Document:

Exhibit 10.2

Salary Stock Unit Program
(Last revised July 16, 2012)

	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 Purpose.
 The purpose of the Program is to link more of each participant’s compensation
 to the company’s stock performance and facilitate retention of key
 executives.

 
	
  

 	
  

 
	
 2.

 	
 Committee
 Actions. From time to time the Compensation
 Committee (CC) (a) will identify persons who are to receive a portion of
 salary in the form of salary stock units (SSUs), and (b) will determine the
 dollar amount of salary that each such person will receive in the form of
 SSUs, sometimes called the SSU crediting rate. The portion of salary in the
 form of SSUs may be in lieu of cash salary or supplemental to prior cash
 salary rates. The crediting of SSUs to each such person will continue while
 he or she is employed with FHN until the CC changes or ends the person’s
 participation or this SSU Program, unless the CC approves an automatic sunset
 date for participation in this Program or unless the CC limits participation
 to a specified year and fails to renew participation. It is expected that the
 CC will reconsider these determinations at least once each year, and in doing
 so the CC may make changes for a new year or period retroactive to the
 beginning of that year or period. The CC may change or eliminate the dollar
 amount of salary to be paid to a participant in the form of SSUs at any time;
 although such action would not affect previously-credited SSUs, no
 participant has any right to continue to receive new SSUs at any specific
 dollar level or at all. In addition, the CC may accelerate settlement of SSUs
 globally or for any participant based on the value of FHN stock at that time,
 and may change the terms of SSUs or this Program at any time.

 
	
  

 	
  

 
	
 3.

 	
 SSU Terms
 and Mechanics. 

 
	
  

 	
  

 
	
  

 	
 a.

 	
 For each
 person designated to participate in the Program by CC action beginning in
 2011, crediting of SSUs will occur quarterly in arrears commencing with the
 quarter in which CC action occurs, unless otherwise provided by the CC.
 Ideally, crediting dates will occur late in March, June, September, and
 December. However, in all cases crediting dates are subject to adjustment or
 delay for administrative reasons, and the CC may direct that a date be used
 in a particular instance. This provision does not disturb SSUs credited prior
 to January 1, 2011.

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 When SSUs
 are credited to a participant for a particular quarter, the number of SSUs
 will equal the dollar amount of salary for that quarter to be paid in the
 form of SSUs (net of any applicable withholding taxes, as provided in paragraph
 f below) divided by the Ten-Day Average Value for that quarter. The number of
 credited SSUs will be calculated as the administrator determines but will not
 be rounded up. In any case where the pay period is less than a full quarter,
 a similar calculation using an appropriate Ten-Day Average Value will be
 performed for the shorter period as determined by the administrator. If the
 period is less than ten trading days, the value used will be the average
 closing price for all trading days within that period.

 
	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 For purposes
 of this Program, the “Ten-Day Average Value” for any quarter or shorter
 period is the average closing share price of FHN stock for any period of ten
 consecutive trading days selected by the administrator and occurring within
 that quarter or period. The administrator generally will favor the selection
 of a ten-day period later in the quarter or other period rather than earlier,
 but in each case may select the specific ten-day period based on
 administrative convenience. In addition, if a dividend record date or ex-date
 might occur within the valuation period the administrator may select the
 ten-day period to avoid unfair or inappropriate enlargement or dilution of
 value.

 
	
  

 	
  

 	
  

 
	
  

 	
 d.

 	
 Settlement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 SSUs credited in 2010

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 General Rule. Each
 SSU credited in 2010 entitles the participant to receive the cash value of
 one share of FHN stock valued at the Ten-Day Average Value for the second
 quarter of 2012.

 

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 Settlement
 of SSUs will be made within 30 business days after the last day of the
 ten-day period used for valuation. In converting SSUs to cash values when
 settled, amounts will be calculated as the administrator determines but will
 not be rounded up.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 SEOs. For those
 participants who, in 2010, were “senior executive officers” (SEOs) under the
 Troubled Asset Relief Program (TARP) rules, the General Rule above applies
 subject to the changes provided in this paragraph. For SEOs, SSUs credited in
 the first two quarters of 2010 will be paid in March 2011, and SSUs credited
 in the second two quarters of 2010 will be paid in September 2011. The
 administrator will cause the SSUs to be paid early in each such month,
 subject to administrative considerations. Each SSU payment to SEOs will be
 calculated using the Ten-Day Average Value for February in respect of the
 March payment, and using the Ten-Day Average Value for August in respect of
 the September payment.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 SSUs Credited after 2010

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Each SSU
 entitles the participant to receive the cash value of one share of FHN stock.
 SSUs credited in the first two quarters of any given year will be paid in
 June or July, and SSUs credited in the second two quarters of that year will
 be paid in December, of the year following the year of crediting. SSUs paid
 in June or July will be valued using the Ten-Day Average Value for the second
 quarter of the year of payment, and SSUs paid in December will be valued
 using the Ten-Day Average Value for the fourth quarter of that year. In
 converting SSUs to cash values when settled, dollar amounts will be
 calculated and rounded down (not up) as the administrator determines.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 e.

