Document:

Exhibit 10.11

 

TRADEMARK LICENSE AGREEMENT

 

THIS TRADEMARK LICENSE AGREEMENT (this “Agreement”) is entered into, as of [  ], 2014 (the “Effective Date”), by and between Moelis & Company Group LP, a Delaware limited partnership, having an address at 399 Park Avenue, 5th Floor, New York, NY 10022 (“Licensor”) and Moelis Asset Management LP, a Delaware limited partnership, having an address at 399 Park Avenue, New York, NY 10022 (“Licensee”).  Licensor and Licensee may be referred to herein individually as a “Party,” and collectively as the “Parties,” to this Agreement.

 

WITNESSETH:

 

WHEREAS, Licensor and Licensee were founded by affiliates of Ken Moelis (“Principal”) and have conducted their businesses using the corporate name, trade name, trademark and service mark “MOELIS”;

 

WHEREAS, pursuant to the Master Separation Agreement between the Parties dated [         ], 2014, Licensee will operate independently from Licensor and, as of the effective date of such Separation Agreement, Principal shall continue to have an ownership interest in and be involved in the conduct of the respective businesses of Licensor and Licensee;

 

WHEREAS, Licensor owns all right, title and interest in the Licensed Mark; and

 

WHEREAS, Licensee desires to obtain from Licensor, and Licensor desires to grant to Licensee, a license under the terms and conditions set forth herein to use the Licensed Mark in conducting the Business.

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual representations, warranties and covenants contained herein, the Parties hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

1.01                        Defined Terms.  As used in this Agreement, capitalized terms shall have the meaning ascribed to them herein, including the following:

 

“Affiliate” means, when used with respect to any Person, any other Person that Controls, is Controlled by or is under common Control with such Person, whether through ownership of voting securities or otherwise.  Notwithstanding the foregoing, for the purposes of this Agreement no Party shall be considered an Affiliate of another Party.  It is acknowledged that after the date of this Agreement, Persons who are not presently Affiliates of a Party may become Affiliates of such Party, and Persons who are presently Affiliates of a Party may cease to be Affiliates of such Party.

 

“Business” means the business of asset management, investment advice, namely, investment management and investment of funds for others, including, without limitation, private 

 

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and public equity and debt investment services, as conducted by Licensee and its Affiliates from time to time.

 

“Control” means (i) ownership, directly or indirectly, of more than fifty percent (50%) of the shares or other equity interests in issued or registered capital of such Person, (ii) control, directly or indirectly, of more than fifty percent (50%) of the voting power of such Person or (iii) the power, directly or indirectly, to appoint a majority of the members of the board of directors or similar governing body of such Person, or the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person by contract or otherwise, and the terms “Controlled” and “Controlling” shall have correlative meanings.

 

“Effective Date” has the meaning set forth in the Preamble to this Agreement.

 

“Governmental Authority” means any government of the United States or any other jurisdiction as appropriate in the context, including the individual provinces, directly administered municipalities, autonomous regions, states or other subdivisions thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including, without limitation, any stock or commodities exchange, industry self-regulatory organization or any other quasi-governmental entity.

 

“Laws” means all statutes, laws, codes, ordinances, regulations, rules, orders, judgments, writs, injunctions, acts or decrees of any governmental entity.

 

“Licensed Mark” means the mark “MOELIS.”

 

 “Losses” means all damages, losses, liabilities, penalties, interest, judgments, assessments, costs and expenses, including reasonable attorney’s fees and disbursements.

 

“Permitted Sublicensee” means, with respect to Licensee, as of any date of determination, any other Person as to which Licensee Controls or owns, directly or indirectly, more than 20% of the economic interests of (i) such Person or (ii) its general partner or management company.

 

“Person” means any natural person, legal person, enterprise, corporation, partnership, limited liability company, company limited by shares, trust or joint venture, and shall include any successor (by merger or otherwise by operation of law) of such entity.

 

“Term” shall have the meaning set forth in Section 10.1.

 

“Termination Date” means the date upon which the Term ends in accordance with Article X.

 

1.02                        Other Definitional Provisions.  As used in this Agreement, neutral pronouns and any variations thereof shall be deemed to include the feminine and masculine and all terms used in the singular shall be deemed to include the plural, and vice versa, as the context may require.  The words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole, including the Schedule hereto, as the same may from time to 

 

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time be amended or supplemented and not to any particular subdivision contained in this Agreement.  The word “including” when used herein is not intended to be exclusive, or to limit the generality of the preceding words, and means “including, without limitation”.  References herein to an Article, Section, subsection, clause or Schedule shall refer to the appropriate Article, Section, subsection, clause or Schedule of this Agreement, unless expressly stated otherwise.

 

ARTICLE II
 GRANT OF LICENSE

 

2.01                        Grant of Trademark License.  Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee: a perpetual, irrevocable (except as provided in Article X), non-transferable (except as expressly permitted under Section 11.08), sublicensable (solely in accordance with Section 2.03), royalty-free, fully paid, worldwide, and non-exclusive right and license to use the Licensed Mark solely in the conduct of the Business during the Term (the “License”).  Licensees’ use of the Licensed Mark shall be limited to (i) a corporate and trade name, (ii) a trademark and service mark, and (iii) uses reasonably and customarily related to the foregoing (i) and (ii) (e.g., Internet domain name use).  Subject to the terms and conditions of this Agreement, Licensee may make good-faith uses of other words or terms in conjunction or association with the Licensed Mark (the “Forms of the Licensed Mark”), provided that (i) such Forms of the Licensed Mark do not communicate that Licensee is providing investment banking or investment banking advisory services under the Licensed Mark and (ii) Licensee shall not use “MOELIS & COMPANY,” “MOELIS AND COMPANY,” “MOELIS & CO.,” “MOELIS AND CO.,” or “MC” as a name or mark.

 

2.02                        Rights Reserved.  Licensor hereby reserves the right to use and grant others the right to use the Licensed Mark alone or in association with any other name, trademark, service mark or other term, matter or material for any purpose whatsoever in any jurisdiction.

 

2.03                        Sublicensing.

 

(a)                       The License includes the right of Licensee to grant sublicenses of the Licensed Mark solely to Permitted Sublicensees.  Licensee shall ensure that its Permitted Sublicensees comply with all provisions of this Agreement applicable to Licensee.

 

(b)                       At Licensor’s request, Licensee shall promptly provide Licensor with a list of names and addresses of its Permitted Sublicensees.

