Document:

Exhibit 10.46

 

TERM SHEET

 

Proprietary and Confidential

 

Information provided herein is considered “Confidential Information”.  Each of the parties to this term sheet (the “Term Sheet”) and any other information related to the contemplated Transaction (defined below), agrees to keep this information confidential and not disclose the information to any third party, other than each of the party’s representatives that will help such part evaluate the Transaction, without the written consent of the other party. Each party further agrees to safeguard the information with the same degree of care with which it would safeguard its own confidential information, but in any event with no less than reasonable care.  Neither party will use the information in any manner (other than for purposes of evaluating whether to enter into the Transaction) without the prior written consent of the other party.

 

Terms and Conditions

 

	
THE   TRANSACTION:
    	
 
    	
SFX   Entertainment Inc. (“SFX”) shall enter into an agreement with EZ Festivals   LLC (“EZ”) and Laura De Palma (“De Palma”) to acquire 100% of the ownership   interests and/or the assets of EZ (the “Transaction”) for a purchase price to   be paid as described below. The foregoing purchase, when combined with the   purchase of Made Event, LLC (“MADE”) is intended to include 100% of the   Electric Zoo Festivals and related assets and businesses. After closing   hereunder, any allocation of EBITDA to EZ for Purchase Price or Distribution   shall be 50% of the combined EBITDA for the EZ and MADE businesses under the   control of SFX.
    
	
 
    	
 
    	
 
    
	
PURCHASE   PRICE:
    	
 
    	
SFX   will purchase One Hundred Percent (100%) of the ownership interests and/or   the assets of EZ for a purchase price (the “Purchase Price”) equal to   (i) Seventeen Million Five Hundred Thousand Dollars ($17,500,000); plus   (ii) an amount equal to the greater of the Floor (as hereinafter   defined) or thirty percent (30%) of the 2017 EBITDA of EZ multiplied by a   factor of ten (10) (hereinafter referred to as the “Final Payment”). If   all or substantially all of the 2017 Electric Zoo Festival is cancelled in   whole or in part for any reason other than a business decision not to operate   the Electric Zoo Festival in 2017, De Palma shall have the option, but not   the requirement, to substitute the Final Payment referenced in (ii) of   this paragraph with an amount equal to the greater of the Floor or thirty   percent (30%) of the 2016 EBITDA of EZ multiplied by a factor of ten   (10) (the “Adjusted Final Payment”). If the 2017 and 2016 Electric Zoo   Festivals are both cancelled in whole or in part for any reason other than a   business decision not to operate the Electric Zoo Festival in such years,   then De Palma shall 
    

 

 

	
 
    	
 
    	
have   the option, but not the requirement, to substitute the Final Payment   referenced in (ii) of this paragraph with an amount equal to the greater   of the Floor or thirty percent (30%) of the 2015 EBITDA of EZ multiplied by a   factor of ten (10) (the “Substitute Final Payment”), provided that if   the cancellation is due to failure of the governmental agencies to issue the   appropriate permits in 2016 and 2017, then the EBITDA used for such   calculation shall be 2017. The Purchase Price shall be paid to De Palma and   the ownership interests of EZ shall be delivered to SFX as detailed   hereinbelow in the section entitled “CLOSING DELIVERIES”.
    
	
 
    	
 
    	
 
    
	
CLOSING   DELIVERIES:
    	
 
    	
Upon   the First Closing (as hereinafter defined) of the Transaction, SFX shall   deliver to De Palma (i) the sum of Ten Million Dollars (US $10,000,000)   in cash; (ii)  Two Million Five Hundred Thousand Dollars ($2,500,000) in   common stock of SFX, which common stock will be valued at Applicable First   Closing Share Price (as hereinafter defined); and (iii) a promissory   note in the amount of $5,000,000 which shall be due and payable upon the   earlier of the completion of the 2013 Audit of EZ or March 31, 2014 (the   $10,000,000 in cash, $2,500,000 in common stock of SFX and the $5,000,000   promissory note are hereinafter referred to as the “Initial Payment”) against   which De Palma shall deliver to SFX ownership interests equal to seventy   percent (70%) of EZ. De Palma shall retain the balance of thirty percent   (30%) of EZ until the Second Closing. Applicable First Closing Share Price   shall mean the lower of $12.75 per share or the initial offering price of SFX   common stock at such time as SFX effects a public offering (an “IPO”) of its   securities. In the event that SFX does not close an IPO on or before the   First Closing, SFX shall issue shares to De Palma at the First Closing valued   at $12.75 per share with an obligation to make an additional “true-up”   payment of additional shares to De Palma within 5 days of the closing of an   IPO if the IPO price of the shares of common stock is lower than $12.75 per   share. The number of shares issued for the true-up shall be equal to the number   of shares which would have been issued at the IPO price minus the number of   shares that were issued at the price of $12.75. For avoidance of doubt, if   $2,500,000 worth of shares were issued at $12.75 per share, there would be   196,078 shares issued. If the IPO price was $10.00 per share, the $2,500,000   in shares would equal 250,000 shares. The difference of 53,922 shares would   be issued for the true-up.

 

On   or before March 31, 2018 (the “Second Closing”), SFX shall deliver the   Final Payment (or Adjusted Final Payment 
    

 

 

	
 
    	
 
    	
or   Substitute Final Payment, as the case may be) to De Palma against which De   Palma shall deliver to SFX ownership interests equal to thirty percent (30%)   of EZ. Notwithstanding anything herein to the contrary, in no event shall the   Final Payment be less than $5,000,000 (the “Floor”). The Final Payment shall   be delivered eighty percent (80%) in cash and twenty percent (20%) in common   stock of SFX, which common stock will be valued at the Applicable Second   Closing Share Price, unless the Final Payment is the Floor, in which case the   Final Payment of $5,000,000 will be paid one hundred percent (100%) in cash.   Applicable Second Closing Share Price shall mean the volume weighted average   closing prices of the common stock of SFX during the fifteen (15) trading   days ending on the second (2nd) trading day immediately   preceding measurement.
    
