Document:

Exhibit 10.19

 

JDS UNIPHASE CORPORATION
 2015 OPTICAL SECURITY AND PERFORMANCE PRODUCTS CHANGE OF CONTROL BENEFITS PLAN

 

1.             Introduction.

 

This JDS Uniphase Corporation ( “Company”) Optical Security and Performance Products (“OSP”) Change of Control Benefits Plan (the “Plan”) is established effective as of January 15, 2015 (the “Effective Date”).

 

(a)           Purpose.  The purpose of the Plan is to describe eligibility for certain benefits for Eligible Employees (as defined below) whose employment is terminated in connection with a Change of Control of OSP (as defined below).

 

(b)           Effect.  This Plan supersedes and replaces any prior policies or practices of Company or any of its subsidiaries or affiliated companies that relate to severance payments or vesting acceleration with respect to stock options, restricted stock units, performance units, or any other securities or similar incentives of Company in connection with a change of control (as defined in any such agreements or arrangements) of OSP with respect to Eligible Employees.  Any such policies or procedures, to the extent they relate to severance payments or vesting acceleration with respect to options of Company in connection with a change of control, are hereby rescinded and shall no longer have any force or effect to the extent such policies or procedures apply to Eligible Employees.  Notwithstanding the foregoing, this Plan is subordinated to any individual written (i) severance benefit agreement, (ii) change of control severance agreement, or (iii) employment agreement that provides for severance benefits in existence as of the Effective Date between any Eligible Employee and Company.

 

2.             Definition of Terms.  The following capitalized terms used in this Plan shall have the following meanings:

 

(a)           Cause.  “Cause” shall mean (i) gross negligence or willful misconduct in the performance of an Eligible Employee’s duties to Company and Employer; (ii) a material and willful violation of any federal or state law by an Eligible Employee that if made public would injure the business or reputation of Company or Employer; (iii) refusal or willful failure by an Eligible Employee to comply with any specific lawful direction or order of Company or Employer or the material policies and procedures of Company or Employer, including but not limited to the JDS Uniphase Corporation Code of Business Conduct and the  Inside Information and Securities Transactions policy, as well as any obligations concerning proprietary rights and confidential information of Company or Employer; (iv) conviction (including a plea of nolo contendere) of an Eligible Employee of a felony, or of a misdemeanor that would have a material adverse effect on Company’s or Employer’s goodwill if such Eligible Employee were to be retained as an employee of Company or Employer; or (v) substantial and continuing willful refusal by an Eligible Employee to perform duties ordinarily performed by an employee in the same position and having similar duties as such Eligible Employee; in each case as reasonably

 

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determined by the Board of Directors of Company or Employer or the successor to Company or Employer (the “Board of Directors”).

 

(b)           Change of Control.  “Change of Control” shall mean the closing of a transaction that results in assets representing  at least fifty percent (50%) of the assets or revenues of the OSP operating segment, as such segment is reported in the Company’s annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the last full fiscal year, being separated from the Company’s business (i) as a separately held subsidiary that is not wholly owned by the Company, (ii) through a dividend or other similar distribution to the Company’s stockholders in one or more transactions in any rolling twelve calendar month period, or (iii) through a sale, transfer or other disposition.

 

Notwithstanding the foregoing, to the extent that any amount constituting nonqualified deferred compensation within the meaning of Section 409A of the Internal Revenue Code (including any applicable final, proposed or temporary regulations and other administrative guidance promulgated thereunder) would become payable under this Plan by reason of a Change of Control, such amount shall become payable only if the event constituting a Change of Control would also constitute a change in ownership or effective control of Company or a change in the ownership of a substantial portion of the assets of Company within the meaning of Section 409A.

 

(c)           Coverage Period.  “Coverage Period” with respect to an Eligible Employee shall mean the period (i) beginning (A) upon the public announcement by the Company of its intent to consummate a Change of Control if, and only if, the Chief Executive Officer of the Company and the Chairperson of the Compensation Committee of the Board of Directors has certified that the Eligible Employee’s services with the Company are no longer required or (B) otherwise upon the consummation of a Change of Control and (ii) ending twelve (12) months following the consummation of such Change of Control.

