Document:

Exhibit 10.01

 

EXECUTION COPY

 

AMENDED AND RESTATED
 EMPLOYMENT AGREEMENT

 

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into effective as of December 23rd, 2010] (the “Effective Date”), by and between Entercom Communications Corp., a Pennsylvania corporation (“Employer” or the “Company”), and David J. Field (“Executive”).

 

RECITALS

 

A.            Prior to the Effective Date, Executive has rendered services to Employer in the position of President and Chief Executive Officer upon and subject to the terms, condition and other provisions of that certain Amended and Restated Employment Agreement between Executive and Employer dated as of July 1, 2007, as amended (the “Prior Agreement”).

 

B.            Effective as of the Effective Date, Employer desires to continue to retain the services of Executive upon and subject to the terms, conditions and other provisions set forth herein.

 

C.            Executive desires to continue to render services to Employer upon and subject to the terms, conditions and other provisions set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises, the mutual promises hereinafter set forth, and other good and valuable consideration had and received, the parties hereby agree as follows:

 

1.             Employment. Upon and subject to the terms, conditions and other provisions of this Agreement, Employer shall continue to employ Executive, and Executive hereby accepts such continued employment and agrees to exercise and perform faithfully, exclusively and to the best of his ability on behalf of Employer during the Employment Term (as defined herein), the duties and responsibilities of President and Chief Executive Officer of Employer, with the general powers and duties of management usually vested in said office.

 

2.             Executive’s Services and Duties.

 

2.1           During the Employment Term, Executive shall:

 

2.1.1        Observe and conform to the policies and directions promulgated from time to time by Employer’s Board of Directors (the “Board”);

 

2.1.2        Use all reasonable efforts to serve Employer faithfully, diligently and competently and to the best of his ability; and

 

2.1.3        Devote his full business time, energy, ability, attention and skill to his employment hereunder.

 

2.2           The services to be performed by Executive hereunder may be changed or adjusted from time to time at the reasonable discretion of the Board.

 

2.3           Except with the prior written approval of the Board, Executive during the Employment Term will not (i) accept any other employment with a third party, (ii) serve on the board of directors or similar body of any other business entity in any way directly or indirectly competitive with the business of the Company or (iii) engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary

 

 

advantage) that is or may be competitive with, or that might place him in a competing position to or otherwise conflict with, that of Employer or any of its subsidiaries, affiliates or divisions.

 

3.             Term. Unless terminated earlier as provided in this Agreement, the term of this Agreement shall commence on the Effective Date and shall terminate and expire on the third anniversary thereof (the “Employment Term”). The Employment Term shall automatically renew for an additional twelve (12) months from year to year thereafter, unless either party gives at least one hundred twenty (120) days prior written notice of its election to either terminate or to renegotiate the terms of this Agreement at the end of the original or any then current renewal term.

 

4.             Compensation and Other Benefits. As compensation in full for the services to be rendered by Executive hereunder, during the Employment Term, Employer shall pay, and Executive shall be entitled to receive, the following compensation and benefits, which compensation and benefits shall be subject to all appropriate federal, state and local withholding taxes:

 

4.1           An annual salary in the amount of seven hundred ninety thousand seven hundred twenty three dollars ($791,723) to be paid consistent with the standard payroll practices of Employer in place from time-to-time (the “Base Compensation”). Beginning July 1, 2011, and each July 1 thereafter during the Employment Term, Executive’s Base Compensation shall be automatically increased by three (3) percent.

 

4.2           Executive shall have the opportunity to earn an annual performance bonus (the “Annual Bonus”) to be determined by the Compensation Committee of the Board (the “Compensation Committee”) to be based on criteria to be established by the Compensation Committee in its discretion. For any fiscal year of the Company, Executive’s target bonus amount under this Section 4.2 shall be one hundred fifty percent (150%) of the Base Compensation for each such fiscal year; provided, however, that the Compensation Committee shall determine the actual bonus amount to be paid for each such fiscal year based on the Company’s and Executive’s performance. Such Annual Bonus shall be payable as soon as reasonably practicable following, and in no event later than two and one-half (2 1⁄2) months following, the end of the fiscal year for which such Annual Bonus is earned.

 

4.3           The Board or the Compensation Committee shall review Executive’s Base Compensation and Annual Bonus target on at least an annual basis for the purpose of determining whether an increase in Executive’s Base Compensation and/or Annual Bonus is appropriate; provided, however, that any such increase to Base Compensation shall be in addition to any increase in Executive’s Base Compensation required under the second sentence of Section 4.1.

 

4.4           Executive shall be entitled to participate in or receive health, disability and life insurance, vacation and similar or other fringe benefits as Employer provides from time-to-time to its most senior executive officers. Nothing in this Section 4.4 , however, is intended, or shall be construed to require Employer to institute or continue any, or any particular, plan or benefits other than insurance benefits which Executive may at his cost continue pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). In addition, Executive shall be entitled to use the aircraft that the Company owns or leases from time to time (including time-shares) for personal travel use for himself and his family and other personal and business associates, provided that Executive reimburses the Company for the incremental usage fees, fuel charges and in-flight expenses incurred by the Company in connection with any non-business use (but without any allocation of overhead, capital or maintenance charges related thereto).

 

4.5           In accordance with the Prior Agreement, Executive was previously granted stock options to purchase 400,000 shares of common stock of the Company pursuant to the Entercom Equity Compensation Plan. Such stock options are subject to the terms and conditions set forth in the applicable grant instrument.

 

4.6           Executive shall be granted the following restricted stock unit awards:

 

4.6.1        As soon as reasonably practicable following the Effective Date, the Board or the Compensation Committee shall grant Executive 225,000 restricted stock units pursuant to the Entercom

 

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Equity Compensation Plan. Provided that the Executive remains continuously employed in active service by the Company from the date of grant through the applicable vesting date (but subject in all cases to Section 10), the grant of restricted stock units pursuant to this Section 4.6.1 shall vest as described below.

 

(a)           Upon the achievement of one or more of the applicable performance targets set forth below as of any date after the Effective Date and on or prior to December 15, 2012, a percentage of the restricted stock units shall become vested equal to the highest corresponding percentage in the schedule set forth below as of December 15, 2012.