	
 
    	
 
    	
 
    
	
GROSS-UP   PAYMENT/DISTRIBUTIONS:
    	
 
    	
EZ   shall make a payment (a “Distribution”) to De Palma on March 31, 2014 in   an amount equal to forty percent (40%) of the 2013 net income of EZ, which   payment shall be excluded from the calculation of EBITDA for purposes of   valuing the amount of the Final Payment due to De Palma. EZ shall   additionally make a Distribution to De Palma on each of March 31 of   2015, 2016, 2017 and 2018 in an amount equal to thirty percent (30%) of the   net income of EZ for each of the years ended December 31, 2014, 2015,   2016 and 2017, respectively, all of which shall be excluded from the   calculation of EBITDA for purposes of valuing the amount of the Final Payment   due to De Palma.
    
	
 
    	
 
    	
 
    
	
REGISTRATION   RIGHTS
    	
 
    	
De   Palma shall receive piggyback registration rights for all shares of SFX   common stock received in the Transaction on a similar basis with other   registration rights granted to sellers of other entities acquired by SFX. De   Palma shall agree to execute a lock-up agreement on the same terms and   conditions as agreed by other persons who have received or acquired SFX   securities in connection with a sale of their company to SFX.
    
	
 
    	
 
    	
 
    
	
STRUCTURE:
    	
 
    	
The   parties shall consider such structure or alternative methods for the   Transaction to effect an optimal tax position to all parties.
    
	
 
    	
 
    	
 
    
	
CONDITIONS   TO CONSUMMATION OF THE TRANSACTION:
    	
 
    	
The   following conditions shall be conditions to the Closing of the Transaction:

(a)    satisfactory completion by SFX of a financial, legal and business due   diligence investigation of EZ and the assets, as applicable;

(b)    entry by De Palma into an employment agreement on terms mutually   acceptable to SFX and De Palma (as further described under “Management”);

(c)    confirmation of good standing of EZ in the state of 
    

 

 

	
 
    	
 
    	
formation   and other applicable governmental requirements;

(d)    satisfaction of all liens, judgments and other encumbrances on EZ and   its assets, as applicable;

(e)    simultaneous closing of the purchase of MADE Event, LLC pursuant to the   term sheet of even date herewith so that SFX will acquire 70% of the Electric   Zoo festivals and other asset relating thereto and in EZ and MADE at the   First Closing and 30% of the Electric Zoo festivals and other asset relating   thereto and in EZ and MADE, at the Second Closing;

(f)    obtaining of all requisite regulatory, administrative, or governmental   authorizations and third party consents, if any;

(g)    no material adverse changes to EZ and its business and financial   conditions, subject to customary exceptions;

(h)    the truthfulness and completeness of all covenants, representations and   warranties contained in the Transaction Agreement;

(i)    approval of the Board of Directors of SFX and approval of the managing   member of EZ;

 

There   shall be no contingency for financing.
    
	
 
    	
 
    	
 
    
	
FINANCIAL   STATEMENTS:
    	
 
    	
The   closing of the Transaction will be conditioned on receipt of audited   financial statements (satisfactory to SFX) for the calendar years 2011 and   2012 and interim unaudited financial statements through the end of the first   quarter of 2013. The financial statements shall be prepared by a   PCAOB-certified accounting firm. SFXE shall pay all costs of EZ accountants   and auditors that are incurred in connection with the accounting and audits   for the Transaction. The financial statements shall comply with the   requirements of the United States Securities and Exchange Commission.
    
	
 
    	
 
    	
 
    
	
CLOSING:
    	
 
    	
If   the Transaction proceeds to closing (the “Closing”), the closing date of the   Transaction shall be no later than ninety (90) days after the execution of   this Term Sheet (the date which is ninety (90) days after the execution date   of this Term Sheet is herein referred to as the “First Closing Date”), subject   to extension of up to thirty (30 days) upon payment of the Advance Fee (as   hereinafter defined).
    
	
 
    	
 
    	
 
    
	
MANAGEMENT:
    	
 
    	
De   Palma shall enter into an employment agreement with SFX, providing for De   Palma to serve as an employee of SFX on mutually acceptable terms and   conditions, including, but not limited to:

(a)    Creative control as well as operational control of EZ (De Palma shall   not be required under her employment agreement to provide services to   entities other than EZ and MADE without her consent). Operational control   shall be subject to Board approval;
    

 

 

	
 
    	
 
    	
(b)    A term of five (5) years at an annual salary of Three Hundred   Thousand Dollars ($300,000) plus discretionary bonuses as shall be approved   by the Board; and

(d) Participation   in an Equity Incentive or similar Plan, insurance and other benefits made   available to similarly situated executives of SFX.
    
	
 
    	
 
    	
 
    
	
BOARD   OF DIRECTORS:
    	
 
    	
Following   the Closing, SFX will have the right to designate a majority of the members   of EZ’s board of directors or equivalent body (the “Board”).   The initial Board is expected to be comprised of 5 members with 3 members   designated by SFX and the other 2 members shall be designated by De Palma. De   Palma will serve as a member of the Board and Mike Bindra shall additionally   be appointed as a member of the Board and as Co-General Manager of EZ. De   Palma will be directly responsible for making ordinary course decisions   relating to the day-to-day operation and management of EZ including its   growth and expansion, subject to Board control consistent with SFX corporate   governance.
    
	
 
    	
 
    	
 
    
	
ADVANCE   FEE
    	
 
    	
In   order to induce EZ to commit the resources and incur the legal, and   incidental expenses necessary to properly evaluate the Transaction, SFX   agrees that in the event that SFX fails to complete the intended Transaction   on or before the First Closing Date through no fault on the part of De Palma,   SFX shall thereupon on such First Closing Date pay to EZ a non-refundable   advance payment in the sum of $1,250,000 (the “Advance Fee”). In the event   that the SFX makes the $1,250,000 Advance Fee payment on the First Closing   Date, SFX shall thereupon have an additional thirty (30) days within which to   close the Transaction (the “Extension Period”). So long as SFX makes the   Initial Payment within the Extension Period, the Advance Fee shall be   credited against the Purchase Price in full. In the event that SFX makes the   Initial Payment on or before the end of the Extension Period and fails to   close the Transaction, it shall forfeit all right, title and interest in and   to the Advance Fee (except due to a default by EZ or Made pursuant to the   applicable transaction agreements) and EZ and SFX shall each be released from   all obligations to complete the Transaction.
    