 

(d)           Disability.  “Disability” shall mean a mental or physical disability, illness or injury, evidenced by medical reports from a duly qualified medical practitioner, which renders an Eligible Employee unable to perform any one or more of the essential duties of his or her position after the provision of reasonable accommodation, if applicable, for a period of greater than ninety (90) days within a one year period.  “Disabled” has a corresponding meaning.

 

(e)           Eligible Employees. “Eligible Employees” shall mean individuals employed by Company and its subsidiaries in the United States and on a United States payroll who either (1) report to the Senior Vice President, OSP and hold one or more of the following positions or their functional equivalents: (i) Vice President, Research and Development, (ii) Vice President, Global Operations, (iii) Vice President, Marketing and Product Management, (iv) Vice President, Sales, and (v) Vice President, OSP Finance, or (2) are designated in writing by the Chief Executive Officer as being an Eligible Employee, subject to subsequent review and ratification by the Compensation Committee of the Board of Directors at its discretion

 

(f)            Employer.  “Employer” shall mean each entity employing or formerly employing an Eligible Employee, including Company, each present and former subsidiary of the Company and each successor to Company or present or former subsidiary of Company.

 

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(g)           Good Reason.  “Good Reason” shall mean an Eligible Employee’s resignation from an Employer within ninety (90) days following the occurrence of any of the following events with respect to such Eligible Employee,:

 

(i)            without Eligible Employee’s express written consent, the significant reduction of Eligible Employee’s duties, authority, responsibilities, job title or reporting relationships relative to Eligible Employee’s duties, authority, responsibilities, job title, or reporting relationships as in effect immediately prior to such reduction, or the assignment to Eligible Employee of such reduced duties, authority, responsibilities, job title, or reporting relationships; however, the occurrence of a Change of Control shall not, in and of itself, constitute a material adverse change in Eligible Employee’s position, duties or responsibilities;

 

(ii)           a material reduction by Employer in the base salary or cash variable incentive compensation target, of Eligible Employee as in effect immediately prior to such reduction;

 

(iii)          Employer’s failure to provide access to health and welfare benefits substantially the same as such access to health and welfare benefits is provided to other similarly situated employees;

 

(iv)          the relocation of Eligible Employee’s principal work location to a facility or a location more than fifty (50) miles from Eligible Employee’s then present principal work location, without Eligible Employee’s express written consent; or

 

(v)           the failure of Company or Employer to obtain agreement from any successor contemplated in Section 6 below to provide the benefits provided for in this Plan, as it exists as the time of succession.

 

(h)           Separation from Service.  “Separation from Service” means a separation from service (as such term is defined under Treasury Regulations Section 1.409A-1(h), without regard to any alternate definitions thereunder) with Company, each present and former subsidiary of Company, and each successor to Company.

 

(i)            Termination Date.  “Termination Date” shall mean the date of an Eligible Employee’s Separation from Service.

 

3.             Eligibility for Severance and Other Benefits.  Eligible Employees will receive the benefits described herein under the following circumstances:

 

(a)           Termination in Connection with a Change of Control.  In the event of an Eligible Employee’s Separation from Service either by Employer without Cause or by such Eligible Employee for Good Reason at any time during the Coverage Period applicable to a Change of Control, then, conditioned upon the Eligible Employee’s execution and delivery of a release of claims against Company, Employer and related parties that releases Company, Employer and such parties from any claims whatsoever arising from or related to the Eligible Employee’s employment relationship with Employer, including the termination of that relationship, in a form reasonably acceptable to Employer and Eligible Employee, and provided

 

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that any statutory revocation period has expired without release having been revoked on or before the sixtieth (60th) day following the Termination Date (the “Release Effective Date”), the Eligible Employee will receive the following:

 