 	
 SSUs will
 not be settled in actual shares of stock and will have no voting rights. An
 SSU will not be represented by any certificate or document, but instead will
 be credited on the books of FHN or its administrative agent. SSUs are a
 component of or supplement to salary and are not associated with any plan of
 FHN.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 f.

 	
 Taxes will
 be withheld in connection with a crediting or settlement event (as
 applicable) and remitted to government authorities as necessary or
 appropriate. Taxes withheld in connection with crediting may be withheld from
 salary paid in the form of cash or other contemporaneously paid compensation,
 or may reduce the number of SSUs credited, or both, as the administrator determines.
 Participants are not permitted to elect to be taxed on SSUs at the time of
 crediting. The current administrative determinations of these matters are:
 any FICA, medicare, and income taxes withheld in connection with crediting
 SSUs will reduce the dollar amount of salary which is to be converted into
 SSUs.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 g.

 	
 SSUs will be
 adjusted for stock dividends and splits that occur after crediting and prior
 to settlement in order to prevent enlargement or dilution of value. In making
 such adjustments, SSUs will be treated in a manner similar to ordinary shares
 except that calculated numbers of SSUs are to be rounded down (not up) as the
 administrator determines. The administrator will make appropriate adjustments
 for SSUs credited or settled near dividend and split record dates to account
 for the effects of ex-trading dates in the market prices of FHN shares, again
 in order to prevent enlargement or dilution of value. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 h.

 	
 If cash
 dividends are declared on FHN shares during the time that a participant holds
 SSUs, a cash amount will be credited to the participant equivalent to the
 cash dividend that would have been paid on a like number of ordinary FHN
 shares, calculated and rounded down (not up) as the administrator determines.
 Credited cash dividend equivalent amounts will not be converted into SSUs,
 will not accrue interest, and will be paid to the participant at the time
 that the associated SSUs are paid. Notwithstanding the foregoing, the
 administrator may prevent or omit the crediting of a cash dividend equivalent
 in order to prevent a participant from benefiting twice from that 

 

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 dividend
 whenever the dividend’s record date or ex-date occurs near the time of the
 ten-day period used for the Ten-Day Average Value.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 i.

 	
 SSUs are not
 transferable. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 j.

 	
 Absent other
 action by the CC, if FHN merges or consolidates and as a result FHN shares
 cease to be publicly outstanding, then outstanding SSUs will be converted
 into units denominated in shares of the surviving or resulting company based
 on the transaction value. The conversion will be accomplished, to the extent
 practicable, so as to prevent enlargement or dilution of value.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 k.

 	
 SSUs are a
 special form of deferred salary. When cash salary no longer is paid to a
 participant, SSUs no longer will be credited. If cash salary previously paid
 to a participant were subject to forfeiture or reclamation for any reason,
 the associated SSUs similarly would be subject to forfeiture or reclamation.
 However, SSU crediting rates and cash salary rates may be adjusted
 independently of each other; a change in a participant’s cash salary rate
 does not automatically result in any change in that person’s SSU crediting
 rate, and vice-versa.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 l.

 	
 The timing,
 pricing, and other administrative determinations associated with SSU
 recipients who are subject to Form 4 reporting may differ from those of other
 Program participants. Currently, no such differences have been approved by
 the administrator.

 
	
  

 	
  

 	
  

 	
  

 
	
 4.

 	
 Termination
of Employment.

 
	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 Subject to
 the exceptions set forth below, credited SSUs will be forfeited unless the
 participant is continuously employed by FHN or a subsidiary through the
 payment date of the SSUs. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 Notwithstanding
 paragraph a., if a participant dies, his or her credited and unpaid SSUs will
 not be forfeited as a result of death, and settlement of the SSUs will be
 accelerated in an equitable and appropriate manner determined by the
 administrator. The valuation date for any such settlement will be the first
 trading day following the date of death.

