Document:

Exhibit
10.3

 

AMENDMENT
NO. 1 TO THIRD AMENDED AND RESTATED

 

EMPLOYMENT
AGREEMENT

 

This
AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Amendment”)
is entered into as of this 1st day of January, 2004, by and between
Bruce Ross(“Executive”) and GUITAR CENTER, INC., a Delaware corporation
(the “Company”).

 

Executive and the Company
wish to amend that certain Third Amended and Restated Employment Agreement
entered into between the two parties as of July 1, 2003 (the “Prior
Agreement”), to revise the bonus provision therein.

 

In consideration of the
mutual promises and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.                                       The Prior Agreement is amended by
amending Section 3(b) in its entirety to read as follows:

 

(b)                                 In addition to the Base Salary, for
each fiscal year ending during the Employment Period, Executive shall also be
eligible to receive an annual bonus in a target amount of 75% of the
Executive’s then-current Base Salary. 
The amount of such bonus will be determined by the Board or its
designee(s), in their sole discretion.

 

2.                                       Except as expressly provided for in
this Amendment, no other term or provision of the Prior Agreement is amended or
modified in any respect.

 

In
witness whereof, the parties have executed this Agreement on the day and
year first above written.

 

	
   

  	
  GUITAR CENTER, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /Larry Thomas

  	
   

  
	
   

  	
  Name:  Larry Thomas

  
	
   

  	
  Title:  Co-Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /Bruce Ross

  	
   

  
	
   

  	
  Bruce Ross

  
					

 

1Exhibit
10.4

 

EXECUTIVE
SEVERANCE BENEFITS AGREEMENT

 

This EXECUTIVE SEVERANCE BENEFITS AGREEMENT (the “Agreement”)
is made and entered into effective as of
         , 2004 (the “Commencement
Date”), between [Guitar Center,
Inc.][Musician’s Friend, Inc.][Guitar Center Stores, Inc.], a
Delaware corporation (the “Company”), and
               
(the “Executive”).

 

RECITALS:

 

A.                                   Executive
is currently employed by the Company.

 

B.                                     The
Company and Executive wish to set forth the compensation and benefits which Executive
shall be entitled to receive in the event Executive’s employment with the
Company is terminated under the circumstances described herein.

 

AGREEMENT:

 

In consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       TERM OF AGREEMENT. 
This Agreement shall commence on the Commencement Date hereof and shall
continue in effect through
           , 2007 (the “Scheduled
Expiration Date”); provided,  however,
that in the event neither party to this Agreement has given written notice to
the other party of its intent to terminate this Agreement by the date that is
one hundred twenty (120) days prior to the Scheduled Expiration Date (as may be
extended by operation of this Section 1), the Scheduled Expiration Date
shall automatically be extended by an additional twelve (12) months.

 

2.                                       SEVERANCE.

 

(a)                                  SEVERANCE.  No benefits shall be payable under this
Agreement unless there has been a Qualifying Termination.  For purposes of this Agreement, a “Qualifying
Termination” shall mean a termination of Executive’s employment with the
Company prior to the Scheduled Expiration Date (i) by the Company without Cause
or (ii) by the Executive with Reasonable Justification.  A termination of Executive’s employment as a
result of Executive’s death or Disability shall not be a Qualifying
Termination.  In the event of a
Qualifying Termination, Executive shall
be entitled to receive the following severance benefits, unless Executive has
breached the provisions of this Agreement, in which case the provisions of
Section 8(a)(ii) shall apply:

 

(i)                                     ACCRUED BASE SALARY. 
The Company shall pay to the Executive his current base salary through the date of termination.