 

2.04                        Death or Incapacity of the Principal.  If Licensee or a Permitted Sublicensee is, at the time of the death or incapacity of the Principal, using the Licensed Mark as a principal brand for one or more of its businesses, Licensee and its Permitted Sublicensees shall not materially change the Forms of the Licensed Mark or materially expand the types of financial services and products offered under the Licensed Mark from those in use or offered, respectively, at the time of the Principal’s death or incapacity, without  Licensor’s prior written approval.

 

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ARTICLE III
 OWNERSHIP OF THE LICENSED MARK

 

3.01                        Acknowledgments and Covenants of Licensee.

 

(a)                       Licensee acknowledges that (i) all right, title and interest in and to the Licensed Mark belong exclusively to Licensor, and (ii) the rights of Licensor in the Licensed Mark are valid and enforceable.  Licensee covenants and agrees not to challenge Licensor’s or Licensor’s Affiliates’ ownership of the Licensed Mark in any jurisdiction.

 

(b)                       Licensee agrees that its use of the Licensed Mark under this Agreement shall inure to the benefit of Licensor, and this Agreement does not confer on Licensee any goodwill or ownership interest in the Licensed Mark.  Nothing herein shall be deemed, intended, or implied to constitute a sale or assignment of the Licensed Mark to Licensee.  Licensee shall not acquire any ownership rights in the Licensed Mark or any other right adverse to Licensor’s interests by virtue of this Agreement or by virtue of Licensee’s use of the Licensed Mark, regardless of how long this Agreement remains in effect.

 

(c)                        Licensee shall include, where reasonably practicable to do so, the following written notice in connection with its use of the Licensed Mark (or such other written ownership notice as requested by Licensor from time to time):  “[Licensed Mark] is a service mark of [Licensor] and used under license by [Licensee].”

 

3.02                        Use of the Licensed Mark.

 

(a)                       Licensee shall not:  (i) use the Licensed Mark in any way that impairs their validity as a proprietary trademark or service mark; (ii) take any action that would jeopardize or impair Licensor’s ownership of the Licensed Mark, or their enforceability; (iii) register or apply for the registration of the Licensed Mark as a trademark or service mark; (iv) use the Licensed Mark as a corporate name, trade name, trademark or service mark other than as expressly permitted under this Agreement; or (v) use the Licensed Mark in any jurisdiction after such time that Licensee knows or has reason to know that such use infringes or otherwise violates the trademark rights or other proprietary rights of another Person.

 

(b)                       Licensee shall promptly notify Licensor of any non-routine inquiry, investigation, inspection or any other action by any Governmental Entity or other Person with respect to production, promotion, sale or distribution of any product or service of Licensee bearing the Licensed Mark or provided in connection with the Licensed Mark, if such event occurs at any time when the Principal does not Control Licensee.

 

3.03                        No Other Rights or License.  Except for the License expressly granted to the Licensed Mark, nothing in this Agreement shall be construed as a grant to Licensee of any right or license, express or implied, in or to any other intellectual property rights owned, licensed or controlled by Licensor.

 

ARTICLE IV
 MAINTENANCE OF QUALITY CONTROL

 

4.01                        Promotion and Goodwill.  Licensee shall not take any action that tarnishes, disparages or diminishes the value of the Licensed Mark.  Licensee acknowledges that upon any termination of this Agreement, no monetary value shall be attributable to any goodwill associated with the use of the Licensed Mark by Licensee.

 

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4.02                        Quality of Licensee’s Services.  Licensee hereby covenants that in the course of conducting the Business, the quality of services provided by Licensee under the Licensed Mark will be at least equal to the quality of similar services provided by Licensee and its Affiliates as of the Effective Date.  Licensor shall have the right to reasonably review the manner in which Licensee uses the Licensed Mark in the Business, including the right to periodically request samples of materials bearing the Licensed Mark.

 

ARTICLE V
 COMPLIANCE WITH LAW; LICENSES, PERMITS, REGULATIONS, REGISTRATIONS, ETC.

 

5.01                        Compliance with Law.  Licensee shall comply with all applicable Laws in connection with its operation of the Business, use of the Licensed Mark and the performance of its other obligations under this Agreement.

 

5.02                        Government Licenses, Permits, and Approvals.  Licensee shall be responsible for obtaining and maintaining all licenses, permits, and regulatory approvals which are required by any Governmental Authority with respect to this Agreement and the Business of Licensee, and to comply with any requirements of such Governmental Authorities.  Licensee shall furnish Licensor and/or its Affiliates written evidence from such Governmental Authorities of any such licenses, permits, clearances, authorizations, or regulatory approvals at Licensor’s request.

 

5.03                        Recordings. In the event Licensor deems recordation necessary, Licensee shall cooperate with Licensor in connection with the recording of this Agreement with the appropriate Governmental Authorities and in the renewal of such recordation.  The Parties shall provide assistance and information to each other as reasonably necessary to accomplish such recordation, including by submitting a revised version of this Agreement in a form necessary, but without change of substance (except where such change is necessary for purposes of recordation) hereof, for recordation.  Upon termination of this Agreement, and in addition to the requirements of Section 10.06, the Parties shall cooperate to effect a cancellation or termination of any recordation of this Agreement with the appropriate Governmental Authorities and the Parties will grant, and hereby do grant, to each other an irrevocable power of attorney coupled with an interest to effect such cancellation within thirty (30) days after the termination of this Agreement.

 

ARTICLE VI
 INTELLECTUAL PROPERTY PROTECTION

 

6.01                        Protection of the Licensed Mark.

 

(a)                                 Licensee shall promptly notify Licensor after it becomes aware of any material infringement or other violation of the Licensed Mark in any jurisdiction where Licensee conducts the Business under the Licensed Mark or any claim that Licensee’s use of the Licensed Mark infringes or otherwise violates the rights of any other Person.

 

(b)                       Licensee agrees, at its own expense and as Licensor may reasonably request, to (i) cooperate fully with Licensor or its Affiliates in the prosecution and elimination of 

 

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any unauthorized use or infringement of the Licensed Mark, including joining in a suit or proceeding against a Person making such unauthorized or infringing use; and (ii) execute any further agreements or documents as may reasonably be requested by Licensor.

 

(c)                        Either Party may take initial action at its own expense against actual or suspected infringers of the Licensed Mark within the Licensee’s Business; provided, that the non-initiating Party may participate in any such action undertaken by the initiating Party at the non-initiating Party’s own expense.  At Licensee’s request, Licensor will join such action as a party for the purposes of maintaining standing.

