Document:

Exhibit

Exhibit 10.15

MONITRONICS INTERNATIONAL, INC.
2017 CASH INCENTIVE PLAN
(As Amended and Restated January 1, 2019)
2019 PERFORMANCE-BASED CASH AWARD AGREEMENT

THIS PERFORMANCE-BASED CASH AWARD AGREEMENT (this "Agreement") is made as of January 1, 2019 (the "Grant Date"), by Fred Graffam and between MONITRONICS INTERNATIONAL, INC., a Texas corporation (the "Company"), and the person signing as "Grantee" on the signature page hereof (the "Grantee").

The Company has adopted the Monitronics International, Inc. 2017 Cash Incentive Plan, as amended and restated effective January 1, 2019 (as has been or may hereafter be amended, the "Plan"), a copy of which is attached hereto as Exhibit A and by this reference made a part hereof, for the benefit of eligible employees of the Company and its Subsidiaries. Capitalized terms used and not otherwise defined in this Agreement will have the meanings ascribed to them in the Plan.

The LTIP Committee has determined that it would be in the interest of the Company to grant a cash award to the Grantee, subject to the conditions and restrictions set forth herein and in the Plan, and in order to provide the Grantee with additional remuneration for services rendered and to increase the Grantee's personal interest in the continued success and progress of the Company and Ascent Capital.

The Company and the Grantee therefore agree as follows:

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

"2019 Vesting Cycle" means the twelve (12) month period beginning on January I, 2019. 

"2020 Vesting Cycle" means the twelve (12) month period beginning on January 1, 2020. 

"2021 Vesting Cycle" means the twelve (12) month period beginning on January I, 2021. 

"Cause" has the meaning specified in Section 7.2(b) of the Plan.

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

(a)the acquisition by any person or group of ownership of stock of the Company or Ascent Capital that, together with stock already held by such person or group, constitutes more than 50% of the total fair market value or more than 50% of the total voting power of the stock of the Company or Ascent Capital;

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

(c)    the acquisition by any person or group, in a single transaction or in multiple transactions all occurring during the twelve (12)-month period ending on the date of the  most recent acquisition by such person or group, of ownership of stock of the Company or Ascent Capital possessing 30% or more of the total voting power of the stock of  the Company or Ascent Capital or the replacement of a majority of the Company's or Ascent Capital's Board of Directors during any twelve (12)-month period by directors whose appointment 

or election is not endorsed by a majority of the members of the Company's or Ascent Capital's (as applicable) Board of Directors before the date of appointment or election.

"Close of Business" means, on any day, 5:00 p.m., Dallas, Texas time.

"Committee Certification Date" has the meaning specified in Section 3(c) of this Agreement.

"Earned Amounts" has the meaning specified in Section 3(c) of this Agreement.

"Key Performance Indicators" means the performance metrics as established by the LTIP Committee for each Vesting Cycle, which for the 2019 Vesting Cycle is set forth in Schedule 1 and for the 2020 Vesting Cycle and 2021 Vesting Cycle shall be provided to the Grantee prior to March 31st of 2020 and 2021, respectively.

"Settlement Date" has the meaning specified in Section 4(a) of this Agreement. 

"Termination With Good Reason" shall have the meaning ascribed thereto in any employment agreement between the Grantee and the Company or its Affiliate. For the avoidance of doubt, if the Grantee is not party to an employment agreement with the Company or its Affiliate or if such agreement does not provide a definition for "good reason", then the Grantee will not be eligible for any benefits provided under this Agreement with regard to a Termination With Good Reason.

"Vesting Cycle" means each of the 2019 Vesting Cycle, 2020 Vesting Cycle and 2021 Vesting Cycle.

"Vesting Notification" has the meaning specified in Section 3(c) of this Agreement.

2.    Award. Pursuant to the terms of the Plan and in consideration of the covenants and promises of the Grantee herein contained, the Company hereby awards to the Grantee as of the Grant Date a cash award representing the right to receive the amount in cash set forth on Schedule 1, subject to the conditions and restrictions set forth below and in the Plan (the "Cash Award").

3.    Achievement of Key Performance Indicators; Vesting; Forfeiture of Cash Award.

(a)Subject to earlier vesting in accordance with Section 6, the Cash Award will be earned and vested, in whole or in part, only in accordance with the conditions stated in this Section 3.

(b)    The Cash Award shall vest based on the achievement and satisfaction of Key Performance Indicators set forth on Schedule 1, as determined and certified by the LTIP Committee.