 

(b)           Upon the achievement of one or more of the applicable performance targets set forth below as of any date after December 15, 2012 and prior to the expiration of the initial Employment Term (determined without regard to any renewal of such term), a percentage of the restricted stock units shall (to the extent not already vested pursuant to Section 4.6.1(a)) become vested equal to the highest corresponding percentage in the schedule set forth below as of the date such performance target is attained from time to time during the eligible vesting period.

 

(c)           The shares underlying any portion of the restricted stock units to become so vested shall be delivered to Executive within 10 days of the applicable vesting date.  Any portion of the restricted stock units that have not vested pursuant to this Section 4.6.1 prior to the expiration of the initial Employment Term (determined without regard to any renewal of such term) or pursuant to Section 10 shall terminate unvested.

 

(d)           The performance targets for these restricted stock units shall be, as of any date: (i) the share price that would result in a Compound Annual Growth Rate (“CAGR”) of the Total Shareholder Return over the three-year initial term of this Agreement (“Three Year CAGR”) equal to the 8%, 12% and 16% targets set forth in the table below, less (ii)  the value of any dividends paid on each share of common stock during the period commencing on the Effective Date and through such date.

 

	
 
    	
 
    	
Percentage of Restricted Stock Units to Vest Upon
    	
 
    
	
Three Year CAGR Total Shareholder Return
    	
 
    	
Attainment of Performance Target
    	
 
    
	
8%
    	
 
    	
33-1/3%
    	
 
    
	
12%
    	
 
    	
33-1/3%
    	
 
    
	
16%
    	
 
    	
33-1/3%
    	
 
    

 

(e)           For purposes of this Agreement, Total Shareholder Return shall mean: (A) (i) the average closing price over any consecutive 60 trading day period of a share of the Company’s common stock minus (ii) the average closing price of a share of the Company’s common stock for the consecutive 60 trading day period ending on the Effective Date (the “Base Price”), divided by (B) the Base Price (in each case, with such adjustments as are necessary, in the judgment of the Board and/or the compensation committee to equitably calculate Total Shareholder Return in light of any stock splits, reverse stock splits, stock dividends, dividends in kind, significant asset sales and other extraordinary transactions or other changes in the capital structure of the Company).  All closing prices shall be the New York Stock Exchange closing price on the date in question.  All determinations with respect to Total Shareholder Return shall be made by the Board or the Compensation Committee in their sole discretion, but acting in good faith and the applicable performance targets shall not be achieved and the shares shall not vest until the Compensation Committee certifies that such performance targets have been met (which the Compensation Committee agrees to act promptly and in good faith in so doing).  .

 

(f)            No grant of restricted stock units pursuant to this Section 4.6.1 shall vest if applicable performance targets are not met prior to the expiration of the initial Employment Term (determined without regard to any renewal of such term).

 

4.6.2        As soon as reasonably practicable following the Effective Date, the Board or the Compensation Committee shall grant Executive 450,000 restricted stock units pursuant to the Entercom Equity Compensation Plan. Provided that the Executive remains continuously employed in active service by the Company from the date of grant through such date, 50% of the restricted stock units shall vest on the date that is two

 

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(2) years from the Effective Date, 25% of the restricted stock units shall vest on the date that is three (3) years from the Effective Date and 25% of the restricted stock units shall vest on the date that is four (4) years from the Effective Date.  The restricted stock units shall contain such other reasonable terms (consistent with the Company’s customary form of restricted stock unit agreement and not inconsistent with this Agreement) as the Board and/or the Compensation Committee determine.

 

4.6.3        Notwithstanding anything herein to the contrary, the restricted stock unit grants described in Sections 4.6.1 and 4.6.2 above shall be subject to approval by the shareholders of the Company at the 2011 annual shareholders meeting of at least a 950,000 share increase in the number of restricted stock units or shares of restricted stock that can be granted under the Entercom Equity Compensation Plan.  If such shareholder approval is not obtained the restricted stock unit grants described in Sections 4.6.1 and 4.6.2 above shall not vest and shall be forfeited (but the Board shall, in good faith, use its best efforts to arrange for an alternative compensation arrangement for Executive in light of the loss of such restricted stock unit grant).

 

4.7           During the Employment Term, Executive shall either be provided with a Company-owned automobile for his business and personal use or be provided with a monthly automobile allowance of $1,200.

 

5.             Certain Business Expenses. Employer shall reimburse Executive for business expenses (a) which are reasonable and necessary for Executive to perform and were incurred by Executive in the course of the performance of his duties pursuant to this Agreement and in accordance with Employer’s general policies and (b) for which Executive has submitted vouchers and completed an expense report in the form required by Employer as consistent with Employer’s policies in place from time to time. The reimbursement of any business expense shall be made no later than December 31 of the year following the year in which the expense was incurred.  The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year.

 

6.             Confidential Information.

 

6.1           Executive acknowledges that, because of his employment hereunder, he will be in a confidential relationship with Employer and will have access to confidential information and trade secrets of Employer and the subsidiaries, affiliates and divisions thereof. Executive acknowledges and agrees that the following constitutes confidential and/or trade secret information belonging exclusively to Employer (collectively, “Confidential Information”):

 

(a)           all information related to customers including, without limitation, customer lists, the identities of existing, past or prospective customers, prices charged or proposed to be charged to customers, customer contacts, special customer requirements and all related information;

 

(b)           all marketing plans, materials and techniques;

 

(c)           all methods of business operation and related procedures of Employer; and

 

(d)           all patterns, devices, compilations of information, copyrightable material and technical information, if any, in each case which relates in any way to the business of Employer or any subsidiary, affiliate or division thereof.

 

6.2           Executive agrees that:

 

6.2.1        Except in the limited performance of his duties under this Agreement, Executive shall not use for his own benefit or disclose to any third party Confidential Information acquired by reason of his employment under this Agreement or his former status as an officer and shareholder of Employer, including, but not limited to, Confidential Information belonging or relating to Employer or its subsidiaries, affiliates, divisions or customers;

 

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6.2.2        Executive shall not induce or persuade other employees of Employer or former or current employees of Employer or any subsidiary, affiliate or division thereof, to join him in any activity prohibited by this Section 6;

 

6.2.3        For the twelve (12) month period following any termination of Executive’s employment with the Company, Executive shall not, without the express prior written permission of the Company, employ, offer to employ, counsel a third party to employ, or participate in any manner in the recommendation, recruitment or solicitation of the employment of any person who was an employee of the Company on the date of the termination of Executive’s employment or at any time within the ninety (90) days prior thereto. In the event that any such person shall be employed in a position under Executive’s direct supervision within such twelve (12) month period without the Company’s express prior written permission, it shall be conclusively presumed that this restriction has been violated.

