (y) the Company fails, within 30 days following such notice, to correct such circumstances to the reasonable satisfaction of Grantee; and (z) Grantee terminates his employment within 30 days following the end of such 30-day correction period.  A termination of Grantee’s employment for Good Reason will be considered an involuntary termination.

 

“Grantee” has the meaning specified in the preamble to this Agreement.

 

“Option Shares” has the meaning specified in Section 4(a) of this Agreement.

 

“Plan” has the meaning specified in the recitals of this Agreement.

 

“Required Withholding Amount” has the meaning specified in Section 5 of this Agreement.

 

“Special Termination Period” has the meaning specified in Section 7(d) of this Agreement.

 

“Term” has the meaning specified in Section 2 of this Agreement.

 

“Year of Continuous Service” has the meaning specified in Section 7(d) of this Agreement.

 

2.                                      Grant of Options.  Subject to the terms and conditions herein, pursuant to the Plan, the Company grants to the Grantee options to purchase from the Company, exercisable during the period commencing on the Effective Date and expiring at Close of Business on November 30, 2019 (the “Term”), subject to earlier termination as provided in Section 7 below, at the Base Price, the number of shares of Ascent Capital Group, Inc. Series A Common Stock, par value $0.01 per share (“ASCMA Stock”), set forth on the signature page hereto.  The Options granted hereunder are “Nonqualified Stock Options” and are hereinafter referred to as

 

3

 

the “ASCMA Options.”  The Base Price and ASCMA Options are subject to adjustment pursuant to Section 10 below.  No fractional shares of ASCMA Stock will be issuable upon exercise of an ASCMA Option, and the Grantee will receive, in lieu of any fractional share of ASCMA Stock that the Grantee otherwise would receive upon such exercise, cash equal to the fraction representing such fractional share multiplied by the Fair Market Value of one share of ASCMA Stock as of the date on which such exercise is considered to occur pursuant to Section 4 below. The effectiveness of the award of Options granted to Grantee hereunder is conditioned upon the execution and delivery of the Amended Employment Agreement by Grantee.

 

3.                                      Conditions of Exercise.  Unless otherwise determined by the Committee in its sole discretion, the ASCMA Options will be exercisable only in accordance with the conditions stated in this Section 3.

 

(a)                                 Subject to Section 11.1 of the Plan and the last sentence of this Section 3(a), and except as provided in Section 23, the ASCMA Options may be exercised only to the extent they have become exercisable in accordance with the provisions of this Section 3(a).  That number of ASCMA Options that is equal to (x) 5% of the total number of ASCMA Options awarded under this Agreement (rounded down to the nearest whole number of ASCMA Options) shall become exercisable on each of March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, (y) that number of ASCMA Options that is equal to 7.5% of the total number of ASCMA Options awarded under this Agreement (rounded down to the nearest whole number of ASCMA Options) shall become exercisable on each of March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, and (z) that number of ASCMA Options that is equal to 12.5% of the total number of ASCMA Options awarded under this Agreement shall become exercisable on each of March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017 (with any ASCMA Options awarded under this Agreement that do not otherwise become exercisable as a result of rounding also becoming exercisable on December 31, 2017).  Notwithstanding the foregoing, (i) in the event that any date on which ASCMA Options would otherwise become exercisable is not a Business Day, such ASCMA Options will become exercisable on the Business Day next following such date, (ii) all ASCMA Options will become exercisable on the date of the Grantee’s termination of employment if (A) the Grantee’s employment with the Company and the Company Subsidiaries terminates by reason of Disability or (B) the Grantee dies while employed by the Company or a Company Subsidiary, (iii) subject to Section 23 hereof, if the Grantee’s employment with the Company and its Subsidiaries is terminated by the Company or a Company Subsidiary without Cause, or by Grantee for Good Reason, any ASCMA Options that otherwise would become exercisable during the remainder of the calendar year in which the Grantee’s employment with the Company and its Subsidiaries is terminated will become exercisable on the date of the Grantee’s termination of employment, and (iv) in the event of Grantee’s Termination Without Cause or Termination With Good Reason (each as defined in the Amended Employment Agreement) a number of ASCMA Options will become exercisable on the date of Grantee’s termination equal to the product of (x) the number of ASCMA Options awarded under this Agreement and (y) the number of calendar quarters which have elapsed between the Grant Date and the date of Grantee’s termination (and will include, for the avoidance of doubt, the calendar quarter of Grantee’s termination) divided by twenty (less any ASCMA Options that have previously vested).

 

4

 

(b)                                 To the extent the ASCMA Options become exercisable, such ASCMA Options may be exercised in whole or in part (at any time or from time to time, except as otherwise provided herein) until expiration of the Term or earlier termination thereof.

 

(c)                                  The Grantee acknowledges and agrees that the Committee, in its discretion and as contemplated by Section 3.3 of the Plan, may adopt rules and regulations from time to time after the date hereof with respect to the exercise of the ASCMA Options and that the exercise by the Grantee of ASCMA Options will be subject to the further condition that such exercise is made in accordance with all such rules and regulations as the Committee may determine are applicable thereto.

 

4.                                      Manner of Exercise.  ASCMA Options will be considered exercised (as to the number of ASCMA Options specified in the notice referred to in Section 4(a) below) on the latest of (i) the date of exercise designated in the written notice referred to in Section 4(a) below, (ii) if the date so designated is not a Business Day, the first Business Day following such date or (iii) the earliest Business Day by which the Company has received all of the following:

 

(a)                                 Written notice, in such form as the Committee may require, containing such representations and warranties as the Committee may require and designating, among other things, the date of exercise and the number of shares of ASCMA Stock (“Option Shares”) to be purchased;

 

(b)                                 Payment of the Base Price for each Option Share to be purchased in any (or a combination) of the following forms:  (A) cash, (B) check, (C) the delivery, together with a properly executed exercise notice, of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds required to pay the Base Price (and, if applicable the Required Withholding Amount, as described in Section 5 below) or (D) the delivery of irrevocable instructions to the Company for the Company to withhold the number of shares of ASCMA Stock (valued at the Fair Market Value of ASCMA Stock on the date of exercise) required to pay the Base Price (and, if applicable, the Required Withholding Amount as described in Section 5) that would otherwise be delivered by the Company to the Grantee upon exercise of the Options; and

 

(c)                                  Any other documentation that the Committee may reasonably require.