 

 

	
PUBLIC   DISCLOSURE:

 
    	
 
    	
None   of the parties or their advisors shall disclose the terms and conditions of   this Term Sheet without the consent of each party, provided however that   either party shall be entitled to disclose the terms if required pursuant to   law or to comply with regulatory requirements deemed reasonably necessary by   the party. Each party agrees that the timing and content of any other public   disclosure of the Transaction shall not be made without the prior consent of   each party.
    
	
 
    	
 
    	
 
    
	
GOVERNING LAW:
    	
 
    	
To the extent not inconsistent with   Federal Law, this Term Sheet will be governed in all respects, including   validity, interpretation, and effect, by the laws of the State of New York   applicable to contracts made and to be performed wholly within the State of   New York by residents thereof. Any disputes hereunder shall be resolved   pursuant to binding arbitration in New York, New York under the rules of   the American Arbitration Association. The prevailing party shall be entitled   to his or its reasonable attorney’s fees and costs.
    

 

 

	
TICKETING   AGREEMENTS:
    	
 
    	
During the ninety (90) day period   following the execution of this Term Sheet, EZ shall not enter into any new   ticketing agreement for ticketing after 2013 without the prior written   consent of SFX, which consent may be withheld or delayed in its sole   discretion.
    
	
 
    	
 
    	
 
    
	
CONFIDENTIALITY:
    	
 
    	
Both   parties agree to treat the terms and conditions set forth in this summary of   terms and any information conveyed to the other party in connection herewith   confidential and shall not disclose any of such confidential information to   any third parties (other than the party’s officers, directors, employees,   advisors, lenders, or potential financing sources or merger targets of SFX or   EZ who may need to know for the purpose of moving the Transaction forward or   as otherwise required to be in compliance with applicable law, including in   connection with any governmental filings with the Securities and Exchange   Commission or other applicable regulatory agencies or bodies in connection   with its public offering) and subject to their agreement to maintain   confidentiality with respect thereto.
    
	
 
    	
 
    	
 
    
	
EXCLUSIVITY:
    	
 
    	
In   order to induce SFX to commit the resources and incur the legal, accounting   and incidental expenses necessary to properly evaluate the Transaction, EZ   agrees that until the earlier of (a) the end of the ninety (90) day   period beginning on the date of its execution of a counterpart of this Term   Sheet, or (b) such time as SFX and EZ mutually agree to discontinue   discussions of the Transaction (the “Exclusivity Period”), EZ will not, and   will not permit any of its directors, shareholders, affiliates, employees or   other advisors or agents, to (i) solicit, initiate or encourage   (including by way of furnishing confidential information concerning EZ to any   party) the submission of inquiries, proposals or offers from any person,   corporation or other entity (other than SFX and its respective affiliates),   relating to any acquisition or purchase of all or a significant portion of   the assets or equity interests of EZ or any of its subsidiaries, or any   merger, business combination or joint venture involving EZ or any of its   subsidiaries (each, a “Competing Transaction”); (ii) enter into,   continue or otherwise participate in any discussions or negotiations with, or   furnish any information concerning its business to, any corporation, person   or other entity in connection with, a possible Competing Transaction; and   (iii) enter into (or commit to enter into) any agreement with respect   to, or consummate, a Competing Transaction. EZ agrees that it shall   immediately cease any existing discussions or negotiations with any party   (other than SFX or its affiliates) that relate to, or may reasonably be   expected to lead to, any Competing Transaction. EZ hereby agrees to inform   SFX in the event it receives any inquiries or offers for a Competing 
    

 

 

	
 
    	
 
    	
Transaction   during the Exclusivity Period immediately upon receipt of such an inquiry or   offer and provide the details of the inquiry or offer; provided, however,   that in no event shall EZ be required to provide the identity of the party   involved.
    
	
 
    	
 
    	
 
    
	
CONDITIONS:
    	
 
    	
The   negotiation and execution of definitive documents.
    

 

Except for the Exclusivity, Confidentiality, Advance Fee and the SFX agreement to pay EZ accounting and audit fee provisions of this Term Sheet, which shall be binding on the parties hereto, the other provisions of this term sheet are for discussion purposes only and neither party is bound to the terms set forth herein.  The parties acknowledge that there is no agreement, arrangement, or understanding and this is a preliminary outline only, except for Exclusivity, Confidentiality, Advance Fee and the SFX agreement to pay EZ accounting and audit fee provisions of this Term Sheet.

 

ACKNOWLEDGED AND AGREED:

 

EZ FESTIVALS, LLC

 

	
By:
    	
/s/   Laura De Palma
    	
 
    
	
 
    	
Name:
    	
Laura   De Palma
    	
 
    
	
 
    	
Title:
    	
Owner
    	
 
    

 

SFX ENTERTAINMENT INC.

 

 

	
By:
    	
/s/   Shelly Finkel
    	
 
    
	
 
    	
Name:
    	
Shelly   Finkel
    	
 
    
	
 
    	
Title:
    	
PresidentExhibit 10.47

 

SFX ENTERTAINMENT INC.

650 Madison Avenue

15th Floor

New York, NY 10022

 

June 1, 2013

 

Dear Mr. Crowhurst,

 

We are delighted to confirm to you that we are offering you the position of President of SFX Entertainment Inc. (the “Company”), subject to the terms and conditions set forth herein:

 

Assuming you accept our offer, you will become an employee of the Company commencing with the start date stated in Section 1 hereof.  The terms and conditions of your employment with the Company are set forth in this letter agreement (this “Agreement”).

 

1.                                      Start Date and Term.

 

(a)                                 Your start date (“Start Date”) will be June 1, 2013.

 

(b)                                 The term of your employment shall continue for an initial period of five (5) years from your Start Date (the “Initial Term”).  The Initial Term shall be extended thereafter for consecutive one (1) year terms (each a “Renewal Term”) at the end of the Initial Term and on each anniversary thereof unless the Company or you provide written notice to the other no less than sixty (60) days prior to the expiration of the Initial Term or Renewal Term, as applicable, that it or he does not desire such an extension.  Notwithstanding the foregoing, your employment hereunder may be earlier terminated in accordance with Section 5 hereof.  The date on which your employment hereunder shall terminate, for any reason, including, but not limited to, the non-extension of the Initial Term or a Renewal Term, as applicable, or a termination pursuant to Section 5, shall be referred to herein as the “Termination Date.”  The period of time between the Start Date and the Termination Date shall be referred to herein as the “Term.”