(i)            Eligible Employee’s right, title and entitlement to any and all unvested stock options, restricted stock units, performance units, or any other securities or similar incentives that have been granted or issued to Eligible Employee as of the Termination Date by Company or Employer (A) that are subject to time-based vesting conditions shall automatically be accelerated in full so as to become immediately and completely vested, and (B) that are subject to performance-based vesting conditions with a “target” achievement level shall automatically be accelerated at 100% of such “target” achievement level so as to become immediately and completely vested and fully exercisable.  Such acceleration of vesting and exercisability shall be effective upon the earlier of the Release Effective Date or the consummation of the Change of Control, as applicable.  Notwithstanding any other provision in the relevant equity incentive plan and/or notice of grant and grant agreement to the contrary, all stock options shall remain fully exercisable for the shorter of (a) two (2) years from the Termination Date, or (b) the remaining term of the stock option as provided in the relevant notice of grant and grant agreement.  In all other respects, Eligible Employee’s securities shall continue to be subject to the terms of the applicable equity incentive plan notice of grant and grant agreement.

 

(ii)           a lump sum cash payment within ten (10) days following the earlier of the Release Effective Date or the consummation of the Change of Control in an amount equal to one (1) years’ salary at the Eligible Employee’s base salary rate as of the Termination Date (without taking into account any reduction in base salary that could trigger Eligible Employee’s resignation for Good Reason), less applicable withholding taxes or other withholding obligations of Employer and less any amounts to which Eligible Employee is otherwise entitled under any statutory or Employer long or short term disability plan; and

 

(iii)          if Eligible Employee elects benefits continuation under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) following Separation from Service, payment of the full monthly cost of such benefits (either directly to Eligible Employee or to the appropriate carrier or administrator at Employer’s election) for the lesser of (a) a period of twelve (12) months following the earlier of the Termination Date or the consummation of the Change of Control, or (b) until such time as Eligible Employee becomes ineligible for continued benefits under COBRA (the period of such payments the “COBRA Payment Period”), provided that, in the event Employer determines, in its sole discretion, that the payment of the COBRA premiums pursuant to this subsection would result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) or any statute or regulation of similar effect (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of providing the COBRA premiums, Employer, in its sole discretion, may elect to instead pay such Eligible Employee on or before the first day of each month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable tax withholdings (such amount, the “Additional Severance Payment”), for the remainder of the COBRA payment period.  Such Eligible

 

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Employee may, but is not obligated to, use such Additional Severance Payment toward the cost of COBRA premiums.

 

(b)           Voluntary Resignation; Termination for Cause.  If an Eligible Employee’s employment terminates by reason of voluntary resignation (which is not for Good Reason), or if an Eligible Employee is terminated for Cause, then such Eligible Employee shall not be entitled to receive any benefits under Section 3(a) of this Plan.

 

(c)           Disability.  If an Eligible Employee suffers from a Disability, Employer may terminate such Eligible Employee’s employment to the extent permitted by law and, if such Separation from Service occurs within twelve (12) months following a Change of Control, Employer will then pay to that Eligible Employee the compensation set forth in Section 3(a) of this Plan.

 

(d)           Death.  If an Eligible Employee’s employment is terminated due to the death of such Eligible Employee within twelve (12) months following a Change of Control, then the compensation set forth in Section 3(a) of this Plan will be paid to the former Eligible Employee’s estate.

 

(e)           Application of Section 409A. Payments and benefits that may be provided pursuant to this Plan are intended to be exempt from treatment as deferred compensation subject to Section 409A of the Code by reason of the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay plan exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise.  Notwithstanding any inconsistent provision of this Plan, to the extent Employer determines in good faith that (a) one or more of the payments or benefits received or to be received by an Eligible Employee pursuant to this Plan in connection with such Eligible Employee’s termination of employment would constitute deferred compensation subject to the rules of Section 409A, and (b) that the Eligible Employee is a “specified employee” under Section 409A, then only to the extent required to avoid the Eligible Employee’s incurrence of any additional tax or interest under Section 409A of the Code, such payment or benefit will be delayed until the date which is six (6) months after the Eligible Employee’s Separation from Service.  Employer will revise any applicable provisions of this Plan to maintain to the maximum extent practicable the original intent of the applicable Plan provisions without violating the provisions of Section 409A of the Code, if Employer deems such revisions necessary or advisable pursuant to guidance under Section 409A to avoid the incurrence of any such interest and penalties. Such revisions shall not result in a reduction of the aggregate amount of payments or benefits under this Plan.