 
	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 Notwithstanding
 paragraph a., if a participant’s employment with FHN terminates as a result
 of normal or early retirement or disability, then his or her credited and
 unpaid SSUs will not be forfeited as a result of that termination, and
 settlement of the SSUs will occur at the ordinary times set forth in this
 Program. For this purpose, “normal retirement” and “early retirement” have
 the meanings given in procedure 43 of the Equity Award Administration
 Procedures (rev’d July 20, 2009), and “disability” means a disability that
 would qualify as a total and permanent disability under the long-term
 disability plan then in effect at FHN, or (if different) at the FHN
 subsidiary employing the participant, at the onset of such total and
 permanent disability.

 
	
  

 	
  

 	
  

 
	
  

 	
 d.

 	
 Notwithstanding
 paragraph c., a participant who has terminated employment but retained SSUs
 due to retirement or disability shall forfeit all of those retained SSUs if,
 at any time during the period prior to the latest payment date of any SSUs
 credited to him or her at the time of termination, the participant engages in
 any competitive activity. Each of the CC and the administrator has the
 discretion to determine whether any particular activity is competitive with
 FHN or any of its subsidiaries. 

 
	
  

 	
  

 	
  

 
	
  

 	
 e.

 	
 Enforcement
 of the vesting and forfeiture conditions above is subject to the U.S.
 Department of the Treasury compensation rules applicable during the period as
 to which FHN was subject to the TARP rules restricting compensation.
 Currently it is uncertain whether the TARP rules prohibit FHN from imposing
 vesting and forfeiture conditions upon SSUs credited to participants who are
 SEOs at the time of crediting. As long as such uncertainty exists, this
 Program will be interpreted to assume that the TARP rules prohibit the
 imposition of a vesting condition on SEO participants. However, if the TARP
 rules are later amended or interpreted so that the vesting condition is
 permitted with respect to SEOs, FHN retains the right to impose the vesting
 condition on SEOs to the maximum extent allowed, including retroactively to
 any time when uncertainty existed.

 

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 5.

 	
 No Elective
 Deferrals. Participants may not elect to defer the
 settlement of SSUs beyond the mandatory deferral period provided in the
 program above. SSUs are not eligible for elective deferral under any deferral
 plan or program of FHN, even if those plans or programs generally allow
 deferral of salary. Outstanding salary deferral elections shall not apply to
 SSUs.

 
	
  

 	
  

 	
  

 
	
 6.

 	
 Treatment of
 SSUs as Base Salary. SSUs are, or are not, to be
 treated as base salary under the plans and programs listed below. For any
 plan or program not listed, SSUs shall not be treated as base salary unless
 the administrator determines otherwise; any such determinations must be
 reported to the CC at or before its next quarterly meeting.

 
	
  

 	
  

 
	
  

 	
 SSUs,
 measured at the crediting rate and date rather than the ultimate payment
 amount and date, are treated as base salary for the following (subject to the
 limitation in the next sentence):

 
	
  

 	
  

 
	
  

 	
 a.

 	
 For SSUs
 credited through December 31, 2012: retirement and retirement restoration
 plans, including pension plans and savings plans.

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 All life and
 disability benefit and insurance programs. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 Other
 programs treated as ‘benefit’ programs by FHN’s Human Resources division.
 This provision does not include severance programs.

 
	
  

 	
  

 	
  

 
	
  

 	
 For each
 such case, the amount of SSUs treated as base salary shall not exceed
 $200,000 per person per calendar year.

 
	
  

 	
  

 
	
  

 	
 SSUs are not
 treated as base salary for the following:

 
	
  

 	
  

 
	
  

 	
 d.

 	
 For SSUs
 credited beginning January 1, 2013: retirement and retirement restoration
 plans, including pension plans and savings plans, whether or not frozen.

 
	
  

 	
  

 	
  

 
	
  

 	
 e.

 	
 Change in
 control severance agreements and any change in control severance plan or
 program that may apply to a holder of SSUs.

 
	
  

 	
  

 	
  

 
	
  

 	
 f.

 	
 Any other
 present or future severance plan, program, or agreement.

 
	
  

 	
  

 	
  

 
	
 7.

