Document:

Exhibit 10.12

 

 

4553 GLENCOE AVENUE, SUITE 300

MARINA DEL REY, CA 90292

 

July 27, 2016

 

Abel Avellan

c/o Global Eagle Entertainment Inc.

4553 Glencoe Avenue, Suite 300

Marina Del Rey, CA 90292

 

Re: Offer of Employment

 

Dear Abel:

 

In connection with the acquisition by Global Eagle Entertainment Inc. (the “Company”) of EMC Intermediate, LLC pursuant to the Interest Purchase Agreement, dated as of May 9, 2016, by and among EMC Acquisition Holdings, LLC and the Company (the “Purchase Agreement”), the Company is pleased to offer you employment on the following terms:

 

1.                                      Position.

 

(a)                                 Your initial title will be President and Chief Strategy Officer, working in the Company’s Maritime Business Unit, and you will report to the Chief Executive Officer of the Company.

 

(b)                                 By signing this letter agreement (this “Agreement”), you confirm to the Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company.  During the Employment Period (as defined below), you shall (i) devote substantially all of your business time, energy and skill to the performance of your duties for the Company, as they may be assigned from time to time by the Chief Executive Officer or the Board of Directors of the Company (the “Board”), (ii) perform such duties in a faithful, effective and efficient manner to the best of your abilities, and (iii) hold no other employment, and you shall not engage in any other consulting, directorship or other business activity without the prior written consent of the Chief Executive Officer except as otherwise permitted in Section 1(e) of this Agreement.

 

(c)                                  You agree to perform your duties and responsibilities within and subject to the Company’s general employment policies and practices, and such other reasonable and lawful policies, practices and restrictions as the Company shall from time to time establish for its similarly situated executives, and shall at all times carry out such policies, practices and restrictions.  Upon the commencement of your employment, your duties and

 

 

responsibilities shall include, but not be limited to, those duties and responsibilities set forth on Attachment A to this Agreement; provided, however, such other duties and responsibilities shall be materially consistent with your position and those duties and responsibilities set forth on Attachment A.  You shall perform your duties under this Agreement at the Company’s offices in Miramar, Florida, and shall travel to such other places in the United States and abroad as needed from time to time.

 

(d)                                 Nothing contained herein shall require you to follow any directive or to perform any act which would violate any laws, ordinances, regulations or rules of any governmental, regulatory or administrative body, agent or authority, any court or judicial authority, or any public, private or industry regulatory authority.

 

(e)                                  While you render services to the Company, you agree that you will not engage in any other employment, consulting or other business activity without the Company’s prior written consent; provided, that (i) you may serve as a member of the board of directors or advisory board (or their equivalents, in the case of a non-corporate entity) of not-for-profit charitable organizations, and (ii) you may manage your and your affiliate’s personal financial investments, in each case, solely to the extent such services or activities do not, individually or in the aggregate, interfere with the performance of your duties and responsibilities to the Company and its affiliates or violate any of your obligations under the Restrictive Covenant Agreement (as defined below).  While you render services to the Company, you also will not assist any person or entity in competing with the Company, in preparing to compete with the Company or in hiring any employees or consultants of the Company.  The limitations included in this Section 1(e) and as set forth in Section 1 of this Agreement expressly exclude passive ownership in Trio Connect, LLC, provided that you are not involved in management or day to day operations of Trio Connect, LLC and provided further that Trio Connect, LLC is not conducting any business other than providing triple play services to land-based individuals, unless agreed otherwise by the Chief Executive Officer of the Company.  Further, you may, directly or indirectly, own, solely as an investment, securities of any corporation, partnership, association, estate, trust or any other entity or organization or individual (each, a “Person”) traded on any national securities exchange if neither you nor any of your affiliates is a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly, own two percent (2%) or more of any outstanding class of securities of such Person, or (ii) invest, directly or indirectly, in any private equity or venture backed fund other than a fund with a focus of satellite communication or mobility entertainment platforms, provided that such investment does not exceed two percent (2%) ownership of such fund.

 

2.                                      Period of Employment.  Subject to the terms and conditions of this Agreement, your employment with the Company will commence on the closing date of the transactions contemplated by the Purchase Agreement (the “Commencement Date”) and continue until you resign from the Company or your employment with the Company is terminated in accordance with the terms and conditions of this Agreement (the “Employment Period”).

 

3.                                      Cash Compensation.  The Company will pay you a starting base salary at the rate of US$325,000 per year (“Base Salary”), less applicable withholdings and payroll taxes, payable in

 

2

 

accordance with the Company’s standard payroll schedule, but in no event less frequently than monthly.  You and the Company acknowledge and agree that a portion of your Base Salary and the compensation you will receive in connection with the closing of the transactions contemplated by the Purchase Agreement shall constitute consideration for your compliance with the restrictions and covenants set forth in the Employee Statement and Agreements Regarding Confidentiality, Proprietary Information, Invention Assignment, Non-Competition and Non-Solicitation attached hereto as Attachment B (the “Restrictive Covenant Agreement”).  In addition to the foregoing Base Salary, subject to the achievement of individual and Company performance objectives to be established by the Chief Executive Officer of the Company (or the Board or its Compensation Committee if your compensation is deemed subject to the Board’s or Compensation Committee’s approval from time to time) in consultation with you, you will be eligible for an annual performance bonus with an initial current target bonus of 75% of your Base Salary (the “Annual Bonus”); provided, that final determination of achievement of performance objectives and eligibility for and payment of the Annual Bonus shall be in the sole discretion of the Chief Executive Officer of the Company (or the Board or its Compensation Committee if your compensation is deemed subject to the Board’s or Compensation Committee’s approval from time to time).  The Company reserves the right, but is not required, to adopt a bonus plan, pursuant to the terms of which the Annual Bonus is provided, including a bonus plan that is intended to award performance-based compensation that is exempt from the deduction limit under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).  Any earned Annual Bonus shall be paid to you in the calendar year following the calendar year in which the Annual Bonus was earned, but in no event later than April 30 of such calendar year (with the actual date within such period determined by the Company in its sole discretion).

 

4.                                      Equity Incentive.  On the Commencement Date, you will be granted (i) a non-qualified stock option to purchase 450,000 shares of the Company’s common stock (the “Option Award”), (ii) an award of 275,000 restricted stock units (the “Stock Award”), and (iii) 175,000 shares of restricted stock, which shares of restricted stock shall vest in full and become nonforfeitable as of the Commencement Date.  The exercise price per share of your Option Award will be equal to the fair market value per share on the Commencement Date.  Each of the Option Award and the Stock Award will be subject to the terms and conditions applicable to such awards granted under the Company’s 2016 Inducement and Retention Stock Plan for EMC Employees (effective as of the date hereof as it may be amended from time to time, the “Plan”); provided, however, that such terms and conditions of the Plan shall not be amended to include terms less favorable to you than those terms in place as of the date of this Agreement.  With respect to your Option Award, subject to your continued employment through the applicable vesting dates (except as otherwise provided in this Section 4) and the terms and conditions of the Plan and the applicable award agreement, 33.333% of your option shares will vest 12 months after the Commencement Date, and the balance will vest in equal monthly installments over the following 24 months.  Subject to your continued employment through the applicable vesting dates (except as otherwise provided in this Section 4) and the terms and conditions of the Plan and the applicable award agreement, your Stock Award will vest in equal annual installments on the first, second and third anniversaries of the Commencement Date.  In the event of a Change of Control (as defined in the Plan) prior to the one (1) year anniversary of this Agreement, all of the outstanding unvested options subject to your Option Award and all outstanding and unvested restricted stock units

 

3

 

subject to your Stock Award shall immediately and automatically vest upon the earlier to occur of (i) the termination of your employment by the Company without Cause or by you for Good Reason (each as defined below) and (ii) the one (1) year anniversary of this Agreement. In addition, in the event of (i) a Change of Control on or following the one (1) year anniversary of this Agreement, or (ii) the termination of your employment by the Company without Cause or by you for Good Reason, all of the outstanding unvested options subject to your Option Award and all outstanding unvested restricted stock units subject to your Stock Award shall immediately and automatically vest in the case of subpart (i) as of the date of the Change of Control and in the case of subpart (ii) as of the date of your termination; provided, however, that in the case of subpart (ii) only (other than any such termination of employment that occurs in connection with a Change of Control), such vesting of your Stock Award and Option Award shall be subject to your timely execution and delivery, and non-revocation, of the general release described in Section 10(c) below (the “General Release”).

 

5.                                      Employee Benefits.  You will be entitled to participate in customary employee benefit plans and programs made generally available by the Company to its senior executives, as such employee benefit plans may be amended from time to time, to the full extent of your eligibility. Details of these benefits will be provided to you under separate cover. At present, the Company offers medical, dental, vision, and 401(k) plans. You will also be entitled to participate in the Company’s paid time off policy. The Company reserves the right to add, terminate and/or amend any employee benefit plans, policies, programs and/or arrangements from time to time in accordance with the terms thereof and applicable law.

 

6.                                      Expense Reimbursement. The Company will reimburse you for all business travel expenses and other out-of-pocket expenses reasonably incurred by you in the performance of your services hereunder in accordance with the Company’s expense reimbursement policies, as they may be in effect from time to time.

 

7.                                      Employment Relationship.  Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without Cause.

 

8.                                      [Reserved.]

 

9.                                      Restrictive Covenant Agreement.  As a condition of your employment with the Company, concurrently with this Agreement, you are required to enter into the Restrictive Covenant Agreement, a copy of which is attached hereto as Attachment B.

 

10.                               Termination of Employment.  Upon the termination of your employment for any reason, the Company shall have no further obligation to make or provide to you, and you shall have no further right to receive or obtain from the Company, any payments or benefits, except as follows:

 

(a)                                 Payments Upon Termination for Any Reason.  If your employment with the Company is terminated by the Company or by you for any reason (including death or disability in accordance with Section 10(g)) during the Employment Period, within thirty

 

4

 

(30) days following the effective date of your termination of employment (the “Separation Date”), the Company shall pay to you (i) any Base Salary that had accrued but had not been paid (including any amount for accrued and unused paid time off payable in accordance with the Company’s paid time off policy then in effect or applicable law) on or before the Separation Date, (ii) any reimbursement due to you pursuant to Section 6 for expenses incurred on or before the Separation Date, and (iii) any accrued benefits owed to you as of the Separation Date in accordance with the Company’s then-current benefit plans in effect in which you were participating as of the Separation Date, including, without limitation, any vested Option Awards and/or Stock Awards.  You agree that the payments and benefits contemplated by this Section 10(a) shall constitute the exclusive and sole remedy for any termination of your employment with Cause or under Sections 10(f) or 10(g); provided, however, that the payments and benefits contemplated by this Section 10(a) shall not operate as a waiver of any of your rights under this Agreement.