 

ARTICLE VII
 DISCLAIMER

 

7.01                        DISCLAIMER OF REPRESENTATIONS AND WARRANTIES.  LICENSOR HEREBY SPECIFICALLY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED (INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY, REGISTRABILITY, OR NON-INFRINGEMENT AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE), REGARDING THE LICENSED MARK.  WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, LICENSEE ACKNOWLEDGES THAT THE LICENSE GRANTED IN THIS AGREEMENT AND THE LICENSED MARK ARE PROVIDED “AS IS.”

 

ARTICLE VIII
 DEFENSE AND INDEMNIFICATION

 

8.01                        Indemnification by Licensee.  Licensee, at its expense, hereby agrees to indemnify and hold harmless Licensor and its Affiliates, and their respective directors, officers, employees and agents with respect to any Losses incurred, arising from or based in any respect on a claim by any third party arising, directly or indirectly, from any use by Licensee or its Permitted Sublicensees of the Licensed Mark.  Licensee shall have the sole right to control the defense in any such action with counsel of its choice and to enter into a stipulation of discontinuance and settlement thereof, in its sole discretion, provided, however, that notwithstanding the foregoing, Licensor shall, at its option and expense, have the sole right to control any such action as and to the extent concerning the validity or enforceability of the Licensed Mark.

 

8.02                        Indemnification by Licensor.  Licensor, at its expense, hereby agrees to indemnify and hold harmless Licensee and its Affiliates, and their respective directors, officers, employees and agents with respect to any Losses incurred, arising from or based in any respect on a claim by any third party arising, directly or indirectly, from (i) use of the Licensed Mark by Licensor or any of its licensees, or (ii) material breach of this Agreement by Licensor.  Licensor shall have the sole right to control the defense in any such action with counsel of its choice and to enter into a stipulation of discontinuance and settlement thereof, in its sole discretion.

 

8.03                        Disclaimer of Consequential Damages.  EXCEPT AS PROVIDED IN SECTION 8.01 AND SECTION 8.02, IN NO EVENT SHALL LICENSOR OR ITS 

 

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AFFILIATES OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS HAVE ANY LIABILITY TO LICENSEE OR ANY OTHER PERSON FOR LOST PROFITS OR FOR SPECIAL, INCIDENTAL, INDIRECT, PUNITIVE, CONSEQUENTIAL OR EXEMPLARY DAMAGES (INCLUDING PUNITIVE DAMAGES) ARISING OUT OF OR IN ANY MANNER CONNECTED WITH THIS AGREEMENT, THE PERFORMANCE OR BREACH HEREOF, OR THE SUBJECT MATTER HEREOF WHETHER OR NOT LICENSOR HAS BEEN ADVISED OF, OR OTHERWISE MIGHT HAVE ANTICIPATED THE POSSIBILITY OF, SUCH DAMAGES.

 

ARTICLE IX
 REMEDIES FOR BREACH

 

9.01                        Specific Performance and Injunctive Relief.  The Parties acknowledge and agree that in the event of a material breach of this Agreement, monetary damages may be insufficient and the non-breaching Party shall be entitled to seek any and all relief, including specific performance of the obligations hereunder and injunctive relief.  Licensee acknowledges and agrees that (i) the Licensed Mark constitute valuable property of Licensor and have acquired valuable reputation and goodwill; (ii) violation by Licensee of any provisions of this Agreement may cause Licensor irreparable injury not compensable by money damages for which Licensor may not have an adequate remedy at law; and (iii) if Licensor institutes an action or proceeding to enforce the provisions of this Agreement and seeks injunctive or other equitable relief as may be necessary to enjoin, prevent or curtail any breach thereof, threatened or actual, then Licensor shall be entitled to seek such relief without the posting of any bond or other security.  The foregoing shall be in addition and without prejudice to or limitation on any other rights Licensor may have under this Agreement, at law or in equity.

 

9.02                        Dispute Resolution.  Any dispute, controversy or claim arising out of or in connection with this Agreement, or the interpretation, breach, termination or validity thereof (“Dispute”) shall be finally resolved by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) then in effect (the “Rules”), except as modified herein and such arbitration shall be administered by the AAA.  The place of arbitration shall be New York, New York.  There shall be one arbitrator who shall be agreed upon by the parties within twenty (20) days of receipt by respondent of a copy of the demand for arbitration.  If any arbitrator is not appointed within the time limit provided herein, such arbitrator shall be appointed by the AAA in accordance with the listing, striking and ranking procedure in the Rules, with each party being given a limited number of strikes, except for cause.  Any arbitrator appointed by the AAA shall be a retired judge or a practicing attorney with no less than fifteen years of experience with trademark or related intellectual property matters and an experienced arbitrator.  In rendering an award, the arbitrator shall be required to follow the laws of the state of New York.  The award shall be in writing and shall briefly state the findings of fact and conclusions of law on which it is based.  The arbitrator shall not be permitted to award punitive, multiple or other non-compensatory damages.  The award shall be final and binding upon the parties and shall be the sole and exclusive remedy between the parties regarding any claims, counterclaims, issues or accounting presented to the arbitrator.  Judgment upon the award may be entered in any court having jurisdiction over any party or any of its assets.  Any costs or fees (including attorneys’ fees and expenses) incident to enforcing the award shall be charged against the party resisting such enforcement.  All Disputes shall be resolved in a confidential 

 

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manner.  The arbitrator shall agree to hold any information received during the arbitration in the strictest of confidence and shall not disclose to any non-party the existence, contents or results of the arbitration or any other information about such arbitration.  The parties to the arbitration shall not disclose any information about the evidence adduced or the documents produced by the other party in the arbitration proceedings or about the existence, contents or results of the proceeding except as may be required by law, regulatory or governmental authority or as may be necessary in an action in aid of arbitration or for enforcement of an arbitral award.  Before making any disclosure permitted by the preceding sentence (other than private disclosure to financial regulatory authorities), the party intending to make such disclosure shall use reasonable efforts to give the other party reasonable written notice of the intended disclosure and afford the other party a reasonable opportunity to protect its interests.  Notwithstanding the foregoing, Licensor shall have the right to seek preliminary injunctive relief in aid of arbitration in appropriate courts of competent jurisdiction located in New York County, New York, in accordance with Section 9.01 and Licensee submits to the jurisdiction of and waives any objection to venue in any such court.

 

ARTICLE X
 TERM AND TERMINATION

 

10.01                 Term.  This Agreement shall become effective on the Effective Date and shall be perpetual and remain in effect, unless terminated earlier pursuant to Section 10.02 through Section 10.04 (the “Term”).