 	
 Administration.
 The Chief Human Resources Officer is the program administrator with authority
 to oversee all administrative matters related to the SSU program. All
 administrative actions must further the purposes of the program and be
 compatible with legal requirements and appropriate tax and accounting
 outcomes. The administrator may deviate from or modify the following program
 provisions under this authority: any provision governing a crediting date or
 a settlement date or a date as of which FHN stock is valued to convert cash amounts
 into SSUs, or SSUs into cash, provided that such a provision may be changed
 only out of demonstrable administrative necessity and must be reported at the
 next quarterly CC meeting; for any calculation, any provision governing a
 number of decimal places or a rounding convention; and, any provision to the
 extent necessary to comply with legal requirements, to avoid a legal penalty
 or forfeiture, or to obtain or preserve appropriate tax and accounting
 outcomes, provided that in no case may actual shares of stock be issued in
 settlement of SSUs.

 

4Unassociated Document

 

EXHIBIT 10.1

 

EXECUTION COPY

 

TEMPORARY EMPLOYMENT AGREEMENT

 

This TEMPORARY EMPLOYMENT AGREEMENT (“Agreement”) is dated as of July 13, 2012, by and between Harbinger Group Inc. (the “Company”) and Richard Hagerup (“Employee”) (each a “Party” and together, the “Parties”).

 

WHEREAS, the Parties wish to establish the terms of the Employee’s temporary at-will employment with the Company as set forth in this Agreement.

 

NOW THEREFORE, in consideration of the promises and mutual considerations herein and for other good and valuable consideration, the Parties agree as follows:

 

1.           Termination of Other Agreements.  All agreements by and between the Company and Employee, or between the Company and any third party with respect to Employee, if any, are hereby terminated and superseded and replaced in their entirety by this Agreement.

 

2.           Start Date.  Employee’s employment under this Agreement with the Company shall commence effective as of June 1, 2012 (“Start Date”).  Although Employee and the Company anticipate that Employee’s employment will cease on December 1, 2012, Employee’s employment shall remain at all times “at will,” meaning that either the Employee or the Company may end the employment relationship at any time for any reason or for no reason whatsoever and without notice.

 

3.           Title; Duties; Hours of Work.  Employee’s title will be Interim Chief Accounting Officer, subject to any necessary corporate approvals, or such other title as the Company may determine from time to time.  During Employee’s employment, Employee will devote substantially all of Employee’s full working time and attention to the performance of Employee’s duties and to the promotion of the business interests of the Company and its affiliates.  Without limiting the foregoing, Employee shall perform such hours of work as are necessary to fulfill his job function as determined by the Company, including abiding by the Company’s formal hours of work from 8:30 AM to 5:30 PM, Eastern Time, Monday through Friday, subject to modification based on the Company’s business needs in its sole discretion.

 

4.           Principal Location of Employment.  Employee’s principal location of employment shall be at such locations as designated from time to time by the Company.

 

5.           Compensation.

 

  a.           Employee’s bi-weekly pay will be $9,230.77 (Nine Thousand Two Hundred Thirty Dollars and Seventy Seven Cents) payable in accordance with the regular payroll practices of the Company (“Base Pay”).  Employee will not be eligible to receive overtime pay because he is exempt from the state and federal overtime pay requirements as a professional.

 

  b.           The Company is authorized to deduct or cause to be deducted from any payment or benefit under this Agreement all taxes and amounts required or authorized by law to be withheld.

 

6.           Benefits.  As a temporary employee, Employee will not be eligible to participate in any of the Company’s benefits plans.

 

7.           Representations and Warranties.  Employee represents and warrants that Employee is not a party to or subject to any restrictive covenants, legal restrictions or other agreements in favor of any entity or person which would in any way preclude, inhibit, impair or limit Employee’s ability to perform Employee’s obligations under this Agreement, including, but not limited to, non-competition agreements, non-solicitation agreements or confidentiality agreements, and Employee’s employment with the Company does not violate the terms of any agreement to which Employee is a party.  Employee 

 

 

  

  

  

 

further represents and warrants that Employee will not bring to the Company, without prior written permission or license, any data, information, programs, models or intellectual property that either belongs to any other person or firm or as to which Employee’s use or possession is restricted.