 

2.                                      Duties.

 

(a)                                 You will be required to perform your duties at the Company’s headquarters in New York City (or wherever else located hereafter) and be expected to travel from time to time.  You will report to the Chief Executive Officer of the Company.

 

(b)                                 You shall devote your full time, attention, energy, knowledge, best professional efforts and skills to the duties assigned to you; provided, however, it shall not be a violation of this Agreement for you to (i) with the prior written consent of the Board of Directors of the Company (the “Board”), serve on industry trade, civic, charitable or for-profit corporate boards or committees; (ii) deliver lectures or fulfill speaking engagements; or (iii) manage personal investments, as long as such activities do not otherwise violate the terms of this Agreement, including, without limitation, any non-competition or non-solicitation provisions contained herein or therein, or otherwise materially interfere with or impinge upon the

 

 

performance of your duties as set forth in this Agreement.  The Board may, at any time and in its sole discretion, revoke such written consent, in which event you shall immediately cease engaging in any and all such professional endeavors as described in the preceding sentence.  This will acknowledge that, notwithstanding any other terms of this agreement, the Company may allow you to engage in other business activities from time to time as reviewed and reasonably approved by the Board, provided that they do not interfere with your ability to complete your responsibilities hereunder in a timely manner.

 

(c)                                  In addition to your duties as President, the Board may require you, from time to time to serve in other senior executive capacities for the Company or other affiliates, but such other activities shall still relate to the responsibilities attendant to your position, and you hereby agree to accept such responsibilities.  Whether you serve in one capacity or several capacities, the compensation to which you will be entitled for doing so is set forth in Section 3 of this Agreement.

 

(d)                                 No provision of this agreement shall be construed to prohibit your: (a) acquisition, ownership, or trading, including without limitation your indirect ownership, of less than five percent (5%) of the issued and outstanding stock (or comparable bonds, options, derivatives, or negotiable instruments) of a business entity having securities publicly traded anywhere in the world, provided, however, that the ownership limitations of this clause (a) shall not apply to (i) your ownership of any such securities through an open-end mutual fund or (ii) your ownership of any such securities that precedes the Effective Date if, but only if, the issuer of the securities is not a competitor of the Company; or (b) passive ownership of five percent (5%) or less of the stock, partnership interests, or comparable ownership interests or securities in any for-profit private business entity that is not directly competitive with the business of the Company or any of its subsidiaries or (c) compensation relating to any other position you may have on a Board of Directors of any company on which you may serve as permitted under this Section 2. The Company additionally agrees that nothing in this agreement shall operate to prohibit your acceptance of a testamentary gift, bequest, or its equivalent, nor your retention of any such gift, bequest, or its equivalent following its delivery, so long as you retain the interest(s) solely for investment purposes.

 

3.                                      Compensation.

 

(a)                                 Base Salary.  In consideration for the performance of your services hereunder, you will be paid a base salary at the annual rate of $300,000.00 (“Base Salary”), payable in accordance with the Company’s normal payroll practices and subject to applicable tax and payroll withholdings and deductions. Currently, the Company’s payroll is payable on the fifteenth and the last day of each month.  As an exempt employee, you will not be eligible for overtime pay.

 

(b)                                 Discretionary Bonuses.  During the Term, you will also be eligible to participate in any annual incentive compensation plan, program and/or arrangements as established by the Board, its Compensation Committee or the Chairman of the Board, from time to time.  For each calendar year occurring during the Term, you shall have a target bonus opportunity under such plan, program and/or arrangement in an amount to be established by the Board, its Compensation Committee or the Chairman of the Board, which, will be based on the satisfaction of performance criteria to be established by the Board, its Compensation Committee or the Chairman of the Board after reasonable consultation with you, within the first three (3) months of each calendar year during the Term.  Payment of any bonuses to you will be made by the Company on or before March 31 of the calendar year immediately following the

 

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calendar year in which such bonus was earned and will be payable, in the Company’s discretion, in either cash, stock or both.  Unless expressly and specifically agreed to in writing, no bonus compensation will be deemed earned, paid or awarded unless you are in the continuous employment of the Company through the last day of the calendar year in which such bonus corresponds; however, any earned or accrued bonuses will be payable upon the date of early termination or expiration of this Agreement.

 

(c)                                  Equity Grants:  Subject to approval by the Company’s Compensation Committee, which is anticipated and expected to occur no later than ninety (90) days after the Start Date, you shall receive a grant of options to purchase 1,000,000 common shares of the Company at $10.00 per share (which is the fair market value of such common shares as of the grant date), 200,000 of which shall vest upon execution of this Agreement and 200,000 of which shall vest on each of December 31, 2013, December 31, 2014, December 31, 2015 and December 31, 2016 (“Initial Option”).  In the event of a sale or change in control transaction of the Company, the unvested portion of the Initial Option shall fully vest on the consummation of such transaction.  Additionally, in the event you are terminated by the Company without Cause or resign due to Constructive Termination without Cause or the Company fails to renew this Agreement, in addition to any other rights you may have and notwithstanding any other terms in any equity plan or agreement, the Initial Option may be exercised by you at any time prior to the fifth (5th) anniversary of Termination Date.

 

(d)                                 Additional Grants:  You shall also be entitled to qualify for additional equity or option grants each year.

 

4.                                      Benefits.  Subject to the eligibility requirements and other terms and conditions of the respective plan documents, you will be entitled to participate in benefits offered by the Company for similarly situated employees of the Company, as may be in effect or modified from time to time.  Furthermore, you are currently entitled to three (3) weeks of paid vacation time per calendar year (such vacation days to be prorated based on the date you commence employment with the Company) in accordance with, and subject to, the Company’s vacation policy, as it may change from time to time, with the timing of any such vacation to be agreed upon.  You will be entitled to reimbursement of travel and other business expenses in accordance with the Company’s guidelines commensurate with your level of compensation and responsibility.

