Document:

Exhibit

    

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (this “Agreement”), including and incorporating, by reference, the attached Summary of Terms and the definitions for the capitalized terms set forth therein, is made by and between Pandora Media, Inc., a Delaware corporation, with its principal place of business at 2100 Franklin Street, Suite 700, Oakland, CA  94612 (“Pandora” or “Company”) and Executive (collectively, the “Parties”).  This Agreement is made as of the Agreement Date and shall become effective as of the Effective Date.
		
	A.
	Executive has been employed by Pandora since the Employment Start Date; and

		
	B.
	Executive will be separated from employment with Pandora effective as of the Separation Date; and 

		
	C.
	The parties desire to reach an agreement as to the rights, benefits, and obligations of each party arising out of Executive’s employment and the anticipated separation from the Company, to resolve all disputes Executive may have against Pandora or the other Releasees (as defined below) – known, unknown, asserted or un-asserted.  

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth below, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Executive and Pandora agree as follows:
1.Change in Employment Status.  Except in the event either Executive or Pandora terminates Executive’s employment sooner, Executive’s last day of employment with the Company shall be the Separation Date.  To the extent that, as of the Separation Date, Executive has any remaining 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

accrued but unused PTO, Executive will receive a cashout of such PTO balance, in accordance with applicable laws.
2.Resignation from Offices and Directorships. As of the Separation Date, Executive shall resign from all officer and director positions with the Company, its subsidiaries or any affiliates of any of them (including, without limitation, Executive’s position as President of the Company).  Executive agrees to execute such additional documentation as the Company or its subsidiaries or affiliates may reasonably request to effectuate such resignations.
3.Severance Payment and Benefits.  If Executive timely signs, dates, returns, and does not revoke (i) this Agreement in accordance with Section 24 of this Agreement; and so long as Executive is not in breach of his obligations under this Agreement, then the Company will provide Executive the following (the “Severance Benefits”) in full satisfaction of any monetary or other obligations to which Executive could claim entitlement under Executive’s Offer Letter or the Company’s Executive Severance and Change of Control Policy (“Executive Severance Policy”):
		
	(a)
	A cash payment equal to six (6) times Executive’s monthly base salary in effect on the Separation Date, gross, paid in a lump sum by the Payment Date (“Severance Months”); 

		
	(b)
	A cash payment equal to a prorated (to the Separation Date) portion of the amount that Executive would have received under Pandora Media, Inc.’s Corporate Incentive Plan for Fiscal Year Ending December 31, 2017, based on the Company’s actual performance as determined by the Compensation Committee of the Board in its discretion for the remaining executive officers of the Company following the completion of the Current Year’s annual performance period; provided that such payment will not exceed 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

Executive’s prorated annual target bonus for the Current Year; provided further that such payment will be made no later than March 15, 2018;
		
	(c)
	So long as Executive timely elects (and remains eligible for) health benefits continuation pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), payment by the Company of Executive’s applicable premiums (including spouse or family coverage if Executive had such coverage on the Separation Date) for such continuation coverage under COBRA (payable as and when such payments become due) during the period commencing on the Separation Date and ending on the earliest to occur of (a) six (6) months following the Separation Date, and (b) the date on which the Executive and Executive’s covered dependents, if any, become eligible for health insurance coverage through another employer, or becomes otherwise covered under another group health plan;

		
	(d)
	Reasonable outplacement and career continuation services by a firm to be selected by the Company for up to three (3) months following the Separation Date, if Executive elects to participate in such services; and 

		
	(e)
	The following vesting schedule:

		
	i.
	Effective on the Effective Date, accelerated vesting by six (6) months of all outstanding Company stock options held by Executive as of the Separation Date; provided that, in lieu of the foregoing, stock options that do not vest monthly will be accelerated through six (6) months following the Separation Date as if such stock option had been on a monthly vesting schedule through 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

the original vesting period; provided that the parties agree that Attachment A correctly sets forth all outstanding Non-Performance RSUs held by Executive and the Non-Performance RSUs to be accelerated under this Section 3(e)(i).
		
	ii.
	Effective on the Effective Date, accelerated vesting by six (6) months of all outstanding non-performance-based equity awards, restricted stock, restricted stock units or RSUs (“Non-Performance RSUs”), held by Executive as of the Separation Date; provided that, in lieu of the foregoing, Non-Performance- RSUs that do not vest monthly will be accelerated through six (6) months following the Separation Date, as if such equity award had been on a monthly vesting schedule through the original vesting period, but only if the date reflecting the number of Severance Months above past the Separation Date is later than such equity award’s originally scheduled vesting date; provided that the parties agree that Attachment A correctly sets forth all outstanding Non-Performance RSUs held by Executive and the Non-Performance RSUs to be accelerated under this Section 3(e)(ii).

		
	iii.
	Continued eligibility for the vesting of market stock units (“MSUs”), performance-based restricted stock units (“PSUs”) (collectively “Performance Awards”) based on the achievement of the Performance Award vesting conditions on the applicable Vesting Dates (as such term is defined in the applicable Notice(s) of Performance Award Grant; provided that the parties agree that Attachment A correctly sets forth the Performance Awards 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

(MSUs and PSUs) eligible for continued vesting under this Section 3(e)(iii); and
		
	iv.
	provided, that all remaining stock options, restricted stock, restricted stock units or other equity-based awards, or performance-based restricted stock units, or portions thereof, that do not vest in accordance with this Agreement shall be forfeited and cancelled by the Company.