 

(ii)                                  CASH SEVERANCE. 
Executive shall be entitled to receive, at the times specified in
Section 2(b), severance pay in an amount equal to the sum of:

 

 

(A)                              Executive’s
current annual base salary as in effect immediately prior to the date of
termination, payable over the twelve (12) month period commencing on the date
of termination (the “Severance Period”); plus

 

(B)                                an
annual cash bonus equal to the last annual cash bonus (excluding any portion
thereof that the Chief Executive Officer of the Company considered
extraordinary and non-recurring) Executive received prior to termination, if
any.  Except as set forth in the
preceding sentence, the Company shall not be obligated to pay any bonus with respect
to the year in which the date of termination occurs, regardless of the
financial performance of the Company or any other Company policy or prior
practice; plus

 

(C) any unpaid vacation
accrued through the date of termination in accordance with Company policy; plus

 

(D) reimbursement for all
outstanding expenses incurred by Executive prior to the date of termination and
in the course of performing Executive’s duties as an employee of the Company
which are consistent with the Company’s policies in effect from time to time
with respect to travel, entertainment and other business expenses, subject to
the Company’s requirements with respect to reporting and documenting such
expenses.

 

(iii)                               BENEFITS.  In the event that Executive elects to
continue group health insurance coverage for himself and his eligible
dependents who were covered under the Company’s medical plans as of the date of
termination, at the same level in effect as of the date of termination,
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”), the Company shall pay for the amount of his premium payments
for such coverage for the Severance Period (or, if such continuation is
not permitted by the Company’s insurers beyond the date of termination, a cash
payment equal to the average annual premium the Company pays to obtain health
insurance for an employee).  In the
event Executive desires to discontinue this coverage, he shall notify the
Company in writing which shall promptly terminate the coverage benefit.

 

(iv)                              COMPANY
CAR.  Executive may at his sole
expense elect to assume the lease on any Company-provided automobile used by
Executive as of the date of termination, if any, or, if such vehicle is owned
by the Company, purchase such vehicle at a price equal to its wholesale “blue
book” value.

 

(v)                                 STOCK
OPTIONS.  Following the date of
termination, Executive’s stock options, if any, shall continue to be governed
by the terms of the stock option plan and agreements pursuant to which such
options were granted.

 

(b)                                 TIMING
OF POST-TERMINATION PAYMENTS.  The
severance payments provided for in Section 2(a)(ii)(A) above shall be paid
periodically in the same amounts and at the same intervals as Executive’s base
salary was paid immediately prior to the date of termination.  The severance payment provided for in
Section 2(a)(ii)(B) above shall

 

2

 

be paid on the last day of the Severance Period.  Notwithstanding the foregoing, the Company,
in its sole discretion, may at any time or from time to time elect to
accelerate the payment of any cash severance amount and pay such amount as a
lump sum, discounted to reflect such early payment at the then prevailing prime
rate of interest established by Wells Fargo Bank.  In addition, if Executive
has breached the provisions of this Agreement, the Company shall have the right
to terminate the severance payments provided for in this Section 2
pursuant to the provisions of Section 8(a)(ii).

 

(c)                                  EXCLUSIVE
REMEDY.  Except as otherwise
expressly required by law (e.g., COBRA) or as specifically provided herein, all
of the Executive’s rights to salary, severance, benefits, bonuses and other
amounts hereunder (if any) accruing after the termination of Executive’s
employment shall cease upon such termination. 
In the event of a termination of Executive’s employment with the
Company, the Executive’s sole and exclusive remedy shall be to receive the
severance payments and benefits described in this Section 2.  Executive shall have no duty to mitigate any
damages which Executive may suffer as a result of any termination of employment
nor shall the severance benefits payable to Executive be reduced by any sums
actually earned by Executive as a result of any other employment obtained by
Executive.

 

(d)                                 RELEASE.  As a condition to the Executive’s receipt of
any post-termination benefits described in this Agreement, the Executive shall
be required to execute a Release of all claims arising out of his employment or
the termination thereof, which release will also include a customary non-disparagement
covenant from Executive (the “Release”), in a form reasonably acceptable
to the Company.  Such Release shall
specifically relate to all of the Executive’s rights and claims in existence at
the time of such execution but shall exclude any continuing obligations the
Company or any of its affiliates may have to the Executive following the date
of termination under this Agreement or any other agreement expressly providing
for obligations to survive the Executive’s termination of employment.