 

(f)            Termination Not in Connection With a Change of Control.  In the event an Eligible Employee’s employment terminates for any reason or no reason, whether on account of Disability, death, or otherwise, on a date that is not within the Coverage Period with respect to a Change of Control, then such Eligible Employee shall not be entitled to receive severance or any other benefits under Section 3(a) of this Plan.

 

(g)           Coordination with Other Change of Control Benefits, Severance Benefits or Debts.  If an Eligible Employee is entitled to cash payments, accelerated vesting of stock

 

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options or restricted stock grants, or any other benefits from Company or Employer following the termination of such Eligible Employee’s employment during the Coverage Period with respect to a Change of Control under any other agreement, plan, policy or law, then the benefits received by that Eligible Employee under this Plan shall be reduced by the benefits received by Eligible Employee from Company or Employer under such other plans, programs, arrangements, agreements or requirements.  If an Eligible Employee is indebted to Company or Employer at the time of a termination that would give rise to severance benefits under Section 3(a), the Company or Employer reserves the right to offset such severance payment under the Plan by the amount of such indebtedness.

 

4.             At-Will Employment.  Subject only to any individual written agreement between Employer and an Eligible Employee to the contrary, each Eligible Employee’s employment is and shall continue to be at-will, as defined under applicable law.  If an Eligible Employee’s employment terminates for any reason other than as specified in Section 3, such Eligible Employee shall not be entitled to any benefits, damages, awards or compensation under this Plan.

 

5.             Tax Matters. Employer may withhold from any amounts payable under the Plan such federal, state and local taxes as may be required to be withheld.  In the event that any payment or other benefits provided for in this Plan or otherwise payable to an Eligible Employee (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) become subject to the excise tax imposed by Section 4999 of the Code (or any corresponding provisions of state tax law), then, notwithstanding the other provisions of this Plan, such Eligible Employee’s benefits under Section 3 will not exceed the amount which produces the greatest after-tax benefit to the Eligible Employee.  For purposes of the foregoing, the greatest after-tax benefit will be determined within thirty (30) days after the Termination Date, by the Eligible Employee in his/her sole discretion.  If no such determination is made by the Eligible Employee within thirty (30) days of the Termination Date, then Company or Employer will pay the benefits as provided in Section 3.

 

6.             Company’s Successors.  The Company shall require that any successor to Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of Company’s business and/or assets and any other Employer of an Eligible Employee resulting from a Change of Control shall agree to perform in accordance with this Plan in the same manner and to the same extent as Company would be required to perform such obligations in the absence of a succession.

 

7.             Exclusive Benefits.  Eligible Employees shall not be entitled to any payments, compensation, benefits or other consideration from Company or Employer, apart from those identified in Section 3, on account of a termination during the Coverage Period with respect to a Change of Control.

 

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8.             Severability, Enforcement.  If any provision of this Plan, or the application thereof to any person, place or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable or void, the remainder of this Plan and such provisions as applied to other persons, places and circumstances shall remain in full force and effect.

 

9.             General.

 

(a)           Notice.  Notices and all other communications contemplated by this Plan shall be in writing and shall be deemed to have been duly given either (i) when personally delivered or sent by facsimile or (ii) five (5) days after being mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of an Eligible Employee, mailed notices shall be addressed to him or her at the home address or facsimile number which he or she most recently communicated to Employer in writing.  In the case of Employer, mailed notices or notices sent by facsimile shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its General Counsel or Chief Financial Officer.

 

(b)           Amendment.  Prior to a Change of Control, the Company reserves the right to amend or terminate this Plan upon written notice to Eligible Employees.  Upon a Change of Control, this Plan will become non-modifiable without the consent of the affected Eligible Employee(s).

 

(c)           Plan Termination.  The Plan shall terminate on December 31, 2016 (the “Plan Termination Date”), provided that the Plan shall not terminate, and shall continue in full force and effect and not shall not be terminable by any action of the Company or a successor in interest to the Company, in the event of the occurrence of a Change of Control on or before the Plan Termination Date.