All payments made to Executive or on Executive’s behalf under this Agreement will be subject to payroll withholding requirements as required by law.  Such payments are in lieu of any other severance payments to which Executive might claim entitlement (and which the Company would dispute) under the Offer Letter and in lieu of any payments or benefits to which Executive might otherwise claim entitlement (and which the Company would dispute) under any benefit plan, compensation plan, deferred compensation plan, incentive plan or bonus plan of the Company, including, without limitation, the Severance Policy, or under any other contractual right or agreement.  
Executive further agrees and acknowledges that, as of the date he executes this Agreement, Executive has been paid all compensation due and owing through such signature date, including any then-earned wages, salary, bonuses, commissions or incentives, accrued but unused PTO, reimbursable expenses (previously submitted to the Company), and any and all other benefit payment and/or other payment or compensation of any type (except for Executive’s final paycheck, which shall include any balance of accrued but unused PTO as of the Separation Date, and as otherwise explicitly provided in this Agreement with respect to severance benefits under the Company’s Executive Severance Policy) and that no further payments or amounts are owed or will be owed.  

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

4.Tax Obligations.  Pandora makes no representations or warranties with respect to the tax consequences of the payments provided to Executive under the terms of this Agreement.  Executive agrees and understands that Executive is responsible for payment, if any, of applicable taxes owed by Executive on the payments made by Pandora under this Agreement, or penalties assessed for failure of Executive to pay such taxes.  Executive further agrees to indemnify and hold Pandora harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments or recoveries by any government agency against Pandora for any amounts claimed due on account of Executive’s failure to pay, or Executive’s delayed payment of, applicable taxes owed by him.
5.General Release of Claims. 
(a)As consideration for the Severance Benefits described in this Agreement, Executive hereby completely releases and forever discharges Pandora, its subsidiary, predecessor, successor, and related corporations, divisions and entities, and its and each of their current and former officers, directors, executives, agents, investors, attorneys, shareholders, founders, administrators, affiliates, benefit plans, plan administrators, insurers, divisions, successor corporations, and assigns (collectively referred to as “Releasees”) from any and all legally waivable claims, complaints, rights, duties, obligations, demands, actions, liabilities and causes of action of any kind whatsoever, whether presently known or unknown, suspected or unsuspected, which Executive may have or have ever had against Releasees, including without limitation all claims arising from or connected with Executive’s employment by Pandora and Executive’s separation from employment, whether based in common law, tort, or contract (express or implied), or on federal, state or local laws or regulations, and any and all claims for attorneys’ fees and costs.  Executive has been advised that Executive’s release does not apply 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

to (i) any rights or claims that may arise after the date that Executive executed this Agreement; (ii) claims that cannot be released as a matter of law; (iii) any unemployment insurance claim; (iv) any workers’ compensation insurance benefits, to the extent any applicable state law prohibits the direct release of such benefits without judicial or agency approval; (v) continued participation in certain benefits under COBRA (and any state law counterpart), if applicable; and (vi) any benefit entitlements vested as of Executive’s last day of employment, pursuant to written terms of any applicable Executive benefit plan sponsored by the Company. 
(b)Executive understands and agrees that this is a final release and that Executive is waiving (to the extent waivable in accordance with applicable laws) all rights now or in the future to pursue any remedies available under any employment related cause of action against Releasees, including without limitation claims of wrongful discharge, emotional distress, defamation, harassment, discrimination, retaliation, breach of contract or covenant of good faith and fair dealing, claims of violation of the California labor laws, claims under Title VII of the Civil Rights Act of 1964, as amended, the Equal Pay Act of 1963, the Civil Rights Act of 1866, as amended, the Americans with Disabilities Act of 1990 (“ADA”), the Age Discrimination in Employment Act of 1967 (“ADEA”), the Family and Medical Leave Act of 1993 (“FMLA”), the California Family Rights Act (“CFRA”), the California Fair Employment and Housing Act (“FEHA”), the Executive Retirement Income Security Act (“ERISA”), the National Labor Relations Act (“NLRA”), the California Constitution; the Genetic Information Nondiscrimination Act of 2008 (“GINA”), the Worker Adjustment and Retraining Notification Act (“WARN”), the Sarbanes-Oxley Act of 2002, the Fair Credit Reporting Act, the California Labor Code, the California Business & Professions Code, the California Government Code, 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