(c)    No later than forty-five (45) days following the end of each Vesting Cycle (each a "Committee Certification Date"), the LTIP Committee will measure the Grantee's performance against the Key Performance Indicators. The LTIP Committee will then promptly notify (a "Vesting Notification") the Grantee regarding the portion of the Cash Award, if any, that has been earned (each such portion, the "Earned Amount") pursuant to this Section 3 as of such Committee Certification Date. If the Key Performance Indicators are satisfied with respect to such Vesting Cycle, up to 33.3% of the Cash Award may be earned, subject to the LTIP Committee's sole discretion and determination as of the Committee Certification Date. Any portion of the Cash Award that remains outstanding and unearned as of each Committee Certification Date relating to the applicable Vesting Cycle will automatically be forfeited as of the Close of Business on such Committee Certification Date and such portion of the Cash Award will be immediately cancelled, and the Grantee will cease to have any rights with respect thereto. All amounts earned on a Committee Certification Date will vest in accordance with the schedule set forth in Section 3(d).

(d)    Grantee will become vested, subject to continued employment until the Settlement Date (as defined below) following the end of the applicable Vesting Cycle, in any Earned Amounts, if the LTIP Committee 

delivers a Vesting Notification to the Grantee relating to such Vesting Cycle.

(e)    Notwithstanding the foregoing, the Grantee will not vest, pursuant to this Section 3 (except as provided in Section 4 or Section 6), in Earned Amounts which the Grantee would otherwise vest in with respect to each Settlement Date if the Grantee has not been continuously employed by the Company or any Subsidiary from the Grant Date through the applicable Settlement Date. Notwithstanding the foregoing, if any date on which vesting would otherwise occur is a Saturday, Sunday or a holiday, such vesting will instead occur on the business day next following such date.

4.    Settlement of Earned Amounts. 

(a)An amount of cash equal to the Earned Amounts that vest in accordance with Section 3 shall be paid to the Grantee in a lump sum cash payment no later than fifteen (15) days following the 20th trading day following the filing date of Ascent Capital's annual report on Form 10-K in each relevant calendar year (each such date, or the date provided pursuant to the last paragraph of Section 6, as applicable, a "Settlement Date").

(b)    In the event of Grantee's termination without Cause or Termination With Good Reason, following a Committee Certification Date but prior to the applicable Settlement Date, then the Earned Amounts  shall  vest in accordance  with  Section  3 and shall be paid to the Grantee in accordance with Section 4(a) as if the Grantee had been continuously employed by the Company or any Subsidiary from the Grant Date through the applicable Settlement  Date.

5.    Mandatory Withholding for Taxes. Grantee acknowledges and agrees that the Company shall deduct from the cash otherwise payable or deliverable  upon each Settlement  Date an amount of cash that is equal to the amount of all federal, state and local taxes required to be withheld  by the  Company  upon such exercise, as determined  by the LTIP  Committee.

6.    Early Termination or Vesting of Cash Award.

Unless otherwise determined by the LTIP Committee in its sole discretion, and assuming Grantee's achievement of the Key Performance Indicators prior to each of the following (other than with respect to Sections 6(a), 6(b) and 6(c) herein), if the Grantee's employment with the Company or any Subsidiary terminates prior to the final Settlement Date:

(a)If the Grantee dies while employed by the Company or any Subsidiary, then any portion of the Cash Award that has not previously vested or forfeited pursuant to Section 3 will immediately become an Earned Amount and be fully vested and shall inure to the benefit of the Beneficiary named on Exhibit B hereto;

(b)If the Grantee's employment with the Company or any Subsidiary terminates by reason of Disability, then any portion of the Cash Award that has not previously vested or forfeited pursuant to Section 3 will immediately become an Earned Amount and be fully vested;

(c)    If the Grantee's employment with the Company or any Subsidiary is terminated by the Company or any Subsidiary without Cause or the Grantee resigns due to a Termination With Good Reason, in either case, within twelve (12) months following a Change in Control, then any portion of the Cash Award that has not previously vested or forfeited pursuant to Section 3 will immediately become an Earned Amount and be fully vested; and

(d)    Subject to Section 4(b), if the Grantee's employment with the Company or any Subsidiary is terminated for Cause, or Grantee voluntarily resigns and does not have a Termination With Good Reason, then any unvested portion of the Cash Award will be forfeited as of the Close of Business on the date of such termination of employment.