 

5.                                      Severance.

 

(a)                                 In the event your employment with the Company is terminated either (i) on account of your death or Disability (as defined in Section 5(e) below), (ii) by the Company without Cause (as defined in Section 5(c) below), or (iii) by you due to Constructive Termination without Cause (as defined in Section 5(d) below):

 

(i)                                     You shall receive the Termination Payments (as defined in Section 5(b) below);

 

(ii)                                  You shall also be paid a lump sum by the Company, which shall be paid as soon as practicable but not later than sixty (60) days following the Termination Date, equal to the lesser of (1) twelve (12) months of your Base Salary or (2) the Base Salary payments remaining under this Agreement (the “Post Termination Salary Payment”);

 

(iii)                               You shall also be paid a pro-rated annual bonus, in a lump sum by the Company, which shall be paid as soon as practicable but not later than sixty (60) days

 

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following such Termination Date, in an amount equal to the prior year’s bonus, if any, pro-rated; and

 

(iv)                              The Initial Option and any stock options and/or restricted stock previously granted under Sections 3(c) and 3(d) of this Agreement shall vest as follows:

 

(1)                                 If termination is by the Company without Cause or by you for Constructive Termination without Cause or due to your Death or Disability, or the Company elects not to renew your employment at the end of the Term, in the case of such a termination, all unvested stock options and/or restricted stock granted to you that are scheduled to vest during or at the end of the Initial Term shall vest as of the Termination Date; or

 

(2)                                 If termination is due to Cause or by you not as a result of Constructive Termination without Cause, then you shall only be permitted to retain those stock options and/or restricted shares which have vested as of the Termination Date.

 

(b)                                 In the event you (i) voluntarily terminate your employment for any reason other than Constructive Termination without Cause, (ii) your employment is terminated by the Company for Cause (as defined in Section 5(c) below), or (iii) the Company elects not to renew your employment at the end of the Initial Term or an applicable Renewal Term, you shall be paid, as soon as practicable but no later than sixty (60) days following the Termination Date, (i) all earned but unpaid Base Salary through the Termination Date; (ii) any previously awarded and unpaid bonus; and (iii) all unpaid reimbursable expenses incurred by you through the Termination Date (the “Termination Payments”).  In either such event, you shall have no further obligation or liability to the Company in connection with the performance of this agreement (except the continuing obligations specified in Sections 7, 8 and 10 of this Agreement).

 

(c)                                  For the purposes of this Agreement, “Cause” shall mean that you have:

 

(i)                                     falsified or omitted information as required by Section 11 of this Agreement

 

(ii)                                  committed an act which has or reasonably can be expected to have a material adverse effect on the Company and which, as set forth in any employment handbook promulgated by the Company and as in effect from time to time, may lead to termination of employment, subject to a thirty (30) day cure period following the Company’s written notice of such act to the extent such act is curable;

 

(iii)                               engaged in any intentional act of fraud against the Company;

 

(iv)                              engaged in willful malfeasance or gross negligence in the performance of this Agreement or in your capacity as an employee of the Company;

 

(v)                                 refused to perform the duties required or requested consistent with your obligations under this Agreement and under law, subject to a thirty (30) day cure period following the Company’s written notice of such act to the extent such act is curable;

 

(vi)                              been convicted of a felony or entering a plea of nolo contendre to a felony charge;

 

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(vii)                           materially breached this Agreement, subject to a fifteen (15) day cure period following the Company’s written notice of such breach to the extent such breach is curable;

 

(viii)                        engaged in any willful act which could reasonably be expected to (i) bring the Company into material public disrepute, (ii) injure the Company’s customer or vendor relations or business prospects or (iii) cause a decline in the price of any publicly traded securities of the Company (for avoidance of doubt, this does not relate to a business decision made in good faith in the ordinary course of your responsibilities); or

 

(ix)                              engaged in an act which leads to a finding by the Securities and Exchange Commission, which, in the opinion of independent counsel selected by the Company, could reasonably be expected to impair or impede the Company’s ability to register, list, or otherwise offer its stock to the public, or to maintain itself as a publicly-traded company in good standing with the Securities and Exchange Commission.

 

(d)                                 For purposes of this Agreement, “Constructive Termination without Cause” means the termination of your employment at your initiative after, without your prior written consent, one or more of the following events:

 

(i)                                     any material diminution in your title, authority, duties or responsibilities as President;

 

(ii)                                  a material breach by the Company of this Agreement or the option agreement granting the Initial Option;

 

(iii)                               a material reduction in the Base Salary (unless such reduction is part of an overall and nondiscriminatory reduction by the Company to the base salaries of all similarly situated employees of the Company and such reduction is proportional in amount to the reductions suffered by all of such other employees), or the uncured failure by the Company to fulfill its obligations under this Agreement within thirty (30) days after written notice thereof from you to the Company; or

 

(iv)                              relocating your principal place of work outside of the Tri-State New York Metropolitan area.

 

For purposes of this Agreement, Constructive Termination without Cause shall not be deemed to exist unless the termination of your employment for Constructive Termination without Cause occurs within ninety (90) days following your initial knowledge of (or the date which you reasonable should have had knowledge of) the existence of one of the conditions specified in clauses (i) through (iv) above, you provide the Company with written notice of the existence of such condition within sixty (60) days after the initial existence of the condition, and the Company fails to remedy the condition within thirty (30) days after its receipt of such notice.

 

(e)                                  For the purposes of this Agreement, “Disability” shall mean your inability, or failure, to perform the essential functions of your position, with or without reasonable accommodation, for any period of six (6) consecutive months or more, by reason of any medically determinable physical or mental impairment.

 

(f)                                   The Company will provide the following post-termination health and dental benefits under the circumstances outlined below:

 

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(i)                                     The Company agrees that in the event of the your death during the Term, the Company will pay to your estate the following, which shall be distributed in accordance with your will or testamentary plan, as directed by any court having jurisdiction over such estate, or as directed by any duly appointed administrator or executor of your estate, the full costs relating to the continuation of any group health and dental plan provided through the company in which you participated at the time of your death, and through which coverage was provided to any of your dependent(s) at the date of your death, for a period of two (2) months following your death, without regard to the availability or expiration of any continuation option or feature provided by the plan(s), or as otherwise provided to a lesser extent by applicable law at the time of your death.