and any other laws and regulations relating to employment and that are waivable in accordance with applicable laws.  
(c)Executive specifically agrees that this Agreement includes without limitation any and all claims that were raised, or that reasonably could have been raised, under the applicable Wage Order, Labor Code sections 201, 202, 203, 212, 226, 226.3, 226.7, 432.7, 510, 512, 515, 558, 1194, and 1198, as well as claims under the Business & Professions Code sections 17200, et seq. and Labor Code sections 2698, et seq. based on alleged violations of Labor Code provisions.  Executive further covenants that Executive will not seek to initiate any proceedings seeking penalties under Labor Code sections 2699, et seq. based upon the Labor Code provisions specified above.
(d)Executive further acknowledges and agrees that Executive has received all leave to which Executive requested and was entitled, if any, under all federal, state, and local laws and regulations related to leave from employment, including, but not limited to, the FMLA, the CFRA, and California worker’s compensation and paid family leave laws.
6.Release of Unknown Claims.  For the purpose of implementing a full and complete release, Executive expressly acknowledges that the releases given in this Agreement are intended to include, without limitation, claims that Executive did not know or suspect to exist in Executive’s favor at the time of the date of Executive’s execution of this Agreement, regardless of whether the knowledge of such claims, or the facts upon with they might be based, would have materially affected the settlement of this matter; and that the Separation Pay provided under this Agreement is also for the release of those claims and contemplates the extinguishment of any such unknown claims, despite the fact that California Civil Code section 1542 may provide otherwise.  Executive hereby expressly waives any 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

right or benefit available to Executive in any capacity under the provisions of California Civil Code Section 1542, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
7.No Pending Lawsuits.    Executive represents that Executive has no lawsuits, administrative charges, claims or actions pending in Executive’s name, or on behalf of any other person or entity, against Pandora or any of the other Releasees.  Executive agrees that, consistent with applicable laws, and subject to the Permitted Disclosures and Actions provision set forth below, Executive will not knowingly encourage, counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, grievances, claims, charges or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so, or as otherwise required by applicable law or regulation, and to notify Pandora within three (3) business days of receipt of any such subpoena or court order.
8.Covenant Not to Sue.    Executive warrants and represents that Executive has not filed and has not assigned any claims or causes of action covered by this release.  Subject to Section 5 above, and subject to the Permitted Disclosures and Actions provision set forth below, Executive agrees that at no time in the future will Executive file or maintain any charge, claim or action of any kind, nature or character against Releasees, or cause or knowingly permit, on the Executive’s behalf, any such charge, claim or action to be filed or maintained, in any federal, state or municipal court, administrative agency or other tribunal, arising out of any of the matters released by this Agreement.  

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

9.Nondisclosure of Agreement.  Executive will maintain the fact and terms of this Agreement and any payments made by Pandora in strict confidence and will not disclose the same to any other person or entity (except the Court in any proceedings to enforce the terms of this Agreement, Executive’s legal counsel, spouse or domestic partner, accountant, and any professional tax advisor to the extent that they need to know the information contained in this Agreement to provide tax-related advice, as otherwise required by applicable laws, or consistent with the Permitted Disclosures and Actions provision set forth below) without the prior written consent of Pandora. 
10.Non-Disparagement.  Subject to the Permitted Disclosures and Actions provision set forth below, Executive agrees not to make statements or representations to any other person, entity or firm about Pandora, including its affiliated and related companies and subsidiaries, or its directors, officers, agents, Executives, and representatives, which are offensive or derogatory, or which are likely to adversely affect Pandora’s name or reputation or the name or reputation of any director, officer, agent or Executive of Pandora.  The foregoing sentence is not intended to restrict Executive’s good faith expressions of opinion or competitive comparisons involving Pandora, including its affiliated and related companies and subsidiaries.  Nothing in this Agreement is intended to unlawfully impair or interfere with Executive’s rights under Section 7 of the National Labor Relations Act or to respond to subpoenas to testify or provide information.   
11.Return of Property and Confidentiality Obligations.     Executive represents that, as of the Separation Date, Executive will return to Pandora, and will not directly or indirectly possess or maintain control over, any records, documents, specifications, or any confidential material or any equipment or other property of Pandora.  Executive further represents that Executive has complied with and will 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

continue to comply with the terms of any Confidential Information, Invention Assignment, and Arbitration Agreement (“CIIAAA”), signed by Executive, and will preserve as confidential all confidential information pertaining to the business of Pandora and its customers, licensees and affiliates.  Executive acknowledges and agrees that the CIIAAA will continue in full force and effect following Executive’s separation from the employ of Pandora.  Executive agrees and acknowledges that – as a condition of receiving any benefits or payments from Pandora that Executive is entitled to solely by reason of this Agreement – Executive must sign and return to Pandora all acknowledgment forms provided to Executive by Pandora upon separation from employment, including but not limited to Notice to Executive of Change in Relationship, Separation Packet cover page, and Termination Certification.  Executive is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (i) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
12.Expense Reimbursement. Executive represents and agrees that, if Executive has any outstanding job-related expenses, Executive will submit them for reimbursement, consistent with Company policy, by the Separation Date.  Executive understands that it is Executive’s obligation to provide Pandora with adequate documentation of that expense.  Pandora will reimburse Executive the amounts it is required to reimburse after receiving documentation and consistent with Company policy, without regard to this Agreement.