 

5.                                      Mandatory Withholding for Taxes.  The Grantee acknowledges and agrees that the Company will deduct from the Option Shares otherwise deliverable upon exercise of any ASCMA Options that number of shares of ASCMA Stock (valued at their Fair Market Value on the date of exercise) that is equal to the amount of all federal, state and local taxes required to be withheld by the Company upon such exercise, as determined by the Committee (the “Required Withholding Amount”).  If the Grantee elects to make payment of the Base Price by delivery of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds required to pay the purchase price, such instructions may also include instructions to deliver the Required Withholding Amount to the Company.  In such case, the Company will notify the broker promptly of the Committee’s determination of the Required Withholding Amount.

 

5

 

6.                                      Payment or Delivery by the Company.  As soon as practicable after receipt of all items referred to in Section 4, and subject to the withholding referred to in Section 5, the Company will deliver or cause to be delivered to the Grantee certificates issued in the Grantee’s name for the number of Option Shares purchased by exercise of ASCMA Options, and (ii) any cash payment to which the Grantee is entitled in lieu of a fractional Option Share, as provided in Section 2 above.  Any delivery of Option Shares will be deemed effected for all purposes when certificates representing such shares have been delivered personally to the Grantee or, if delivery is by mail, when the stock transfer agent of the Company has deposited the certificates in the United States mail, addressed to the Grantee, and any cash payment will be deemed effected when a check from the Company, payable to the Grantee and in the amount equal to the amount of the cash payment, has been delivered personally to the Grantee or deposited in the United States mail, addressed to the Grantee.

 

7.                                      Early Termination of ASCMA Options.  Subject to the provisions of Section 23, the ASCMA Options will terminate, prior to the expiration of the Term, at the time specified below:

 

(a)                                 Subject to Section 7(b), if the Grantee’s employment with the Company and its Subsidiaries is terminated other than (i) by the Company or a Company Subsidiary (whether for Cause or without Cause), (ii) by reason of death or Disability or (iii) by Grantee for Good Reason, then the ASCMA Options will terminate at the Close of Business on the first Business Day following the expiration of the 90-day period which began on the date of termination of the Grantee’s employment.

 

(b)                                 If the Grantee dies (i) while employed by the Company or a Company Subsidiary, or prior to the expiration of a period of time following termination of the Grantee’s employment during which the ASCMA Options remain exercisable as provided in Section 7(a) or Section 7(c), as applicable, the ASCMA Options will terminate at the Close of Business on the first Business Day following the expiration of the one-year period which began on the date of the Grantee’s death, or (ii) prior to the expiration of a period of time following termination of the Grantee’s employment during which the ASCMA Options remain exercisable as provided in Section 7(d), the ASCMA Options will terminate at the Close of Business on the first Business Day following the expiration of (A) the one-year period which began on the date of the Grantee’s death or (B) the Special Termination Period, whichever period is longer.

 

(c)                                  Subject to Section 7(b), if the Grantee’s employment with the Company and its Subsidiaries terminates by reason of Disability, then the ASCMA Options will terminate at the Close of Business on the first Business Day following the expiration of the one-year period which began on the date of termination of the Grantee’s employment.

 

(d)                                 If the Grantee’s employment with the Company and the Company Subsidiaries is terminated by the Company or a Company Subsidiary without Cause or by Grantee for Good Reason, the ASCMA Options will terminate at the Close of Business on the first Business Day following the expiration of the Special Termination Period.  The Special Termination Period is the period of time beginning on the date of the Grantee’s termination of employment and continuing for the number of days that is equal to the sum of (a) 90, plus (b) 180 multiplied by the Grantee’s total Years of Continuous Service.

 

6

 

A Year of Continuous Service means a consecutive 12-month period, measured by the Grantee’s hire date (as reflected in the payroll records of the Company or a Company Subsidiary) and the anniversaries of that date, during which the Grantee is employed by the Company or a Company Subsidiary without interruption.  For purposes of determining the Grantee’s Years of Continuous Service, if the Grantee was employed by a Company Subsidiary at the time of such Company Subsidiary’s acquisition by the Company, the Grantee’s employment with the Company Subsidiary prior to the acquisition date will be included in determining the Grantee’s Years of Continuous Service unless the Committee, in its sole discretion, determines that such prior employment will be excluded.

 

(e)                                  If the Grantee’s employment with the Company and the Company Subsidiaries is terminated by the Company for Cause, then the ASCMA Options will terminate immediately upon such termination of the Grantee’s employment.

 

In any event in which ASCMA Options remain exercisable for a period of time following the date of termination of the Grantee’s employment as provided above, the ASCMA Options may be exercised during such period of time only to the extent the same were exercisable as provided in Section 3 above on such date of termination of the Grantee’s employment.  Notwithstanding any period of time referenced in this Section 7 or any other provision of this Section 7 that may be construed to the contrary, the ASCMA Options will in any event terminate upon the expiration of the Term.