 

(ii)                                  In the event the Company terminates your employment without Cause (other than due to Disability or death), or there is a Constructive Termination without Cause, a continuation of the health and dental benefits provided to you and your covered dependents under the Company’s health and dental plans as in effect from time to time (except that if providing any such benefit under the terms of a plan would cause an adverse tax effect, the Company may provide you with equivalent cash payments outside of the plan at the same time the benefits would otherwise have been taxable to you) for a period of two (2) months following such termination, with no additional cost or charge payable by you.

 

(g)                                  Notwithstanding the foregoing, if at the time of your Separation from Service (as defined in Treasury Regulation 1.409A-1(h)) you are a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i), any amount or benefits that constitutes “nonqualified deferred compensation” within the meaning of Code Section 409A that becomes payable to you on account of your Separation from Service will not be paid until after the earlier of (i) first business day of the seventh month following your Separation from Service, or (ii) the date of your death (the “409A Suspension Period”). Within fourteen (14) calendar days after the end of the 409A Suspension Period, you shall be paid a cash lump sum payment equal to any payments (including interest on any such payments), and benefits that the Company would otherwise have been required to provide under this Section 5 but for the imposition of the 409A Suspension Period delayed because of the preceding sentence. Thereafter, you shall receive any remaining payments and benefits due under this agreement in accordance with the terms of this Section (as if there had not been any Suspension Period beforehand).

 

(h)                                 The Company may provide (in its sole discretion) that you may continue to participate in any benefits delayed, provided that you shall bear the full cost of such benefits during such delay period.  Upon the date such benefits would otherwise commence pursuant to this Section 5 hereof, the Company shall reimburse you the Company’s share of the cost of such benefits, to the extent that such costs otherwise would have been paid by the Company or to the extent that such benefits otherwise would have been provided by the Company at no cost to you, in each case had such benefits commenced immediately upon the termination of your employment.  Any remaining benefits shall be reimbursed or provided by the Company in accordance with the schedule and procedures specified herein.

 

(i)                                     General Release.  Notwithstanding any other provision of this Agreement, no benefits or amounts shall be payable under this Section 5 unless you execute and deliver a general release of claims in a form and manner reasonably satisfactory and customary to the Company and to you including, but not limited to, a release of any and all claims arising out of this Agreement and your employment relationship with the Company, and such release has become irrevocable pursuant to its terms or applicable law (it being understood, however, that in no event will such release expand any of the post-termination restrictions and covenants

 

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referred to in Section 9).  A form of the Company release is attached hereto as Schedule A. You shall forfeit all rights to such payments and benefits unless such release is signed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days (or such longer period which is provided by law for review and revocation) following the date your employment with the Company is terminate.

 

6.                                      Compliance with Policies and Procedures.  You agree to be bound by and to comply fully with all of the Company’s policies and procedures for employees.

 

7.                                      Confidentiality.

 

(a)                                 You acknowledge that, as a result of your employment with the Company, you will be in possession of trade secrets and confidential and proprietary information (the “Confidential Information”) of the Company.  You agree to keep secret all Confidential Information and not to disclose Confidential Information to anyone outside of the Company (other than to the Company’s advisors, agents, consultants, financing sources and other representatives), except in connection with the performance of your duties under this Agreement, provided that: (i) you shall have no such obligation to the extent Confidential Information is or becomes publicly known, other than as a result of your breach of your obligations hereunder; and (ii) you may disclose such information if required by law, including pursuant to a court or similar order, but you agree to use reasonable efforts to provide the Company with prompt written notice of such court or similar order so that the Company may seek an appropriate protective order.  You agree to deliver promptly to the Company at the termination of your employment, or at any other time the Company may so request, all memoranda, notes, records, reports, and other documents (including electronically stored information) relating to the Company’s business which you obtained while employed by, or otherwise serving or acting on behalf of, the Company and which you may then possess or have under your control. You acknowledge that the disclosure of Confidential Information would have a material adverse effect on the operations and development of the business of the Company. Therefore, you agree that in the event of your failure to comply with the provisions of this Section 7(a) the Company shall be entitled to the entry of an injunction or other equitable relief against you without posting a bond, proof of damages or proof of an inadequate remedy at law and you shall not object to such injunction or equitable relief for any reason. This remedy shall be in addition to any other remedies available to the Company.

 

(b)                                 You agree not to disclose the terms of this Agreement to anyone except your immediate family and your tax advisors or legal counsel, prospective employers (but with disclosure limited to terms relating to your post-employment restrictions under this letter), pursuant to a court or similar order, or in connection with any proceeding to enforce your rights under this letter or any other agreement between you and the Company, except as otherwise required by applicable law.

 

8.                                      Company Work Product. You acknowledge and agree that all of the ideas, concepts, inventions and work product rendered or provided by you in connection with your employment hereunder which directly or indirectly relate to the Company’s business, whether alone or in conjunction with others (collectively, and without limitation, the “Company Work Product”), whether created at home or at the office and whether or not created during normal business hours, shall (a) be the sole and exclusive property of the Company and you shall not have any right, title or interest therein and (b) constitute “works made for hire” under all applicable copyright, trademark, and similar or related statutes, regulations, or decisional law.  In furtherance of the foregoing, you hereby assign to the Company all of your rights, title, and

 

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interest, whether choate or inchoate or whole or partial, in any Company Work Product created, developed, or discovered by you in connection with your employment.  You further agree to cooperate fully and promptly with, and otherwise facilitate, any efforts by the Company to vest in the Company all rights, title and interest in and to the Company Work Product and to register, preserve, and protect the Company Work Product from use by others, or from dilution or diminution.  You agree to execute and deliver any and all documents, agreements and instruments reasonably intended to evidence only the rights of the Company in the Company Work Product as provided in this Section 8. You hereby irrevocably name the Company as your attorney-in-fact, and irrevocably grant to the Company a limited power of attorney to execute and deliver any and all documents, agreements and instruments in your name as may be reasonably required to give effect to this Section 8; provided, that this power of attorney shall be exercised only with respect to any document, agreement or instrument that you fail to execute and deliver after five days written request by the Company.  The rights granted to the Company in this Section 8 shall continue in effect after the termination or expiration of your employment Term to the extent necessary for the Company’s full enjoyment of such rights.