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

13.Cooperation with Pandora.  Subject to the Permitted Disclosures and Actions provision set forth below, Executive agrees that Executive will cooperate with Pandora, its agents, and its attorneys with respect to any matters in which Executive was involved during Executive’s employment with Pandora or about which Executive has information, will provide upon request from Pandora all such information or information about any such matter, will make every reasonable effort to be available to assist with any litigation or potential litigation relating to Executive’s actions as a Pandora Executive, and will testify truthfully in any legal proceeding related to Executive’s employment with Pandora.  Pandora will reimburse Executive for all expenses incurred in connection with any reasonable requests for cooperation or assistance by Pandora and shall reimburse Executive at a reasonable hourly rate for any non de-minimis time expended after the Separation Date.
14.No Lien or Assignment By Executive.  Executive warrants and represents that there are no liens or claims of lien in law or equity or otherwise of or against any of the claims or causes of action released herein.  Executive acknowledges and agrees that this Agreement, and any of the rights hereunder, may not be assigned or otherwise transferred, in whole or in part by Executive.
15.Arbitration.  
(a)Any and all controversies arising out of or relating to the validity, interpretation, enforceability, or performance of this Agreement will be solely and finally settled by means of binding arbitration in the State of California.  Any arbitration will be administered by Judicial Arbitration & Mediation Services, Inc. (“JAMS”), pursuant to its Employment Arbitration Rules & Procedures (the “JAMS Rules”), which may be found at http://www.jamsadr.com/rules-employment-arbitration/ or 

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

obtained upon request made to the Company's Legal Department at 2100 Franklin Street, Suite 700, Oakland, CA  94612.  
(b)Any arbitration under this Agreement shall be conducted in the county of the State in which the Executive last worked for the Company.  The arbitrator shall be selected by mutual agreement of Executive and the Company.  Unless the Company and Executive mutually agree otherwise, the arbitrator shall be an attorney licensed to practice in the location where the arbitration proceeding will be conducted or a retired federal or state judicial officer who presided in the jurisdiction where the arbitration will be conducted.  
(c)The party bringing the claim must demand arbitration in writing and deliver the written demand by hand or first class mail to the other party within the applicable statute of limitations period.  Any demand for arbitration made to the Company shall be provided to the Company's Legal Department at 2100 Franklin Street, Suite 700, Oakland, CA  94612.  The arbitrator shall resolve all disputes regarding the timeliness or propriety of the demand for arbitration.  In arbitration, the parties will have the right to conduct adequate civil discovery, bring dispositive motions, and present witnesses and evidence, as needed to present their cases and defenses, and any disputes in this regard shall be resolved by the arbitrator.  Each party will pay the fees for his, her, or its own attorneys, subject to any remedies to which that party may later be entitled under applicable law.  The arbitrator’s fees and costs shall be paid for by Pandora.  The prevailing party shall be entitled to judicial relief from a court of competent jurisdiction to enforce the arbitration award.  THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHTS TO HAVE ANY DISPUTE UNDER THIS AGREEMENT RESOLVED BY A JUDGE OR JURY TRIAL.

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

16.No Admission.  The execution of this Agreement and the performance of its terms shall in no way be construed as an admission of wrongdoing or liability by either Executive or Pandora.  Both parties expressly disclaim any liability for claims by the other.
17.Permitted Disclosures and Actions.  This Agreement does not prohibit or restrict Executive, the Company, or the other Releasees from lawfully:  (i) initiating communications directly with, cooperating with, providing relevant information (including but not limited to information regarding the existence of or facts and circumstances underlying this Agreement), or otherwise assisting in an investigation by (A) the Securities and Exchange Commission (SEC), Department of Justice, any agency Inspector General, or any other governmental, regulatory, or legislative body regarding a possible violation of any federal law relating to fraud or any SEC rule or regulation; or (B) the Equal Employment Opportunity Commission (EEOC) or any other governmental authority with responsibility for the administration of fair employment practices laws regarding a possible violation of such laws;  
(ii) responding to any inquiry from any such governmental, regulatory, or legislative body or official or governmental authority, including an inquiry about the existence of this Agreement or its underlying facts or circumstances; or (iii) participating, cooperating, testifying, or otherwise assisting in any governmental action, investigation, or proceeding relating to a possible violation of any such law, rule or regulation.  Further, nothing in this Agreement shall prohibit or restrict Executive from initiating communications directly with, or responding to any inquiry from, or providing testimony before, the SEC or any other federal or state regulatory authority regarding this Agreement or its underlying facts or circumstances, or regarding any potentially fraudulent or suspicious activities.

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

18.Voluntary Execution.  Executive acknowledges and agrees that Executive executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of Pandora or any third party, with the full intent of releasing all of Executive’s claims against Pandora and any of the other Releasees.  By this writing, Pandora has advised Executive to consult with an attorney prior to executing this Agreement.  Executive represents that Executive has had an opportunity to consult with an attorney, if the Executive wishes, and has carefully read and understands the scope and effect of the provisions set forth in this Agreement.
19.Entire Agreement.  Executive acknowledges that this Agreement is a full and accurate embodiment of the understanding between Executive and the Company, and that it supersedes any prior agreements or understandings made by the Parties, except the CIIAAA, which shall remain in full force and effect subsequent to the execution of this Agreement.  This Agreement may only be amended in a writing signed by Executive and an authorized representative of Pandora.
20.Governing Law and Venue.    This Agreement will be construed and enforced in accordance with the laws of the State of California, without regard to choice-of-law provisions.  Except as provided for in this Agreement, Executive hereby consents to personal and exclusive jurisdiction and venue in the State of California, County of Alameda.  
21.Counterparts.  This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.  This Agreement shall be binding upon and shall inure to the benefit of the parties and their heirs, administrators, representatives, executors, successors and assigns.