 

6.2.4        So long as Executive is employed by the Company and for a period of twelve (12) months thereafter Executive shall not directly or indirectly, provide any service either as an employee, employer, consultant, contractor, agent, principal, partner, substantial stockholder, corporate officer or director of or for a company or enterprise which competes in any material manner with the then present or Planned Business Activities (as defined below) of the Company, including without limitation, audio programming, production, engineering, promotion or broadcasting regardless of the method of its delivery, which methods include, without limitation, AM, FM, satellite, PCS, cable, Internet, or any other means. For purpose of the foregoing “Planned Business Activities” shall mean a business initiative materially discussed by the Board or which is currently under consideration by the Board or which has been approved by the Board.

 

6.2.5        This Section 6 shall survive termination of this Agreement.

 

7.             Employer Property .

 

7.1           Any patents, inventions, discoveries, applications or processes, software and computer programs devised, planned, applied, created, discovered or invented by Executive in the course of his employment under this Agreement and which pertain to any aspect of the business of Employer or its subsidiaries, affiliates, divisions or customers, shall be the sole and absolute property of Employer and Executive shall make prompt report thereof to Employer and promptly execute any and all documents reasonably requested to assure Employer the full and complete ownership thereof.

 

7.2           All records, files, lists, drawings, documents, equipment and similar items relating to Employer’s business which Executive shall prepare or receive from Employer shall remain Employer’s sole and exclusive property. Upon termination of this Agreement, Executive shall return promptly to Employer all property of Employer in his possession and Executive represents that he will not copy, or cause to be copied, printed, summarized or compiled, any software, documents or other materials originating with and/or belonging to Employer. Executive further represents that he will not retain in his possession any such software, documents or other materials in machine or human readable forms. The requirements of this Section 7.2  shall not be applicable to Executive’s “rolodex” and other similar list of personal business associates and contacts at the time of termination that is not part of the Employer’s books and records (collectively, “Executive Property”).

 

7.3           This Section 7 shall survive termination of this Agreement.

 

8.             Executive Representations and Warranties. Executive warrants and represents to and covenants with Employer as follows:

 

8.1           No Conflict. The execution, delivery and performance of this Agreement by Executive does not conflict with or violate any provision of or constitute a default under any agreement, judgment, award or decree to which Executive is a party or by which Executive is bound. No consent of any third party is necessary for Executive to enter into this Agreement and comply fully with his obligations hereunder. Executive is not party to or bound by any other employment agreement, non-compete agreement, confidentiality agreement or similar agreement.

 

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8.2           Enforceable Agreement. This Agreement is the valid enforceable agreement of Executive, enforceable against him in accordance with its terms.

 

9.             Termination. Executive’s employment hereunder may be terminated by the Board under the following circumstances:

 

9.1           Death. Executive’s employment hereunder shall terminate automatically upon his death.

 

9.2           Disability. This Agreement shall terminate on Executive’s physical or mental disability or infirmity which, in the opinion of a competent physician mutually selected in advance of such disability or infirmity by Executive and the Compensation Committee, renders Executive unable to perform his duties under this Agreement for more than one hundred twenty (120) days during any one hundred eighty (180)-day period (“Disability”).

 

9.3           Cause. The Board may terminate Executive’s employment hereunder for “Cause” in the event of any one or more of the following (each as determined by the Board in its sole discretion), provided that with respect to clause (ii) below the Company provides written notice to Executive upon the occurrence of any such event, following which Executive fails to cure such event within thirty (30) days: (i) Executive has engaged in fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his employment or service, (ii) Executive has breached any material provision of his employment or service contract with the Company, including, without limitation, any covenant against competition and/or raiding of the Company’s employees, non-employee directors or key advisors, or (iii) Executive has disclosed trade secrets or confidential information of the Company to persons not entitled to receive such information,.

 

9.4           Good Reason. Executive may terminate this Agreement for “Good Reason” upon written notice to the Employer within thirty (30) days of the occurrence of any of the events set forth in Section 9.4(a) or (b) as constituting “Good Reason,” in which case the Board shall be treated as having terminated Executive’s employment hereunder without Cause.

 

“Good Reason” means:

 

(a)           (i) the assignment to Executive of any duties inconsistent in any material respect with his position (including status, offices and titles), authority, duties or responsibilities which remains uncured thirty (30) days after receipt of notice thereof given by Executive or (ii) any other action by Employer which results in a material diminishment in such position, authority, duties or responsibilities, and which remains uncured thirty (30) days after receipt of notice thereof given by Executive;

 

(b)           any material breach by the Company in performing its obligations hereunder and which remains uncured thirty (30) days after receipt of notice thereof given by Executive; or

 

(c)           following the Company’s notice to Executive of its intent to either terminate or renegotiate the terms of this Agreement that is timely given under Section 3 , the Company’s failure to, no later than thirty (30) days before the expiration of the original or any then current renewal term, offer continued employment to Executive as of the expiration of this Agreement on terms and conditions no less favorable than those provided to Executive under this Agreement. An offer of continued employment shall be deemed to be on terms and conditions no less favorable than those provided to Executive under this Agreement if it provides for a term of at least one (1) year and (A) an annual base salary, potential bonus opportunity and severance protections no less favorable than that provided to Executive under this Agreement and (B) incentives consistent with the Company’s past practices with respect to Executive.

 

9.5           Notice. Any termination of Executive’s employment by the Board shall be communicated by written Notice of Termination to Executive and any termination by Executive of his employment with Employer for “Good Reason” shall be communicated by written notice to the Employer within thirty (30) days of the occurrence of the event set forth in Section 9.4(a) or (b) which constitutes “Good Reason.”  No notice shall be

 

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required in the event of the occurrence of the event set forth in Section 9.4(c) which constitutes “Good Reason.”  In the event Executive or the Employer fails to provide written notice under this Section 9.5 and the other party fails to object to such failure prior to Executive’s Date of Termination, any requirement to provide written Notice of Termination under this Agreement shall be deemed waived.