 

8.                                      Nontransferability.  During the Grantee’s lifetime, the ASCMA Options are not transferable (voluntarily or involuntarily) other than pursuant to a Domestic Relations Order and, except as otherwise required pursuant to a Domestic Relations Order, are exercisable only by the Grantee or the Grantee’s court appointed legal representative.  The Grantee may designate a beneficiary or beneficiaries to whom the ASCMA Options will pass upon the Grantee’s death and may change such designation from time to time by filing a written designation of beneficiary or beneficiaries with the Committee on the form annexed hereto as Exhibit B or such other form as may be prescribed by the Committee, provided that no such designation will be effective unless so filed prior to the death of the Grantee.  If no such designation is made or if the designated beneficiary does not survive the Grantee’s death, the ASCMA Options will pass by will or the laws of descent and distribution.  Following the Grantee’s death, the ASCMA Options, if otherwise exercisable, may be exercised by the person to whom such ASCMA Option passes according to the foregoing and such person will be deemed the Grantee for purposes of any applicable provisions of this Agreement.

 

9.                                      No Stockholder Rights.  Prior to the exercise of ASCMA Options in accordance with the terms and conditions set forth in this Agreement, the Grantee will not be deemed for any purpose to be, or to have any of the rights of, a stockholder of the Company with respect to any shares of ASCMA Stock, nor will the existence of this Agreement affect in any way the right or power of the Company or any stockholder of the Company to accomplish any corporate act, including, without limitation, the acts referred to in Section 11.16 of the Plan.

 

10.                               Adjustments.  If the outstanding shares of ASCMA Stock are subdivided into a greater number of shares (by stock dividend, stock split, reclassification or otherwise) or are combined into a smaller number of shares (by reverse stock split, reclassification or

 

7

 

otherwise), or if the Committee determines that any stock dividend, extraordinary cash dividend, reclassification, recapitalization, reorganization, split-up, spin-off, combination, exchange of shares, warrants or rights offering to purchase any shares of ASCMA Stock, or other similar corporate event (including mergers or consolidations other than those which constitute Approved Transactions, which shall be governed by Section 11.1(b) of the Plan) affects shares of ASCMA Stock such that an adjustment is required to preserve the benefits or potential benefits intended to be made available under this Agreement, then the ASCMA Options will be subject to adjustment (including, without limitation, as to the number of ASCMA Options and the Base Price per share of such ASCMA Options) in the sole discretion of the Committee and in such manner as the Committee may deem equitable and appropriate in connection with the occurrence of any of the events described in this Section 10.

 

11.                               Restrictions Imposed by Law.  Without limiting the generality of Section 11.8 of the Plan, the Grantee will not exercise the ASCMA Options, and the Company will not be obligated to make any cash payment or issue or cause to be issued any Option Shares, if counsel to the Company determines that such exercise, payment or issuance would violate any applicable law or any rule or regulation of any governmental authority or any rule or regulation of, or agreement of the Company with, any securities exchange or association upon which shares of ASCMA Stock are listed or quoted.  The Company will in no event be obligated to take any affirmative action in order to cause the exercise of the ASCMA Options or the resulting payment of cash or issuance of Option Shares to comply with any such law, rule, regulation or agreement.

 

12.                               Notice.  Unless the Company notifies the Grantee in writing of a different procedure, any notice or other communication to the Company with respect to this Agreement will be in writing and will be delivered personally or sent by United States first class mail, postage prepaid and addressed as follows:

 

Ascent Capital Group, Inc.

5251 DTC Parkway, Suite 1000

Greenwood Village, CO 80111

Attn:  General Counsel

 

Any notice or other communication to the Grantee with respect to this Agreement will be in writing and will be delivered personally, or will be sent by United States first class mail, postage prepaid, to the Grantee’s address as listed in the records of the Company on the Effective Date, unless the Company has received written notification from the Grantee of a change of address.

 

13.                               Amendment.  Notwithstanding any other provision hereof, this Agreement may be supplemented or amended from time to time as approved by the Committee as contemplated in Section 11.7(b) of the Plan.  Without limiting the generality of the foregoing, without the consent of the Grantee,

 

(a)                                 this Agreement may be amended or supplemented from time to time as approved by the Committee (i) to cure any ambiguity or to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or (ii) to add to the covenants and agreements of the Company for the benefit of the Grantee or surrender any right or power reserved to or conferred upon the Company in this Agreement, subject to any required approval of the Company’s stockholders and,

 

8

 

provided, in each case, that such changes or corrections will not adversely affect the rights of the Grantee with respect to the Award evidenced hereby, or (iii) to make such other changes as the Company, upon advice of counsel, determines are necessary or advisable because of the adoption or promulgation of, or change in or of the interpretation of, any law or governmental rule or regulation, including any applicable federal or state securities laws; and

 

(b)                                 subject to any required action by the Board or the stockholders of the Company, the ASCMA Options granted under this Agreement may be canceled by the Company and a new Award made in substitution therefor, provided that the Award so substituted will satisfy all of the requirements of the Plan as of the date such new Award is made and no such action will adversely affect any ASCMA Options to the extent then exercisable.

 

14.                               Grantee Employment.  Nothing contained in this Agreement, and no action of the Company or the Committee with respect hereto, will confer or be construed to confer on the Grantee any right to continue in the employ of the Company or any Company Subsidiaries or interfere in any way with the right of the Company or any employing Company Subsidiary to terminate the Grantee’s employment at any time, with or without cause, subject to the provisions of any employment agreement between the Grantee and the Company or any Company Subsidiary.

 

15.                               Nonalienation of Benefits.  Except as provided in Section 8 of this Agreement, (i) no right or benefit under this Agreement will be subject to anticipation, alienation, sale, assignment, hypothecation, pledge, exchange, transfer, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign, hypothecate, pledge, exchange, transfer, encumber or charge the same will be void, and (ii) no right or benefit hereunder will in any manner be liable for or subject to the debts, contracts, liabilities or torts of the Grantee or other person entitled to such benefits.