 

(e)                                  OTHER
TERMINATION.  If the Employment
Period is terminated prior to the Scheduled Expiration Date for any reason
other than by the Company without Cause or by the Executive with Reasonable
Justification, including as a result of Executive’s death or Disability, the
Executive shall be entitled to receive only his base salary and then only to
the extent such amount has accrued through the date of termination.

 

(f)                                    DEFINITION
OF CAUSE.  For purposes of this
Agreement, “Cause” means any termination by the Company of Executive’s
employment within ninety (90) days after the Board of Guitar Center, Inc.
(“Parent”) becomes aware of the occurrence of any of the following:

 

(i)                                     the
ongoing and repeated failure by the Executive to perform such lawful duties
consistent with Executive’s position as are reasonably requested by either the
Chief Executive Officer of the Company or the Board of Parent in good faith as
documented in writing to the Executive;

 

(ii)                                  the
Executive’s ongoing and repeated material neglect of his duties on a general
basis, notwithstanding written notice of objection from either the

 

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Chief Executive Officer
of the Company or the Board of Parent and the expiration of a thirty (30) day
cure period;

 

(iii)                               the
commission by the Executive of any act of fraud, theft or criminal dishonesty
with respect to the Company or any of its affiliates, or the conviction of the
Executive of any felony;

 

(iv)                              the
Executive’s failure to adhere to all policies and procedures established by the
Company from time to time in its discretion, generally applicable to all
executives of the Company and disclosed to Executive, including without
limitation, any policies related to sexual harassment, anti-discrimination and
similar employment practices;

 

(v)                                 the
commission of any act involving moral turpitude which (y) brings the Company or
any of its affiliates into public disrepute or disgrace, or (z) causes material
injury to the customer relations, operations or the business prospects of the
Company or any of its affiliates; or

 

(vi)                              material
breach by the Executive of this Agreement, including, without limitation, any
breach by the Executive of the Confidentiality and Noncompetition Agreements
(as defined in Section 3 below), not cured within thirty (30) days after
written notice to Executive from either the Chief Executive Officer of the
Company or the Board of Parent; provided, however, that in the
event of an intentional breach of the provisions of the Confidentiality and
Noncompetition Agreements, the Executive shall not have the opportunity to
cure.

 

(g)                                 DEFINITION
OF DISABILITY.  For purposes of this
Agreement the term “Disability” means any long-term disability or
incapacity which (i) renders the Executive unable to substantially perform all
of his duties hereunder for ninety (90) days during any one hundred eighty
(180) day period or (ii) would reasonably be expected to render the Executive
unable to substantially perform all of his duties for ninety (90) days during
any one hundred eighty (180) day period, in each case as determined by the
Board of Parent (excluding the Executive if he should be a member of the Board
of Parent at the time of such determination) in its good faith judgment after
seeking and reviewing advice from a qualified physician.

 

(h)                                 DEFINITION
OF REASONABLE JUSTIFICATION.  For
purposes of this Agreement, “Reasonable Justification” means any
voluntary termination by the Executive of his employment with the Company
within ninety (90) days after the occurrence of any of the following events
without Executive’s written consent:

 

(i)                                     the
Executive is directed to perform an act that the Executive reasonably believes
after consultation with counsel to be in contravention of law, or which the
Executive reasonably believes would subject the Company and himself to material
liability, despite his prior express written objection addressed to the Board
of Parent with respect to such action;

 

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(ii)                                  there
has been any material reduction in the nature or scope of Executive’s
responsibilities, or the Executive is assigned duties that are materially
inconsistent with his position (in each case, other than on a temporary basis);

 

(iii)                               there
is any material reduction in the Executive’s compensation or a material
reduction in Executive’s other benefits (other than reductions in benefits that generally affect all employees
entitled to such benefits ratably);

 

(iv)                              the
Executive is required by the Company or any of its affiliates, after written
objection by the Executive addressed to the Chief Executive Officer of the
Company, to relocate his principal place of employment outside a radius of
fifty miles from his place of employment immediately prior to such relocation;
or

 

(v)                                 there
is a material failure by the Company or any of its affiliates to perform any of
its obligations to the Executive under this Agreement;

 

provided, however, that with
respect to breaches of Section 2(h)(ii), (iii) and (v), the Company shall
be given written notice by Executive of such breach and thirty (30) days to
cure such breach.