 

10.          Execution.  To record the adoption of the Plan as set forth herein, effective as of January 15, 2015, JDS Uniphase Corporation has caused its duly authorized officer to execute the same.

 

7Exhibit 10.1

 

 

SFX Entertainment, Inc.

902 Broadway

New York, NY 10010

 

August 19, 2015

 

Mr. Gregory Consiglio

200 North End Avenue

Apt. 28C

New York, NY  10282

 

Dear Greg:

 

Reference is made to that certain Employment Agreement (the “Employment Agreement”) dated January 22, 2015 between you and SFX Entertainment, Inc. (the “Company”).  Defined terms used in this letter agreement and not defined in this letter agreement shall have the meanings ascribed to them in the Employment Agreement.

 

The purpose of this letter agreement (the “Letter Agreement”) is to amend the Employment Agreement effective immediately and redefine certain of the terms and conditions of your continued employment with the Company.  Accordingly, in consideration of the terms and provisions hereof, the Employment Agreement is hereby amended, effective immediately, as follows:

 

1.                                      The first paragraph of Section 1 of the Employment Agreement shall be deleted and replaced in its entirety by the following:

 

“You will be employed in the roles of President and Chief Executive Officer of the Company’s wholly-owned subsidiary, Beatport LLC, and You shall perform the duties of these roles as are customary and as may be required by Beatport and the Company.  You will report to Robert FX Sillerman, Chief Executive Officer of the Company, or his designee.  You will be based at the Company’s office in New York City, New York, or such other place within the New York City metropolitan area as may be determined from time to time by the Company.  During Your employment with the Company, You will devote Your full-time best efforts and business time and attention to the business of Beatport and the Company.”

 

2.                                      The second paragraph of Section 1 of the Employment Agreement shall be deleted.

 

3.                                      Section 3 of the Employment Agreement shall be deleted and replaced in its entirety by the following:

 

 

“(a)                           Base Salary.  You shall be paid a base salary at the annual rate of Three Hundred Thousand Dollars ($300,000.00) (“Base Salary”) for each year of the Term.  As an exempt employee, You will not be eligible for overtime pay.

 

(b)                                 Guaranteed Bonus.   You shall receive a guaranteed annual bonus of One Hundred Fifty Thousand Dollars ($150,000) which shall be payable in accordance with the Company’s standard payroll practices and procedures in effect from time to time, but in no event later than March 31st of the following year, provided you remain employed by the Company as of such date.

 

(c)                                  Discretionary Bonuses.  During your employment, you may be eligible to receive an annual discretionary bonus of cash and/or other compensation, the existence, composition, and amount of which is determined in the sole discretion of the Company, and which would be based on individual performance, the Company’s overall performance, and/or any other factors the Company deems appropriate. The failure of the Company to award bonuses shall not give rise to any claim against the Company. Unless expressly and specifically agreed to in writing, no bonus will be earned, paid, or awarded unless you are in the continuous employment of the Company through the date of payment.

 

(d)                                 Equity/Option Grants.  In January 2015, You  received grants under the 2013 Equity Compensation Plan of the Company of (a) 500,000 restricted common shares (the “Restricted Stock”) of the Company’s common stock and (b) options to purchase 250,000 shares of common stock of the Company, at the fair market value on the date of grant.  Each of the grants shall vest ratably in annual installments at the last day of each employment year (December 31, 2015, 2016, and 2017) over the 3 year Term of this Agreement, subject to your continued employment as of such dates.  Notwithstanding the foregoing vesting schedule, each of the grants shall fully vest immediately prior to the date on which the Company consummates a Change of Control.