 

16.                               Governing Law.  This Agreement will be governed by, and construed in accordance with, the internal laws of the State of Delaware.  Each party irrevocably submits to the general jurisdiction of the state and federal courts located in the State of Delaware in any action to interpret or enforce this Agreement and irrevocably waives any objection to jurisdiction that such party may have based on inconvenience of forum.

 

17.                               Construction.  References in this Agreement to “this Agreement” and the words “herein,” “hereof,” “hereunder” and similar terms include all Exhibits and Schedules appended hereto.  The word “include” and all variations thereof are used in an illustrative sense and not in a limiting sense.  All decisions of the Committee upon questions regarding this Agreement will be conclusive.  Unless otherwise expressly stated herein, in the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan will control.  The headings of the sections of this Agreement have been included for convenience of reference only, are not to be considered a part hereof and will in no way modify or restrict any of the terms or provisions hereof.

 

18.                               Duplicate Originals.  The Company and the Grantee may sign any number of copies of this Agreement.  Each signed copy will be an original, but all of them together represent the same agreement.

 

9

 

19.                               Rules by Committee.  The rights of the Grantee and the obligations of the Company hereunder will be subject to such reasonable rules and regulations as the Committee may adopt from time to time.

 

20.                               Entire Agreement.  This Agreement is in satisfaction of and in lieu of all prior discussions and agreements, oral or written, between the Company and the Grantee regarding the subject matter hereof.  The Grantee and the Company hereby declare and represent that no promise or agreement not herein expressed has been made and that this Agreement contains the entire agreement between the parties hereto with respect to the Award and replaces and makes null and void any prior agreements between the Grantee and the Company regarding the Award.  This Agreement will be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns.

 

21.                               Grantee Acceptance.  The Grantee will signify acceptance of the terms and conditions of this Agreement by signing in the space provided at the end hereof and returning a signed copy to the Company.

 

22.                               Code Section 409A Compliance.  If any provision of this Agreement would result in the imposition of an excise tax under Section 409A of the Code and related regulations and Treasury pronouncements (“Section 409A”), that provision will be reformed to avoid imposition of the excise tax and no action taken to comply with Section 409A (or to provide that the ASCMA Options are exempt from Section 409A) shall be deemed to impair a benefit under this Agreement.

 

23.                               Change in Control.  Upon any termination of Grantee’s employment without Cause or by Grantee for Good Reason, which termination occurs within 12 months following a Change in Control, (i) notwithstanding Section 3(a), all ASCMA Options held by Grantee on the date of termination, to the extent not theretofore vested, will vest fully on the date of such termination, and (ii) notwithstanding Section 7, the exercise period of any and all ASCMA Options held by Grantee on the termination date will be extended to the last day of what would be the maximum Term applicable to such ASCMA Options in the absence of termination.

 

[Remainder of this page intentionally left blank]

 

10

 

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the Effective Date.

 

 

	
 
    	
ASCENT   CAPITAL GROUP, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William E. Niles
    
	
 
    	
Name:   William E. Niles
    
	
 
    	
Title:   General Counsel & EVP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACCEPTED:   
    
	
 
    	
 
    
	
 
    	
/s/   William R. Fitzgerald
    
	
 
    	
Grantee   Name:
    	
William   R. Fitzgerald
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SSN:
    	
 
    
				

 

 

Number of shares of ASCMA Stock as to which Options are granted: 380,460

 

11

 

Exhibit A
 to
 Non-Qualified Stock Option Agreement
 dated as of November 30, 2012 between Ascent Capital Group, Inc. and Grantee

 

Ascent Capital Group, Inc. 2008 Incentive Plan

 

 

Exhibit B
 to
 Non-Qualified Stock Option Agreement
 dated as of November 30, 2012 between Ascent Capital Group, Inc. and Grantee

 

Designation of Beneficiary

 

	
I,   William R. Fitzgerald (the “Grantee”), hereby declare that upon my death 
    
	
 
    
	
                                                                                                          (the   “Beneficiary”) of
    
	
Name
    	
 
    
	
 
    	
,
    
	
Street   Address
    	
City
    	
State
    	
Zip Code
    
	
 
    	
 
    	
 
    	
 
    
	
who is my                                                                                                                        ,   will be entitled to the
    
	
Relationship   to the Grantee
    	
 
    
					

 

ASCMA Options and all other rights accorded the Grantee by the above-referenced grant agreement (the “Agreement”).

 

It is understood that this Designation of Beneficiary is made pursuant to the Agreement and is subject to the conditions stated herein, including the Beneficiary’s survival of the Grantee’s death.  If any such condition is not satisfied, such rights will devolve according to the Grantee’s will or the laws of descent and distribution.

 

It is further understood that all prior designations of beneficiary under the Agreement are hereby revoked and that this Designation of Beneficiary may only be revoked in writing, signed by the Grantee, and filed with the Committee prior to the Grantee’s death.

 

 

	
 
    	
 
    	
 
    
	
Date
    	
 
    	
GranteeExhibit 10.25

 

EXECUTION VERSION

 

SEPARATION AND RELEASE AGREEMENT

 

This Separation and Release Agreement (the “Separation Agreement”), dated as of December 21, 2012 (the “Resignation Date”), is by and between FIG LLC (the “Company”), its successors and assigns, and Robert I. Kauffman (“Kauffman”).