 

3.                                       CONFIDENTIALITY
AND NONCOMPETITION AGREEMENTS. 
Executive acknowledges and reaffirms his obligations to the Company
pursuant to any confidentiality, noncompetition and/or nonsolicitation
agreements entered into by Executive with the Company and/or its affiliates
(the “Confidentiality and Noncompetition Agreements”).

 

4.                                       NON-DISPARAGEMENT.  Executive agrees that he will not disparage
or denigrate to any person any aspect of his past relationship with the Company
or any of its affiliates, nor the character of the Company or any of its
affiliates or their respective agents, representatives, products, or operating
methods, whether past, present, or future, and whether or not based on or with
reference to their past relationship; provided, however, that
this paragraph shall have no application to any evidence or testimony requested
of Executive by any court or government agency.  In the event any government agency or any of Company’s or any of
its affiliates’ present or future labor unions, adverse parties in actual or
potential litigation, suppliers, service providers, employees or customers
initiate communications with the Executive, the Executive agrees that he will
inform any such persons, consistent with this paragraph, of his change in
status and direct such persons to an appropriate office or current employee of
Company.

 

5.                                       TRANSITIONAL
INQUIRIES.  For a reasonable period
of time following the date of termination, Executive agrees to make himself
available to the Company to answer telephone inquiries related to the
transition of his duties.  Executive’s
obligations pursuant to this Section 5 are a material inducement to the
Company’s entering into this Agreement with Executive.

 

5

 

6.                                       RIGHT TO CONSULT COUNSEL. 
EXECUTIVE REPRESENTS AND AGREES THAT HE FULLY UNDERSTANDS HIS RIGHT TO
DISCUSS ALL ASPECTS OF THIS AGREEMENT WITH HIS PRIVATE ATTORNEY, AND THAT TO
THE EXTENT, IF ANY, THAT HE DESIRED, HE AVAILED HIMSELF OF SUCH RIGHT.  EXECUTIVE FURTHER REPRESENTS THAT HE HAS
CAREFULLY READ AND FULLY UNDERSTANDS ALL OF THE PROVISIONS OF THIS AGREEMENT,
THAT HE IS COMPETENT TO EXECUTE THIS AGREEMENT, THAT HIS AGREEMENT TO EXECUTE
THIS AGREEMENT HAS NOT BEEN OBTAINED BY ANY DURESS AND THAT HE FREELY AND
VOLUNTARILY ENTERS INTO IT, AND THAT HE HAS READ THIS DOCUMENT IN ITS ENTIRETY
AND FULLY UNDERSTANDS THE MEANING, INTENT AND CONSEQUENCES OF THIS DOCUMENT.

 

7.                                       NOTICES. 
All notices, requests, demands, claims, and other communications
hereunder shall be in writing.  Any
notice, request, demand, claim or other communication hereunder shall be
delivered personally to the recipient, delivered by United States Post Office
mail (postage prepaid and return receipt requested), telecopied to the intended
recipient at the number set forth therefor below (with hard copy to follow), or
sent to the recipient by reputable express courier service (charges prepaid)
and addressed to the intended recipient as set forth below: If to the Company,
to:

 

Guitar Center, Inc.