 

9.6           “Date of Termination” shall mean (i) if Executive’s employment is terminated by his death, the date of his death; (ii) if Executive’s employment is terminated by reason of his Disability, the date on which Executive is determined by a competent physician to suffer from such Disability in accordance with Section 9.2; (iii) if Executive’s employment is terminated pursuant to Section 9.3 or 9.4  above, the date specified in the Notice of Termination (or if no Notice of Termination is provided, the last date on which Executive renders services to Employer in the capacity of an employee); and (iv) if Executive’s employment hereunder shall be terminated by the Board for any other reason than those specified above, the effective date of written notice to Executive (or if no such written notice is provided, the last date on which Executive renders services to Employer in the capacity of an employee).

 

9.7           Employment At Will. Executive hereby agrees that, subject only to compliance with Employer’s obligations under Section 10 hereunder, the Board may dismiss him under this Section 9 without regard to (i) any general or specific policies (whether written or oral) of Employer relating to the employment or termination of its employees, or (ii) any statements made to Executive, whether made orally or contained in any document, pertaining to Executive’s relationship with Employer, or (iii) assignment of Cause by the Board. Inclusion under any benefit plan or compensation arrangement will not give Executive any right or claim to any benefit hereunder except to the extent such right has become fixed under the terms of this Agreement.

 

9.8           Termination Obligations.

 

9.8.1        Executive hereby acknowledges and agrees that all personal property and equipment furnished to or prepared by Executive in the course of or incident to his employment belong to Employer and shall be promptly returned to Employer upon termination of the Employment Term. “Personal Property” includes, without limitation, all books, manuals, records, reports, notes, contracts, customer or other lists, blueprints, and other documents, or materials, or copies thereof, whether in hard copy or in any electronic format, and all other proprietary information relating to the business of Employer or any subsidiary, affiliate or division thereof, but shall exclude Executive Property. Following termination, Executive will not retain any written or other tangible material containing any Confidential Information or other proprietary information of Employer or any subsidiary, affiliate or division thereof.

 

9.8.2        Upon termination of the Employment Term, Executive shall be deemed to have resigned from all offices and directorships, if any, then held with Employer or any of its direct or indirect subsidiaries or other affiliates; provided, however , that Executive shall not be deemed to have resigned from the Board.

 

9.8.3        The representations and warranties contained in this Section 9.8 and Executive’s obligations under Section 6 and Section 7 hereof shall survive termination of the Employment Period and the expiration or termination of this Agreement.

 

10.           Compensation Upon Death, Termination During Disability, Other Terminations.

 

10.1         Death or Disability. If at any time Executive’s employment hereunder shall be terminated as a result of Executive’s death or Disability, then:

 

10.1.1      Employer shall pay Executive (or, if applicable, Executive’s estate) (i) the Base Compensation through the date of termination; (ii) on the sixtieth (60th) day after Executive’s termination, any Annual Bonus earned, but unpaid, as of the date of termination for the immediately preceding fiscal year, paid in accordance with Section 4.2 (except to the extent payment is otherwise deferred pursuant to any applicable deferred compensation arrangement with the Company); (iii) an amount for reimbursement, within 60 days following submission by Executive (or, if applicable, Executive’s estate) to the Company of appropriate supporting

 

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documentation) for any unreimbursed business expenses properly incurred by Executive pursuant to Section 5 and in accordance with Company policy prior to the termination date; and (iv) such employee benefits, if any, as to which Executive (or, if applicable, Executive’s estate) or his dependents may be entitled under the employee benefit plans of the Company (the amounts described in clauses (i) through (iv) hereof being referred to as the “Accrued Rights”);

 

10.1.2      Employer shall pay Executive (or, if applicable, Executive’s estate) on the sixtieth (60th) day after Executive’s termination in a single lump sum the sum of two (2) years’ Base Compensation and two (2) times the highest Annual Bonus paid to Executive during the preceding three (3) year period; and

 

10.1.3      If Executive or Executive’s dependents elect to continue applicable health insurance coverage under COBRA following such termination, then the Company shall pay Executive’s monthly COBRA premium for continued health insurance coverage for Executive and Executive’s eligible dependents until the earlier of (i) eighteen (18) months following the termination date, or (ii) the date upon which Executive and his eligible dependents become eligible for comparable coverage under a group health insurance plan maintained by subsequent employer.

 

10.1.4      All of Executive’s then-outstanding stock based rights which are subject to vesting on the basis of Company performance (including without limitation the restricted stock unit grant under Section 4.6) shall become vested, exercisable and payable with respect to all of the equity subject thereto (and all options and similar rights shall remain exercisable with respect to such equity for up to an additional two (2) years from the termination date, but in no event longer than for the original term of the options).

 

10.2         Cause or Voluntary Termination without Good Reason. If at any time Executive’s employment hereunder shall be terminated for Cause or if Executive voluntarily terminates his employment other than for Good Reason, Employer shall pay Executive the Accrued Rights.

 

10.3         Other Termination. If Executive’s employment hereunder shall be terminated by Executive for Good Reason or by Employer for any reason other than for Cause, death or Disability, then:

 

10.3.1      Employer shall pay Executive the Accrued Rights;

 

10.3.2      If such termination occurs prior to the execution of a binding agreement which would result in a Change in Control if consummated or more than two years following a Change in Control, Employer shall pay Executive on the sixtieth (60th) day after Executive’s termination a single lump sum in an amount equal to the greater of :

 

(a)           the sum of (i) the remaining Base Compensation payable during the Employment Term and (ii) the remaining Annual Bonus(es) (or pro-rated portion thereof) payable during the Employment Term, determined assuming the amount of each such remaining Annual Bonus is equal to the highest Annual Bonus paid to Executive during the preceding three (3) year period, and with respect to both (i) and (ii) above further determined assuming Executive’s continued employment hereunder for the remaining Employment Term but, until such time as the automatic renewal provisions of Section 3 shall become operative, without regard to the automatic renewal provisions of Section 3, or

 

(b)           the sum of (i) two (2) years’ Base Compensation and (ii) two (2) times the highest Annual Bonus paid to Executive during the preceding three (3) year period;

 

10.3.3      If such termination occurs following the execution of a binding agreement which would result in a Change in Control if consummated or prior to two years following a Change in Control, Employer shall pay Executive  on the sixtieth (60th) day after Executive’s termination a single lump sum in an amount equal to the sum of (i) three (3) years’ Base Compensation and (ii) three (3) times the highest Annual Bonus paid to Executive during the preceding three (3) year period;