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

22.Section 409A.    
(a)This Agreement is intended to comply with short term deferral and separation pay plan exceptions to section 409A of the Internal Revenue Code of 1986, as amended and its corresponding regulations (“Section 409A”).  For purposes of Section 409A, all payments to be made upon separation from employment under this Agreement may only be made upon a “separation from service” (within the meaning of such term under Section 409A), each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement is to be treated as a right to a series of separate payments.  In no event will Executive, directly or indirectly, designate the calendar year of payment of any severance benefits.  All reimbursements and in-kind benefits provided under this Agreement will be made or provided in accordance with the requirements of Section 409A.   
(b)Notwithstanding any provision in this Agreement to the contrary, if at the time of Executive’s “separation from service” with Pandora, Pandora has securities which are publicly-traded on an established securities market and Executive is a “specified Executive” (as defined in Section 409A) and it is necessary to postpone the commencement of any severance payments otherwise payable pursuant to this Agreement as a result of such separation from service to prevent any accelerated or additional tax under Section 409A, then Pandora will postpone the commencement of the payment of any such payments hereunder that are not otherwise exempt from Section 409A, until the first payroll date that occurs after the date that is six (6) months following Executive’s separation from service with Pandora.

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

23.Severability.  If any provision of this Agreement is held by a court of competent jurisdiction to be void or unenforceable for any reason, the remaining provisions of this Agreement shall continue with full force and effect without said provision so long as the remaining provisions remain intelligible and continue to reflect the original intent of the Parties.  
24.Age Discrimination in Employment Act.  Executive acknowledges, agrees and understands that: 
(a)    under the general release detailed above, Executive is waiving and releasing, among other claims, any rights and claims that may exist under the Age Discrimination in Employment Act (“ADEA”); 
(b)    the waiver and release of claims set forth in the release above does not apply to any rights or claims that may arise under the ADEA after the date of execution of this Agreement;
(c)    the payments and other consideration that are being provided to Executive are of significant value and are in addition to what Executive otherwise would be entitled;
(d)    Executive is being advised to consult an attorney before signing this Agreement.  Executive acknowledges that Executive has been given the opportunity to consult with counsel of Executive’s choice before signing this Agreement, and that Executive fully understands the contents and legal effect of this Agreement;  
(e)    Executive further acknowledges that Executive has been given the right to consider this Agreement for up to twenty-one (21) days before signing it, though Executive may sign earlier, and if Executive fails to sign and return this Agreement by the Deadline for Executive’s Signature date set forth in the Summary of Terms, Company’s offer and this Agreement will expire on its own terms;

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

(f)    Executive may revoke acceptance of this Agreement by providing written notice to Pandora within seven (7) days from the date Executive signs this Agreement, and any notice of revocation of this Agreement must be in writing and transmitted by hand or certified mail to Pandora Media, Inc., 2100 Franklin Street, Suite 700, Oakland, CA  94612, Attn: General Counsel; and 
(g)    because of Executive’s right to revoke this Agreement, this Agreement shall not become final and binding on both Parties until the eighth (8th) day after the return of an executed copy of this Agreement by Executive to Company (the Effective Date) and Executive will not be entitled to any of the payments or benefits set forth in this Agreement until the Payment Date, as set forth in the Summary of Terms.  
SIGNATURE PAGE FOLLOWS

Pandora Media, Inc. – Separation Agreement and Release                         Michael Herring

    

PANDORA MEDIA, INC.                MICHAEL HERRING

By: /s/ Kristen Robinson               By: /s/ Michael Herring                

Name:     Kristen Robinson               Date:      Aug 15, 2017                    

Title:   Chief Human Resources Officer

Date:     Aug 15, 2017                    

*NOT TO BE SIGNED UNTIL ON/AFTER THE SEPARATION DATE*

Pandora Media, Inc. – Separation Agreement and Release                         Michael HerringExhibit