 

(b)                                 Payments Upon Termination Without Cause or For Good Reason.  If your employment is terminated by the Company without Cause or by you for Good Reason (each as defined below) during the Employment Period, then, in addition to the amounts payable under Section 10(a), subject to your timely execution and delivery, and non-revocation, of the General Release and your continued compliance with the terms of this Agreement and the Restrictive Covenant Agreement, you will be entitled to (i) any earned but unpaid Annual Bonus for any completed fiscal year of the Company that ends on or before the Separation Date, payable in the form and at the time bonuses are paid to the Company’s senior executives generally for such completed fiscal year in the calendar year following the calendar year in which the Annual Bonus was earned, but in no event later than April 30 of such calendar year (with the actual date within such period determined by the Company in its sole discretion), (ii) continued payment of your then current Base Salary for a period of twelve (12) months after the Separation Date, payable in accordance with the Company’s normal payroll practices beginning on the first payroll date following the expiration of the revocation period under the General Release, and (iii) subject to your timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), with respect to the Company’s group medical insurance plans in which you and your eligible dependents participated immediately prior to the Separation Date, payment of the portion of your monthly premiums for continued medical coverage for you and your eligible dependents under COBRA equal to the excess of the COBRA rate (or equivalent rate) under such group medical insurance plan over the monthly amount you paid for such coverage immediately prior to the Separation Date until the earlier of (x) twelve (12) months from the Separation Date or (y) you otherwise become ineligible for COBRA; provided, however, that the Company may modify the benefits contemplated by this Section 10(b) to the extent reasonably necessary to avoid the imposition of any excise taxes on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended, and/or the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable) and without impairing the economic benefit to you.  Notwithstanding the foregoing, if the payments described in this Section 10(b) are subject to Section 409A (as defined in Section 13(a)) and the timing of your execution and delivery of the General Release could affect the

 

5

 

calendar year in which any amount of such payments is made because the Separation Date occurred toward the end of a calendar year, then no portion of the payments in this Section 10(b) shall be paid until the Company’s first payroll payment date in the year following the year in which the Separation Date occurs.  Except with respect to your right to immediate and automatic vesting of all unvested options and restricted stock units in the event of the termination of your employment with the Company without Cause or by you for Good Reason, as provided for in Section 4 of this Agreement, and your right to enforce the terms of this Agreement, you agree that the payments and benefits contemplated by this Section 10(b) shall constitute the exclusive and sole remedy for any termination of your employment by the Company without Cause or by you for Good Reason, and you covenant not to assert or pursue any other remedies, at law or in equity, with respect to your termination of employment in either such event.

 

(c)                                  Definition of Cause.  For purposes of this Agreement, “Cause” will mean (i) the commission of a felony or other crime involving moral turpitude or the willful commission of any other act or omission involving misappropriation, dishonesty, unethical business conduct, disloyalty, fraud or breach of fiduciary duty, (ii) reporting to work under the influence of alcohol, (iii) the use of illegal drugs (whether or not at the workplace) or other willful conduct, even if not in conjunction with your duties hereunder, which could reasonably be expected to, or which does, cause the Company or any of its subsidiaries material public disgrace, disrepute or economic harm, (iv) repeated failure to perform your duties as reasonably and lawfully directed by the Board, Company’s principal executive officer, and/or the Company, (v) gross negligence or willful misconduct with respect to the Company or affiliates or in the performance of your duties hereunder, (vi) obtaining any personal profit not disclosed to and approved by the Board and/or the Company in connection with any transaction entered into by, or on behalf of, the Company or any of its subsidiaries or affiliates, (vii) materially violating any of the terms of the Company’s, its subsidiaries’ or any of their affiliates’ rules or policies which, if curable, is not cured by you to the Board’s or the Company’s Chief Executive Officer’s satisfaction within fifteen (15) days after written notice thereof to you, or (viii) breach of any material provision of the Restrictive Covenant Agreement or any material term of this Agreement which, if curable, is not cured by you to the Board’s or the Company’s Chief Executive Officer’s satisfaction within fifteen (15) days after written notice thereof to you.  No termination of your employment hereunder by the Company for Cause shall be effective as a termination for Cause unless the notice and cure provisions of this Section shall first have been complied with.  You shall be given written notice by the Board or the Company’s Chief Executive Officer, with such notice stating in reasonable detail the particular circumstances that constitute the grounds on which the proposed termination for Cause is based.  For purposes hereof, no act or omission shall be deemed to be “willful” if such act or omission was taken (or omitted) in the good faith belief that such is in the best interests of, or not opposed to the best interests of, the Company or if such act or omission resulted from your physical or mental incapacity.  Nothing herein, however, shall preclude you from seeking injunctive or equitable relief to enforce the terms of this Agreement in any court of competent jurisdiction.

 

6

 

(d)                                 Definition of Good Reason.  For purposes of this Agreement, “Good Reason” will mean (i) without your prior written consent, the assignment to you of duties materially inconsistent with your position as set forth in Section 1 of this Agreement; provided, that any such assignment of duties (x) shall only constitute “Good Reason” during the ninety (90) day period following the date of such assignment (after which it shall be deemed waived by you if prior thereto you had not exercised your right to resign for “Good Reason”), (y) shall not constitute “Good Reason” when it is an isolated action not taken in bad faith and that is remedied promptly after your written notice thereof to the Company, and (z) shall not constitute “Good Reason” if you shall have consented in writing to the performance thereof, (ii) any breach of a material term of this Agreement by the Company, which breach is not cured within thirty (30) days following written notice to the Company of such breach, (iii) the Company requiring you, without your prior written consent, to be permanently based at any office located more than thirty (30) miles from the Company’s office located in Miramar, Florida, excluding travel reasonably required in the performance of your duties hereunder and travel consistent with your activities prior to the date hereof, (iv) without your prior written consent, a  more than 20% reduction by the Company in your Base Salary or more than 20% reduction by the Company in your target Annual Bonus opportunity, in each case, as in effect immediately prior to such reduction, or (v) without your prior written consent, a material diminution of your duties or responsibilities as set forth on Attachment A to this Agreement.

 

(e)                                  General Release.  Notwithstanding anything to the contrary in this Agreement, as a condition precedent to any obligation of the Company to make payments to you pursuant to (i) Section 10(b) and, (ii) solely in the event of your termination of employment by the Company without Cause or your resignation for Good Reason (other than any such termination of employment that occurs in connection with a Change of Control), Section 4, you shall be required to deliver to the Company a valid, executed General Release in the form attached as Attachment C, and shall not revoke such General Release prior to the expiration of any revocation rights afforded to you by applicable law.  The Company shall provide you with the General Release on or prior to the Separation Date, and you must deliver the executed General Release to the Company within twenty-one (21) days (or, if greater, the minimum period required by applicable law) after the Separation Date, failing which you will forfeit all rights to any payments described in Section 10(b) and, solely in the event of your termination of employment by the Company without Cause or your resignation for Good Reason, Section 4.

 

(f)                                   Voluntary Termination by You Without Good Reason. You may voluntarily terminate your employment hereunder without Good Reason upon not less than sixty (60) days’ prior written notice to the Company.

 

(g)                                  Death or Disability. Your employment and this Agreement shall automatically terminate upon your death or mental or physical disability (considering reasonable accommodation) or incapacity (as determined by a physician selected by the Company in its good faith judgment) for one hundred twenty (120) consecutive days or one hundred eighty (180) days out of any three hundred sixty (360) day period.

 

7

 

11.                               Indemnification.  You will be entitled to coverage under the Company’s directors’ and officers’ liability insurance policy on terms that are the same or substantially similar to those applicable to other similarly-situated executives of the Company; provided, that the Company shall obtain and maintain such insurance coverage that is usual and customary based on industry standards consistent with similarly situated companies.  In addition, you will be entitled to indemnification by the Company on terms that are the same or substantially similar to those applicable to other similarly-situated executives of the Company pursuant to the Company’s standard form of indemnification agreement.

 

12.                               Clawback.  Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to you pursuant to this Agreement or any other agreement or arrangement with the Company or any of its subsidiaries that is tied to the financial performance of the Company shall be subject to such recovery or deductions as may be required under any law, government regulation, stock exchange listing requirement or as determined by the Board pursuant to such law, government regulation, or stock exchange listing requirement.  For the avoidance of doubt, the Option Award and Stock Award shall not be subject to clawback under this Agreement, including, without limitation, this Section 12.

 

13.                               Section 409A.

 

(a)                                 It is intended that any amounts payable under this Agreement shall be exempt from and avoid the imputation of any tax, penalty or interest under Section 409A of the Code and the regulations, rules and other guidance promulgated thereunder (“Section 409A”) to the fullest extent permissible under applicable law; provided, that if any such amount is or becomes subject to the requirements of Section 409A, it is intended that those amounts shall comply with such requirements. This Agreement shall be construed and interpreted consistent with that intent. In furtherance of that intent, if payment or provision of any amount or benefit hereunder that is subject to Section 409A at the time specified herein would subject such amount or benefit to any additional tax under Section 409A, the payment or provision of such amount or benefit shall be postponed to the earliest commencement date on which the payment or provision of such amount or benefit could be made without incurring such additional tax. In no event, however, shall the Company be liable for any tax, interest or penalty imposed on you under Section 409A or any damages for failing to comply with Section 409A.

 

(b)                                 If you are a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the Separation Date, you shall not be entitled to any payment or benefit pursuant to Section 10(b) until the earlier of (A) the date which is six (6) months after your separation from service (within the meaning of Section 409A) for any reason other than death, or (B) the date of your death; provided that this paragraph shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A. Any amounts otherwise payable to you upon or in the six (6) month period following your separation from service that are not so paid by reason of this Section 13(b) shall be paid (without interest) as soon as practicable (and in any event within thirty (30) days) after the date that is six (6) months after your separation

 

8

 

from service (provided that in the event of your death after such separation from service but prior to payment, then such payment shall be made as soon as practicable, and in all events within thirty (30) days, after the date of your death).

 

(c)                                  Any reimbursement payment or in-kind benefit due to you pursuant to Section 6, to the extent that such reimbursements or in-kind benefits are taxable to you, shall be paid on or before the last day of your taxable year following the taxable year in which the related expense was incurred. You agree to provide prompt notice to the Company of any such expenses (and any other documentation that the Company may reasonably require to substantiate such expenses) in order to facilitate the Company’s timely reimbursement of the same. Reimbursements and in-kind benefits pursuant to Section 6 are not subject to liquidation or exchange for another benefit and the amount of such benefits that you receive in one taxable year shall not affect the amount of such reimbursements or benefits that you receive in any other taxable year.

 

(d)                                 For purposes of Section 409A, your right to receive any installment payments hereunder shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., payment shall be made within thirty (30) days following the date of termination), the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

14.                               Section 280G. Notwithstanding anything in this Agreement or any other agreement between you and the Company or any of its subsidiaries or affiliates to the contrary, in the event that the provisions of Section 280G of the Internal Revenue Code of 1986, as amended, and the regulations, rules and other guidance promulgated thereunder (“Section 280G”) relating to “parachute payments” (as defined in Section 280G) shall be applicable to any payment or benefit received or to be received by you from the Company or its affiliates or successors in connection with a change in the ownership or effective control of the Company within the meaning of Section 280G (collectively, “280G Payments”), then a calculation shall be made comparing (1) the Net Benefit (as defined below) to you of the 280G Payments after payment of the excise tax imposed by Section 4999 of the Code to (2) the Net Benefit to you if the 280G Payments are reduced to the minimum extent necessary to ensure that no portion of such 280G Payments is subject to such excise tax, and if the resulting amount under (1) above is less than the resulting amount under (2) above, then the 280G Payments shall be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to such excise tax. For purposes of the immediately preceding sentence, “Net Benefit” shall mean the present value of the 280G Payments net of all federal, state, local, foreign income, employment and excise taxes.

 

15.                               Withholding Taxes.  All forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law; provided however, that with respect to the equity awards and/or grants described in greater detail in Section 4 of this Agreement, you shall have the option, at your election, to remit, in cash, any applicable withholding and payroll taxes to the Company and, upon such payment, shall be entitled to receive your applicable equity awards and/or grants hereunder in full.