 

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10.3.4      If Executive elects to continue his health insurance coverage under COBRA following such termination, then the Company shall pay Executive’s monthly COBRA premium for continued health insurance coverage for Executive and Executive’s eligible dependents until the earlier of (i) eighteen (18) months following the termination date, or (ii) the date upon which Executive and his eligible dependents become eligible for comparable coverage under a group health insurance plan maintained by subsequent employer; and

 

10.3.5      If such termination occurs following the execution of a binding agreement which would result in a Change in Control if consummated or prior to the consummation of such Change in Control, all of Executive’s then-outstanding stock based rights which are subject to vesting solely on the basis of time shall become vested, exercisable and payable with respect to all of the equity subject thereto (and all options and similar rights shall remain exercisable with respect to such equity for up to an additional two (2) years from the termination date, but in no event longer than for the original term of the options). Executive’s outstanding stock options shall be amended by the Board or the Compensation Committee to the extent necessary to provide for the accelerated exercisability and extended term as provided herein.

 

10.3.6      All of Executive’s then-outstanding stock based rights which are subject to vesting on the basis of the Company’s performance (including without limitation the restricted stock unit grant under Section 4.6) shall become vested, exercisable and payable with respect to all of the equity subject thereto (and all options and similar rights shall  remain exercisable with respect to such equity for up to an additional two (2) years from the termination date, but in no event longer than for the original term of the options).

 

10.4         Change in Control. For purposes of this Agreement, “Change in Control” shall mean any transaction or series of related transactions the consummation of which results in Executive (or Executive’s Immediate Family) holding or having a beneficial interest in shares of the Company’s capital stock having less than fifty percent (50%) of the voting power of the Company’s outstanding capital stock;  provided that any such transaction is a bona fide transaction between the Company and a third party (or parties) unrelated to Executive, as determined by the Board in good faith. For purposes of this Agreement, “Immediate Family” shall mean any person who qualifies as a “Permitted Class B Transferee” as set forth in the Company’s Articles of Incorporation.

 

10.4.1      In the event of a Change in Control, all of Executive’s then-outstanding stock based rights shall become vested, exercisable and payable with respect to all of the equity subject thereto (and all options and similar rights shall remain exercisable with respect to such equity for up to an additional two (2) years from the termination date, but in no event longer than for the original term of the options). Executive’s outstanding stock options shall be amended by the Board or the Compensation Committee to the extent necessary to provide for the accelerated exercisability and extended term as provided herein.

 

10.5         Release of Claims. As a condition to the receipt of any benefits described hereunder subsequent to the termination of the employment of Executive (other than those payable on account of Executive’s death), Executive shall be required to execute, and not subsequently revoke, within sixty (60) days following the termination of his employment a release in a form reasonably acceptable to Employer of all claims arising out of his employment or the termination thereof including, but not limited to, any claim of discrimination under state or federal law, but excluding claims for indemnification under any agreement to which Executive is a party or pursuant to Employer’s charter or by-laws or policies of insurance maintained by Employer.

 

10.6         Separation from Service. Notwithstanding any provision to the contrary in the Agreement, in order to be eligible to receive any termination benefits under this Agreement that are deemed deferred compensation subject to Section 409A of the Code, the Executive’s termination of employment must constitute a “separation from service” within the meaning of Treas. Reg. Section 1.409A-1(h) (a “Separation from Service”).

 

11.           Parachute Payments.

 

11.1         If it is determined (as hereafter provided) that Executive would be subject to the excise tax imposed by Code Section 4999 to which Executive would not have been subject but for any payment or stock option or restricted stock vesting (collectively a “Payment”) occurring pursuant to the terms of this Agreement 

 

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or otherwise as in connection with a change in the ownership or effective control of Employer or a change in the ownership of a substantial portion of the assets of the Employer within the meaning of Code Section 280G(b)(2)(A)(i) (such tax, a “Parachute Tax”), then Executive shall be entitled to receive an additional payment or payments (a “Gross-Up Payment”) in an amount such that, after payment by Executive of all taxes (including any Parachute Tax) imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Parachute Tax imposed upon the Payment (and taxes on such additional payments pursuant to this Section 11). The Gross-up Payment shall be made no later than the last day of Executive’s taxable year following the taxable year in which Executive remits any taxes under Section 4999 of the Code to the Internal Revenue Service.

 

11.2         Subject to the provisions of Section 11.1 hereof, all determinations required to be made under this Section 11 , including whether a Parachute Tax is payable by Executive and the amount of such Parachute Tax and whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by the nationally recognized firm of certified public accountants (the “Accounting Firm”) used by the Company prior to the Change in Control (or, if such Accounting Firm declines to serve, the Accounting Firm shall be a nationally recognized firm of certified public accountants selected by the Company). For purposes of making the calculations required by this Section, the Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code,  provided that the Accounting Firm’s determinations must be made with substantial authority (within the meaning of Section 6662 of the Code). The Accounting Firm shall be directed by the Company or Executive to submit its preliminary determination and detailed supporting calculations to both the Company and Executive within fifteen (15) calendar days after the determination date, if applicable, and any other such time or times as may be requested by the Company or Executive. If the Accounting Firm determines that any Parachute Tax is payable by Executive, the Company shall pay the required Gross-Up Payment to, or for the benefit of, Executive within five business days after receipt of such determination and calculations and in any event by no later than the last day of the taxable year of the Executive following the taxable year in which the related taxes must be remitted to the relevant taxing authorities. If the Accounting Firm determines that no Parachute Tax is payable by Executive, it shall, at the same time as it makes such determination, furnish Executive with an opinion that he has substantial authority not to report any Parachute Tax on his federal tax return. Any good faith determination by the Accounting Firm as to the amount of the Gross-Up Payment shall be binding upon the Company and Executive absent a contrary determination by the Internal Revenue Service or a court of competent jurisdiction;  provided ,  however , that no such determination shall eliminate or reduce the Company’s obligation to provide any Gross-Up Payments that shall be due as a result of such contrary determination. As a result of the uncertainty in the application of Code Section 4999 at the time of any determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (an “Underpayment”), consistent with the calculations required to be made hereunder. In the event of a final determination by the Internal Revenue Service that an Underpayment has occurred, Executive shall direct the Accounting Firm to determine the amount of the Underpayment that has occurred and to submit its determination and detailed supporting calculations to both the Company and Executive as promptly as possible. Any such Underpayment shall be promptly paid by the Company to, or for the benefit of, Executive within five business days after receipt of such determination and calculations. Provided, however, that in no event shall any Underpayment be made later than the last day of the taxable year of the Executive following the taxable year in which the related taxes must be remitted to the relevant taxing authorities.