AMENDMENT NO. 1 TO MEMBERSHIP INTEREST PURCHASE AGREEMENT

AMENDMENT NO. 1, dated as of September 1, 2017 (this “Amendment”), to the Membership Interest Purchase Agreement, dated as of June 9, 2017 (the “Agreement”), by and among Eventbrite, Inc., a Delaware corporation (“Buyer”), Pandora Media, Inc., a Delaware corporation (“Seller”) and Ticketfly, LLC, a Delaware limited liability company (the “Company”).  
RECITALS
WHEREAS, Buyer, Seller and the Company have entered into the Agreement; and
WHEREAS, Buyer, Seller and the Company desire to amend the Agreement, in accordance with Section 10.5 thereof.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
ARTICLE I
1.1    Definitions.  Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement.
ARTICLE II
2.1    Amendment to Section 6.10(b).  Section 6.10(b) of the Agreement is hereby deleted and replaced in its entirety with the following:
(b) Tax Contests.  Buyer shall notify the Seller in writing upon receipt by Buyer of any written notice from a Governmental Entity of an audit, contest, examination, litigation or other controversy with respect to Taxes of the Company or any of its Subsidiaries which may give rise to a claim for Taxes for which the Seller may have an indemnification obligation (each, a “Tax Contest”); provided that any failure by Buyer to so notify the Seller shall not relieve the Seller of its indemnification obligations hereunder unless and to the extent that the Seller is materially and adversely prejudiced thereby.  Except as provided in the next sentence, the Seller, at its own expense, shall be permitted to participate in, but not control, any Tax Contest and Buyer shall not settle or otherwise compromise any Tax Contest if such settlement or compromise would result in an indemnification obligation of the Seller without the prior written consent of the Seller, such consent not to be unreasonably withheld, conditioned or delayed.  With respect to the ongoing sales and use Tax audit of the Company by the taxing authority of the State of Texas for the period January 1, 2014 through April 30, 2017 that is disclosed in Schedule 2.11(d) of the Company Disclosure Letter, (the “Texas Audit”), Buyer and Seller have agreed that (i) Seller shall (1) continue to control the Texas Audit after the Closing Date until the Texas Audit is completely and finally resolved, (2) periodically consult with the Buyer with respect to, and apprise Buyer of the status of, the Texas Audit, (3) permit the Buyer, at its own expense, to participate in, but not control, the Texas Audit, and (4) have the authority to settle or otherwise compromise the Texas Audit with the consent of Buyer, which shall not be unreasonably withheld, conditioned or delayed (and for the avoidance of doubt, Buyer’s inability to pay or cause to be paid Taxes due pursuant to the following clause (ii) shall not be reasonable grounds to withhold consent), (ii) Buyer shall, or shall cause the Company to, timely pay the full amount of any Taxes due to the taxing authority of the State of Texas in connection with any such settlement or compromise, provided that the principal amount of the Note shall be reduced by an amount equal to the amount of Pre-Closing Taxes that Buyer and Seller have agreed that Seller would be liable for in connection with such settlement or compromise pursuant to Section 9.1(a)(v) (or if the principal amount of the Note has been reduced to zero (0), Seller shall pay such Pre-Closing Taxes to the taxing authority of the State of Texas subject to the same limitations set forth in Article 9 (other than Sections 9.2(f), 9.4 and 9.5) that are applicable to Indemnifiable Damages under Section 9.1(a)(v)); provided, further, that in the event that Buyer does not timely pay, or cause the Company to timely pay, the amount due pursuant to the foregoing clause (ii) before the last date under the assessment, agreement or other demand for payment before additional amounts of interest or penalties are imposed (the “Texas Audit Due Date”), Seller shall no longer be liable to Buyer for any amount of such additional interest and penalties accruing or assessed after the Texas Audit Due Date, regardless of whether such amounts would otherwise constitute Pre-Closing Taxes under this Agreement and (iii) in the event that the timely payment of Taxes by the Texas Audit Due Date pursuant to clause (ii) has been satisfied, then Buyer and Seller agree that the procedural requirements of Sections 9.2(f), 9.4 and 9.5 with respect to Indemnifiable Damages shall not apply.  This Section 6.10(b) shall not apply to any Tax Contest (other than, to the extent applicable, the Texas Audit) which constitutes a Voluntary Disclosure Filing.
2.2    Amendment to Section 6.10(i).  Section 6.10(i) of the Agreement is hereby deleted and replaced in its entirety with the following:
(i) Voluntary Disclosure Agreements.  After the Closing Date, the Company and its Subsidiaries shall, at the direction of the Buyer, be permitted to initiate, control and settle or otherwise compromise all voluntary disclosure agreements, initiatives and similar processes, including the filing and/or amendment of any Tax Returns or agreements, for the mitigation of any Liability for sales and use Taxes (and any similar or equivalent Taxes) in all applicable state and local jurisdictions (collectively, the “Voluntary Disclosure Filings”).  