 

9

 

16.                               Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of Florida without giving effect to any choice of law provisions or principles thereof.

 

17.                               Arbitration.  Any and all claims or controversies arising out of or relating to my employment, the termination thereof, or otherwise arising between the parties hereto shall, in lieu of a jury or other civil trial, be settled by final and binding arbitration before a single arbitrator in Broward County, Florida, in accordance with then-current rules of the American Arbitration Association applicable to employment disputes. This agreement to arbitrate includes all claims whether arising in tort or contract and whether arising under statute or common law including, but not limited to, any claim of breach of contract, discrimination or harassment of any kind. The obligation to arbitrate such claims shall continue forever, and the arbitrator shall have jurisdiction to determine the arbitrability of any claim. The arbitrator shall have the authority to award any and all damages otherwise recoverable in a court of law. The arbitrator shall not have the authority to add to, subtract from or modify any of the terms of this Agreement. Judgment on any award rendered by the arbitrator may be entered and enforced by any court having jurisdiction thereof.  The Company shall be solely responsible for all costs of the arbitration other than the amount of the then-current filing fee charged by the American Arbitration Association for filing a Statement of Claim.  That amount of that filing fee shall be borne by me and applied to any fee that the arbitrator shall impose.  Each party shall be responsible for paying its own other costs for the arbitration process, including attorneys’ fees, witness fees, transcript costs, lodging and travel expenses, expert witness fees, and online research charges, subject to the second to last sentence of this provision.  I shall not be required to pay any type or amount of expense if such requirement would invalidate this agreement or would otherwise be contrary to the law as it exists at the time of the arbitration. The prevailing party in any arbitration shall be entitled to recover its reasonable attorney’s fees and costs.  Notwithstanding the foregoing, the parties may seek injunctive or equitable relief to enforce the terms of this Agreement in any court of competent jurisdiction.

 

18.                               Severability.  It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction (solely in the case of either party seeking equitable or injunctive relief) or arbitrator to be invalid, prohibited or unenforceable under applicable law, such provision, as to such jurisdiction, shall be ineffective without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

19.                               Survival.  Sections 4 and 10 through 25 will survive and continue in full force in accordance with their terms notwithstanding the termination of the Employment Period.

 

20.                               Waiver.  No waiver of any of any provision of this Agreement will constitute or be deemed to constitute a waiver of any other provision of this Agreement, nor will any such waiver constitute a continuing waiver unless otherwise expressly provided.

 

10

 

21.                               Successors and Assigns. This Agreement can be assigned by the Company and shall be binding and inure to the benefit of the Company, its successors and assigns.  No right, obligation or duty of this Agreement may be assigned by you without the prior written consent of the Company.

 

22.                               Notices. Any notice provided for in this Agreement must be in writing and must be either personally delivered, transmitted via email, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated or at such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder and received when delivered personally, when received if transmitted via email, five days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service.

 

	
If to the Company:
    
	
 
    
	
Global Eagle Entertainment Inc.
    
	
4553 Glencoe Avenue, Suite 300
    
	
Marina del Rey, CA 90292
    
	
Attention:
    	
Stephen Ballas, General   Counsel
    
	
Email:
    	
stephen.ballas@geemedia.com
    
	
Telephone:
    	
(310) 740-8618
    
	
 
    
	
With a copy (which shall not constitute notice)   to:
    
	
Winston & Strawn LLP
    
	
200 Park Avenue
    
	
New York, NY 10166-4193
    
	
Attention:
    	
Joel L. Rubinstein
    
	
Email:
    	
jrubinstein@winston.com
    
	
Telephone:
    	
(212) 294-5336
    
	
 
    
	
If   to you, to the address most recently on file in the payroll records of the   Company, with a copy (which shall not constitute notice) to:
    
	
Akerman LLP
    
	
777 South Flagler Drive
    
	
Suite 1100 West Tower
    
	
West Palm Beach, FL 33401
    
	
Attention:
    	
Eric   A. Gordon
    
	
Email:
    	
eric.gordon@akerman.com
    
	
Telephone:
    	
(561)   671-3651
    

 

23.                               Legal Counsel; Mutual Drafting. Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to

 

11

 

consult with legal counsel of their choice. Each party has cooperated in the drafting, negotiation and preparation of this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such language. You agree and acknowledge that you have read and understand this Agreement, you are entering into it freely and voluntarily, and you have been advised to seek counsel prior to entering into this Agreement and have had ample opportunity to do so.

 

24.                               Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.

 

25.                               Entire Agreement.  This Agreement and the Restrictive Covenant Agreement sets forth the entire agreement and understanding between the Company and you relating to the subject matter herein and supersedes all prior agreements with the Company and any of its subsidiaries (including, without limitation, the Executive Employment Agreement between you and Emerging Markets Communications, LLC (which shall be deemed terminated as of the Commencement Date) and the Confidential Term Sheet entered into between you and the Company relating to your employment, dated as of May 9, 2016), whether written or oral, that directly or indirectly bear upon the subject matter hereof; provided, however, that this Agreement shall not supersede either party’s obligations to which each party has agreed as set forth in the Purchase Agreement, which obligations shall continue in full force and effect.  No modification of or amendment to this Agreement, nor any waiver or any rights under this Agreement, will be effective unless in writing signed by the party to be charged.

 

* * * * *

 

12

 

You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this Agreement and the enclosed Restrictive Covenant Agreement and returning them to the undersigned.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
GLOBAL EAGLE   ENTERTAINMENT INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David M. Davis
    
	
 
    	
 
    
	
 
    	
Printed Name:
    	
David M. Davis
    
	
 
    	
 
    
	
 
    	
Title: 
    	
Chief Executive Officer
    
					

 

I have read and accept this employment offer:

 

 

	
/s/ Abel Avellan
    	
 
    
	
Abel   Avellan
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated: 
    	
July 27, 2016
    	
 
    
			

 

Attachments

 

Attachment A: Duties and Responsibilities

Attachment B: Employee Statement and Agreements Regarding Confidentiality, Proprietary Information, Invention Assignment, Non-Competition and Non-Solicitation

Exhibit A to Attachment B: Designated Individuals

Attachment C: Form of General Release

 

13

 

Attachment A

 

GLOBAL EAGLE ENTERTAINMENT INC.

 

DUTIES AND RESPONSIBILITIES (NOT EXCLUSIVE)

 

1)             Leadership and direction of the Company’s Maritime Business Unit with responsibility for commercial and network operations, engineering and service delivery.

 

a.              Specific vertical markets under the Maritime Business Unit include Cruise & Ferry, Yacht, Commercial Shipping, Oil & Gas, NGO, Cellular/Telco services.

 

b.              Aviation-related activities (including private jets and airlines) will transition to the Company’s Aviation Business Unit.

 

2)             Leadership of the development of the connectivity and network strategy of the Company, and leadership of the Integration Committee with Company executives to develop priorities and sequence integration of Emerging Markets Communications into the Company (the “Integration Plan”).

 

a.              Integration Plan to be coordinated with the Company’s Aviation Business Unit.

 

b.              Integration Plan will prioritize network provisioning, network operations, and overall connectivity organization.

 

 

Attachment B

 

GLOBAL EAGLE ENTERTAINMENT INC.

 

EMPLOYEE STATEMENT & AGREEMENTS REGARDING

CONFIDENTIALITY, PROPRIETARY INFORMATION, INVENTION ASSIGNMENT, NON-COMPETITION AND NON-SOLICITATION

 

In consideration of and as a condition of my employment with Global Eagle Entertainment Inc. (“Global Eagle”) following its acquisition of EMC Intermediate, LLC (“EMC”) pursuant to the Interest Purchase Agreement, dated as of May 9, 2016, by and among EMC Acquisition Holdings, LLC and Global Eagle (the “Purchase Agreement”), and my receipt of the salary and other compensation to be paid to me by Global Eagle following the closing of the transactions contemplated by the Purchase Agreement, I, the undersigned employee, do hereby agree to the following (this “Restrictive Covenant Agreement”):

 

1.  CERTAIN DEFINITIONS

 

As used in this Restrictive Covenant Agreement:

 

“Affiliate” means, with respect to the Person to which it refers, a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with, such Person from time to time. For purposes of this definition, the term “control” of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies, whether through the ownership of voting securities, by contract or otherwise.

 

“Affiliated Companies” means, collectively, Global Eagle and all of its direct and indirect Affiliates and Subsidiaries from time to time, including EMC and each successor in interest to any such Affiliates and Subsidiaries.

 

“Business” means the business of (i) providing internet connectivity to ships, cruise lines, yachts, related maritime users and aircraft, (ii) providing internet connectivity to communications users, (iii) providing any other products or services that Global Eagle or any other Affiliated Company provides or provided at any time during the twelve (12) months prior to the consummation of the transactions contemplated by the Purchase Agreement, and (iv) providing any other products or services that Global Eagle or any other Affiliated Company provides or provided at any time during the period of my employment with Global Eagle, including, without limitation, research, development, manufacturing, sale, support and provision of electronic and communication systems, entertainment content, content logistics and processing, and components and materials for providing mobility broadband internet, video and voice services.

 

“Person” means an individual, corporation, partnership, association, estate, trust or any other entity or organization.

 

“Restricted Activities” means any business that competes with the Business.

 

“Restricted Area” means any geographic area in which any of the Affiliated Companies actively conducts the Business at any time during the period of my employment with Global Eagle.

 

“Restricted Period” means the period of my employment with Global Eagle and twelve (12) months following the termination thereof for any reason.

 

 

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association, or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is from time to time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof or (ii) if a limited liability company, partnership, association, or other business entity (other than a corporation), a majority of partnership or other similar ownership interest thereof is from time to time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof and for this purpose, a Person or Persons owns a majority ownership interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business entity’s gains or losses or shall be or control any manager, management board, managing director or general partner of such business entity (other than a corporation). The term “Subsidiary” shall include all Subsidiaries of such Subsidiary.

 

2. PROPRIETARY INFORMATION, COPYRIGHTS, MASK WORKS & INVENTIONS

 

The success of Global Eagle along with the other Affiliated Companies depends, among other things, upon strictly maintaining confidential and secret information relating to its trade secrets, technology, accounting, costs, research, development, sales, manufacturing, methods, production, testing, implementation, marketing, financial information, financial results, products, customers, suppliers, staffing levels, employees, shareholders, officers and other information peculiarly within the knowledge of and relating to the Business, and to which employees may acquire knowledge or have access to during the course of their employment by the Affiliated Companies. All such information is hereinafter collectively referred to as “Proprietary Information.”  Proprietary Information shall be broadly defined.  It includes all information, data, trade secrets or know-how that has or could have commercial value or other utility in the Business or in which it contemplates engaging.  Proprietary Information also includes all information the unauthorized disclosure of which is or could be detrimental to the interests of the Affiliated Companies, whether or not such information is identified as confidential or proprietary information by the Affiliated Companies.

 

Notwithstanding the above, Proprietary Information shall not include any information, data, trade secrets or know-how that (i) I can prove was known by me prior to the commencement of my employment with the Affiliated Companies or (ii) is or becomes publicly known from another source that is under no obligation of confidentiality to the Affiliated Companies without fault on my part.  I do not know any information, data, trade secrets or know-how that would be Proprietary Information but for this provision.

 

The success of the Affiliated Companies also depends upon the timely disclosure of inventions made by the Affiliated Companies employees in the course of their employment and, in appropriate circumstances, the full cooperation of employee inventors in filing, maintaining and enforcing United States and foreign country patent applications and patents covering such inventions.