 

11.3         The Company and Executive shall each provide the Accounting Firm access to and copies of any books, records and documents in the possession of the Company or Executive, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determination contemplated by Section 11.2 hereof.

 

11.4         The federal tax returns filed by Executive (and any filing made by a consolidated tax group which includes the Company) shall be prepared and filed on a basis consistent with the determination of the Accounting Firm with respect to the Parachute Tax payable by Executive, as the same may be amended or supplemented. Executive shall make proper payment of the amount of any Parachute Tax, and at the request of the Company, provide to the Company true and correct copies (with any amendments) of his federal income tax return as filed with the Internal Revenue Service, and such other documents reasonably requested by the Company, evidencing such payment.

 

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12.           Legal Fees. The Company shall reimburse Executive for all professional fees and expenses related to legal, tax and financial advice obtained by Executive in connection with the negotiation and execution of this Amended and Restated Employment Agreement up to a maximum amount of $25,000.

 

13.           Notices. All notices and other communications and legal process shall be in writing and shall be personally delivered, transmitted by telecopier, telex or cable, or transmitted by Federal Express or other reputable commercial overnight delivery service which provides evidence of delivery, as elected by the party giving such notice, addressed as follows:

 

	
If to Employer:
    	
 
    	
Entercom   Communications Corp.
    
	
 
    	
 
    	
401 City Avenue,   Suite 809
    
	
 
    	
 
    	
Bala Cynwyd,   Pennsylvania 19004
    
	
 
    	
 
    	
Attention:   Secretary and General Counsel
    
	
 
    	
 
    	
 
    
	
If to Executive:
    	
 
    	
As set forth on   the signature page hereto.
    

 

Notices shall be deemed to have been given:  (i) on the first business day after posting, if delivered by overnight courier as described above, (ii) on the date of receipt if delivered personally, or (iii) on the next business day after transmission if transmitted by telecopier, telex or cable (and appropriate receipt of transmission is confirmed by telecopy or telephone). Any party hereto may change its address for purposes hereof by notice to the other parties hereto.

 

14.           Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

15.           Headings. The headings herein are for convenience only, do not constitute a part of this Agreement, and shall not be deemed to limit or affect any of the provisions hereof.

 

16.           Entire Understanding. This Agreement constitutes the entire agreement and understanding between the parties hereto with respect to the employment of Executive by Employer, and supersedes all other prior agreements, representations and understandings, both written and oral, between the parties hereto with respect to the subject matter hereof, including without limitation the Prior Agreement.

 

17.           Amendments. This Agreement may not be modified or changed except by written instrument signed by each of the parties hereto.

 

18.           Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Pennsylvania, without regard to principles of conflicts of law.

 

19.           Dispute Resolution Process. The parties hereby agree that, in order to obtain prompt and expeditious resolution of any disputes under this Agreement, each claim, dispute or controversy of whatever nature, arising out of, in connection with, or in relation to the interpretation, performance or breach of this Agreement (or any other agreement contemplated by or related to this Agreement or any other agreement between Employer and Executive), including without limitation any claim based on contract, tort or statute, or the arbitrability of any claim hereunder (a “Claim”), shall be settled, at the request of any party of this Agreement, by final and binding arbitration conducted in Montgomery County, Pennsylvania. All such Claims shall be settled by one arbitrator in accordance with the Commercial Arbitration Rules then in effect of the American Arbitration Association. Such arbitrator shall be provided through the CPR Institute for Dispute Resolution (“CPR”) by mutual agreement of the parties;  provided  that, absent such agreement, the arbitrator shall be appointed by CPR. In either event, such arbitrator may not have any preexisting, direct or indirect relationship with any party to the dispute. Each party hereto expressly consents to, and waives any future objection to, such forum and arbitration rules.  Judgment upon any award may be entered by any state or federal court having jurisdiction thereof. Except as required by law (including, without limitation, the rules and regulations of the Securities and Exchange 

 

11

 

Commission), neither party nor the arbitrator shall disclose the existence, content, or results of any arbitration hereunder without the prior written consent of all parties.

 

Adherence to this dispute resolution process shall not limit the right of Employer or Executive to obtain any provisional remedy, including without limitation, injunctive or similar relief set forth in Section 28 , from any court of competent jurisdiction as may be necessary to  protect their respective rights and interests pending arbitration. Notwithstanding the foregoing sentence, this dispute resolution procedure is intended to be the exclusive method of resolving any Claims arising out of or relating to this Agreement.

 

The arbitration procedures shall follow the substantive law of the Commonwealth of Pennsylvania, including the provisions of statutory law dealing with arbitration, as it may exist at the time of the demand for arbitration, insofar as said provisions are not in conflict with this Agreement and specifically excepting therefrom sections of any such statute dealing with discovery and sections requiring notice of the hearing date by registered or certified mail.

 

20.           Waiver of Jury Trial. Consistent with the intention of Section 19, each signatory to this Agreement further waives its respective right to a jury trial of any claim or cause of action arising out of this Agreement or any dealings between any of the signatories hereto relating to the subject matter of this Agreement.  The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this Agreement, including, without limitation, contract claims, tort claims, and all other common law and statutory claims. This waiver is irrevocable, meaning that it may not be modified either orally or in writing, and this waiver shall apply to any subsequent amendments, supplements or other modifications to this Agreement or to any other document or agreement relating to the transactions contemplated by this Agreement.

 

21.           Construction. Whenever in this Agreement the context so requires, references to the masculine shall be deemed to include feminine and the neuter, references to the neuter shall be deemed to include the masculine and feminine, references to the plural shall be deemed to include the singular and references to the singular shall be deemed to include the plural.

 

22.           Conflict. In the event of any conflict between the provisions of this Agreement and the policies and practices of Employer the provisions of this Agreement shall govern.

 

23.           Cooperation. Each party hereto shall cooperate with the other party and shall take such further action and shall execute and deliver such further documents as may be necessary or desirable in order to carry out the provisions and purposes of this Agreement.