Buyer agrees that it shall use good faith, commercially reasonable efforts to minimize the liability for such Taxes in the preparation, filing, negotiation and settlement of such Voluntary Disclosure Filings. The Seller agrees that it shall not be permitted to contact any venue, customer or former customer of the Company and its Subsidiaries with respect to any sales, use or similar Tax matters, except with the prior written consent of the Buyer. Not less than fifteen (15) Business Days prior to the filing of each Voluntary Disclosure Filing, Buyer shall provide Seller with a draft copy of such Voluntary Disclosure Filing for Seller’s review, and Buyer shall consider in good faith any comments to such Voluntary Disclosure Filing provided by Seller prior to filing. If Seller and Buyer do not agree with respect to the amount of Tax liability reflected in any Voluntary Disclosure Filing, and Seller and Buyer cannot mutually agree to continue their efforts to resolve such differences, Seller and Buyer shall engage an accounting firm acceptable to both Seller and Buyer to review the matters in dispute with respect to such Voluntary Disclosure Filing. Seller and Buyer shall each be entitled to make a presentation to the accounting firm within ten (10) Business Days after the engagement of the accounting firm, pursuant to procedures to be agreed to among Seller, Buyer and the accounting firm (or, if they cannot agree on such procedures, pursuant to procedures determined by the accounting firm), regarding their respective positions relating to such matters in dispute. After such review, the accounting firm shall promptly (and in any event within sixty (60) Business Days following its engagement) determine in writing the resolution of such disputed matters, which written determination shall be final and binding on the parties hereto. The cost of such review shall be paid one-half by Seller and one-half by Buyer. Notwithstanding anything in this Agreement to the contrary, Buyer agrees that Seller shall be entitled, but not obligated, to continue to control, on behalf of the Company and its Subsidiaries, any Voluntary Disclosure Filing process that is already in progress at the Closing Date and with respect to which the Buyer has requested continued assistance from the Seller after the Closing Date (“Ongoing VDA Process”), provided that (i) Seller shall (1) periodically consult with Buyer with respect to, and apprise Buyer of the status of, such Ongoing VDA Process, (2) have the authority to settle or otherwise compromise such Ongoing VDA Process with the consent of Buyer, which shall not be unreasonably withheld, conditioned or delayed (and for the avoidance of doubt, Buyer’s inability to pay or cause to be paid Taxes due pursuant to the following clause (ii) shall not be reasonable grounds to withhold consent), and (3) permit the Buyer, at its own expense, to participate in, but not control, such Ongoing VDA Process, (ii) Buyer shall, or shall cause the Company to, timely pay the full amount of any Taxes due to the relevant Tax Authority in connection with any such settlement or compromise, provided that the principal amount of the Note shall be reduced by an amount equal to the amount of Pre-Closing Taxes that Buyer and Seller have agreed that Seller would be liable for in connection with such settlement or compromise pursuant to Section 9.1(a)(v); provided, further, that in the event that Buyer does not timely pay, or cause the Company to timely pay, the amount due pursuant to the foregoing clause (ii) before the last date under the assessment, agreement or other demand for payment before additional amounts of interest or penalties are imposed (the “VDA Due Date”), Seller shall no longer be liable to Buyer for any amount of such additional interest and penalties accruing or assessed after the VDA Due Date, regardless of whether such amounts would otherwise constitute Pre-Closing Taxes under this Agreement, and (iii) in the event that the timely payment of Taxes by the VDA Due Date pursuant to clause (ii) has been satisfied, then Buyer and Seller agree that the procedural requirements of Sections 9.2(f), 9.4 and 9.5 with respect to Indemnifiable Damages shall not apply.  Buyer shall cooperate with any reasonable request for assistance from Seller with respect to any such Ongoing VDA Process, including by (but not limited to) providing Seller with any relevant information, granting Seller any necessary power of attorney and filing any Tax Returns necessary to assist Seller with the resolution of any such Ongoing VDA Process.  Notwithstanding anything else in this Agreement to the contrary, Seller shall bear the costs and expenses relating to an Ongoing VDA Process so long as such Ongoing VDA Process is controlled by Seller; provided that Buyer shall reimburse Seller for one-half of any costs or expenses incurred by Seller after the Closing Date as a result of an Ongoing VDA Process, no later than ten (10) days after the date on which Seller provides to Buyer documentation evidencing such costs or expenses incurred by Seller.  In the event of any conflict between Section 6.10(a), Section 6.10(b), Section 6.10(c) or Section 9.6 and this Section 6.10(i), this Section 6.10(i) shall control.  For the avoidance of doubt, if the principal amount of the Note has been reduced to zero (0), any such Pre-Closing Taxes due to the relevant Tax Authority in connection with any settlement or compromise of such Ongoing VDA Process which did not result in a reduction of the principal amount of the Note shall be Indemnifiable Damages pursuant to Section 9.1(a)(v), subject to the same limitations set forth in Article 9 (other than Sections 9.2(f), 9.4 and 9.5).
2.3      Amendment to Section 6.15.  Section 6.15 of the Agreement is hereby deleted and replaced in its entirety with the following:
6.15    Board Observer Rights. As long as the Note is outstanding and Seller or its successors own at least 1% on a fully diluted basis of Buyer’s securities, Buyer shall invite a representative of Seller to attend all meetings of Buyer’s board of directors in a non-voting observer capacity and, in this respect, shall give such representative copies of all notices, minutes, consents and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided, however, that such representative shall agree to hold in confidence and trust pursuant to the provisions of Section 6.2, and to act in a fiduciary manner with respect to, all information so provided; provided, further, that Buyer may withhold any information and to exclude such representative from any materials or meeting or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege between Buyer and its counsel or result in disclosure of trade secrets or other highly confidential information.  Buyer’s obligations and Seller’s rights under this Section 6.15 shall terminate upon a Buyer Liquidity Event pursuant to which the Note is repaid in full to Seller in accordance with its terms.