 

In view of the foregoing and in consideration of my employment by Global Eagle and as a further condition thereof, I agree as follows:

 

A.                                    PREVIOUS EMPLOYMENT

 

I acknowledge that it is the policy of Global Eagle to require that its employees strictly honor all obligations regarding proprietary information of former employers. I

 

2

 

acknowledge and agree that I have a continuing obligation to protect and safeguard the proprietary information of my former employer(s), if any.

 

B.                                    PROPRIETARY INFORMATION

 

I shall use my best efforts to exercise utmost diligence to protect and guard the Proprietary Information of the Affiliated Companies. Neither during my employment by Global Eagle nor thereafter for a period of three (3) years shall I, directly or indirectly, use for myself or another, or disclose to another, any Proprietary Information (whether acquired, learned, obtained or developed by me alone or in conjunction with others) of the Affiliated Companies except as such disclosure or use is (i) required in connection with my employment with Global Eagle, (ii) consented to in writing by Global Eagle, or (iii) legally required to be disclosed pursuant to a subpoena or court order, and in the case of (iii), disclosure may only be made after I have informed Global Eagle of such requirement and assisted Global Eagle in taking reasonable steps to seek a protective order or other appropriate action.  Except in connection with the performance of my duties and responsibilities as provided for in my Employment Letter Agreement, I agree not to remove any materials relating to the work performed at the Affiliated Companies without the prior written permission of the Board of Directors or Chief Executive Officer of Global Eagle. Upon request by Global Eagle at any time, including in the event of my termination of employment with Global Eagle, I shall promptly deliver to Global Eagle, without retaining any copies, notes or excerpts thereof, all memoranda, journals, notebooks, diaries, notes, records, plats, sketches, plans, specifications, or other documents (including documents on electronic media and all records of inventions, if any) relating directly or indirectly to any Proprietary Information made or compiled by or delivered or made available to or otherwise obtained by me.  Each of the foregoing obligations shall apply with respect to Proprietary Information of customers, contractors and others with whom the Affiliated Companies has a business relationship, learned or acquired by me during the course of my employment by the Affiliated Companies. The provisions of this section shall continue in full force and effect after my termination of employment for whatever reason for a period of three (3) years. Notwithstanding anything herein to the contrary, nothing in this Restrictive Covenant Agreement shall (i) prohibit the employee from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation, or (ii) require notification to or prior approval by the Affiliated Companies of any reporting described in clause (i).

 

C.                                    COPYRIGHT & MASK WORKS

 

All rights in and to any copyrightable material (including, but not limited to, computer programs) or material protectable as a mask work under the Semiconductor Chip Protection Act of 1984 which I may originate pursuant to or in connection with the Business, and which are not expressly released by Global Eagle in writing, shall be deemed as a work for hire and shall be the sole and exclusive property of the Affiliated Companies.

 

3

 

D.                                    INVENTIONS

 

With the exception of “EXEMPT” inventions, as defined herein, any and all inventions, including original works of authorship, concepts, trade secrets, improvements, developments and discoveries, whether or not patentable or registrable under copyright or similar laws, which I may conceive or first reduce to practice (or cause to be conceived or first reduced to practice), either alone or with others during the period of my employment by the Affiliated Companies (hereinafter referred to as “Inventions”) shall be the sole and exclusive property of the Affiliated Companies, their successors, assigns, designees, or other legal representatives (“Affiliated Company Representatives”) and shall be promptly disclosed to Global Eagle in writing, and I hereby assign to the Affiliated Companies all of my right, title and interest in such Inventions.

 

I agree to keep and maintain adequate and current written records of all Inventions and their development that I make (solely or jointly with others) during the period of employment.  These records will be in the form of notes, sketches, drawings, and any other format that may be specified by the Affiliated Companies.  The records will remain the sole property of the Affiliated Companies at all times.

 

I shall, without further compensation or consideration, but at no expense to me:

 

(a)                                 Communicate to Global Eagle any facts known by me respecting the Inventions;

 

(b)                                 do all lawful acts, including the execution and delivery of all papers and proper oaths and the giving of testimony deemed necessary or desirable by Global Eagle or the Affiliated Companies, with regard to said Inventions, for protecting, obtaining, securing rights in, maintaining and enforcing any and all copyrights, patents, mask work rights or other intellectual property rights in the United States and throughout the world for said Inventions, and for perfecting, affirming, recording and maintaining in the Affiliated Companies and Affiliated Company Representatives sole and exclusive right, title and interest in and to the Inventions, and any copyrights, Patents, mask work rights or other intellectual property rights relating thereto; and

 

(c)                                  generally cooperate to the fullest extent in all matters pertaining to said Inventions, original works of authorship, concepts, trade secrets, improvements, developments and discoveries, any and all applications, specifications, oaths, assignments and all other instruments which Global Eagle shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to Global Eagle, its successors, assigns and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto.

 

An “EXEMPT” invention is one which:

 

(d)                                 was developed entirely on my own time without using the equipment, supplies, facilities, or trade secret information of the Affiliated Companies;

 

4

 

(e)                                  does not relate at the time of conception or reduction to practice of the invention to the Business, or to its actual or demonstrably anticipated research or development; and

 

(f)                                   does not result from any work performed by me for the Affiliated Companies.

 

Inventions which I consider to be “EXEMPT” but made solely or jointly with others during the term of my employment, shall be disclosed in confidence to Global Eagle for the purpose of determining such issues as may arise.

 

I acknowledge and agree that my obligations with respect to the foregoing shall continue after the termination of my employment with Global Eagle for a period of three (3) years.  If I am unable because of my mental or physical incapacity or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Inventions or original works of authorship assigned to the Affiliated Companies as above, then I hereby irrevocably designate and appoint Global Eagle and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters, patents or copyright registrations thereon with the same legal force and effect as if executed by me.

 

Listed on the attached sheet by descriptive title for purposes of identification only are all of the inventions made by me (conceived and reduced to practice) prior to my employment by Global Eagle that I consider to be my property and excluded from this Restrictive Covenant Agreement.

 

3.  NON-COMPETITION AND NON-SOLICITATION

 

I acknowledge that Global Eagle has made and continues to make a substantial investment in time, money, effort, goodwill and other resources in the business of Global Eagle, including EMC and the other Affiliated Companies, and in my employment with Global Eagle.  I acknowledge and agree that Global Eagle and the Affiliated Companies are entitled to protect their legitimate business interests and investments and prevent me from using my knowledge of its trade secrets and Proprietary Information to the detriment of the Affiliated Companies. I also acknowledge that the nature of the business of the Affiliated Companies is such that the on-going relationship among each member of the Affiliated Companies and their respective employees, clients and customers is material and has a significant effect on the ability of the Affiliated Companies to obtain business. In view of the foregoing and in consideration of my employment by Global Eagle and as further condition thereof, I agree as follows:

 

A.                                    NON-COMPETITION

 

During the Restricted Period, I, on behalf of myself and my Affiliates, shall not, and shall cause each of my Affiliates not to, directly or indirectly, in any manner (whether on my or its own account, or as an owner, operator, manager, consultant, officer, director, employee, investor, agent or otherwise), (i) engage in the Restricted Activities in the Restricted Area or (ii) be employed by, invest in, have any ownership interest in, participate in (whether as an owner, operator, manager, consultant, officer, director, employee, investor, agent, representative or otherwise), act as lender to, render services

 

5

 

to (as an employee, director, officer, member, principal, licensor, trustee, broker, agent, shareholder, partner, equityholder or in any other capacity), operate, assist, represent, advise or otherwise provide support to, any Person that engages in or plans to engage in the Restricted Activity in the Restricted Area; provided, however, that I shall not be deemed in violation of this non-competition covenant by passive ownership in Trio Connect, LLC provided that I am not involved in management or day to day operations of Trio Connect, LLC and provided further that Trio Connect LLC is not conducting any business other than providing triple play services to land-based individuals. Notwithstanding the foregoing, I and my Affiliates may, directly or indirectly, (i) own, solely as an investment, securities of any Person traded on any national securities exchange if neither I nor any of my Affiliates is a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly, own two percent (2%) or more of any outstanding class of securities of such Person, or (ii) invest, directly or indirectly, in any private equity or venture backed fund other than a fund with a focus of satellite communication or mobility entertainment platforms, provided that such investment does not exceed two percent (2%) ownership of such fund.

 

Except as otherwise permitted in this Restrictive Covenant Agreement, during the Restricted Period, I shall not (i) enter into employment, consultancy, association or affiliation with any Person engaged in or intending to be engaged in the Restricted Activity if any individual listed on Exhibit A hereto (the “Designated Individuals”) has become employed by, associated or affiliated with, or a consultant of such Person during the twelve (12) month period preceding my termination of employment with Global Eagle (the “Twelve Month Prior Period”); or (ii) continue employment, consultancy, association or affiliation with any Person engaged in or intending to be engaged in the Restricted Activity if any of the Designated Individuals becomes employed by, associated or affiliated with, or a consultant of such Person during the Twelve Month Prior Period.  I acknowledge and agree that it is the intention of the parties to prevent the irreparable harm to Affiliated Companies that would occur from the pooling of information that two or more Designated Individuals can provide to a Person engaged in or intending to be engaged in the Restricted Activity or the misuse of Proprietary Information.

 

B.                                    NON-SOLICITATION AND NON-INTERFERENCE

 

During the Restricted Period, I, on behalf of myself and my Affiliates, shall not, and shall cause each of my Affiliates not to, directly or indirectly, in any manner (whether on my or its own account, or as an owner, operator, manager, consultant, officer, director, employee, investor, agent or otherwise), (i) cause, induce, call upon, solicit, request, advise or encourage any Person that is or, at any time during the Twelve Month Prior Period, an actual or prospective consultant, licensor, supplier or vendor of the Business or any other Person who has any business relationship with the Business or any Affiliated Company to terminate, modify or otherwise curtail or impair any such actual or prospective relationship with the Business, (ii) cause, induce, call upon, solicit, request, advise, encourage or provide services to any Person that is or, at any time during the Twelve Month Prior Period, an actual or prospective customer of the Business or any Affiliated Company with the intent of selling or attempting to sell any products or services similar to those offered by the Business, (iii) cause, induce, call upon, solicit, request, advise, recruit, encourage any Person currently, or formerly within the last

 

6

 

twelve (12) months of my employment with Global Eagle, employed by, or providing consulting services, to any Affiliated Company (each, an “Employee”) to leave the employment or engagement of any Affiliated Company, provided, however, that you shall not be deemed to have solicited any such Person in violation of this Agreement if you, directly or indirectly, place or assist another Person in placing an advertisement seeking employment or consulting candidates in a publication, including an internet publication, generally available to the public so long as such advertisement is  not specifically targeted at employees or consultants of Global Eagle or any other Affiliated Company and is not for a business engaging in Restricted Activities, (iv) hire, employ or otherwise engage, or enter into any business relationship with, any Employee who is or, at any time during the Twelve Month Prior Period, employed or engaged by any of the Affiliated Companies or (v) otherwise in any way interfere with, influence or alter any Affiliated Company’s relationship with any actual Employee or consultant or actual or prospective customer, sales representative, broker, licensor, supplier, vendor or other business relation of the Business or any Affiliated Company, employed by, engaged with or in a business relationship with Global Eagle or any other Affiliated Company as of the termination of my employment with Global Eagle or at any time during the Twelve Month Prior Period or any of the Affiliated Companies, including by making any negative or disparaging statements or communications regarding any Affiliated Company or any of its respective operations, officers, directors, managers or investors.