 

24.           Waiver. No amendment or waiver of any provision of this Agreement shall in any event be effective, unless the same shall be in writing and signed by the parties hereto, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. The failure of any party to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement shall not be construed as a waiver or relinquishment of any rights granted hereunder or any such term, covenant or condition.

 

25.           Negotiation of Agreement. Any rule of law, or any legal decision that would require interpretation of any ambiguities in this Agreement against the party that drafted it, shall be of no application and is hereby expressly waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the intentions of the parties and this Agreement.

 

26.           Parties in Interest; Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective permitted successors, assigns, heirs and/or personal representatives, except that neither this Agreement nor any interest herein shall be assigned or assignable by operation of law or otherwise, by Executive without the prior written consent of Employer, which such consent Employer may grant or withhold in its discretion. Employer may, without the consent of Executive, assign this Agreement or any interest herein, by operation of law or otherwise, to (a) any successor to all or substantially all of 

 

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its stock, assets or business by dissolution, merger, consolidation, transfer of assets, or otherwise, or (b) any direct or indirect subsidiary, affiliate or division of Employer or of any such successor referred in (a) hereof. Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties and their respective successors and permitted assigns any rights or remedies under or by reason of this Agreement.

 

27.           Severability. If any provision of this Agreement shall be deemed invalid, unenforceable or illegal, then notwithstanding such invalidity, unenforceability or illegality, the remainder of this Agreement shall continue in full force and effect.

 

28.           Injunctive Relief. In the event of breach by Executive of the terms of Section 6 or Section 7 , Employer shall be entitled to enforce the specific performance of this Agreement by Executive and to enjoin Executive from any further violation of either such provisions and to exercise such remedies cumulatively or in conjunction with all other rights and remedies provided by law.

 

29.           Section 409A.

 

29.1         Notwithstanding anything herein to the contrary, if the Executive is deemed at the time of his termination of employment with the Company to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, then to the extent delayed commencement of any portion of the termination benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s termination benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six-month period measured from the date of the Executive’s Separation from Service with the Company or (ii) the date of Executive’s death.  Upon the earlier of such dates, all payments deferred pursuant to this Section 29.1 shall be paid in a lump sum to the Executive, and any remaining payments due under the Agreement shall be paid as otherwise provided herein. The determination of whether the Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of his separation from service shall made by the Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Treas. Reg. Section 1.409A-1(i) and any successor provision thereto).  Notwithstanding the foregoing or any other provisions of this Agreement, the Company and Executive agree that, for purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a right to receive a series separate and distinct payments of compensation for purposes of applying the Section 409A of the Code.

 

29.2         The Company and Executive acknowledge and agree that, to the extent applicable, this Agreement shall be interpreted in accordance with, and the parties agree to use their best efforts to achieve timely compliance with, Section 409A of the Code and the Department of Treasury Regulations and other interpretive guidance issued thereunder (“Section 409A”), including without limitation any such regulations or other guidance that may be issued after the Effective Date.

 

(Signature page follows)

 

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30.           Executive Acknowledgement. Executive represents and agrees that he fully understands his right to discuss all aspects of this Agreement with his private attorney, and that to the extent, if any, that he desired, he availed himself of such right. Executive further represents that he has carefully read and fully understands all of the provisions of this Agreement, that he is competent to execute this Agreement, that his agreement to execute this Agreement has not been obtained by any duress and that he freely and voluntarily enters into it, and that he has read this document in its entirety and fully understands the meaning, intent and consequences of this document.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	
 
    	
  “EXECUTIVE”
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
  David   J. Field
    	
 
    	
  Date
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
  Address   for Notice:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
  401   City Avenue

  Suite 809

  Bala   Cynwyd, PA 19004
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
  “EMPLOYER”
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
  Entercom   Communications Corp.,
    	
 
    	
 
    
	
 
    	
  a   Pennsylvania corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
  By:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
  John   C. Donlevie
    	
 
    	
  Date
    
	
 
    	
 
    	
  Executive   Vice President and Secretary
    	
 
    	
 
    

 

14Exhibit 10.04

 

EXECUTION COPY

 

EMPLOYMENT AGREEMENT

 

This Agreement is made as of the 23rd day of December 2010, by and between Entercom Communications Corp., a Pennsylvania corporation (hereinafter referred to as the “Company” or “we”), and Stephen F. Fisher (hereinafter referred to as “Employee” or “you”).

 

WHEREAS, Employee has been employed by Company pursuant to a certain employment agreement dated as of December 19, 2007 (the “2007 Agreement”); and

 

WHEREAS, the initial term of the 2007 Agreement expires on February 28, 2011 and the parties have agreed to an amendment and extension of the terms of your employment and replace the 2007 Agreement.

 

The parties hereto agree to amend the terms of your employment with the Company as follows:

 

1.             Term.  The initial term of this Agreement shall commence as of the date first written above and continue through February 28, 2014, subject to termination or extension as provided herein.  This Agreement shall automatically renew from year to year thereafter, unless either party gives at least 120 days prior written notice of its election to either terminate or to renegotiate the terms of this Agreement at the end of the initial term or any then current renewal term.

 

2.                                       Salary and Benefits.  You will be paid a salary as follows:

 

a.     For the period from the date of this Agreement through February 28, 2011 your salary will be as set forth in the 2007 Agreement.

 

b.     For the period from March 1, 2011 to February 29, 2012 you will be paid a semi-monthly salary of $23,175 (annual rate of $556,200).

 

c.     Commencing March 1, 2012 and each March 1, thereafter, your salary shall be increased by three percent (3%).

 

Such salary and any other compensation to be paid to you hereunder will be subject to all payroll deductions or withholding authorized by you or required by federal, state or local laws or regulations.

 

In addition, you will be eligible to participate in the Company’s 401(k) Plan and you will be provided with coverage under the Company’s employee benefit insurance plans and any other benefits generally available to officers of the Company on the same terms as generally offered to officers of the Company.

 

3.             Annual Incentive Bonus.  You will be eligible for an annual cash bonus with a target amount equal to eighty percent (80%) of your salary in the year for which the bonus is paid.The actual amount of such bonus will be determined in the sole discretion of the

 

 

Compensation Committee of the Board of Directors based on a review of the Company’s performance and your performance during the fiscal year then ended.  Notwithstanding the forgoing, you must work through the end of the fiscal year in question to be eligible for the bonus for that year.  The amount of the bonus will be determined and paid as soon as reasonably practicable following the receipt of the Company’s financial statements for the fiscal year in question, but in no event later than two and one-half (2 1⁄2) months following the end of the fiscal year for which such bonus is earned.