In the event of Grantee's termination by the Company or any Subsidiary without Cause or resignation due to a Termination With Good Reason prior to the final Settlement Date and prior to the date of a Change in Control, then the Grantee's rights to any unvested portion of the Cash Award may, in the discretion of the LTIP Committee, thereafter vest and any such vesting and settlement will occur in a manner designed to maintain the short term deferral exemption under Section 409A. Unless the LTIP Committee otherwise determines, a change of the Grantee's employment from the Company to a Subsidiary or an Affiliate or from a Subsidiary to the Company, another Subsidiary or an Affiliate will not be considered a termination of the Grantee's employment for purposes of this Agreement. The amount of cash equal to the Earned Amounts that vest in accordance with Section 6 shall be paid to the Grantee in a lump sum cash payment no later than fifteen (15) days following the termination of Grantee's employment.

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

Ascent Capital Group, Inc. 
5251 DTC Parkway, Suite 1000
Greenwood Village, Colorado 80111 
Attn: General Counsel

With a copy, which shall not constitute notice, to: 

Monitronics International, Inc.
1990 Wittington Place
Farmers Branch, Texas 75234 
Attn: Chief People Officer

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

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

9.    Nonalienation of Benefits. Except as provided in Section 7.8 of the Plan, (a) no right or benefit under this Agreement will be subject to anticipation, alienation, sale, assignment, hypothecation, pledge, exchange, transfer, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign, hypothecate, pledge, exchange, transfer, encumber or charge the same will be void, and (b) no right or benefit hereunder will in any manner be liable for or subject to the debts, contracts, liabilities or torts of the Grantee or other person entitled to such benefits.

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

11.    Construction. References in this Agreement to "this Agreement" and the words "herein," "hereof," "hereunder" and similar terms include all Exhibits and Schedules appended hereto, including the Plan. This Agreement is entered into, and the Award evidenced hereby is granted, pursuant to the Plan and will be governed by and construed in accordance with the Plan and the administrative interpretations adopted by the LTIP Committee thereunder. All 

decisions of the LTIP Committee upon questions regarding the Plan or this Agreement will be conclusive. Unless otherwise expressly stated herein, in the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan will control. The headings of the sections of this Agreement have been included for convenience of reference only, are not to be considered a part hereof and will in no way modify or restrict any of the terms or provisions hereof.

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

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

14.    Entire Agreement. This Agreement is in satisfaction of and in lieu of all prior discussions and agreements, oral or written, between the Company and the Grantee, with respect to the subject matter hereof. The Grantee and the Company hereby declare and represent that no promise or agreement not expressed herein has been made and that this Agreement contains the entire agreement between the parties hereto with respect to the Award and replaces and makes null and void any prior agreements between the Grantee and the Company regarding the Award. Subject to the restrictions set forth in Section 7.8 of the Plan, this Agreement will be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns.

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

16.    Code Section 409A Compliance. The grant of the Cash Award made hereunder is intended to be a "short-term deferral" exempt from Section 409A and the Plan and this Agreement shall be interpreted and administered accordingly. If any provision of this Agreement would result in the imposition of an excise tax under Section 409A that provision will be reformed to avoid imposition of the excise tax and no action taken to comply with Section 409A (or to provide that the Cash Award is exempt from Section 409A) shall be deemed to impair a benefit under this Agreement.

[Signature Page Follows]

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the Grant Date.
	
					
	 
	 
	 
	MONITRONICS INTERNATIONAL, INC.

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Name:
	Jeffery R. Gardner

	 
	 
	 
	 
	 

	 
	 
	 
	Title:
	President & Chief Executive Officer

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	ACCEPTED:

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	Fred A. Graffam, Grantee

	 
	 
	 
	 
	 

	 
	 
	 
	 
	Address:

Exhibit A to Performance-Based Cash Award Agreement 
dated as of January 1, 2019 between 
Monitronics International, Inc. and Grantee

Monitronics International, Inc. 2017 Cash Incentive Plan
(As Amended and Restated January 1, 2019)

Exhibit B to Performance-Based Cash Award Agreement 
dated as of January 1, 2019 between
Monitronics International, Inc. and Grantee

Designation of Beneficiary

I, __________ _______________ (the “Grantee”) hereby declare that upon my
death ____________________________ (the “Beneficiary”) of 
Name
________________________________________________________ ,
Street Address     City    State    Zip Code
who is my _______________________________________, will be entitled to the
Relationship to the Grantee 

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

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

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

	
		
	____________________________
Date
	____________________________
Grantee

Schedule 1
to
Monitronics Performance-Based Cash Award Agreement Vesting of
Cash Award Based on Key Performance Indicators

Total Cash Award: $225,000

Key Performance Indicators for the 2019 Vesting Cycle:

		
	•
	Performance based value for 2019 will be determined on Pre-SAC Adjusted EBITDA. The target for 2019 is $320,457.