 

4. ENFORCEMENT

 

The parties hereby agree that, in the event of breach of this Restrictive Covenant Agreement by me or any of my Affiliates (collectively, the “Restrictive Covenants”), damages would be difficult, if not impossible, to ascertain, that irreparable damage would occur in the event that any of the provisions of this Restrictive Covenant Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that, in addition to and without limiting any other remedy or right it may have under applicable law or pursuant to the Employment Letter Agreement between the parties hereto, dated as of the date hereto (the “Employment Letter Agreement”) (including, but not limited to, the withholding or recovery of amounts paid under Section 10(b) of the Employment Letter Agreement), each of Global Eagle and the other Affiliated Companies shall be entitled to seek an injunction or other equitable relief in any court of competent jurisdiction, without any necessity of proving damages or any requirement for the posting of a bond or other security, enjoining any such breach, and enforcing specifically the terms and provisions. Each of the parties, on its own behalf and on behalf of each of their respective Affiliates, hereby waives any and all defenses it or any of their respective Affiliates may have on the ground of lack of jurisdiction or competence of the court to grant such an injunction or other equitable relief. The Restricted Period under Sections 3(A) and 3(B) shall be extended by the number of days in which I am or my Affiliate is in violation or breach of this Restrictive Covenant Agreement. The covenants in this Restrictive Covenant Agreement are independent, and the existence of any claim or cause of action I or any of my Affiliates may have against Global Eagle or the other Affiliated Companies under any other agreement shall not constitute a defense to the enforcement of this Restrictive Covenant Agreement by Global Eagle and the other Affiliated Companies.

 

5. ARBITRATION

 

Any and all claims or controversies arising out of or relating to this Restrictive Covenant Agreement hereto shall, in lieu of a jury or other civil trial, be settled by final and binding arbitration before a single

 

7

 

arbitrator in Broward County, Florida, in accordance with then-current rules of the American Arbitration Association applicable to employment and related disputes. This agreement to arbitrate includes all claims whether arising in tort or contract and whether arising under statute or common law including, but not limited to, any claim of breach of contract, discrimination or harassment of any kind. The obligation to arbitrate such claims shall continue forever, and the arbitrator shall have jurisdiction to determine the arbitrability of any claim. The arbitrator shall have the authority to award any and all damages otherwise recoverable in a court of law. The arbitrator shall not have the authority to add to, subtract from or modify any of the terms of this Agreement. Judgment on any award rendered by the arbitrator may be entered and enforced by any court having jurisdiction thereof.  Global Eagle shall be solely responsible for all costs of the arbitration other than the amount of the then-current filing fee charged by the American Arbitration Association for filing a Statement of Claim.  That amount of that filing fee shall be borne by me and applied to any fee that the arbitrator shall impose.  Each party shall be responsible for paying its own other costs for the arbitration process, including attorneys’ fees, witness fees, transcript costs, lodging and travel expenses, expert witness fees, and online research charges, subject to the second to last sentence of this provision.  I shall not be required to pay any type or amount of expense if such requirement would invalidate this agreement or would otherwise be contrary to the law as it exists at the time of the arbitration. The prevailing party in any arbitration shall be entitled to recover its reasonable attorney’s fees and costs. Notwithstanding and in addition to the foregoing, either party may seek injunctive or equitable relief to enforce the terms of this Restrictive Covenant Agreement in any court of competent jurisdiction.

 

5.  GENERAL PROVISIONS

 

A.                                    This Restrictive Covenant Agreement will be governed by the laws of the State of Florida.

 

B.                                    The effectiveness of this Restrictive Covenant Agreement is conditioned upon the closing of the transactions contemplated by the Purchase Agreement, and this Restrictive Covenant Agreement shall be void and of no further force or effect if the closing of the transactions contemplated by the Purchase Agreement does not occur.

 

C.                                    Nothing contained herein shall be construed to require the commission of any act contrary to law. Should there be any conflict between any provisions hereof and any present or future statute, law, ordinance, regulation, or other pronouncement having the force of law, the latter shall prevail, but the provision of this Restrictive Covenant Agreement affected thereby shall be curtailed and limited only to the extent necessary to bring it within the requirement of the law, and the remaining provisions of this Restrictive Covenant Agreement shall remain in full force and effect.  This Restrictive Covenant Agreement may not be assigned by me without the prior written consent of Global Eagle.  Subject to the foregoing sentence, this Restrictive Covenant Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of Global Eagle, its successors, and its assigns, and may be assigned by Global Eagle and shall be binding and inure to the benefit of Global Eagle, its successors and assigns.

 

D.                                    The provisions of this Restrictive Covenant Agreement are severable, and if any one or more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions or parts thereof shall nevertheless be binding and

 

8

 

enforceable.  In the event that any provision of this Restrictive Covenant Agreement is deemed unenforceable, Global Eagle and I agree that a court (solely in the case of either party seeking equitable or injunctive relief) or an arbitrator chosen pursuant to the terms hereof shall reform such provision to the extent necessary to cause it to be enforceable to the maximum extent permitted by law.  Global Eagle and I agree that each desires the court (solely in the case of either party seeking equitable or injunctive relief) or arbitrator to reform such provision, and therefore agree that the court (solely in the case of either party seeking equitable or injunctive relief) or arbitrator will have jurisdiction to do so and that each will abide by the determination of the court (solely in the case of either party seeking equitable or injunctive relief) or arbitrator.

 

E.                                     I have had the opportunity to review this Restrictive Covenant Agreement at my leisure and have had the opportunity to ask questions regarding the nature of my employment with Global Eagle I have also been advised that I would be given the opportunity to allow my legal counsel to assist me in the review of this Restrictive Covenant Agreement prior to my execution of this Restrictive Covenant Agreement. I agree to execute any proper oath or verify any proper document reasonably required to carry out the terms of this Restrictive Covenant Agreement. I represent that my performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment with Global Eagle. I have not entered into, and I agree I will not knowingly enter into any oral or written agreements in conflict herewith.

 

[signature page follows]

 

9

 

IN WITNESS WHEREOF, the undersigned have executed this Restrictive Covenant Agreement as of the date of execution of the Employment Letter Agreement by the parties hereto.

 

	
Abel   Avellan
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signature: 
    	
/s/ Abel Avellan
    	
 
    	
Date: 
    	
July 27, 2016
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Global   Eagle Entertainment Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/ David M. Davis
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
David M. Davis
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Chief Executive Officer
    	
 
    	
 
    
								

 

10

 

Exhibit A to Restrictive Covenant Agreement

 

DESIGNATED INDIVIDUALS

 

Chris Rivera

Thomas Eugene Severson, Jr.

William Madden

Saulo Salvador

Jeffrey Kietzmann

Federico Fawzi

Michael Pirie

Gilles Gillesen

Clemens Wolbers

Jan Erik Kjaer

Chris Ivory

Hadassa Lutz

Senior Vice President of Yachts

 

 

Attachment C

 

GLOBAL EAGLE ENTERTAINMENT INC.

 

GENERAL RELEASE OF CLAIMS

 

This General Release of Claims (the “Release”) is to confirm that the undersigned’s at-will employment with Global Eagle Entertainment Inc. (the “Company”) is terminated effective as of       ,       (the “Termination Date”). Effective as of the Termination Date, by execution of this Release, the undersigned (“Executive”) hereby resigns from all offices he holds with the Company and any of its subsidiaries. Together, Executive and the Company are referred to, individually, as a “party” and, collectively, as the “parties.”

 

Please read this Release carefully. To help you understand the Release and your rights as a terminated employee, consult with your attorney.

 

Consistent with the provisions of that certain Employment Letter Agreement by and between you and the Company dated as of July 27, 2016 (the “Employment Letter Agreement”), the Company will provide you with severance pay pursuant to the terms of the Employment Letter Agreement. In consideration for the severance payments and other good and valuable consideration set forth in the Employment Letter Agreement, you hereby agree as follows:

 

1.             Release.  Executive, for himself and his heirs, successors and assigns, does hereby waive, release, acquit and forever discharge the Company and each of its current, former, and future parent corporations, subsidiaries, affiliates, employee benefit plans, and related entities or corporations, and their past and present officers, directors, shareholders, employees, creditors, fiduciaries, agents, employees, partners, attorneys, representatives, promoters, heirs, predecessors, successors, and assigns (each a “Company Released Party”), from any and all claims, actions, charges, complaints, grievances and causes of action (hereinafter collectively referred to as “Claims”), of whatever nature, whether known or unknown, which exist or may exist on Executive’s behalf against each Company Released Party as of the date of this Release, including but not limited to any and all Claims arising out of or relating to the offer of employment to Executive, Executive’s employment with the Company, or the termination of that employment. Executive understands and agree that he is waiving any and all rights he may have had, now has, or in the future may have, to pursue any and all remedies available to him under any employment-related cause of action, including without limitation, any and all claims under his Employment Letter Agreement, tort claims, contract claims, fiduciary duty claims, wage claims, bonus claims, commission claims, wrongful termination claims, public policy claims, retaliation claims, statutory claims, California Labor Code claims, personal injury claims, emotional distress claims, invasion of privacy claims, defamation claims, fraud claims, quantum meruit claims, and any and all claims arising under any federal, state or other governmental statute, law, regulation or ordinance covering employment, conditions of employment (including wage and hour laws) and/or discrimination in employment, including but not limited to, all as amended, the United States Constitution, the Constitution of the State of California or Florida, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 (the “ADEA”), the Americans with Disabilities Act of 1990, the Employee Retirement Income

 

 

Security Act of 1974, the Worker Adjustment and Retraining Notification Act, the Older Workers Benefit Protection Act, the Family and Medical Leave Act, all Florida employment, whistleblower, human rights, labor and wage laws, and the California Fair Employment and Housing Act, including race, color, religious creed, national origin, ancestry, physical or mental disability, medical condition, family care leave, marital status, sex, sexual orientation, age and any harassment or retaliation.

 

Notwithstanding the foregoing, Executive is not hereby releasing the Company from any of the following claims (collectively, the “Excluded Claims”):  (a) any rights or claims for indemnification Executive may have pursuant to any written indemnification agreement with the Company to which Executive is a party, the charter or bylaws of the Company, or under applicable law; (b) any rights which cannot be waived as a matter of law; (c) any claims arising from the breach of this Release; or (d) any rights or claims related to the equity compensation described in Section 4 of the Employment Letter Agreement or any other equity compensation provided by the Company to Executive.

 

Nothing in this Release prevents Executive from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor or any other federal, state or local administrative agency, except that Executive hereby waives any right to any monetary benefits in connection with any such claim, charge or proceeding.  Executive hereby represents and warrants that, other than the Excluded Claims, Executive is not aware of any Claims Executive has or might have against any Company Released Party.

 

2.             Waiver Of Unknown Claims.  Each party acknowledges that he or it may hereafter discover claims or facts in addition to or different from those that he or it now knows or believes to exist with respect to the subject matter of the releases contained in this Release and which, if known or suspected at the time of executing this Release, might have materially affected him or its release or its decision to enter into this Release.  Nevertheless, each party waives any right, claim, or cause of action that might arise as a result of such different or additional claims or facts.  In that regard, the parties agree that the releases set forth in this section shall be and remain in effect in all respects as complete general releases as to the matters released.