 

8.           Employment Relationship.  Employee’s employment is temporary and “at will.”  This Agreement is not a contract of employment for any specific period of time, and Employee’s employment may be terminated by Employee or by the Company at any time for any reason or no reason whatsoever, provided, however, that if the Company terminates Employee’s employment other than for Cause (as defined below) with less than 30 days’ notice, the Company shall continue to pay the Employee’s salary through the 30-day period (the “Notice Period”).  For purposes of this Agreement, the term “Cause” shall mean (as determined by the Company in good faith) that Employee has (i) engaged in conduct amounting to fraud or dishonesty against the Company or any affiliate; (ii) engaged in unethical conduct related to his services under this Agreement; (iii) committed a violation of a securities law, rule or regulation of the United States, any state or subdivision therein, or any other applicable jurisdiction, or of the Company’s compliance policies and procedures; (iv) acted in a negligent manner or committed willful misconduct in the performance of his duties hereunder; (v) been under the influence of drugs or alcohol while on the premises of the Company or its affiliates; or (vi) committed a breach or violation of the terms of this Agreement or otherwise failed to perform the services hereunder in accordance with the terms of this Agreement.

 

9.           Travel Expenses.  The Company will reimburse Employee for all actual, reasonable and direct travel expenses incurred by Employee in the performance of his duties, including travel to New York, New York from Miami, Florida.

 

10.         Termination.  Upon termination of Employee’s employment with the Company for any reason or for no reason, Employee’s rights to receive compensation shall cease, except for any accrued but unpaid Base Pay and, if the Company terminates Employee’s employment without Cause and upon less than 30 days’ notice, Base Pay through the Notice Period.

 

11.         Confidential Information.  Employee acknowledges that during Employee’s employment Employee will have access to certain Confidential Information (as defined below) belonging to the Company, its affiliates, and/or other entities affiliated with Philip A. Falcone,  which derives value from being not generally known to the public or to other persons or entities who can obtain value from its disclosure or use.  Accordingly, Employee agrees to maintain the confidentiality of all such Confidential Information, whether obtained by him before or after the date of this Agreement, and to hold all such information in a fiduciary capacity solely for the benefit of the Company and its affiliates.  “Confidential Information” means non-public information concerning the operations, systems, services, personnel, financial affairs and investment and trading philosophies, strategies and techniques and performance record and statistics of the Company and/or its affiliates, computer software, forms, contracts, agreements, literature or other documents designed, developed or written by, for, with or on behalf of the Company, its affiliates or any of their respective clients or investors, client and investor contact lists, and the identity of any clients or investors of the Company or its affiliates or other information about such clients, investors or their investments.

 

12.         Company Property.  Employee acknowledges that all Company equipment (including computers, PDAs, mobile telephones and software), and originals and copies of materials, records, documents, files and memoranda (including materials maintained electronically), generated by Employee or coming into Employee’s possession or under Employee’s control in the course of Employee’s employment, whether before or after the date of this Agreement, including but not limited to Confidential Information, are the sole property of the Company and its affiliates (“Company Property”).  Upon the termination of Employee’s employment for any reason or for no reason, or upon the request of the Company at any time, Employee will promptly deliver all Company Property to the Company.  At no time will Employee remove or cause to be removed from the premises of the Company any Company Property, including but not limited to any computer data related to the foregoing, except in furtherance of Employee’s duties to the Company.

 

 

  

2

  

 

 

13.         Non-Disparagement.  During Employee’s employment with the Company and thereafter, Employee agrees not to make, publish or communicate at any time to any person or entity, including, but not limited to, customers, clients and investors of the Company, its affiliates, or Philip A. Falcone or any entity affiliated with Philip A. Falcone, any Disparaging (defined below) remarks, comments or statements concerning the Company, its affiliates, Philip A. Falcone or any of Philip A. Falcone’s family members or any entity affiliated with Philip A. Falcone, or any of their respective present and former members, partners, directors, officers, employees or agents.  “Disparaging” remarks, comments or statements are those that impugn the character, honesty, integrity, morality, business acumen or abilities of the subject individual or entity.  This provision does not apply to truthful statements made to a government or regulatory agency or to truthful testimony or pleadings in an arbitration, lawsuit or other judicial or administrative proceeding.

 

14.         Intellectual Property.  Employee agrees that Employee’s work on and contributions to documents, software and other expressions in tangible media are within the scope of Employee’s employment with the Company and are “work made for hire” as that phrase is used in United States copyright laws.  Employee agrees to grant, assign and transfer to the Company all of Employee’s right, title and interest in any inventions or material for which a copyright or patent may be obtained including without limitation, any newly created software, process, design, technique, product, application, development or improvement, whether patentable or copyrightable or not, which Employee conceives, makes or contributes to in any way during Employee’s employment with the Company, whether before or after the date of this Agreement, including but not limited to those which result from work begun or performed or ideas conceived while Employee is in the employ of the Company, whether before or after the date of this Agreement.  Employee agrees to cooperate fully with the Company in its efforts to obtain patents or copyrights for such inventions, materials, documents and expressions.