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, the Company and Kauffman are parties to an Employment, Non-Competition and Non-Solicitation Agreement entered into as of the fourth day of August, 2011 (such agreement, including the exhibit thereto, the “Employment Agreement”);

 

WHEREAS, Kauffman is an officer, director and Principal of the Company and holds various titles and responsibilities with respect to the Company and its subsidiaries and affiliates;

 

WHEREAS, effective as of the date of the Resignation Date, Kauffman ceases to hold any positions, including that of officer, director or Principal, with the Company or any of its subsidiaries or affiliates; and

 

WHEREAS, Kauffman and the Company wish to enter into this Separation Agreement to provide the Company, together with its subsidiaries, affiliates and related parties, and Kauffman with a mutual release of claims,

 

NOW, THEREFORE, in consideration of the foregoing premises and of the releases, representations, covenants and obligations contained herein, and intending to be legally bound, the parties hereto agree as follows:

 

1.             Kauffman’s Resignation.  As of the Resignation Date, Kauffman hereby voluntarily and irrevocably resigns from all positions he holds with the Company and its subsidiaries and their affiliates, whether as Principal, officer or director, or otherwise, including his position as Principal and as a member of the board of directors of the Company including, but not limited to, the entities identified on Exhibit 1 hereto.  Kauffman agrees to execute any and all documents and take any and all actions as may reasonably be requested by the Company to further effectuate his resignation as a Principal, officer or director of the Company or any of its subsidiaries or their affiliates.  Kauffman’s execution of this Separation Agreement shall be deemed the grant by Kauffman to the officers of the Company and its subsidiaries and their affiliates of a limited power of attorney to sign in Kauffman’s name and on Kauffman’s behalf documentation solely for the limited purpose of effectuating such resignations.  On the Resignation Date, Kauffman will date, sign and deliver to the Company a letter of resignation in the form attached hereto as Exhibit 2.

 

2.             Benefits.

 

(a)           Fund Fees.  Following the Resignation Date, the Company shall, as consideration for entering into this Separation Agreement, waive any management, incentive, and other applicable fees on the investments  that Kauffman has made in investment vehicles managed by the Company and its affiliates (“Fund Investments”).  Exhibit 3 identifies the Fund

 

1

 

Investments.  In addition, the Company shall waive any management, incentive, and other applicable fees on Fund Investments Kauffman makes on or after the Resignation Date, provided the Company may revoke such waiver at any time in its sole discretion. Kauffman acknowledges and agrees that he will be required to execute the Company’s standard form of confidentiality agreement, which includes standstill provisions, to receive periodic reports with respect to his Fund Investments.

 

(b)           Kauffman will have access to and the use of:  (i) his Company telephone and email through January 31, 2013 provided that he complies with all Company policies concerning the use of the Company’s telephone and email system and (ii) his Company secretary through March 31, 2013.  Kauffman’s access to other Company information technology systems will cease on the Resignation Date.

 

3.             Kauffman Release.

 

(a)           As used in this Separation Agreement, the term “claims” shall include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, attorneys’ fees, accounts, judgments, losses and liabilities of whatsoever kind or nature, in law, equity or otherwise.

 

(b)           Kauffman, for and on behalf of himself and his heirs, administrators, executors, and assigns, fully and forever releases, remises and discharges (“releases”) the Company, its subsidiaries and their affiliates, together with its and their respective officers, directors, partners, shareholders, attorneys, employees and agents (collectively, the “Group”), from any and all claims which Kauffman had, may have had, or now has against the Company and the Group through the Effective Date of this Separation Agreement, for or by reason of any matter, cause or thing whatsoever, whether known or unknown, including any claim relating to, arising out of, or attributable to (i) his positions with the Company or its subsidiaries or their affiliates or the termination thereof, including but not limited to claims of breach of contract, wrongful termination, unjust dismissal, defamation, libel or slander, or under any federal, state or local law dealing with discrimination based on age, race, sex, national origin, handicap, religion, disability or sexual preference and (ii) the Employment Agreement or any other agreement or arrangement (whether formal or informal, oral or written) with the Company or any subsidiary or affiliate thereof. This release of claims includes, but is not limited to, all claims arising under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Family and Medical Leave Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act, the New York Human Rights Law, the New York Labor Code, the New York Worker Adjustment and Retraining Notification Act, the New York City Administrative Code, the New York Labor Law and all other federal, state and local labor and anti-discrimination laws, the common law and any other purported restriction on an employer’s right to terminate the employment of employees.  Kauffman further waives his right to participate in any collective or class action under the Fair Labor Standards Act or any similar state or local law, and agrees to opt-out of any such collective or class action against any member of the Group to which he may be or become a party or class member.  Notwithstanding the foregoing, the release in this Separation Agreement does not extend to (A) those rights that cannot be waived as a matter of law, (B) any rights to indemnification under the Company’s by-laws or insurance policies, (C) any rights under this

 

2

 

Separation Agreement, (D) any rights under the Purchase Agreement, dated as of the date hereof, by and among Fortress Operating Entity I LP, FOE II (New) LP, Principal Holdings I LP, Robert I. Kauffman and Aldel LLC, or the promissory notes issued thereunder, (E) any rights under the Note Exchange Agreement, dated as of the date hereof, by and among FIG Corp., Robert I. Kauffman and Aldel LLC, or the promissory note issued thereunder, or (F) any rights under the Amended and Restated Tax Receivable Agreement, dated as of February 1, 2007, by and among FIG Corp, FIG Asset Co. LLC, Wesley R. Edens, Robert I. Kauffman, Randal A. Nardone, Michael E. Novogratz, Fortress Operating Entity I LP, Fortress Operating Entity II LP, Fortress Operating Entity III LP and Principal Holdings I LP.  The agreements and promissory notes described in the foregoing clauses (D), (E) and (F) are collectively referred to herein as the “Specified Documents.”