 

3.             Acknowledgement of Waiver of Claims Under ADEA.  Executive acknowledges that he is waiving and releasing any rights he may have under the ADEA and that this Release is knowing and voluntary.  Executive acknowledges that the consideration given for this Release and the general release set forth herein is in addition to anything of value to which Executive was already entitled.  Executive further acknowledges that he has been advised by this writing that:

 

a)            Executive has consulted with an attorney prior to executing this Release;

 

2

 

b)                                     Executive has up to [twenty-one (21)](1) days within which to consider this Release and seven (7) days following his execution of this Release to revoke it as set forth in Section 10;

 

c)             this Release shall not be effective until the revocation period has expired; and

 

d)                                     nothing in this Release precludes him from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized by federal law.

 

4.             Ownership of Claims.  Executive represents and warrants that he is the sole and lawful owner of all rights, title and interest in and to all released matters, claims and demands referred to herein.  Executive further represents and warrants that there has been no assignment or other transfer of any interest in any such matters, claims or demands which Executive may have against the Company.

 

5.             Confidentiality.  Executive understands and agrees that this Release, and the matters discussed in negotiating its terms, are entirely confidential.  It is therefore expressly understood and agreed by Executive that he will not reveal, discuss, publish or in any way communicate any of the terms, amount or fact of this Release to any person, organization or other entity, except to his immediate family members and professional representatives, all of whom shall be informed of and agree to be bound by this confidentiality clause (unless already bound by an equivalent obligation of confidentiality) before any such disclosure.  In addition, the parties agree that Executive may disclose this Release to the appropriate state or federal agency.

 

6.             Cooperation in Litigation.  Executive agrees that for a period of three (3) years from the termination of Executive’s employment with the Company for any reason, he will (i) provide reasonable assistance and cooperation to the Company in activities related to the prosecution or defense of any pending or future lawsuits, arbitrations, and other proceedings or claims involving the Company relating to the period of Executive’s employment with the Company (“Company Litigation”); (ii) make himself available to the Company on reasonable notice and without the need for issuance of any subpoena or similar process to testify in any Company Litigation; (iii) refrain from providing any information related to any Company Litigation or potential Company Litigation to any non-Company representative until he shall (A) have first obtained written consent of the Company or (B) be required to provide such information pursuant to legal process; and (iv) if required by legal process to provide sworn testimony in any Company Litigation, consult with and permit Company-designated legal counsel to be present for such testimony, to the extent by legal process, the costs of such designated counsel to be solely the responsibility of the Company. If sworn testimony of Executive is required by legal process in any Company Litigation, Executive shall confine his

 

(1)  Change to forty-five (45) days in the event of a mass layoff.

 

3

 

testimony to items about which he has knowledge, rather than speculation or opinion testimony, unless otherwise directed by legal process.  The parties hereto agree that the provisions of this paragraph are not applicable to any proceeding involving any alleged breach of this Release.  The Company will reimburse Executive for all reasonable business and legal expenses incurred by Executive in connection with such cooperation or in assisting the Company under this provision including but not limited to non-testimonial activities, including investigations, trial preparation and document reviews.

 

7.             Termination of Agreements; Survival of Certain Obligations.  This Release and the Employment Letter Agreement constitute the entire agreement between the parties about or relating to Executive’s termination of employment with the Company, or the Company’s obligations to Executive with respect to his termination of employment and fully supersedes any and all prior agreements or understandings between the parties; provided, that for the avoidance of doubt, the parties hereto agree that (i) Executive’s post-employment obligations set forth in that certain Employee Statement and Agreements Regarding Confidentiality, Proprietary Information, Invention Assignment, Non-Competition and Non-Solicitation, dated July 27, 2016, (ii) the Company’s obligations under that certain Indemnification Agreement dated as of July 27, 2016 which are intended to survive the termination thereof, (iii) any obligations of the parties under that certain Employment Letter Agreement which are intended to survive the termination thereof and the execution of this Release, and (iv) his obligations to which he agreed as set forth in the Interest Purchase Agreement, dated as of May 9, 2016, by and among EMC Acquisition Holdings, LLC and the Company are, in each case, expressly incorporated by reference herein and survive Employee’s termination of employment.

 

8.             Voluntary Execution.  Executive hereby acknowledges that he has read and understands this Release and that he signs this Release voluntarily and without coercion.  Executive further acknowledges that he has been advised by the Company to obtain independent legal advice regarding the matters contained in this Release.  Executive further acknowledges that the waivers he has made in this Release are knowing, conscious and voluntary and are made with full appreciation that he is forever foreclosed from pursuing any of the rights waived.

 

9.             Severability.  Executive agrees that if any provision of the release given by him under this Release is found to be unenforceable or illegal, it will not affect the enforceability of the remaining provisions and the courts may enforce all remaining provisions to the extent permitted by law.

 

10.          Time Periods.  Executive acknowledges that he has been given [twenty- one (21) days](2) to consider this Agreement.  If Executive elects to sign this Agreement before that time period expires, Executive will do so knowingly and voluntarily.  Executive understands that he has up to seven (7) days after executing and delivering this Agreement to rescind this agreement by notifying [APPROPRIATE COMPANY CONTACT] of this fact in writing within

 

(2)  Change to forty-five (45) days in the event of a mass layoff.

 

4

 

the seven (7) day period.  The effective date of this Agreement will be at the end of the seven (7) day period if no revocation has been received.

 

11.          Governing Law. This Agreement shall be governed in all respects, whether as to validity, construction, capacity, and performance or otherwise by the laws of the State of Florida.

 

12.          Modification. No provision of this Agreement shall be amended, waived or modified except by an instrument in writing signed by the parties hereto.

 

13.          Counterparts. This Agreement may be executed in counterparts, both of which together shall constitute the original agreement. This Agreement may also be executed by facsimile signature.

 

5

 

Please read this Release carefully. To help you understand the Release and your rights as a terminated employee, consult with your attorney. You acknowledge that you have carefully read this Release, voluntarily agree to all of its terms and conditions, understand its contents and the final and binding effect of this Release, and that you have signed the same as your own free act with the full intent of releasing the Company from all claims you may have against it, except as otherwise provided in this Release.

 

IN WITNESS WHEREOF, the parties hereto have executed this Release on the date first written above.

 

	
 
    	
EMPLOYEE
    
	
 
    	
 
    
	
 
    	
ABEL AVELLAN
    
	
 
    	
 
    
	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Dated:
    	
 
    
	
 
    	
 
    
	
 
    	
COMPANY
    
	
 
    	
 
    
	
 
    	
GLOBAL EAGLE   ENTERTAINMENT INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Dated:Exhibit 10.13

 

GLOBAL EAGLE ENTERTAINMENT INC.

2016 INDUCEMENT AND RETENTION STOCK PLAN 
 FOR EMC EMPLOYEES

 

(effective July 27, 2016)

 

Section 1.                                          Establishment, Objectives and Duration.

 

(a)                                 Establishment of the Plan. The “independent directors,” within the meaning of the NASDAQ marketplace rules (the “Independent Directors”) of the Board of Directors of Global Eagle Entertainment Inc., a Delaware corporation (the “Company”), hereby establish this Global Eagle Entertainment Inc. 2016 Inducement and Retention Stock Plan for EMC Employees (the “Plan”), as set forth herein. Capitalized terms used but not otherwise defined herein shall have the meanings given to them in Section 2. The Plan permits the grant of Awards of Nonqualified Stock Options and Restricted Stock Units. The Plan will not be effective until the Committee has approved the Plan and until the Acquisition has been consummated.

 

(b)                                 Purpose of the Plan. The purpose of the Plan is to provide Awards of Nonqualified Stock Options and Restricted Stock Units to certain persons employed by EMC Intermediate, LLC, a Delaware limited liability company, or a subsidiary or affiliate thereof (collectively, “EMC”), in connection with the Acquisition, as an inducement material to those persons entering into employment or continuing employment with the Company or its current or future Affiliates (including EMC) upon the consummation of the Acquisition, and to promote the success and enhance the value of the Company by linking the personal interests of Participants to those of Company stockholders. The Plan is intended to comply with The NASDAQ Stock Market (“NASDAQ”) Listing Rule 5635(c)(4), which provides an exception to the NASDAQ shareholder approval requirement for the issuance of securities with regard to grants to prospective employees of the Company, including without limitation grants to prospective employees in connection with a merger or other acquisition.

 

(c)                                  Duration of the Plan. The Plan will commence on the Effective Date and will remain in effect, subject to the right of the Committee to amend or terminate the Plan at any time pursuant to Section 9, for a term of ten (10) years after the Effective Date.

 

Section 2.                                          Definitions. Whenever used in the Plan, the following terms will have the meanings set forth below, and when the meaning is intended, the initial letter of the word is capitalized:

 

(a)                           “Acquisition” means the transactions contemplated under the Acquisition Agreement.

 

(b)                           “Acquisition Agreement” means the Interest Purchase Agreement, dated May 9, 2016, by and between the Company and EMC Acquisition Holdings, LLC, a Delaware limited liability company, concerning the sale of the membership interests of EMC.

 

(c)                            “Affiliate” means, for all purposes hereunder, an entity that is (directly or indirectly) controlled by the Company.

 

 

(d)                           “Award” means, individually or collectively, a grant under the Plan to a Participant of Nonqualified Stock Options or Restricted Stock Units.

 

(e)                            “Award Agreement” means an agreement entered into by and between the Company and a Participant setting forth the provisions applicable to an Award or Awards granted to the Participant.

 

(f)                             “Board” or “Board of Directors” means the Board of Directors of the Company.

 

(g)                            “Change of Control” means (unless otherwise expressly provided in a particular Award Agreement, employment and/or severance agreement), any of the following:

 

(i)                                     a transaction or series of transactions (other than an offering of Common Stock to the general public through a registration statement filed with the SEC) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its Subsidiaries, an employee benefit plan maintained by the Company or any of its Subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than fifty percent (50%) of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; or

 

(ii)                                  during any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new director(s) (other than a director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in Section 2(g)(i) or Section 2(g)(iii)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two-year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or

 

(iii)                               the consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company’s assets in any single transaction or series of related transactions, in each case other than a transaction:

 

(A)                               that results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of

 

2

 

the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and

 

(B)                               after which no person or group beneficially owns voting securities representing fifty percent (50%) or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this Section 2(g)(iii)(B) as beneficially owning fifty percent (50%) or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or

 

(iv)                              the Company’s shareholders approve a liquidation or dissolution of the Company.

 

Notwithstanding the foregoing, with respect to an Award that is considered deferred compensation subject to Code Section 409A, the definition of “Change of Control” shall be amended and interpreted in a manner that allows the definition to satisfy the requirements of a change of control under Code Section 409A solely for purposes of determining the timing of payment of such Award.

 

The Committee shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change of Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change of Control and any incidental matters relating thereto.

 

(h)                           “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

(i)                               “Committee” shall mean the Compensation Committee of the Board of Directors, the composition of which shall consist of at least two (2) directors who are “independent directors” within the meaning of the NASDAQ marketplace rules and “non-employee directors” within the meaning of Exchange Act Rule 16b-3, or in lieu of the Compensation Committee of the Board of Directors, the Independent Directors.

 

(j)                              “Common Stock” means the Company’s common stock, par value $0.0001 per Share.

 

(k)                           “Company” shall have the meaning set forth in Section 1(a).

 

(l)                               “Director” means any individual who is a member of the Board of Directors.

 

(m)                       “Disability” means, except as otherwise determined by the Committee and set forth in an Award Agreement, a physical or mental incapacity which qualifies an individual to collect a benefit under a long-term disability plan maintained by the Company, or such similar mental or physical condition which the Committee may determine to be a disability, regardless of whether either the individual or the condition is covered by any such long-term disability plan. The Committee shall make the determination of Disability and may request such evidence of Disability as it reasonably determines.