5795 Lindero Canyon Road

Westlake Village, California 91362

Attention: 
General Counsel

Telephone: 
(818) 735-8800

Telecopier: 
(818) 735-4923

 

If to the Executive, to the address noted on the
signature page of this Agreement or such other address as the recipient party
to whom notice is to be given may have furnished to the other party in writing
in accordance herewith.  Any such
communication shall be deemed to have been delivered and received (a) when
delivered, if personally delivered, sent by telecopier or sent by overnight
courier, and (b) on the fifth business day following the date posted, if sent
by mail.

 

6

 

8.                                       GENERAL PROVISIONS.

 

(a)                                  SEVERABILITY/ENFORCEMENT.

 

(i)                                     It is the desire and intent of the
parties hereto that the provisions of this Agreement be enforced to the fullest
extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. 
Accordingly, if any particular provision of this Agreement shall be
adjudicated by a court of competent jurisdiction to be invalid, prohibited or
unenforceable for any reason, such provision, as to such jurisdiction, shall be
ineffective, without invalidating the remaining provisions of this Agreement or
affecting the validity or enforceability of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.  Notwithstanding the foregoing, if such
provision could be more narrowly drawn so as not to be invalid, prohibited or
unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so
narrowly drawn, without invalidating the remaining provisions of this Agreement
or affecting the validity or enforceability of such provision in any other
jurisdiction.

 

(ii)                                  In addition to the foregoing, and
not in any way in limitation thereof, or in limitation of any right or remedy
otherwise available to the Company, if the Executive materially violates any
provision of this Agreement, including, without limitation, Section 5
hereof, or Executive’s Confidentiality and Noncompetition Agreements, (and such
violation, if unintentional on the part of the Executive, continues for a
period of twenty-one (21) days following receipt of written notice from the
Company), any severance payments then or thereafter due from the Company to the
Executive may be terminated forthwith and upon such election by the Company,
the Company’s obligation to pay and the Executive’s right to receive such
severance payments shall terminate and be of no further force or effect.  The Executive’s obligations under this
Agreement, including, without limitation, Section 5 hereof, or Executive’s
Confidentiality and Noncompetition Agreements shall not be limited or affected
by, and such provisions shall remain in full force and effect notwithstanding
the termination of any severance payments by the Company in accordance with
this Section 8(a)(ii).  The
exercise of the right to terminate such payments shall not be deemed to be an
election of remedies by the Company and shall not in any manner modify, limit
or preclude the Company from exercising any other rights or seeking any other
remedies available to it at law or in equity.

 

(b)                                 COMPLETE AGREEMENT; SURVIVAL. 
This Agreement, those documents expressly referred to herein and all
other documents of even date herewith embody the complete agreement and
understanding among the parties and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which
may have related to the subject matter hereof in any way; provided, however,
that this Agreement shall not amend, supercede or terminate any rights granted
to Executive pursuant to any indemnification agreement between Executive and
the Company or any affiliate of the Company. 
The representations, warranties, covenants and agreements made herein
shall, as applicable, survive any termination of this Agreement in accordance
with their respective terms.

 

(c)                                  SUCCESSORS
AND ASSIGNS.  Except as otherwise
provided herein, this Agreement shall bind and inure to the benefit of and be
enforceable by the Executive and the Company and their respective successors,
assigns, heirs, representatives and estate;

 

7

 

provided, however, that the
rights and obligations of the Executive under this Agreement shall not be
assigned without the prior written consent of the Company.  Without limiting the foregoing, it is
expressly acknowledged that the Company may transfer Executive and assign this
Agreement to any present or future affiliate of the Company.

 

(d)                                 GOVERNING
LAW.  THIS AGREEMENT WILL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF
CALIFORNIAWITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION
OR RULE THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF CALIFORNIA TO BE APPLIED.

 

(e)                                  ARBITRATION.