 

(c)           Kauffman represents that he has not filed or permitted to be filed any legal action, charge or complaint, in any forum whatsoever, against any member of the Group, individually or collectively, and he covenants and agrees that he will not file or permit to be filed any lawsuits at any time hereafter with respect to the subject matter of this Separation Agreement and claims released pursuant to this Separation Agreement (including, without limitation, any claims relating to the termination of his relationship with the Company and its subsidiaries or their affiliates), except as may be necessary to enforce this Separation Agreement or the Specified Documents, or to seek a determination of the validity of the waiver of his rights under the ADEA.  Nothing in this Separation Agreement shall be construed to prohibit Kauffman from filing a charge with or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or a comparable state or local agency.  Notwithstanding the foregoing, Kauffman agrees to waive his right to recover monetary damages in any charge, complaint, or lawsuit filed by him or by anyone else on his behalf.  Except as otherwise provided in this paragraph, Kauffman will not voluntarily participate in any judicial proceeding of any nature or description against any member of the Group that in any way involves the allegations and facts that he could have raised against any member of the Group as of the Effective Date. Kauffman further agrees that he will not encourage or voluntarily cooperate with current or former employees of the Group or any other potential plaintiff, to commence any legal action or make any claim against any of the Group in respect of such person’s employment or termination of employment with or by the Group or otherwise.

 

(d)           After the Resignation Date, Kauffman shall no longer be entitled to any further compensation or any monies from the Company or any of its affiliates or to receive any of the benefits made available to him while a Principal of the Company; provided, however, that he will retain any rights that he has to vested benefits under the FIG LLC 401(k) Profit Sharing Plan & Trust (the “Plan”), subject to the terms and conditions of the Plan.  Kauffman specifically acknowledges that he will not be entitled to any awards or payments of any kind under the FIG LLC Principal Compensation Plan.

 

4.             Company Release.

 

(a)           As additional consideration for entering into this Separation Agreement, the Company, for itself and its subsidiaries and their affiliates, and their respective successors and assigns, fully and forever releases Kauffman, from any and all claims which the Company or its subsidiaries had, may have had, or now have against the Kauffman through the

 

3

 

Effective Date of this Separation Agreement, for or by reason of any matter, cause or thing whatsoever, whether known or unknown, including any claim relating to, arising out of, or attributable to (i) Kauffman’s positions with the Company or its subsidiaries or their affiliates or the termination thereof, including but not limited to claims of breach of contract, wrongful termination, unjust dismissal, defamation, libel or slander, or under any federal, state or local law dealing with discrimination based on age, race, sex, national origin, handicap, religion, disability or sexual preference and (ii) the Employment Agreement (other than those covenants and obligations set forth in Employment Agreement which remain in full force and effect following the Resignation Date) or any other agreement or arrangement (whether formal or informal, oral or written) with the Company or any subsidiary or affiliate thereof.  Notwithstanding the foregoing, the release in this Separation Agreement does not extend to (A) any claims that the Company ever had, now has or may hereinafter claim to have against Kauffman which are based upon acts or omissions by Kauffman that involve willful misconduct, fraud, theft or other illegal conduct by Kauffman, (B) any rights under this Separation Agreement or the Employment Agreement, or (C) any rights under the Specified Documents.

 

(b)           The Company represents that it has not filed or permitted to be filed any legal action, charge or complaint, in any forum whatsoever, against Kauffman, and the Company covenants and agrees that it will not file or permit to be filed any lawsuits at any time hereafter with respect to the claims released pursuant to this Separation Agreement, except as may be necessary to enforce this Separation Agreement or the Specified Documents.

 

5.             Compliance with Law.  Kauffman represents that, to the best of his knowledge, he has (i) fully complied with all material Company policies and procedures, including those contained in the Company’s compliance manual (and all prior versions of such manual in effect at the Company) (the “Policies”) and (ii) not breached, or caused the Company to breach, any applicable law, rule, regulation, covenant or agreement in connection with Company business in any jurisdiction.  Kauffman further represents that he is not aware of any breach of any material Policies, or any laws, rules, regulations, covenants or agreements applicable to the Company by any Company employee or entity and that he has previously reported any known or suspected breaches, in writing, to the Company’s General Counsel or Chief Compliance Officer.  Kauffman will complete and submit to the Company satisfactory quarterly compliance transaction and quarterly Dodd-Frank compliance reports for all periods up to and including the Resignation Date.

 

6.             Return of Property.  Kauffman represents that he has returned to the Company all material Company property, including, without limitation, all mailing lists, reports, files, memoranda, records, computer hardware, software, credit cards, door and file keys, computer access codes or disks and instructional manuals, and other physical or personal property which he received or prepared or helped prepare in connection with his role as a Principal of the Company or any other position he held with the Company or any of its subsidiaries or their affiliates (including, but not limited to, any documents or other materials which are necessary for the Company to comply with its obligations under the Code of Ethics) and that he will not retain any copies, duplicates, reproductions or excerpts thereof; provided, however, that Kauffman may retain (a) the blackberry issued to him by the Company provided that the phone number will be ported to Kauffman and Kauffman will be responsible for the costs associated with the use of such blackberry following the Resignation Date and (b) the laptop computer issued to him by the

 

4

 

Company provided that he permanently deletes all Confidential Information (as defined in the Employment Agreement) from such laptop.

 

7.             Indemnification.  Notwithstanding anything in this Separation Agreement to the contrary, Kauffmann shall continue to have all rights under the Indemnification Agreement dated as of February 8, 2007, by and between Fortress Investment Group LLC and Kauffman, including without limitation rights to indemnification under the Operating Agreement (as defined in the Indemnification Agreement).