 

10.02                 Licensor’s Right to Immediately Terminate Agreement.  Licensor may terminate this Agreement immediately in case of occurrence of any of the following events:

 

(a)                       (i) Licensee becomes insolvent, (ii) the filing of a petition by, or of an involuntary petition against, Licensee occurs under the provisions of any bankruptcy, insolvency or similar act which is not fully stayed or dismissed or vacated within ninety (90) days after filing, or (iii) Licensee makes an assignment for the benefit of its creditors;

 

(b)                       all or a material part of Licensee’s assets are condemned, expropriated, or otherwise taken over by a Governmental Authority or are repossessed, foreclosed upon or otherwise seized by any Licensee creditor; or

 

(c)                        the death or incapacity of the Principal if Licensee or a Permitted Sublicensee is not, at the time of such death or incapacity, using the Licensed Mark as a principal brand for one or more of its businesses.

 

10.03                 Licensee’s Right to Terminate.  Licensee may terminate this Agreement for any reason upon providing ninety (90) days’ written notice to Licensor.

 

10.04                 Material Breach.  If any Party fails to discharge a material obligation or to correct a material default hereunder, the other Party may give written notice to such Party specifying the material obligation or material default and indicating an intent to terminate this Agreement if the material obligation is not discharged or the material default is not cured.  The Party receiving such notice shall have thirty (30) days from the date of receipt of such notice to discharge such material obligation or cure such material default.  If such material obligation is 

 

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not discharged or such material default is not cured by the end of such thirty (30) day period, Licensor or Licensee (if it is the non-defaulting Party) may terminate this Agreement immediately by written notice given at any time after the end of such period; provided that the material obligation has not been discharged or the material default is continuing on the date of such termination notice.

 

10.05                 Termination of License.  Upon the termination of this Agreement for any reason:

 

(a)                       Subject to Section 10.05(b), Licensee’s License to use the Licensed Mark and all rights in the Licensed Mark granted to Licensee (and its Permitted Sublicensees), immediately and automatically shall terminate;

 

(b)                       Licensee shall (and shall cause its Permitted Sublicensees to), within nine (9) months from the termination of this Agreement (such period, the “Transitional Period”), discontinue using the Licensed Mark, and during the Transitional Period (the last day of such period being the “Cessation Date”) all of the obligations of Licensee (and its Permitted Sublicensees) hereunder shall remain in force; and

 

(c)                        Upon expiration of the Transitional Period, Licensee shall (and shall cause its Permitted Sublicensees to) destroy all materials in their possession or control utilizing the Licensed Mark and provide confirmation of same to Licensor; provided, however, that such requirement shall not apply to internal business records of Licensee, its Affiliates or Permitted Sublicensees.

 

10.06                 Change of Company Name Following Termination.  Upon or prior to the Cessation Date, Licensee shall and shall cause its Affiliates to (i) take all steps necessary, and reasonably cooperate with Licensor and/or its Affiliates, to de-register any of Licensee’s or its Affiliates’ corporate or trade names that incorporate the Licensed Mark and to cancel any recordation of this Agreement with any Governmental Authorities; and (ii) change its corporate and trade name to a name that does not include the Licensed Mark or any confusingly similar name or mark or any variation or derivation thereof.

 

10.07                 Survival.  Notwithstanding any provisions of this Article stating otherwise, Sections 3.01, 3.02, 5.03, 10.04, 10.05, 10.06 and 10.07, and Articles VII, IX and XI of this Agreement shall survive any termination of this Agreement.

 

ARTICLE XI
 MISCELLANEOUS(1)

 

11.01                 Notices.  All notices hereunder to each Party shall be in writing and shall be deemed to have been given and received when (i) delivered personally (against receipt) or by courier or (ii) received by certified or registered mail, return receipt requested, postage prepaid, in each case, at the respective addresses for the Parties set forth below or at such other address as the intended recipient may specify in a notice pursuant to this Section:

 

(1)  Note to Draft: Miscellaneous provisions to be conformed to Master Separation Agreement.

 

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If to Licensor:

399 Park Avenue, [5th] Floor

New York, NY 10022

Attention: [    ]

Fax: [    ]

 

If to Licensee:

399 Park Avenue, [5th] Floor

New York, NY 10022

Attention: [    ]

Fax: [    ]

 

or to such other respective addresses as any Party shall designate to the others by notice in writing, provided that notice of a change of address shall be effective only upon receipt.  Any Person who becomes a Party to this Agreement shall provide by notice in writing its address and fax number to each of the other Parties.

 

11.02                 No Agency.  Subject to the terms of the power-of-attorney provisions of this Agreement: (i) the Parties are acting as independent contractors under this Agreement, and no Party is an employee or agent of the other; (ii) nothing herein is intended to make any Party a general or special agent, legal representative, subsidiary, joint venturer, partner, fiduciary, employee or servant of any other Party for any purpose; (iii) no Party is authorized or empowered to act as an agent for any other Party or to enter into Agreements, transact business, or incur obligations for or on behalf of any other Party, nor to accept legal service of process for or on behalf of any other Party, nor to bind any other Party in any manner whatsoever; and (iv) no Party shall do or omit to do anything that might imply or indicate that it is an agent or representative of another Party, or a branch, division, or Affiliate of any other Party, or that such Party in any manner, either directly or indirectly, owns, Controls, or operates any of the other Party’s business or is in any way responsible for any other Party’s acts or obligations.

 

11.03                 Entire Agreement; Amendment.  This Agreement contains the entire agreement between the Parties with respect to the transactions contemplated herein, supersedes all prior written agreements, negotiations and term sheets, and all prior and contemporaneous oral understandings, if any, and may not be amended except by an instrument in writing signed by each of the Parties.

 

11.04                 No Waiver.  No delay or failure on the part of any of the Parties in the exercise of any right granted under this Agreement, or available at law or equity, shall be construed as a waiver of such right, nor shall any single or partial exercise thereof preclude any other Party from the exercise thereof.  All waivers must be in writing and signed by the Party against whom the waiver is to be effective.  Any such waiver shall constitute a waiver only with respect to the specific matter described in such writing and shall in no way impair the rights of the Party granting such waiver in any other respect or at any other time.

 

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11.05                 Severability.  In the event that any provision (or portion thereof) of this Agreement is determined by a court or arbitration to be unenforceable as drafted by virtue of the scope, duration, extent, or character of any obligation contained herein, it is the Parties’ intention that such provision (or portion thereof) shall be construed in a manner designed to effectuate the purposes of such provision to the maximum extent enforceable under such applicable law.  The Parties shall enter into whatever amendment to this Agreement as may be necessary to effectuate such purposes.

 

11.06                 Governing Law.  THE CONSTRUCTION, VALIDITY, AND INTERPRETATION OF THIS AGREEMENT AND THE PERFORMANCE OF THE OBLIGATIONS IMPOSED BY THIS AGREEMENT SHALL BE GOVERNED BY THE SUBSTANTIVE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAW PRINCIPLES.