 

15.         Remedy for Breach.  Employee hereby acknowledges that the provisions of Paragraphs 11 through 14 are reasonable, valid and necessary for the protection of the Company and its affiliates.  Employee further acknowledges that the Company and its affiliates will be irreparably harmed if such covenants are not specifically enforced.  Accordingly, Employee and the Company agree that, in addition to any other relief to which the Company and its affiliates may be entitled, including claims for damages, the Company and its affiliates shall be entitled to seek injunctive relief (without the requirement of any bond or other security) from a court of competent jurisdiction for the purpose of restraining an actual or threatened breach of the covenants in Paragraphs 11 through 14.

 

16.         Governing Law; Arbitration. The Parties agree that any dispute, controversy or claim between the Parties arising out of, relating to or concerning Employee’s employment with the Company, termination of such employment, or this Agreement shall be finally settled by arbitration in New York, New York before and in accordance with the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (the “AAA”) before a single arbitrator.  The arbitrator shall not have the authority to modify or change any of the terms of this Agreement.  The arbitrator may award interim relief and grant specific performance in addition to monetary damages.  The arbitrator’s award shall be final and binding upon all Parties and judgment upon the award may be entered in any court of competent jurisdiction in any state of the United States.  Each Party shall bear its own costs and expenses incurred in connection with any such arbitration proceeding or a government agency, to the fullest extent permitted by applicable law.  For purposes of any actions or proceedings ancillary to the arbitration referenced above, the Parties agree to submit to the exclusive jurisdiction of the state and federal courts sitting in New York County.  Notwithstanding the foregoing, (a) the Company shall have the right to seek and obtain interim injunctive relief, pending a final judgment confirming a final arbitration award, from a court of competent jurisdiction to enforce Paragraphs 11 through 14 of this Agreement; and (b) if a court of competent jurisdiction determines that a Party’s claim is not arbitrable, then the Parties waive their right, if any, to a trial by jury of any such claim. This Agreement will be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and/or to be performed in that State, without regard to any choice of law provisions thereof, except to the extent that the Federal Arbitration Act (“FAA”) applies to an arbitration pursuant to this Paragraph 16, in which case the FAA shall apply.

 

  

3

  

 

 

 

17.         Confidentiality of this Agreement.  The terms of this Agreement and the offer of employment set forth herein are strictly confidential and may not be disclosed by Employee to any third party, other than Employee’s spouse, attorney and/or accountant, or a government agency, without the written consent of the Company.

 

18.         Miscellaneous.

 

  a.           This Agreement contains the entire understanding of the Parties and supersedes all prior agreements, written or oral, with respect thereto.  This Agreement may be modified only in a document signed by an officer of the Company.  The failure of the Company to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver thereof or deprive the Company of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

  b.           This Agreement, and the rights and obligations hereunder, may not be assigned by the Company or the Employee without written consent signed by the other Party; provided that the Company may assign the Agreement to (x) any affiliate of the Company, or any successor that continues the business of the Company or (y) any entity that leases the services of the Employee pursuant to an agreement with the Company.

 

  c.           If any provision of this Agreement is determined to be unenforceable, the remainder of this Agreement shall not be adversely affected thereby.

 

  d.           In executing this Agreement, Employee represents that Employee has not relied on any representation or statement not set forth herein, and Employee expressly disavows any such representations or statements.

 

  e.           Paragraphs 11 through 18 of this Agreement shall survive the termination of Employee’s employment with the Company.

 

  f.            The headings in this Agreement are included for convenience of reference only and shall not affect the interpretation of this Agreement.

 

  g.           This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.

 

 

[Signature Page Follows]

 

  

4

  

 

IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby, have executed this Agreement as of the day and year first above mentioned.

 

 

	
EMPLOYEE

	  
	 	 	 
	 	 	 
	
/s/ Richard Hagerup

	  
	
Richard Hagerup

	  
	 	 	 
	 	 	 
	
Dated: July 13, 2012

	  
	 	 
	 	 
	 	 
	 	 
	
HARBINGER GROUP INC.

	  
	 	 	 
	 	 	 
	
By:

	
/s/ Ehsan Zargar

	  
	
Name:

	
Ehsan Zargar

	  
	
Title:

	
Vice President, Counsel & Corporate Secretary

	  	  	  
	  	  	  
	
Dated: July 13, 2012

	  

5

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