 

3

 

(n)                           “Effective Date” means the Closing Date as such term is defined in Section 1.11 of the Acquisition Agreement.

 

(o)                           “EMC” shall have the meaning set forth in Section 1(b).

 

(p)                           “Employee” means an employee of EMC immediately prior to the Acquisition who is identified on Exhibit A to the Plan.

 

(q)                           “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

 

(r)                              “Fair Market Value” means, per Share on a particular date, unless otherwise specified by the Committee, the last sales price on such date on NASDAQ, as reported in The Wall Street Journal, or if no sales of Common Stock occur on the date in question, on the last preceding date on which there was a sale on such market. If the Shares are not listed on NASDAQ, but are traded on a national securities exchange or in another over-the-counter market, the last sales price (or, if there is no last sales price reported, the average of the closing bid and asked prices) for the Shares on the particular date, or on the last preceding date on which there was a sale of Shares on that exchange or market, will be used, unless otherwise specified by the Committee. If the Shares are neither listed on a national securities exchange nor traded in an over-the-counter market, the price determined by the Committee, in its discretion, will be used.

 

(s)                             “Independent Directors” shall have the meaning set forth in Section 1(a).

 

(t)                              “NASDAQ” shall have the meaning set forth in Section 1(b).

 

(u)                           “Nonqualified Stock Option” means the right to purchase Shares at a stated price for a specified period of time, which does not meet the requirements of Code Section 422.

 

(v)                           “Participant” means an Employee whom the Committee has selected to participate in the Plan pursuant to Section 5 and who has an Award outstanding under the Plan.

 

(w)                         “Plan” has the meaning set forth in Section 1(a).

 

(x)                           “Restricted Stock Unit” means a contractual right to receive a number of Shares or an amount of cash equal to the value of that number of Shares corresponding to the number of units granted to a Participant without payment, as compensation for services to the Company or its Subsidiaries, which right may be subject to vesting restrictions.

 

(y)                           “Restriction Period” means the period of time established by the Committee relative to an Award of Restricted Stock Units during which such Award or a portion thereof is subject to restrictions and/or vesting.

 

(z)                            “Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor act thereto.

 

(aa)                    “Share” means a share of Common Stock.

 

4

 

(bb)                    “Subsidiary” means any corporation or limited liability company (except that is treated as a partnership for U.S. income tax purposes) in an unbroken chain of entities beginning with the Company if each of the entities (other than the last entity in the chain) owns stock or equity interests possessing more than fifty percent (50%) of the total combined voting power of all classes of stock or equity interests in one of the other entities in the chain.

 

Section 3.                                          Administration.

 

(a)                                 The Committee. The Plan will be administered by the Committee, or by the Independent Directors or any other committee appointed by the Board whose composition satisfies the “nonemployee director” requirements of Rule 16b-3 under the Exchange Act and the regulations of Rule 16b-3 under the Exchange Act and the “independent director” requirements of the NASDAQ marketplace rules, or any successor regulations or provisions.

 

(b)                                 Authority of the Committee. Except as limited by law and subject to the provisions of this Plan, the Committee will have full power to: select the persons to whom Awards may be granted hereunder prior to the consummation of the Acquisition with the grant of such Award effective upon the consummation of the Acquisition and subject to such person commencing employment with the Company or an Affiliate; determine the sizes of Awards; determine the terms and conditions of Awards in a manner consistent with the Plan; construe and interpret the Plan and any agreement or instrument entered into under the Plan; establish, amend or waive rules and regulations for the Plan’s administration; and (subject to the provisions of Section 9) amend the terms and conditions of the Plan to the extent such amendment is within the discretion of the Committee as provided in the Plan.  Further, the Committee will make all other determinations that may be necessary or advisable to administer the Plan.  As permitted by law and consistent with Section 3(a), the Committee may delegate some or all of its authority under the Plan, including to an officer of the Company to designate the Employees (other than such officer himself or herself) to receive Awards and to determine the number of Shares subject to the Awards such Employees will receive.

 

The duties of the Committee or its delegatee shall also include, but shall not be limited to, making disbursements and settlements of Awards, creating trusts, and determining whether to defer or accelerate the vesting of, or the lapsing of restrictions or risk of forfeiture with respect to Awards. Subject only to compliance with the express provisions of the Plan, the Committee or its delegatee may act in its, his, or her sole and absolute discretion in performing the duties specifically set forth in the preceding sentence and other duties under the Plan.

 

(c)                                  Decisions Binding. All determinations and decisions made by the Committee pursuant to the provisions of the Plan will be final, conclusive and binding on all persons, including, without limitation, the Company, its Board of Directors, its stockholders, all Affiliates, Employees, Participants and their estates and beneficiaries.

 

(d)                                 Change of Control. If a Participant has in effect an employment, retention, change of control, severance or similar agreement (such as an Award Agreement) with the Company or an Affiliate that discusses the effect of a Change of Control on the Participant’s Awards, then such agreement shall control in the event of a Change of Control. In all other cases, in the event of a Change of Control, the Committee may, in its sole discretion (i) elect to accelerate, in whole

 

5

 

or in part, the vesting of any Award, (ii) elect to make cash payments payable as a result of the acceleration of vesting of any Award, or (iii) elect to cancel any Nonqualified Stock Options as of the date of the Change of Control in exchange for a cash payment equal to the excess of the Change of Control price of the Shares covered by the Nonqualified Stock Option that is so cancelled over the purchase or grant price of such Shares under the Award.

 

Except as otherwise expressly provided in an agreement between a Participant and the Company or an Affiliate, if the receipt of any payment by a Participant under the circumstances described above would result in the payment by the Participant of any excise tax provided for in Code Sections 280G and 4999, then the amount of such payment shall be reduced to the extent required to prevent the imposition of such excise tax.

 

Section 4.                                          Shares Subject to the Plan and Maximum Awards.

 

(a)                                 Number of Shares Available for Awards. Subject to adjustment as provided in Section 9(b), the maximum number of Shares that may be issued or transferred to Participants under the Plan will be           .(1)  Shares issued by the Company in settlement of Awards may be authorized and unissued shares, shares held in the treasury of the Company, shares purchased on the open market or by private purchase or a combination of the foregoing.

 

(b)                                 Lapsed Awards. Any Shares (i) subject to an Award under the Plan that, after the Effective Date, is forfeited, canceled, settled or otherwise terminated without a distribution of Shares to a Participant; or (ii) delivered by attestation to, or withheld by, the Company in payment of any required income tax withholding for the vesting of Awards under the Plan, will thereafter not be deemed to be available for Awards.

 

Section 5.                                          Eligibility and Participation.

 

(a)                                 Eligibility. Awards may be granted only to Employees and shall be granted as an inducement material to such Employees entering into and continuing employment with the Company or its current or future Affiliates (including, following the Acquisition, EMC) in connection with and upon the consummation of the Acquisition.  Awards shall not become effective until the consummation of the Acquisition and the Participant’s commencement of employment with the Company or an Affiliate. No Award shall be granted hereunder after the consummation of the Acquisition, and no Award shall be granted hereunder to any individual who is employed by, or who is rendering services to, the Company or an Affiliate immediately prior to the Acquisition.

 

(b)                                 Actual Participation. Subject to the provisions of the Plan, the Committee will select those Employees to whom Awards will be granted and will determine the nature and amount of each Award.

 

(1)  The maximum number of Shares will be equal to 725,000, plus a number of Shares with a grant date value of up to $900,000 in the aggregate (based on the closing price of the Company’s Common Stock on NASDAQ on the Effective Date).

 

6

 

Section 6.                                          Restricted Stock Unit Awards.

 

(a)                                 Terms and Conditions. The Committee may authorize grants of Restricted Stock Units to Participants upon such terms and conditions as the Committee may determine in accordance with the provisions of this Section 6.

 

(b)                                 Restriction Period. Each grant of Restricted Stock Units covered thereby shall be subject to a Restriction Period, which shall be fixed by the Committee on the date of grant, and any grant or sale may provide for the earlier termination of the Restriction Period in the event of a termination of employment.

 

(c)                                  Dividend Equivalents and Other Ownership Rights. During the Restriction Period, a Participant shall not have any right to transfer any rights under the subject Award and shall not have any rights of ownership in the Shares underlying the Restricted Stock Units, including the right to vote such Shares, but the Committee may on or after the date of grant authorize the payment of dividend equivalents on such shares in cash or additional Shares on a current, deferred or contingent basis with respect to any or all dividends or other distributions paid by the Company, subject to the requirements of Code Section 409A. Notwithstanding the foregoing, any dividend equivalents with respect to dividends paid in stock shall be subject to the same restrictions as the underlying Award.

 

(d)                                 Payment. Unless otherwise provided in an Award Agreement, upon the vesting of a Restricted Stock Unit there shall be delivered to the Participant, as soon as practicable following the date on which such Award (or any portion thereof) vests (but in no event later than two and one-half (21⁄2) months following the end of the calendar year in which such Restricted Stock Unit vests), subject to Section 9, that number of Shares equal to the number of Restricted Stock Units that have vested (or the cash equivalent thereof, in the case of a cash-settled award).

 

Section 7.                                          Nonqualified Stock Option Awards.

 

(a)                                 Terms and Conditions. Subject to the terms of the Plan, the Committee will determine all terms and conditions of each Nonqualified Stock Option, including, but not limited to (i) the number of Shares subject to the Nonqualified Stock Option, (ii) the date of grant, which may not be prior to the date of the Committee’s approval of the grant, (iii) the exercise price, which may not be less than the Fair Market Value of the Shares subject to the Nonqualified Stock Option as determined on the date of grant, (iv) the vesting provisions, (v) the terms and conditions of exercise, and (vi) the term of the Nonqualified Stock Option; provided, however, that each Nonqualified Stock Option must terminate no later than ten (10) years after the date of grant.

 

(b)                                 Exercise of Nonqualified Stock Options. Subject to the terms and conditions of the Award, vested Nonqualified Stock Options may be exercised, in whole or in part, by giving notice of exercise to the Company in such manner as the Company may prescribe. This notice must be accompanied by payment in full of the exercise price in cash or by use of such other instrument as the Committee may agree to accept.

 

(c)                                  Payment of Exercise Price. Payment of the exercise price, applicable withholding taxes due upon exercise of the Nonqualified Stock Option, or both may be made in the form of Common Stock already owned by the Participant, which Common Stock shall be valued at Fair

 

7

 

Market Value on the date the Nonqualified Stock Option is exercised. A Participant who elects to make payment in Common Stock may not transfer fractional shares or shares of Common Stock with an aggregate Fair Market Value in excess of the Nonqualified Stock Option exercise price plus applicable withholding taxes. A Participant need not present stock certificates when making a payment in Common Stock, so long as other satisfactory proof of ownership of the Common Stock tendered is provided (e.g., attestation of ownership of a sufficient number of shares of Common Stock to pay the exercise price). The Committee shall have the discretion to authorize or accept payment by other forms or methods or to establish a cashless exercise program, all within such limitations as may be imposed by the Plan or any applicable law.

 

Section 8.                                          Rights of Participants.