		
	•
	100% of Cash Award realized above the 98.5% target performance level of Pre-SAC Adjusted EBITDA.

		
	•
	75% of Cash Award realized above the 97.5% target performance level of Pre-SAC Adjusted EBITDA, up to 98.4%.

		
	•
	50% of Cash Award realized above the 96.5% target performance level of Pre-SAC Adjusted EBITDA, up to 97.4%.

		
	•
	Performance metric for future years will be determined in the first quarter of the upcoming year. For example, the 2020 metric for the 2021 payout will be determined in first quarter of 2020.Exhibit

Exhibit 10.16

May 1, 2020

William Niles

Re:    Interim Chief Executive Officer Role

Dear Mr. Niles:,

As you know, on February 27, 2020, the Board of Directors (the “Board”) of Monitronics International, Inc. (the “Company”) appointed you as Interim Chief Executive Officer of the Company (the “Appointment”). Your Appointment was effective as of February 27, 2020 and shall remain effective until such time as the Board appoints a permanent Chief Executive Officer or you otherwise cease to be the Interim Chief Executive Officer of the Company, whichever is earlier (such period, the “Appointment Period”).

You are receiving this letter (this “Letter”) because, in connection with the Appointment and in consideration of your services to the Company, the Board has agreed to amend that certain offer letter between you and the Company, dated as of September 9, 2019 (the “Offer Letter”), as follows:

1.    Position and Title. Notwithstanding anything to the contrary contained in the Offer Letter, during the Appointment Period, you shall serve as Interim Chief Executive Officer of the Company through and until the last day of the Appointment Period, or as otherwise determined by the Board in its sole discretion.

2.    Base Salary and Target Annual Bonus. Notwithstanding anything to the contrary contained in the Offer Letter, as compensation for your services as Interim Chief Executive Officer of the Company, you shall, during the Appointment Period, (i) receive an annual base salary of not less than $550,000 per year, payable in accordance with the Company’s customary payroll practices and (ii) be eligible to earn a target annual bonus equal to 150% of your annual base salary, pursuant to the Company’s Management Incentive Plan. The foregoing changes to your annual base salary and target bonus opportunities are effective as of February 27, 2020 and pro-rated for any partial year of service (including, for clarity, fiscal year 2020).

3.    Restoration. Notwithstanding the foregoing and except as otherwise determined by the Board in its sole discretion, effective as of the date immediately following the last day of the Appointment Period, this Letter shall be null and void ab initio and you shall again serve as Executive Vice President and General Counsel of the Company pursuant to the terms and conditions set forth in the Offer Letter, with the same annual base salary ($385,000) and target annual bonus opportunity (60% of annual base salary) as set forth therein.

4.    Certain Acknowledgements. By executing this Agreement, notwithstanding anything to the contrary contained herein or in the Offer Letter, you hereby acknowledge and agree that none of the following will constitute a breach of the Offer Letter or this Letter, provide you with “Good Reason” (as defined in the Offer Letter) to terminate employment with the Company or constitute a termination of your employment by the Company without cause for purposes of the Offer Letter, this Letter or any other agreement between you and the Company or its subsidiaries or affiliates: (i) the Appointment, (ii) the hiring and/or appointment of a new Chief Executive Officer of the Company (and any actions taken by the Company in connection with such hiring/appointment), (iii) your future restoration from Interim Chief Executive Officer of the Company to Executive Vice President and General Counsel of the Company (and related changes to your compensation in connection therewith) or (iii) the implementation of any COVID-19 related salary reductions during the Appointment Period or otherwise.

5.    No Other Modifications. The Offer Letter will be deemed amended to the extent necessary to reflect Sections 1 through 4 above. Except as specifically set forth in this Letter, all other terms and conditions of the Offer Letter shall remain unchanged and in full force and effect.

6.    Miscellaneous. Nothing contained in this Letter will (i) confer upon you any right to continue in employment with the Company or its subsidiaries or affiliates; (ii) constitute a contract of employment; or (iii) interfere with the right of the Company to terminate your employment at any time, for any reason or no reason, with or without cause. This Letter, together 

with the Offer Letter, sets forth the final and entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by the Company and you, with respect to the subject matter hereof.

By signing this Agreement, you hereby consent to the foregoing. Please acknowledge your acceptance of this Agreement by signing below.

	
				
	 
	 
	Sincerely,
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	Stephen Escudier
	 

	 
	 
	Chair of Compensation Committee
	 

	
			
	Acknowledged and Agreed:
	 
	 

	 
	 
	 

	 
	 
	 

	Name: William E. Niles

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}]]