 

9.                                      Section 409A.

 

(a)                                 It is the intention of both the Company and you that the benefits and rights to which you could be entitled pursuant to this Agreement comply with Code Section 409A and the Treasury Regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extent that the requirements of Section 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention.  If you or the Company believes, at any time, that any such benefit or right that is subject to Section 409A does not so comply, each of us shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such benefits and rights such that they comply with Section 409A (with the most limited possible economic effect on you and on the Company).

 

(b)                                 If and to the extent required to comply with Section 409A, no payment or benefit required to be paid under this Agreement on account of termination of your employment shall be made unless and until you incur a “separation from service” within the meaning of Section 409A.

 

(c)                                  Neither the Company nor you, individually or in combination, may accelerate any payment or benefit that is subject to Section 409A, except in compliance with Section 409A and the provisions of this Agreement, and no amount that is subject to Section 409A shall be paid prior to the earliest date on which it may be paid without violating Section 409A.

 

(d)                                 For purposes of applying the provisions of Section 409A to this Agreement, each separately identified amount to which you are entitled under this Agreement shall be treated as a separate payment.  In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

(e)                                  Any reimbursements by the Company to you of any eligible expenses under this Agreement that are not excludable from your income for Federal income tax purposes (the “Taxable Reimbursements”) shall be made by no later than the earlier of the date on which they would be paid under the Company’s normal policies and the last day of the

 

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calendar year following the year in which the expense was incurred.  The amount of any Taxable Reimbursements during any calendar year shall not affect the expenses eligible for reimbursement in any other calendar year.  The right to Taxable Reimbursement shall not be subject to liquidation or exchange for another benefit.

 

10.                               Restrictive Covenants.

 

(a)                                 During the Term and for a period of one (1) year after termination of your employment hereunder you shall not, directly or indirectly, (i) solicit, induce or cause any individual or entity with whom the Company had a business relationship to reduce or terminate such Person’s business relationship with the Company or any of its affiliates or its successors or assigns; and you shall not, directly or indirectly, approach any such individual or entity for any such purpose, or authorize or assist in the taking of any of such actions for any such purpose or authorize or assist in the taking of any such actions by any individual or entity, (ii) engage in any Restricted Activity, (iii) acquire, or own in any manner, any interest in any entity that engages in any Restricted Activity, or that engages in any business, activity or enterprise that competes with any aspect of any of Restricted Activity, or (iv) be interested in (whether as an owner, director, officer, partner, member, manager, joint venturer, lender, shareholder, vendor, consultant, employee, advisor, agent, independent contractor or otherwise), or otherwise participate in the management or operation of, any entity that engages in any Restricted Activity or in any business, activity or enterprise that competes with any Restricted Activity; provided, however, that this Section 10(a) shall not apply to the ownership of less than five percent (5%) of the outstanding stock of any Person who has a class of securities that is publicly traded.

 

(b)                                 During the Term and for a period of one (1) year after termination of your employment hereunder you shall not, directly or indirectly (i) hire or offer employment to or seek to hire any employee of the Company or any successor or affiliate thereof, unless the Company first terminates the employment of such employee or gives its written consent to such employment or offer of employment, (ii) induce, solicit, persuade or encourage (or in any manner attempt to induce, solicit, persuade or encourage), or cause or authorize any other individual or entity to induce, solicit, persuade or encourage, any such employee or any other such employee of the Company or any successor or affiliate thereof, to leave the employ of his or her employer, (iii) induce, solicit, persuade or encourage (or in any manner attempt to induce, solicit, persuade or encourage), or cause or authorize any other individual or entity to induce, solicit, persuade or encourage, any individual or entity to cease, diminish or not commence doing business with the Company or any successor or affiliate thereof or (iv) disparage the Company or any successor or affiliate thereof or the business in which the Company is engaged to any individual or entity.

 

(c)                                  For purposes of this Section 10, the term “Restricted Activity” means any activity that is competitive with (i) any aspect of the business in which the Company is engaged (1) as operated prior to the date of this Agreement or (2) as contemplated by the Company to be operated in the future as of the date of this Agreement, in each case, anywhere in the world where the Company’s business may be conducted from time to time, or (ii) any business in which the Company and/or any of its affiliates are engaged or planning to be engaged in as of the Start Date or as of the Termination Date.

 

11.                               Background Information.  As more fully described on the following pages, the Company may conduct a background check, which may include a “consumer report” and/or an “investigative consumer report” prepared by the Company or by a third party, in all cases commensurate with background checks conducted for similarly situated employees of the

 

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Company.  These reports may be obtained at any time after receipt of your authorization and, if you are hired, throughout your employment.  Falsification or omission of any information previously provided to the Company or provided to the Company on the attached release may disqualify you for employment or result in your immediate dismissal, if hired.  Your rights relating to this background check are more fully set forth on the attached release.

 

12.                               Representations.  You represent, warrant and covenant to the Company that you are free to execute this Agreement and provide the services contemplated hereunder and the engagement hereunder does not conflict with or violate, and will not be restricted by any pre-existing business relationship or agreement to which you are a party or are otherwise bound.  Without limiting the foregoing, you further represent, warrant and covenant to the Company that you are under no contractual commitments, including without limitation, any confidentiality, proprietary rights, non-solicitation, non-competition agreement or similar type of restrictive covenant agreement, inconsistent with your obligations to the Company and that you will not at any time during the course of your employment by the Company or any of its affiliates violate and/or breach, subject to any applicable cure periods, any obligation or contractual/common law commitment that you may have to a third party or prior employer.

 

13.                               Superseding of Prior Understandings or Agreements; No Employment or Compensation Guarantees or Other Modifications Except as Provided Herein.  You acknowledge that you have not relied on any oral or written representations or understandings not explicitly contained herein in executing this Agreement.  This Agreement supersedes any and all oral or written understandings or agreements regarding your employment with the Company or any of its affiliates, and any prior agreements are hereby terminated.  No employee or representative of the Company, other than in a writing signed by a duly authorized officer of the Company, may enter into any agreement or understanding (a) guaranteeing you employment with the Company for any specific duration, (b) providing you with a guaranteed level of compensation with the Company, whether incentive compensation, severance pay or otherwise, or (c) otherwise modifying the terms of this Agreement.