 

(a)                                 Employment and Service.  Nothing in the Plan or an Award Agreement will confer upon any Participant any right with respect to continued employment or service with the Company or an Affiliate. Unless determined otherwise by the Committee, for purposes of the Plan and all Awards, the following rules shall apply:

 

(i)                                     a Participant who transfers employment between the Company and its Affiliates, or between Affiliates, will not be considered to have terminated employment;

 

(ii)                                  a Participant who ceases to be employed by the Company or an Affiliate and immediately thereafter becomes a non-employee Director, a non-employee director of an Affiliate, or a consultant to the Company or any Affiliate shall not be considered to have terminated employment until such Participant’s service as a director of, or consultant to, the Company and its Affiliates has ceased; and

 

(iii)                               a Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate.

 

Notwithstanding the foregoing, for purposes of an Award that is subject to Code Section 409A, if a Participant’s termination of employment or service triggers the payment of compensation under such Award, then the Participant will be deemed to have terminated employment or service upon his or her “separation from service” within the meaning of Code Section 409A.

 

(b)                                 Participation. No Employee will have the right to receive an Award under this Plan or any other equity incentive plan of the Company, or, having received any Award, to receive a future Award.

 

Section 9.                                          Amendment, Modification and Termination.

 

(a)                                 Amendment, Modification and Termination. The Committee may at any time and from time to time, alter, amend, modify or terminate the Plan in whole or in part; provided, however, that the Committee will not amend the Plan in any way that would require approval of the Company’s stockholders without the approval thereof. Notwithstanding the foregoing, no amendment under the Plan or a termination of the Plan will materially alter or impair any rights or obligations under any Award already granted under the Plan, without the prior written consent of the Participant.

 

8

 

(b)                                 Adjustment of Shares. If: (i) the Company shall at any time be involved in a merger or other transaction in which the Shares are changed or exchanged, (ii) the Company shall subdivide or combine the Shares or the Company shall declare a dividend payable in Shares, other securities or other property, (iii) the Company shall effect a cash dividend the amount of which, on a per Share basis, exceeds ten percent (10%) of the Fair Market Value of a Share at the time the dividend is declared, or the Company shall effect any other dividend or other distribution on the Shares in the form of cash, or a repurchase of Shares, that the Board determines by resolution is special or extraordinary in nature or that is in connection with a transaction that the Company characterizes publicly as a recapitalization or reorganization involving the Shares, or (iv) any other event shall occur, which, in the case of this clause (iv), in the judgment of the Board or Committee necessitates an adjustment to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, adjust as applicable: (A) the number and type of Shares subject to the Plan (including the number and type of Shares described in Section 4(a)); (B) the number and type of Shares subject to outstanding Awards; and (C) the grant, purchase, or exercise price with respect to any Award, if applicable.

 

Without limitation, in the event of any reorganization, merger, consolidation, combination or other similar corporate transaction or event, whether or not constituting a Change of Control (other than any such transaction in which the Company is the continuing corporation and in which the outstanding Common Stock is not being converted into or exchanged for different securities, cash or other property, or any combination thereof), the Committee may substitute, on an equitable basis as the Committee determines, for each Share then subject to an Award and the Shares subject to the Plan (if the Plan will continue in effect), the number and kind of shares of stock, other securities, cash or other property to which holders of Common Stock are or will be entitled in respect of each Share pursuant to the transaction.

 

Notwithstanding the foregoing, in the case of a stock dividend (other than a stock dividend declared in lieu of an ordinary cash dividend) or subdivision or combination of the Shares (including a reverse stock split), if no action is taken by the Committee, adjustments contemplated by this Section 9(b) that are proportionate shall nevertheless automatically be made as of the date of such stock dividend or subdivision or combination of the Shares.

 

Section 10.                                   Date of Grant. The date of grant of an Award shall be the date, upon consummation of the Acquisition, when the Participant commences employment with the Company or a current or future Affiliate (including EMC). Notice of the determination shall be provided to each Participant within a reasonable time after the date of grant. Promptly following the date of grant of any Award hereunder, the Company shall disclose in a press release in compliance with NASDAQ Listing Rule 5635(c)(4) the material terms of the Awards, the number of Employees and the number of Shares involved.

 

Section 11.                                   Nontransferability of Awards. Except as otherwise provided in a Participant’s Award Agreement, no Award under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, or pursuant to a domestic relations order (as defined in Code Section 414(p)). The

 

9

 

Participant’s beneficiary may exercise the Participant’s rights to the extent they are exercisable under the Plan following the Participant’s death. The Committee may, in its discretion, require a Participant’s guardian, legal representative or beneficiary to supply it with the evidence the Committee deems necessary to establish the authority of the guardian, legal representative or beneficiary to act on behalf of the Participant.

 

Section 12.                                   Taxes.

 

(a)                                 Withholding. In the event the Company or an Affiliate of the Company is required to withhold any Federal, state or local taxes or other amounts in respect of any income recognized by a Participant as a result of the grant, vesting, payment or settlement of an Award or disposition of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from any payments of any kind otherwise due to the Participant cash, or with the consent of the Committee, Shares otherwise deliverable or vesting under an Award, to satisfy such tax obligations. Alternatively, the Company may require such Participant to pay to the Company, in cash, promptly on demand, or make other arrangements satisfactory to the Company regarding the payment to the Company of the aggregate amount of any such taxes and other amounts. If Shares are deliverable upon exercise or payment of an Award, the Committee may permit a Participant to satisfy all or a portion of the Federal, state and local withholding tax obligations arising in connection with such Award by electing to (i) have the Company withhold Shares otherwise issuable under the Award, (ii) tender back Shares received in connection with such Award or (iii) deliver other previously owned Shares; provided, however, that the amount to be withheld may not exceed the total minimum Federal, state and local tax withholding obligations associated with the transaction to the extent needed for the Company to avoid an accounting charge. If an election is provided, the election must be made on or before the date as of which the amount of tax to be withheld is determined and otherwise as the Committee requires. In any case, the Company may defer making payment or delivery under any Award if any such tax may be pending unless and until indemnified to its satisfaction.

 

(b)                                 No Guarantee of Tax Treatment. Notwithstanding any provisions of the Plan, the Company does not guarantee to any Participant or any other person with an interest in an Award that (i) any Award intended to be exempt from Code Section 409A shall be so exempt, (ii) any Award intended to comply with Code Section 409A shall so comply, (iii) any Award shall otherwise receive a specific tax treatment under any other applicable tax law, nor in any such case will the Company or any Affiliate indemnify, defend or hold harmless any person with respect to the tax consequences of any Award.

 

Section 13.                                   Indemnification. The Company will indemnify and hold harmless each member of the Board and the Committee, and each officer or member of any other committee to whom a delegation under Section 3(b) has been made, as to any acts or omissions with respect to the Plan or any Award to the maximum extent that the law and the Company’s By-Laws permit.

 

Section 14.                                   Successors. All obligations of the Company under the Plan or any Award Agreement will be binding on any successor to the Company, whether the existence of the successor results from a direct or indirect purchase of all or substantially all of the business or assets of the Company or both, or a merger, consolidation, or otherwise.

 

10

 

Section 15.                                   Miscellaneous.

 

(a)                                 Other Terms and Conditions. The grant of an Award may also be subject to other provisions (whether or not applicable to the Award granted to any other Participant) as the Committee determines appropriate, including, without limitation, provisions for:

 

(i)                                     the payment of the exercise price of a Nonqualified Stock Option by delivery of cash or other Shares or other securities of the Company (including by attestation) having a Fair Market Value then equal to the exercise price of such Shares, or by delivery (including by fax) to the Company or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions to a broker-dealer to sell or margin a sufficient portion of the Shares and deliver the sale or margin loan proceeds directly to the Company to pay for the exercise price;

 

(ii)                                  restrictions on the resale or other disposition of Shares; and

 

(iii)                               compliance with federal or state securities laws and stock exchange requirements.

 

(b)                                 Requirements of Law and Securities Exchange. The granting of Awards and the issuance of Shares in connection with an Award are subject to all applicable laws, rules and regulations and to such approvals by any governmental agencies or securities exchanges as may be required. Notwithstanding any other provision of the Plan or any Award Agreement, the Company has no liability to deliver any Shares under the Plan or make any payment unless such delivery or payment would comply with all applicable laws and the applicable requirements of any securities exchange or similar entity, and unless and until the Participant has taken all actions required by the Company in connection therewith. The Company may impose such restrictions on any Shares issued under the Plan as the Company determines necessary or desirable to comply with all applicable laws, rules and regulations or the requirements of any national securities exchanges.

 

(c)                                  Unfunded Plan. This Plan is unfunded and does not create, and should not be construed to create, a trust or separate fund with respect to the Plan’s benefits. This Plan does not establish any fiduciary relationship between the Company and any Participant or other person. To the extent any person holds any rights by virtue of an Award granted under the Plan, such rights are no greater than the rights of the Company’s general unsecured creditors.

 

(d)                                 No Fractional Shares. No fractional Shares or other securities may be issued or delivered pursuant to the Plan, and the Committee may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional Shares or other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities will be canceled, terminated or otherwise eliminated.

 

(e)                                  Governing Law. This Plan, and all agreements under the Plan, will be construed in accordance with and governed by the laws of the State of Delaware, without reference to any conflict of law principles. Any legal action or proceeding with respect to the Plan, any Award or any Award Agreement, or for recognition and enforcement of any judgment in respect of the

 

11

 

Plan, any Award or any Award Agreement, may only be heard in a “bench” trial, and any party to such action or proceeding shall agree to waive its right to a jury trial.

 

(f)                                   Limitations on Actions. Any legal action or proceeding with respect to the Plan, any Award or any Award agreement, must be brought within one (1) year (365 days) after the day the complaining party first knew or should have known of the events giving rise to the complaint.

 

(g)                                  Construction. Whenever any words are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases where they would so apply; and wherever any words are used in the singular or plural, they shall be construed as though they were used in the plural or singular, as the case may be, in all cases where they would so apply. Titles of sections are for general information only, and the Plan is not to be construed with reference to such titles.

 

(h)                                 Severability. If any provision of the Plan or any award agreement or any Award (i) is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or Award, or (ii) would disqualify the Plan, any Award Agreement or any Award under any law the Committee deems applicable, then such provision should be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan, Award Agreement or Award, then such provision should be stricken as to such jurisdiction, person or Award, and the remainder of the Plan, such Award Agreement and such Award will remain in full force and effect.

 

(i)                                     Electronic Delivery and Evidence of Award. The Company may deliver by email or other electronic means (including posting on a web site maintained by the Company or by a third party) all documents relating to the Plan or any Award hereunder (including, without limitation, any Award Agreement and prospectus required by the SEC) and all other documents that the Company is required to deliver to its securities holders (including, without limitation, annual reports and proxy statements). In addition, evidence of an Award may be in electronic form, may be limited to notation on the books and records of the Company and, with the approval of the Board, need not be signed by a representative of the Company or a Participant. Any Shares that become deliverable to the Participant pursuant to the Plan may be issued in certificate form in the name of the Participant or in book entry form in the name of the Participant.

 

(j)                                    No Limitation on Rights of the Company. The grant of an Award does not and will not in any way affect the right or power of the Company to make adjustments, reclassifications or changes in its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets.

 

(k)                                 Section 409A. With respect to Awards subject to Section 409A or 162(m) of the Code, this Plan is intended to comply with the requirements of such Sections, and the provisions hereof shall be interpreted in a manner that satisfies the requirements of such Sections and the related regulations, and the Plan shall be operated accordingly. If any provision of this Plan or

 

12

 

any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition will be interpreted and deemed amended so as to avoid this conflict.

 

*                                         *                                         *                                         *                                         *

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]