 

8.             Confidentiality.  Except to the extent publicly disclosed by the Company, Kauffman agrees to maintain the confidentiality of this Separation Agreement, and to refrain from disclosing or making reference to its terms, except (a) as required by law; or (b) with his accountant or attorney for the sole purposes of obtaining, respectively, financial or legal advice; or (c) with his immediate family members (the parties in clauses (b) and (c), “Permissible Parties”); provided that the Permissible Parties agree to keep the terms and existence of this Separation Agreement confidential.  Kauffman acknowledges and agrees that any disclosure of any information by him or the Permissible Parties contrary to the provisions of this Separation Agreement shall be a breach of this Separation Agreement.  Kauffman likewise acknowledges and agrees to abide by the provisions of any and all confidentiality agreements he executed with the Company or any affiliate thereof.

 

9.             Public Announcement.  The Company shall provide Kauffman with the opportunity to review any Form 8-K or press release issued by the Company concerning Kauffman’s separation from the Company and the issuance of any such Form 8-K or press release shall be subject to Kauffman’s consent which will not be unreasonably withheld, delayed or conditioned.  Kauffman acknowledges and agrees that the Company will be required to file this Separation Agreement and the Specified Documents with the US Securities and Exchange Commission.

 

10.          Restrictive Covenants and Ongoing Obligations.

 

(a)           Kauffman acknowledges and agrees that all of the covenants and ongoing obligations that survive termination of employment set forth in the Employment Agreement remain in full force and effect and are incorporated by reference herein.  Kauffman agrees that he will abide by them for the respective durations of such covenants and obligations including, as applicable, the time periods following the Resignation Date.  Notwithstanding any provision of this Separation Agreement or the covenants set forth in the Employment Agreement to the contrary, Kauffman may invest in, manage, operate or raise capital for motor vehicle racing teams, motor vehicle restoration businesses or other motor vehicle-related businesses.

 

(b)           The Company will not make or authorize, on behalf of itself or its affiliates, and shall not permit its officers, directors, employees, principals and representatives to, and shall take reasonable efforts to ensure that such persons do not, make any disparaging or defamatory comments regarding Kauffman. The obligations of the Company and its affiliates under this paragraph shall not apply to disclosures required by applicable law, regulation or order of any court or governmental agency.

 

5

 

11.          Injunctive Relief.  The Company shall be entitled to have the provisions of this Separation Agreement specifically enforced through injunctive relief, without having to prove the adequacy of the available remedies at law, and without being required to post bond or security, it being acknowledged and agreed that such breach will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company. Moreover, Kauffman understands and agrees that if he breaches any provisions of this Separation Agreement, in addition to any other legal or equitable remedy the Company may have, he shall reimburse the Company for all its reasonable attorneys’ fees and costs incurred by it arising out of any such breach.  The remedies set forth in this Section 11 shall apply to any challenge to the validity of the waiver and release of Kauffman’s  rights under the ADEA.  In the event Kauffman challenges the validity of the waiver and release of his rights under the ADEA, then the Company’s right to attorneys’ fees and costs shall be governed by the provisions of the ADEA.  Any such action permitted to the Company by the foregoing, however, shall not affect or impair any of Kauffman’s obligations under this Separation Agreement, including without limitation, the release of claims in Section 3 hereof.

 

12.          Severability; Blue Penciling.  In the event that any one or more of the provisions of this Separation Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby.  Moreover, if any one or more of the provisions contained in this Separation Agreement is held to be excessively broad as to duration, scope, activity or subject, such provisions will be construed by limiting and reducing them so as to be enforceable to the maximum extent compatible with applicable law.

 

13.          No Admission. Nothing herein shall be deemed to constitute an admission of wrongdoing by the Company or any member of the Group.  Neither this Separation Agreement nor any of its terms shall be used as an admission or introduced as evidence as to any issue of law or fact in any proceeding, suit or action, other than an action to enforce this Separation Agreement.

 

14.          Counterparts.  This Separation Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Signatures may be exchanged by facsimile or email.

 

15.          Arbitration.  Except as necessary for the Company, its subsidiaries, and their affiliates, and their respective successors or assigns or Kauffman to specifically enforce or enjoin a breach of this Separation Agreement (to the extent such remedies are otherwise available), the parties agree that any and all disputes that may arise in connection with, arising out of or relating to this Separation Agreement, or any dispute that relates in any way, in whole or in part, to Kauffman’s services on behalf of the Company or any or its subsidiaries or their respective affiliates, any compensation relating to such services, the termination of such services or any other dispute by and between the parties or their subsidiaries or affiliates, and their respective successors or assigns, shall be submitted to binding arbitration in New York, New York, according to the National Employment Dispute Resolution Rules and procedures of the American Arbitration Association.  The parties agree that each party shall bear its or his own expenses incurred in connection with any such dispute.  This arbitration obligation extends to any and all claims that may arise by and between the parties or their subsidiaries or their affiliates and their respective successors or assigns, and expressly extends to, without limitation, claims or causes of action for

 

6

 

wrongful termination, impairment of ability to compete in the open labor market, breach of an express or implied contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, infliction of emotional distress, disability, loss of future earnings, and claims under the United States Constitution, and applicable state and federal fair employment laws, federal and state equal employment opportunity laws, and federal and state labor statutes and regulations, including, but not limited to, the Civil Rights Act of 1964, as amended, the Fair Labor Standards Act, as amended, the Americans With Disabilities Act of 1990, as amended, the Rehabilitation Act of 1973, as amended, the Employee Retirement Income Security Act of 1974, as amended, the Age Discrimination in Employment Act of 1967, as amended, and any other state or federal law.

 

16.          Governing Law.  The terms of this Separation Agreement and all rights and obligations of the parties thereto, including its enforcement, shall be interpreted and governed by the laws of the State of New York, without regard to principles of conflicts of law.