 

14.                               Miscellaneous.

 

(a)                                 This offer is subject to the satisfactory completion of the Company’s standard drug, background and reference screening used for similarly situated employees of the Company, authorization of your right to work in the United States, and the absence of any non-competition agreement or other restrictions that would prohibit or interfere with your working for the Company

 

(b)                                 If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.  This Agreement contains section headings for reference only. The headings in no way affect the meaning or interpretation of this Agreement.

 

(c)                                  You acknowledge that you have consulted counsel of your choosing with regard to the provisions of this Agreement.  You and the Company acknowledge that each has participated fully and equally in the negotiation and drafting of this Agreement and both have assumed the risk of any misrepresentation or mistaken understanding or belief relied upon by entering into this Agreement.

 

(d)                                 This Agreement and the Company’s rights and obligations hereunder are assignable and delegable, in whole or in part, by the Company to any affiliate of the Company

 

10

 

upon written notice to you, whereupon such affiliate shall succeed to the rights and assume the obligations of the Company hereunder to the full extent of such assignment and/or delegation; provided, however, that no assignment shall relieve the Company of any of its obligations hereunder.

 

(e)                                  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving reference to the principles of conflicts of laws or where the parties are located at the time a dispute arises.  Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in New York City before a single arbitrator. The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures.  Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction.  The arbitrator shall award to the prevailing party, if any, the costs and attorneys’ fees reasonably incurred by the prevailing party in connection with the arbitration.  Notwithstanding the foregoing, any action or proceeding initiated by the Company seeking any form of injunctive relief for a breach by you of any of Sections 7, 8 or 10 of this Agreement, including, without limitation, specific performance, shall be brought against you in the courts of the State of New York or, if the Company has or can acquire jurisdiction, in the United States District Court for the Southern District of New York (collectively, the “Courts”), and each party consents to the jurisdiction of the Courts in any such action or proceeding, and each party waives any objection to venue laid therein.

 

Signatures on following page

 

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We look forward to you joining the Company.  If the terms of this Agreement are acceptable to you and you are ready, willing and able to abide by all the conditions enumerated herein, please sign and date this Agreement below.

 

 

	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Robert F.X. Sillerman
    
	
 
    	
 
    	
Chairman
    
	
 
    	
 
    	
SFX   Entertainment Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Acknowledged and Agreed to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/  Timothy Crowhurst
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Timothy   Crowhurst
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
June   7, 2013
    	
 
    	
 
    

 

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SCHEDULE A

 

FORM OF RELEASE

 

GENERAL RELEASE OF CLAIMS

 

1.                                                         (“Employee”), for himself and his family, heirs, executors, administrators, legal representatives and their respective successors and assigns, in exchange for the consideration received pursuant to Section 5 of the employment letter agreement to which this release is attached as Exhibit A (the “Agreement”), does hereby release and forever discharge SFX Holding Corporation (the “Company”), its subsidiaries, affiliated companies, successors and assigns, and its current or former directors, officers, employees, shareholders or agents in such capacities (collectively with the Company, the “Released Parties”) from any and all actions, causes of action, suits, controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknown including, but not limited to, all claims under any applicable laws arising under or in connection with Employee’s employment or termination thereof, whether for tort, breach of express or implied employment contract, wrongful discharge, intentional infliction of emotional distress, or defamation or injuries incurred on the job or incurred as a result of loss of employment.  Employee acknowledges that the Company encouraged him to consult with an attorney of his choosing, and through this General Release of Claims encourages him to consult with his attorney with respect to possible claims under the Age Discrimination in Employment Act (“ADEA”) and that he understands that the ADEA is a Federal statute that, among other things, prohibits discrimination on the basis of age in employment and employee benefits and benefit plans.  Without limiting the generality of the release provided above, Employee expressly waives any and all claims under ADEA that he may have as of the date hereof.  Employee further understands that by signing this General Release of Claims he is in fact waiving, releasing and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1 that may have existed on or prior to the date hereof.  Notwithstanding anything in this paragraph 1 to the contrary, this General Release of Claims shall not apply to (i) any rights to receive any payments or benefits pursuant to Section 5 of the Agreement, (ii) any rights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii) any indemnification rights Employee may have as a former officer or director of the Company or its subsidiaries or affiliated companies, (iv) any claims for benefits under any directors’ and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordance with the terms of such policy, and (v) any rights as a holder of equity securities of the Company.

 

2.                                      Employee represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arising out of his employment, or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agrees that he will never individually or with any person file, or commence the filing of, any charges, lawsuits, complaints or proceedings with any governmental agency, or against the Released Parties with respect to any of the matters released by Employee pursuant to paragraph 1 hereof (a “Proceeding”); provided, however, Employee shall not have relinquished his right to commence a Proceeding to challenge whether Employee knowingly and voluntarily waived his rights under ADEA.

 

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3.                                      Employee hereby acknowledges that the Company has informed him that he has up to twenty-one (21) days to sign this General Release of Claims and he may knowingly and voluntarily waive that twenty-one (21) day period by signing this General Release of Claims earlier.  Employee also understands that he shall have seven (7) days following the date on which he signs this General Release of Claims within which to revoke it by providing a written notice of his revocation to the Company.

 

4.                                      Employee acknowledges that this General Release of Claims will be governed by and construed and enforced in accordance with the internal laws of the State of New York applicable to contracts made and to be performed entirely within such State.

 

5.                                      Employee acknowledges that he has read this General Release of Claims, that he has been advised that he should consult with an attorney before he executes this general release of claims, and that he understands all of its terms and executes it voluntarily and with full knowledge of its significance and the consequences thereof.

 

6.                                      This General Release of Claims shall take effect on the eighth day following Employee’s execution of this General Release of Claims unless Employee’s written revocation is delivered to the Company within seven (7) days after such execution.

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
                       ,   20        
    

 

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