 

11.07                 Tax Treatment.  Licensor and Licensee acknowledge and agree that the rights transferred from Licensor to Licensee pursuant to this Agreement shall be treated for U.S. federal income tax purposes as a transfer of property from Licensor to Licensee occurring as of the effective date of the Master Separation Agreement.  Neither Licensor nor Licensee shall take, or shall permit an Affiliate of theirs to take, a contrary position on any U.S. federal, state or local tax return.

 

11.08                 No Assignment.  Licensee may not assign or otherwise transfer its rights or obligations under this Agreement to any Person, provided that Licensee may assign this Agreement in whole in connection with the sale or transfer of all or a significant portion of the Business or associated assets of the Business to which this Agreement relates.  Any assignment in violation of the foregoing sentence shall be void and of no force and effect.  This Agreement shall be binding upon and inure to the benefit of the Parties and their successors, respective heirs and legal representatives.

 

11.09                 Remedies Cumulative.  All remedies in this Agreement are cumulative, in addition to and not in lieu of any other remedies available to a Party at law or in equity, subject only to the express limitations on liabilities and remedies set forth herein.

 

11.10                 No Third-Party Beneficiaries.  Except as expressly provided herein, no third party is intended, or shall be deemed, to be a beneficiary of any provision of this Agreement.

 

11.11                 Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

 

11.12                 Further Assurances and Cooperation.  Each Party agrees to execute and deliver such other documents and to take all such other actions as the other Party may reasonably request to effect the terms of this Agreement.

 

11.13                 No Strict Construction; Headings.  The language used in this Agreement shall be deemed to be the language chosen by the Parties hereto to express their mutual intent and no rule of strict construction against either Party shall apply to any term or condition of this 

 

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Agreement.  The article and section headings of this Agreement are for reference purposes only and are to be given no effect in the construction or interpretation of this Agreement.

 

11.14                 Enforceability.  The Parties represent that this Agreement has been duly authorized, executed and delivered by, and constitutes the valid and legally binding obligations of, such representing Party, enforceable against such representing Party in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and to general principles of equity, where applicable.

 

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IN WITNESS WHEREOF, this Agreement has been duly executed on the day and year first above written.

 

	
 
    	
MOELIS & COMPANY GROUP LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MOELIS ASSET MANAGEMENT LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

13Exhibit 10.13

 

Employment Agreement

 

This Employment Agreement (the “Agreement”), dated as of [S-1 Effective Date], 2014 (the “Effective Date”), is made by and between Moelis & Company, a Delaware corporation (together with any successor thereto, “Moelis & Company”), Moelis and Company Group LP (together with any successor thereto, “Group LP”) (Moelis & Company and Group LP together, the “Company”) and Kenneth Moelis (the “Executive”).  This Agreement supersedes the previous Employment Agreement with Moelis & Company Holdings LLC dated as of July 2, 2007.

 

1.              Employment.

 

(a)         General.  On the Effective Date, the Company will employ the Executive, and the Executive accepts employment with the Company on the Effective Date and on the terms and conditions herein provided. The Executive will have his primary office in Los Angeles, California.

 

(b)         At-Will Employment.  The Executive’s employment with the Company will be “at-will” employment and either party may terminate it at any time with or without cause; provided the Executive hereby agrees that he will not terminate his employment (other than for Good Reason (as defined in Section 3)) prior to the third anniversary of the Effective Date.  The Company may terminate the employment of the Executive at any time without notice and without cause; provided that such termination shall be effective no later than 90 days after it gives any notice.  Neither the Executive’s job performance nor promotions, commendations, bonuses or any other positive treatment by the Company give rise to or in any way serve as the basis for modification or amendment of the at-will nature of the employment.  The period of the Executive’s employment with the Company under this Agreement is the “Employment Period.”

 

(c)          Position and Duties.  The Executive shall serve as Chief Executive Officer of the Company and if so elected, as Chairman of the Board of Directors of Moelis & Company (the “Board”) with such customary responsibilities, duties and authority as the Board may from time to time assign to the Executive. The Executive will report directly to the Board.  The Executive shall devote his primary business time and efforts to the business and affairs of the Company (which may include service to the Company’s affiliates); provided it is understood that (i) the Executive may manage the Executive’s personal investments, (ii) the Executive may continue to serve as a member of any board of directors or in any similar position of any business entity or any charitable organization on or in which Executive serves as of the Effective Date which have been previously disclosed to and approved by the Company, (iii) subject to the prior approval of the Board (which shall not be unreasonably withheld), the Executive may serve as a member of any additional board of directors or in any additional similar position of any business corporation or any charitable organization; provided in each case, and in the aggregate, that such activities do not conflict or materially interfere with the performance of Executive’s duties hereunder or conflict with Section 3 of this Agreement, and (iv) the Executive may continue to act as managing member for Moelis Asset Management LP.  The Executive agrees to observe and comply with the rules and policies of the Company as adopted by the Company from time to time.

 

(d)         Tax Status; Withholding. The parties acknowledge and agree that all of the compensation and benefits provided to the Executive hereunder will be in respect of services performed by the Executive for Group LP.  For tax purposes the Executive is treated as a partner of Group LP and therefore is self-employed for federal, state and, if applicable, local tax purposes.  Accordingly, the Executive is responsible for all self-employment and income taxes, and the Company will not withhold any taxes from any payments under this Agreement for so long as the Executive is a limited partner of Group LP or a member of its affiliate Moelis & Company Partner Holdings LLC, unless

 

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the Company becomes required to withhold for taxes.  The Company shall be entitled to rely on advice of counsel if any questions as to the amount or requirement of withholding shall arise.  The Company will provide the Executive with written notice of any decision to withhold under this Section 1(d).  In the event the Company’s failure to withhold causes the Executive to pay interest or penalties or to incur out-of-pocket costs and expenses in connection with filing or amending a tax return, the Company will reimburse the Executive for such interest, penalties and/or out-of-pocket costs and expenses to the extent the Company has agreed to reimburse any other executive of the Company who is also a limited partner of Group LP or a member of its affiliate Moelis & Company Partner Holdings LLC for such similar interest, penalties and/or out-of-pocket costs and expenses.

 

2.              Compensation and Related Matters.

 

(a)         Base Salary.  During the Employment Period, the Company will pay the Executive base compensation (“Base Salary”) equal to $400,000 annually, paid in semi-monthly installments in accordance with the customary payroll practices of the Company, subject to adjustment, if and as determined by the Board provided any reduction shall be applicable generally to a majority of Managing Directors of the Company.