 

(i)                                     Unless
otherwise provided herein, in the event that there shall be a dispute (a “Dispute”)
among the parties arising out of or relating to this Agreement, or the breach
thereof, the parties agree that such dispute shall be resolved by final and
binding arbitration before a single arbitrator in Los Angeles County, California,
administered by the American Arbitration Association (the “AAA”), in accordance with AAA’s Employment ADR Rules.  The arbitrator’s decision shall be final and
binding upon the parties, and may be entered and enforced in any court of
competent jurisdiction by either of the parties.  The arbitrator shall have the power to grant temporary,
preliminary and permanent relief, including without limitation, injunctive
relief and specific performance.

 

(ii)                                  The
Company will pay the direct costs and expenses of the arbitration.  Executive and the Company are responsible
for their respective attorneys’ fees incurred in connection with enforcing this
Agreement; however, Executive and the Company agree that, except as may
be prohibited by law, the arbitrator may, in his or her discretion, award
reasonable attorneys’ fees to the prevailing party.

 

(iii)                               This
Section 8(e) shall not apply to the Confidentiality and Noncompetition
Agreements.

 

(f)                                    JURISDICTION,
ETC.

 

(i)                                     Without
limiting the generality of the arbitration provisions contained in
Section 8(e), each of the parties hereto hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any California  State court or Federal court of the
United States of America sitting in the State of California, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such California  State
court or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

 

8

 

(ii)                                  Each
of the parties hereto irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement in any California  State or
Federal court.  Each of the parties hereto irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

 

(iii)                               The
Company and the Executive further agree that the mailing by certified or
registered mail, return receipt requested, of any process required by any such court shall constitute valid and
lawful service of process against them, without the necessity for service by
any other means provided by law.

 

(g)                                 AMENDMENT
AND WAIVER.  The provisions of this
Agreement may be amended and waived by mutual agreement of the parties only by
a written instrument executed by the Company and Executive which makes express
reference to this Agreement and no course of conduct or failure or delay in
enforcing the provisions of this Agreement shall affect the validity, binding
effect or enforceability of this Agreement or any provision hereof.

 

(h)                                 WAIVER
OF JURY TRIAL.  CONSISTENT WITH THE
INTENTION OF SECTION 8(E), EACH PARTY HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO
SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING HEREUNDER.

 

(i)                                     HEADINGS.  The section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

(j)                                     COUNTERPARTS.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

 

(k)                                  CONSTRUCTION.  The parties participated jointly in the
negotiation and drafting of this Agreement and the language used in this
Agreement shall be deemed to be the language chosen by the parties to express
their mutual intent.  If an ambiguity or
question of intent or interpretation arises, then this Agreement will
accordingly be construed as drafted jointly by the parties to this Agreement,
and no presumption or burden of proof will arise favoring or disfavoring any
party to this Agreement by virtue of the authorship of any of the provisions of
this Agreement.

 

(l)                                     AT-WILL EMPLOYMENT.  The Company and Executive acknowledge that
Executive’s employment is and shall continue to be at-will, as defined under
applicable law.  Executive acknowledges
and agrees that nothing in this Agreement shall confer upon Executive any right
with respect to continuation of employment by the Company, nor shall it interfere
in any way with Executive’s right or the Company’s right to terminate
Executive’s employment at any time, with or without cause and with or without
prior notice.

 

9

 

(m)                               NO
THIRD PARTY BENEFICIARIES.  Nothing
in this Agreement, expressed or implied, is intended to confer on any person
other than the parties and their respective successors and permitted assigns
any rights or remedies under or by reason of this Agreement.

 

(n)                                 RESIGNATION AS OFFICER AND DIRECTOR. 
Effective as of the date of termination of employment with the Company
for any reason, Executive shall be deemed to have resigned from all offices and
directorships, if any, then held with the Company or any of its affiliates.

 

 

(Signature Page Follows)

 

10

 

IN WITNESS WHEREOF, the parties hereto have executed
this Executive Severance Benefits Agreement as of the date first written above.

 

	
   

  	
  [GUITAR
  CENTER, INC.]

  
	
   

  	
  [MUSICIAN’S
  FRIEND, INC.]

  
	
   

  	
  [GUITAR
  CENTER STORES, INC.]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Executive]

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

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