 

“Change of Control” shall mean the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

 

(i)                                     Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (an “Exchange Act Person”) (other than Robert F.X. Sillerman or a person or entity that, directly or through one or more intermediaries, controls, is controlled by Mr. Sillerman or is under common control with such person or entity) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than thirty-five percent (35%) of the voting power of the Company, then- outstanding securities other than by virtue of a merger, consolidation or similar transaction.  Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (i) if Robert F.X. Sillerman or a person or entity that, directly or through one or more intermediaries, controls, is controlled by Mr. Sillerman, or is under common control with such a person or entity (a “Sillerman Controlled Entity”) beneficially owns more than such thirty-five percent (35%) at any time; or (ii) solely because the level of ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding

 

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voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided further that if a Change in Control would occur (but for the operation of this proviso) as a result of the acquisition of voting securities by the Company, and after such share acquisition, any such Subject Person (so long as not a Sillerman Controlled Entity) becomes the owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities owned by such Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

 

(ii)                                  There is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company if, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction.

 

(iii)                               There is consummated a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportion as their ownership of the Company immediately prior to such sale, lease, license or other disposition.

 

(iv)                              During any period of 12 consecutive months, individuals who at the beginning of such period constitute the Board cease for any reason to constitute at least a majority thereof unless the election, or the nomination for election by stockholders, of each new director was approved by a vote of at least a majority of the directors then still in office who were directors at the beginning of the period.

 

4.                                      Section 5, subsection (c)(i) shall be deleted in its entirety and replaced with:

 

“(i)                            You will be entitled to receive a lump sum payment within sixty (60) days of the termination date equal to “equal to six (6) months’ (i) base salary and (ii) six (6) months of the prior year’s bonus, if any.”

 

5.                                      Section 9 of the Employment Agreement shall be deleted in its entirety and replaced with the following:

 

“During Your employment with the Company and thereafter, the Company shall indemnify and hold You and Your heirs and representatives harmless, to the maximum extent permitted by law, against any and all damages, costs, liabilities, losses and expenses (including reasonable attorneys’ fees) as a result of any claim or proceeding (whether civil, criminal, administrative or investigative), or any threatened claim or

 

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proceeding (whether civil, criminal, administrative or investigative), against You that arises out of or relates to Your service as an officer, director or employee, as the case may be, of the Company, or Your service in any such capacity or similar capacity with any affiliate of the Company or other entity at the Company’s request, and to promptly advance to You or Your heirs or representatives such expenses, including litigation costs and attorneys’ fees, upon written request with appropriate documentation of such expense upon receipt of an undertaking by You or on Your behalf to repay such amount if it shall ultimately be determined that You are not entitled to be indemnified by the Company.  During Your employment with the Company and thereafter, the Company also shall provide You with coverage under its current directors’ and officers’ liability policy to the same extent that it provides such coverage to its other executive officers.  If You have any knowledge of any actual or threatened action, suit or proceeding, whether civil, criminal, administrative or investigative, as to which You may request indemnity under this provision, You will give the Company prompt written notice thereof; provided that the failure to give such notice shall not affect Your right to indemnification.  The Company shall be entitled to assume the defense of any such proceeding and You will use reasonable efforts to cooperate with that defense.  Notwithstanding the foregoing, to the extent that in good faith, You determine that there is an actual or potential conflict of interest between the Company and You in connection with the defense of a proceeding, You shall so notify the Company and shall be entitled to separate representation at the Company’s expense by counsel selected by You (provided that the Company may reasonably object to the selection of counsel within ten (10) business days after notification of Your selection) which counsel shall cooperate, and coordinate the defense, with the Company’s counsel and minimize the expense of such separate representation to the extent consistent with Your separate defense.  This Section 9 shall continue in effect after the termination of Your employment or the termination of this Agreement.”

 

6.                                      All other terms and conditions of the Employment Agreement, as amended hereby, shall remain in full force and effect.

 

Signatures on following page

 

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If the foregoing correctly sets forth our understanding, please execute this Letter Agreement in the space provided below.

 

	
 
    	
 
    	
Very truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SFX   ENTERTAINMENT, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jason Barr
    
	
 
    	
 
    	
Name:
    	
Jason Barr
    
	
 
    	
 
    	
Title:
    	
Senior Deputy General   Counsel
    
	
 
    	
 
    	
 
    	
 
    
	
Accepted and agreed to   this 20th day of August, 2015:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Gregory Consiglio
    	
 
    	
 
    	
 
    
	
Gregory Consiglio
    	
 
    	
 
    	
 
    

 

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