 

(b)         Annual Incentive Compensation.  During the Employment Period, the Executive will be eligible for an annual discretionary performance bonus, subject to the satisfaction of the Board with the performance of the Executive.  The Company will pay any such annual discretionary performance bonus at the same time or times and subject to the same conditions (such as repayment upon the Executive’s resignation prior to specified dates) as payments to other Managing Directors in the United States and any additional conditions imposed pursuant to Section 2(c) below.

 

(c)          Deferred Compensation.  The Executive will be subject to any deferred compensation plan for its executive officers adopted by the Board from time to time.

 

(d)         Benefits.  To the extent permitted under the terms thereof, the Executive shall be entitled to participate in employee benefit plans, programs and arrangements of the Company, as in effect from time to time, including the Company’s medical and dental insurance plans and 401(k) plan that apply to similarly situated executive employees of the Company.

 

(e)          Expenses.  The Company shall reimburse the Executive for all reasonable travel and other business expenses properly incurred in the performance of the Executive’s duties to the Company and in accordance with the Company’s expense reimbursement policies.

 

(f)           Vacation.  The Executive shall be entitled to paid vacation in accordance with the Company’s vacation policies applicable to executives of the Company.  The Executive will take vacation at his and the Company’s reasonable and mutual convenience.

 

(g)          Aircraft.  The Company shall reimburse the Executive for the cost of his business use of a private aircraft.

 

3.             Termination.

 

(a)         Notice of Termination by Executive.  It is reasonable and necessary to provide a smooth transition if the Executive chooses to leave the Company.  Consequently, the Executive agrees to provide the Company with 90 days prior written notice of his intent to terminate his employment (the “Notice Period”); provided that such Notice Period will not apply if the Executive terminates his employment

 

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for Good Reason.  The Company may elect to place the Executive on paid leave for all or any part of such Notice Period.

 

(b)         Effect of Notice of Termination. If on or prior to the date any incentive compensation is paid or any equity interests vests, the Executive gives notice of his intent to terminate his employment (or engagement as a consultant or otherwise) in the business of the Company and/or its affiliates (other than for Good Reason), the Executive shall not be entitled to receive any such incentive compensation and shall forfeit any such unvested equity interests.  If on or prior to the date any incentive compensation is paid, the Company terminates the Executive’s employment (or engagement), the Executive shall not be entitled to receive any such incentive compensation.

 

(c)          Class B Condition Termination by the Company.  The Company may terminate this Agreement if (i) the Executive breaches the covenant in Section 1(c) to devote his primary business time and effort to the business and affairs of the Company and its subsidiaries or (ii) the Executive suffers an Incapacity (as defined below), only after (x) the Company shall have provided the Executive with a sufficiently detailed written notice describing such breach or Incapacity within 60 days of the date on which the Company knows or should have known of such breach or Incapacity and (y) the Executive shall have at least 30 days to cure such breach or Incapacity, to the extent curable (provided that, for the avoidance of doubt, if the Executive receives such notice and fails to timely cure within such 30-day period, the Company shall not be required to provide any additional notice or notice period and the Company may terminate the Executive for such breach or Incapacity after the last day of such 30-day period).

 

(d)         “Good Reason”. “Good Reason” means a material breach of a material provision of this Agreement with the Company or an Affiliate thereof by the Company and/or the Affiliate, the Vesting Agreements related to the Executive’s equity interests in the Company or the Stockholders Agreement between the Company and Moelis & Company Partner Holdings LP by the Company and/or its Affiliates; provided, however, that the Executive must provide the Company or the Affiliate as applicable with a sufficiently detailed notice of the events deemed to constitute “Good Reason” within 60 days of when the Executive knew or should have known that the events deemed to constitute “Good Reason” occurred and allow the Company and the Affiliate 30 days to cure any of the events or occurrences described above, to the extent reasonably capable of prompt cure, before the Executive may resign for Good Reason (the “Good Reason Notice”).  For the avoidance of doubt, if the Executive gives the Good Reason Notice and the Company or the Affiliate fails to timely cure within such 30-day period, the Executive shall not be required to provide any additional notice or notice period, and the Executive may terminate his employment with the Company and/or its Affiliates for Good Reason after the last day of such 30-day period but within forty-five (45) days of the end of such 30-day cure period.

 

(e)          “Incapacity”.  “Incapacity” means, with respect to the Executive, the entry of an order of incompetence or of insanity, or permanent physical incapacity or death.

 

4.             Restrictive Covenants.

 

(a)         Non-Compete.  Except as the Company otherwise agrees, the Executive shall not during the Employment Period and, if the Executive terminates this agreement other than for Good Reason for 90 days thereafter, directly or indirectly provide services to, engage in, have any equity interest in, or manage or operate any Competitive Enterprise (as defined below); provided, however, that the Executive shall be permitted to acquire a passive equity interest in such a Competitive Enterprise provided (i) the Executive notifies the Company of any such investment in accordance with the

 

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Company’s notification policies in effect from time to time and (ii) the interest acquired is not more than five percent (5%) of such Competitive Enterprise’s outstanding equity interests.

 

(b)         Non-Solicit.  During the Employment Period, except for the purpose of terminating or encouraging the resignation of underperforming or excess limited partners, employees, independent contractors, consultants, service providers or suppliers of the Company, and for a period of twelve months following immediately after the termination or expiration of the Employment Period, the Executive shall not, directly or indirectly, recruit or otherwise solicit, encourage or induce any limited partner, employee, independent contractor, consultant, service provider or supplier of the Company (i) to terminate his, her or its employment or arrangement with the Company, or (ii) to otherwise change his, her or its relationship with the Company.

 

(c)          “Competitive Enterprise”.  “Competitive Enterprise” means any business enterprise that is engaged, or owns or controls a significant interest in any entity that is engaged, in either case, primarily or in any substantial manner in any place in the world in (x) investment banking or securities activities or financial services, including, without limitation, private equity, hedge fund or other asset or investment management businesses, or (y) any business activities in which the Company and/or its affiliates are engaged primarily or in any substantial manner; in each case excluding Moelis Asset Management LP and its affiliates..

 

(d)         Non-Disparagement.  Except pursuant to Section 5(c), the Executive agrees that, during the Employment Period and at all times thereafter, he will not disparage in any material respect the Company, any of its products or practices, or any of its directors, officers, agents, representatives, stockholders or affiliates, either orally or in writing.