2.4    New Sections 6.16, 6.17 and 6.18 Added to Article VI: Additional Agreements.  The following Sections 6.16, 6.17 and 6.18 are each hereby added to Article VI after Section 6.15:
6.16    Note Valuation Information.  As long as the Note is outstanding, Buyer shall provide Seller and its Representatives on a quarterly basis with information pertaining to Buyer’s fair value per share for such quarter, including a complete copy of Buyer’s 409A valuation for such quarter.  Such information shall be delivered by Buyer to Seller no later than 10 business days prior to each end of Seller’s fiscal quarter.  Buyer’s obligations and Seller’s rights under this Section 6.16 shall terminate upon a Buyer Liquidity Event pursuant to which the Note is repaid in full to Seller in accordance with its terms.
6.17    Pemberton Claims.  Prior to the Closing, Seller may cause the Company to assign to Seller all of the Company’s rights to any Legal Proceeding of any nature available to or being pursued by Seller prior to the Closing against: (a) Pemberton Music Festival Partnership (“Pemberton”), including in connection with Pemberton’s assignment into bankruptcy as of May 18, 2017 (the “Pre-Closing Pemberton Claims”) and (b) Huka Productions, LLC (the “Pre-Closing Huka Claims”), in each case, whether arising by way of counterclaim or otherwise.  For sake of clarity, this Section 6.17 shall have no effect on Seller’s obligations to indemnify Buyer under Article IX, and any recoveries made by Seller with respect to the Pre-Closing Pemberton Claims or the Pre-Closing Huka Claims shall not be deducted from any Indemnifiable Damages.
6.18    Pemberton and Huka Claims Information.  Following the Closing Date, Buyer shall, and shall cause the Company and its Affiliates to, promptly: (a) provide Seller and its Representatives with materials and information pertaining to the Pre-Closing Pemberton Claims and the Pre-Closing Huka Claims and (b) execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out Section 6.17.
2.5    Amendment to Exhibit A: Definitions.  
The definition of “Buyer Liquidity Event” is hereby added to Exhibit A: Definitions after the definition of “Business Day” and before the definition of “Canadian Multi-Employer Plan”:
“Buyer Liquidity Event” means (a) the consummation of the sale of the Buyer’s securities pursuant to a registration statement filed by Buyer under the Securities Act in connection with the firm commitment underwritten offering of its securities to the general public; or (b) the consummation of a merger or consolidation of Buyer that is effected (i) for independent business reasons unrelated to extinguishing such rights; and (ii) for purposes other than (A) the reincorporation of Buyer in a different state; or (B) the formation of a holding company that will be owned exclusively by Buyer’s stockholders and will hold all of the outstanding shares of capital stock of Buyer’s successor.
The definition of “Cash Purchase Price” is hereby deleted and replaced in its entirety with the following:
“Cash Purchase Price” means $150,000,000 in cash, plus (i) the Signing Bonus, if any; plus (ii) the Closing Net Working Capital Surplus, if any and less (iii) the Closing Net Working Capital Shortfall, if any.”
The following definition of “Signing Bonus” is hereby added to Exhibit A: Definitions after the definition of “Securities Act” and before the definition of “Straddle Period”:
“Signing Bonus” means the aggregate cash paid by Seller and the Company on or after the Agreement Date and prior Closing to new clients of the Company and renewal of existing clients of the Company, provided that such amount shall not exceed $2,750,000 for purposes of adjusting the Cash Purchase Price as set forth in the definition of “Cash Purchase Price”.
ARTICLE III
3.1    Authorization.  Each party hereto represents to the other that (i) such party has all requisite power and authority to execute and deliver this Amendment; and (ii) this Amendment has been duly and validly executed and delivered by such party and constitutes the legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms, subject only to the effect, if any, of (i) applicable bankruptcy and other similar Applicable Law affecting the rights of creditors generally and (ii) rules of law governing specific performance, injunctive relief and other equitable remedies.
3.2    Amended Agreement.  This Amendment constitutes an amendment to the Agreement in accordance with Section 10.5 thereof and shall be read and construed with the Agreement as one instrument.  Except as expressly amended hereby, the Agreement shall remain in full force and effect, and the parties hereby ratify, confirm and adopt the Agreement, as amended hereby.
3.3    Amendments and Waivers.  Subject to Applicable Law, the parties hereto may amend this Amendment by authorized action at any time pursuant to an instrument in writing signed on behalf of each of the parties hereto. 
3.4    Counterparts.  This Amendment may be executed in one or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties hereto and delivered to the other parties hereto; it being understood and agreed that all parties hereto need not sign the same counterpart. The delivery by facsimile or by electronic delivery in PDF format of this Agreement with all executed signature pages (in counterparts or otherwise) shall be sufficient to bind the parties hereto to the terms and conditions set forth herein. All of the counterparts will together constitute one and the same instrument and each counterpart will constitute an original of this Agreement.  

[signature page follows]

IN WITNESS WHEREOF, Buyer, Seller and the Company have caused this Amendment to the Agreement to be executed and delivered by their respective officers thereunto duly authorized, all as of the date first written above.  

BUYER:

EVENTBRITE, INC.

By: /s/ Julia Hartz                
Name:    Julia Hartz
Title:     CEO

SELLER:

PANDORA MEDIA, INC.

By:  /s/ Steve Bené                
Name:    Steve Bené
Title:     General Counsel

THE COMPANY:

TICKETFLY, LLC

By:  /s/ Jeremy Liegl                
Name:    Jeremy Liegl
Title:     Manager
    

ACTIVE 223199900

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