 

17.          Effective Date.  Kauffman acknowledges that he has read this Separation Agreement in its entirety, fully understands its meaning and is executing this Separation Agreement voluntarily and of his own free will with full knowledge of its significance.  Kauffman understands that he has twenty-one (21) days from the original date of presentment of this Separation Agreement (set forth below) to consider whether or not to execute this Separation Agreement, although he may elect to sign it sooner. Kauffman shall have a period of seven (7) days after the day on which he signs this Separation Agreement to revoke his consent to Section 2, 3 and 4 collectively, but not individually, which revocation must be in writing delivered to the Company, to the attention of Michele Cohen in the Company’s Human Resources department, and Section 2, 3 and 4 of this Separation Agreement shall not become effective until the eighth day following Kauffman’s execution of this Separation Agreement (the “Effective Date”).  Kauffman understands that if he revokes his consent to Sections 2, 3 and 4 within such seven (7) day period, the obligations under Sections 2, 3 and 4 of this Separation Agreement will be null and void but the remaining Sections will remain in full force and effect.  Kauffman is advised to have this Separation Agreement reviewed by legal counsel of his choice.

 

18.          Entire Agreement.  The terms contained in this Separation Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and supersede all prior negotiations, representations or agreements relating thereto, whether written or oral, with the exception of any agreements or provisions in agreements concerning confidentiality, trade secrets, restrictive covenants, or any nonsolicitation or nonservicing agreements, including the Employment Agreement, all of which agreements shall remain in full force and effect, and are hereby confirmed and ratified.  In further consideration of this Separation Agreement and notwithstanding anything herein to the contrary, Kauffman agrees to abide by and hereby reaffirm any confidentiality or restrictive covenant obligations contained in any agreements he may have entered into or otherwise is bound by with the Company, the terms of which are hereby incorporated by reference.  Kauffman represents that in executing this Separation Agreement, he has not relied upon any representation or statement not set forth herein.  No amendment or modification of this Separation Agreement shall be valid or binding upon the parties unless in writing and signed by both parties.

 

19.          No Party the Drafter.  The language used in this Separation Agreement

 

7

 

will be deemed to be language chosen by the parties to express their mutual intent, and no rule of law or contract interpretation that provides that in the case of ambiguity or uncertainty a provision should be construed against the draftsmen will be applied against any party.  The provisions of this Separation Agreement shall be construed according to their fair meaning and neither for nor against any party irrespective of which party did cause such provisions to be drafted.

 

20.          Captions.  The captions used in this Separation Agreement are for convenience only and shall not change the substance of the provisions herein.

 

	
FIG LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Agreed and   Accepted:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Robert I. Kauffman
    	
 
    	
Date
    
				

 

8

 

EXHIBIT 1

 

Gagfah

Drawbridge (UK) LLP

Alea Group Holdings (Bermuda) Ltd.

 

9

 

EXHIBIT 2

 

Resignation Letter

 

December [  ], 2012

 

FIG LLC

1345 Avenue of the Americas
 New York, NY 10105

 

Re:       Resignation

 

Effective December [  ] 2012, I hereby resign from any and all positions with FIG LLC, with any of its affiliates, and with any of their respective funds.

 

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
Robert I. Kauffman
    

 

10

 

EXHIBIT 3

 

	
Private Equity
    	
 
    	
Entity
    	
 
    	
Date
    	
 
    	
NAV
    	
 
    
	
Fortress   Investment Fund III
    	
 
    	
Rob
    	
 
    	
9/30/2012
    	
 
    	
19,237,629
    	
 
    
	
Drawbridge   Long Dated Value Fund 
    	
 
    	
Rob
    	
 
    	
9/30/2012   EST
    	
 
    	
2,472,004
    	
 
    
	
Drawbridge   Long Dated Value Fund II 
    	
 
    	
Rob
    	
 
    	
9/30/2012   EST
    	
 
    	
1,220,496
    	
 
    
	
Drawbridge   Long Dated Value Fund III 
    	
 
    	
RIK PH
    	
 
    	
10/31/2012   EST
    	
 
    	
3,290,672
    	
 
    
	
Fortress   Investment Fund IV - Fund D 
    	
 
    	
Rob
    	
 
    	
10/31/2012   EST
    	
 
    	
40,475,594
    	
 
    
	
Fortress   Investment Fund IV - Fund E
    	
 
    	
Rob
    	
 
    	
10/31/2012   EST
    	
 
    	
422,987
    	
 
    
	
Fortress   Holiday Investment Fund 
    	
 
    	
Rob
    	
 
    	
9/30/2012
    	
 
    	
34,692,807
    	
 
    
	
Fortress   Florida Coinvestment Fund 
    	
 
    	
Rob
    	
 
    	
9/30/2012
    	
 
    	
8,761,729
    	
 
    
	
Drawbridge   Real Assets Fund, LP 
    	
 
    	
Rob
    	
 
    	
10/31/2012   EST
    	
 
    	
899,561
    	
 
    
	
Fortress   Investment Fund V 
    	
 
    	
Rob
    	
 
    	
9/30/2012
    	
 
    	
4,720,204
    	
 
    
	
Fortress   Florida Preferred Fund
    	
 
    	
Rob
    	
 
    	
9/30/2012
    	
 
    	
2,943,318
    	
 
    
	
Total Private Equity
    	
 
    	
 
    	
 
    	
 
    	
 
    	
119,137,001
    	
 
    

 

	
Hedge Funds
    	
 
    	
Entity
    	
 
    	
Date
    	
 
    	
NAV
    	
 
    
	
Drawbridge Special Opportunities Fd LP
    	
 
    	
Rob
    	
 
    	
9/30/2012
    	
 
    	
568,403
    	
 
    
	
Fortress Partners Fund LP 
    	
 
    	
Rob
    	
 
    	
9/30   /2012
    	
 
    	
3,444,588
    	
 
    
	
Subtotal
    	
 
    	
 
    	
 
    	
 
    	
 
    	
4,012,991
    	
 
    

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}]]