 

5.              Nondisclosure of Proprietary Information.

 

(a)         Except in connection with the faithful performance of the Executive’s duties hereunder or pursuant to Section 5(c), the Executive shall, in perpetuity, maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any person, firm, corporation or other entity any confidential or proprietary information or trade secrets or intellectual property of, from or relating to the Company (including, without limitation, information, documents, techniques or other know-how or materials owned, developed or possessed by the Company, whether in tangible or intangible form, the terms of this Agreement, any information with respect to the Company’s operations, processes, protocols, products, inventions, business practices, investment performance, “track record,” finances, principals, business partners, investors, clients, personnel, strategic planning, portfolio investments and/or companies, service providers, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, prospects, and any and all information of any nature relating to the Company and its affiliates, including any vehicle(s) formed in connection therewith or as a successor thereto) (collectively, “Proprietary Information”), or deliver to any person, firm, corporation or other entity any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information.  The foregoing matters are important, material and confidential proprietary information and trade secrets and affect the successful conduct of the businesses of the Company (and any successor or assignee of the Company).  Notwithstanding the foregoing, Proprietary Information does not include information that (i) becomes publicly available (other than by disclosure or other wrongful act by the Executive), (ii) is contained in a publicly available document, (iii) was known to the Executive before the Executive commenced employment with the Company, or (iv) is required to be disclosed by law.  The Executive acknowledges that it is

 

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reasonable and necessary for the Company to take these reasonable steps to maintain the confidentiality of its Proprietary Information.

 

(b)         Upon termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, computer disk drives, flash drives, disks, or any other materials concerning the Proprietary Information in his possession.

 

(c)          The Executive may respond to a lawful and valid subpoena or other legal process but shall: (i) give the Company the earliest possible notice thereof, (ii) as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought and (iii) assist such counsel at Company’s expense in resisting or otherwise responding to such process.

 

(d)         Nothing in this Agreement shall prohibit the Executive from (i) disclosing information and documents when required by law, subpoena or court order (subject to the requirements of Section 5(c) above), (ii) disclosing information and documents to his attorney or tax adviser for the purpose of securing legal or tax advice, (iii) disclosing the post-employment restrictions in this Agreement in confidence to any potential new employer, or (iv) retaining, at any time, his personal correspondence, his personal rolodex and documents related to his own personal benefits, entitlements and obligations.

 

6.              Inventions and Other Works.

 

During the Employment Period, the Executive may either alone or with others, author, create, conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, or assist in the authoring, creation, conception, development or reduction to practice of documents, materials, designs, drawings, processes, Proprietary Information and other works which relate to the Business or are otherwise capable of being used by the Company or any such affiliates (“Works”).  The Executive agrees that any and all Works and the related intellectual property and other rights in those Works including, without limitation, inventions, patents, copyrights, mask works, design rights, database rights, trademarks, service marks, internet rights/domain names, trade secrets and know-how (whether registered or unregistered and including any applications or rights to apply) subsisting anywhere in the world in any and all media now existing or hereafter created (collectively, “Works IP Rights”) will belong solely to and be the absolute property of the Company. The Executive agrees that all original works of authorship which are made by the Executive (solely or jointly with others) within the scope of and during the period of his employment with the Company and which are protected by copyright are “works made for hire,” as that term is defined in the United States Copyright Act.  The Executive hereby assigns with full title guarantee to the Company by way of present assignment all Works IP Rights, all Intellectual Property Rights in the Works.  The Executive hereby irrevocably and unconditionally waives any moral rights which he may have in any Works. The Executive shall immediately disclose to the Company all Works and all Works IP Rights, and shall immediately on request by the Company (whether during or after the termination of his Employment Period) and at the expense of the Company execute all instruments and do all things necessary for vesting in the Company (or such other person as the Company may designate) all right, title and interest to and in the Works and Works IP Rights and as otherwise necessary for giving to the Company the full benefit of this clause.  The Executive further agrees that his obligation to execute or cause to be executed, when it is in his power to do so, any such instrument or papers shall continue after the termination of this Agreement.  Group LP shall have the rights of the Company in this Section.

 

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7.              Injunctive Relief.

 

The Executive understands that that a breach of the covenants contained in Sections 4 and 5 will cause irreparable damage to the Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate.  Accordingly, the Executive agrees that in the event of a breach of any of the covenants contained in Sections 4 and 5, in addition to any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive relief, without having to post a bond or other surety.  The Executive agrees not to raise as a defense or objection to the request or granting of such relief that the Executive could compensate the Company for a breach of this Agreement by an award of money damages, and the Executive waives any requirements for the securing or posting of any bond in connection with such remedy.

 

8.              Assignment and Successors.

 

The Company may assign its rights and obligations under this Agreement to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise), and may assign or encumber this Agreement and its rights hereunder as security for indebtedness of the Company and its affiliates.  This Agreement shall be binding upon and inure to the benefit of the Company, the Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable.  The Executive may not assign, delegate or transfer any of the Executive’s rights or obligations, other than the Executive’s rights to payments hereunder, which may be transferred only by will or operation of law.  Notwithstanding the foregoing, the Executive shall be entitled, to the extent permitted under applicable law and the applicable benefit plans, programs and arrangements described under Section 2(d), to select and change a beneficiary or beneficiaries to receive compensation hereunder following his death by giving written notice thereof to the Company.

 

9.              Governing Law.

 

This Agreement shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance with the substantive laws of the state of Delaware, without reference to the principles of conflicts of law or choice of law of the state of Delaware, or any other jurisdiction, and where applicable, the laws of the United States.

 

10.       Notices.

 

Any notice, request, claim, demand, document or other communication hereunder to either party shall be effective upon receipt (or refusal of receipt) and shall be in writing and (a) delivered personally to the person or to an officer of the person to whom the same is directed, (b) sent by facsimile, overnight mail or registered or certified mail, return receipt requested, postage prepaid, or (c) sent by email, with electronic, written or oral confirmation of receipt, in accordance with the following sentence.  Such communication, in the case of the Company, shall be mailed to its principal office, and in the case of the Executive: (i) if the Executive is then employed by the Company, shall be emailed to the Executive at the Executive’s “@moelis.com” email address, and (ii) if the Executive is no longer employed by the Company, shall be mailed to the Executive’s most recent home address or emailed to the Executive’s most recently disclosed personal email address, in either case as the Executive has provided the Company in writing.

 

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11.       Counterparts.

 

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.  Signatures delivered by facsimile, email or in PDF format shall be deemed effective for all purposes.

 

12.       Entire Agreement.

 

The terms of this Agreement are intended by the parties to be the final expression of their agreement with respect to the employment of the Executive by the Company and supersede all prior understandings and agreements, whether written or oral, including the Executive’s previous Employment Agreement with Moelis & Company Holdings LLC dated as of July 2, 2007.  The parties further intend that this Agreement shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.

 

13.       Amendments; Waivers.

 

This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by the Executive and a duly authorized officer of the Company.  By an instrument in writing similarly executed, the Executive or a duly authorized officer of the Company may waive compliance by the other party or parties with any specifically identified provision of this Agreement that such other party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure.  No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.  Except as otherwise set forth in this Agreement, the respective rights and obligations of the parties under this Agreement shall survive any termination of the Executive’s employment.

 

14.       Construction.

 

This Agreement shall be deemed drafted equally by both the parties. Its language shall be construed as a whole and according to its fair meaning.  Any presumption or principle that the language is to be construed against any party shall not apply.

 

15.       Arbitration.

 

(a)         Except as expressly provided in clauses (b) or (c) below, if any claim, controversy or dispute arises in connection with this Agreement and Executive’s employment by the Company, the Company and the Executive agree to final and binding arbitration administered by JAMS or any successor organization or body thereto pursuant to its Employment Arbitration Rules & Procedures and subject to JAMS Policy on Employment Arbitration Minimum Standards of Procedural Fairness, with the exception that the Executive and the Company agree that no depositions will be taken, except if ordered by the arbitrator due to extraordinary circumstances.  The arbitration hearing will take place at the JAMS hearing site located nearest to the Company’s office at which the Executive is providing services or was providing services as of the date his employment or other relationship terminated.  Any such arbitration shall be before one arbitrator, who shall be a former judge, selected in accordance with the rules described above.

 

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This agreement to arbitrate disputes includes, but is not limited to, any claims of discrimination and/or harassment under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, claims for breach of contract or the implied covenant of good faith and fair dealing, tortious conduct (whether intentional or negligent), including claims of misappropriation, fraud, conversion, interference with economic advantage or contract, breach of fiduciary duty, misrepresentation, or any other federal, state or local law relating to discrimination in employment, any claims relating to wage and hour claims and any other statutory or common law claims.  In the course of any arbitration, the employee and the Company agree:  (1) to request that a written award be issued by the arbitrator(s); (2) that each side is entitled to receive any and all relief they would be entitled to receive in a court proceeding; and (3) that the Executive will not be required to pay any fees in the arbitration that are greater than the fees the Executive would be required to pay in a court proceeding.  Any arbitral award may be entered as a judgment or order in any court of competent jurisdiction.

 

(b)         The Executive and the Company knowingly and voluntarily agree to waive any rights that might otherwise exist to request a jury trial or other court proceeding, except that the Executive and the Company agree that each has the right to seek injunctive or other equitable relief from a court with respect to the enforcement of any obligations the Executive may have regarding any notice period the Company is entitled to, trade secrets, confidential information, non-solicitation of employees, consultants or independent contractors, non-solicitation of clients or customers, non-competition, inventions, work product or other intellectual property and non-disparagement (whether such obligations arise pursuant to this Agreement, any employee handbook, any confidentiality and/or restrictive covenant agreement, the common law or otherwise).

 

(c)          Any claims filed by the parties in arbitration must be brought in the parties’ individual capacity and not as a plaintiff or class member in any purported class, collective or representative proceeding.  In the event that the preceding sentence is ruled to be unenforceable, any such purported class, collective or representative proceeding must be heard in court and not in arbitration.

 

(d)         Each provision of this arbitration agreement is intended to be severable, and the invalidity or unenforceability of any portion or provision of this agreement shall not affect the validity, enforceability or legality of the remainder hereof.  In the event any provision of this arbitration policy is determined by any court of competent jurisdiction or arbitrator(s) to be illegal, invalid or unenforceable as written, such provision shall be interpreted so as to be legal, valid and enforceable to the fullest extent possible under applicable law.  In the event any provision of this arbitration policy is determined by a court of competent jurisdiction or arbitrator(s) to be void, the remaining provisions of this arbitration policy shall nevertheless be binding upon the parties with the same effect as though the void provision thereof had been severed and deleted.

 

16.       Enforcement.

 

If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

 

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17.       Executive Acknowledgement.

 

The Executive acknowledges that he has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on his own judgment.  The Executive further acknowledges that, immediately prior to entering into this Agreement, the Executive is not bound by any noncompetition, nondisclosure, confidentiality, employment or other agreements (collectively, “Other Agreements”) which would prevent or restrict the performance of the Executive’s duties hereunder, that by entering into this Agreement the Executive will not be in breach of any Other Agreements or cause the Company to incur any liability with respect to any Other Agreements, and that the Executive shall indemnify and hold harmless the Company with respect to any liability arising from the breach of any Other Agreements.  The Executive further acknowledges that the Executive will be bound by the terms and conditions contained in the Company’s employee handbook, as it may be amended from time to time and will, upon request of the General Partner, sign a copy thereof from time to time.

 

18.       Section 409A.

 

It is the intent of the parties that the payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance issued thereunder (“Section 409A”) (except to the extent exempt as short term deferrals or otherwise) and accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  In the event that following the Effective Date the Company reasonably determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company and Executive shall work together to adopt such amendments to this Agreement or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect), or take any other commercially reasonable actions necessary or appropriate to exempt the compensation and benefits payable under this Agreement from Section 409A and/or preserve the intended tax treatment of the compensation and benefits provided with respect to this Agreement.  Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement or any other arrangement between the Executive and the Company or its affiliates during the six-month period immediately following the Executive’s separation from service shall instead be paid on the first business day after the date that is six months following the Executive’s separation from service (or, if earlier, the Executive’s date of death).  To the extent required to avoid an accelerated or additional tax under Section 409A, amounts reimbursable to the Executive under this Agreement shall be paid to the Executive on or before the last day of the year following the year in which the expense was incurred, and the amount of expenses eligible for reimbursement (and in kind benefits provided to the Executive) during one year may not affect amounts reimbursable or provided in any subsequent year. The Company makes no representation that any or all of the payments and benefits described in this Agreement will be exempt from or comply with Section 409A and, except to the extent provided in this Section 19, makes no undertaking to preclude Section 409A from applying to any such payment.  The Executive shall be solely responsible for the payment of any taxes and penalties incurred under 409A or any other provision of the Code.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

 

	
 
    	
COMPANY
    
	
 
    	
 
    
	
 
    	
Moelis & Company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Elizabeth Crain
    
	
 
    	
Title:
    	
Chief Operating Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Moelis & Company   Group LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Elizabeth Crain
    
	
 
    	
Title:
    	
Chief Operating   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Kenneth Moelis
    

 

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