 

4.                                       [Reserved]

 

5.             Equity Compensation.  As soon as reasonably practicable following the Date of this Agreement, the Board or the Compensation Committee shall grant Executive:

 

a.     200,000 Restricted Stock Units (RSU’s) under the Entercom Equity Compensation Plan (including any replacement thereof) (the “Plan”).  Provided that the Executive remains continuously employed in active service by the Company from the date of grant through the applicable vesting date(s), one-twelfth (1/12th) of these RSU’s will vest (i.e. the restrictions will be removed) and the unrestricted shares will be issued to you on each of the following dates: May 31, 2011, August 15, 2011, November 15, 2011 and February 15, 2012.  One-third (1/3rd) of these RSU’s will vest and the unrestricted shares will be issued to you on each of the following dates: February 28, 2013, and February 28, 2014.

 

b.     75,000 restricted stock units pursuant to the Plan. Provided that the Executive remains continuously employed in active service by the Company from the date of grant through the applicable vesting date, the grant of restricted stock units pursuant to this Section 5(b) shall vest as described below.

 

i.              Upon the achievement of one or more of the applicable performance targets set forth below as of any date after the Date of this Agreement and on or prior to July 15, 2012, a percentage of the restricted stock units shall become vested equal to the highest corresponding percentage in the schedule set forth below as of July 15, 2012.

 

ii.             Upon the achievement of one or more of the applicable performance targets set forth below as of any date after July 15, 2012 and by the end of three years from the date of this Agreement, a percentage of the restricted stock units shall (to the extent not already vested pursuant to Section 5(a)) become vested equal to the highest corresponding percentage in the schedule set forth below as of the date such performance target is attained from time to time during the eligible vesting period.

 

iii.            The shares underlying any portion of the restricted stock units to become so vested shall be delivered to you within ten (10) days of the applicable vesting date.  Any portion of these restricted stock units that have not vested pursuant to this Section 5(b) by the end of three years from the date of this Agreement shall terminate unvested.

 

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iv.            The performance targets for these restricted stock units shall be, as of any date: (i) the share price that would result in a Compound Annual Growth Rate (“CAGR”) of the Total Shareholder Return over the first three years from the date of this Agreement (“Three Year CAGR”) equal to the 8%, 12% and 16% targets set forth in the table below, less (ii) the value of any dividends paid on each share of common stock during the period commencing on the Date of this Agreement and through such date.

 

	
Three Year CAGR
   Total Shareholder Return
    	
 
    	
Percentage of Restricted Stock Units to 
   Vest Upon Attainment of Performance 
   Target
    	
 
    
	
8%
    	
 
    	
33-1/3%
    	
 
    
	
12%
    	
 
    	
33-1/3%
    	
 
    
	
16%
    	
 
    	
33-1/3%
    	
 
    

 

For purposes of this Agreement, Total Shareholder Return shall mean: (A) (i) the average closing price over any consecutive 60 trading day period of a share of the Company’s common stock minus (ii) the average closing price of a share of the Company’s common stock for the consecutive 60 trading day period ending on the Date of this Agreement (the “Base Price”), divided by (B) the Base Price (in each case, with such adjustments as are necessary, in the judgment of the Board and/or the Compensation Committee to equitably calculate Total Shareholder Return in light of any stock splits, reverse stock splits, stock dividends, dividends in kind, significant asset sales and other extraordinary transactions or other changes in the capital structure of the Company).  All closing prices shall be the New York Stock Exchange closing price on the date in question.  All determinations with respect to Total Shareholder Return and the CAGR shall be made by the Board or the Compensation Committee in their sole discretion, but acting in good faith and the applicable performance targets shall not be achieved and the shares shall not vest until the Compensation Committee certifies that such performance targets have been met (which the Compensation Committee agrees to act promptly and in good faith in so doing).

 

v.             No grant of restricted stock units pursuant to this Section 5(b) shall vest if applicable performance targets are not met by the end of three years from the Date of this Agreement.

 

c.     The grants of RSU’s set forth in (a) and (b) above shall be subject to approval by the shareholders of the Company at the 2011 annual shareholders meeting of at least a 950,000 share increase in the number of RSU’s or shares of restricted stock that can be granted under the Plan.  If such shareholder approval is not obtained the RSU’s set forth in (a) and (b) above shall not vest and shall be forfeited.

 

d.     If your employment with the Company is terminated for Cause (as defined in the Plan), all unvested RSU’s will be forfeited.   If your employment is terminated by the Company without Cause, all RSU’s not then vested will continue to vest as set forth in Section 8(b) hereof; except that, (i) if such termination is due to your death, all unvested RSU’s that you then hold shall fully vest or (ii) if such termination is due to your disability,

 

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the vesting of RSU’s shall be as provided in the Plan.  The foregoing notwithstanding, if you violate any of the restrictive covenants contained in Section 9 hereof, any unvested RSU’s and undelivered shares of unrestricted stock will be forfeited.  Such RSU’s will be in the form of previous grants except as modified by the terms of this Agreement.  Any RSU’s granted hereunder shall be adjusted for any dilution event as described in the Plan.

 

e.     Any other options, RSU’s and shares of restricted stock that you currently hold will continue to vest in accordance with their currently existing terms and the terms of the 2007 Agreement.

 

6.             Car Allowance.  You will receive a monthly car allowance of $1,500 per month for each month that this Agreement is in effect.

 

7.             Duties.  As Chief Financial Officer & Executive Vice President-Operations of the Company you will be responsible for the general management and supervision of the fiscal affairs of the Company and discharge such other duties as may from time to time be assigned by the Board of Directors, the CEO or the President of the Company.  As part of such duties and responsibilities, you shall see that a full and accurate accounting of all financial transactions of the Company is made, oversee the investment and reinvestment of the capital funds of the Company, cooperate in the conduct of the annual audit of the Company’s financial records and manage the relationships with the Company’s lenders and investors.  In addition, you will oversee various corporate staff functions as designated by the Company’s CEO (currently Legal, Technical, IT and HR) and will be responsible for facilitating the effective coordination and integration of the various activities of the corporate staff and local markets to help facilitate meeting and exceeding the Company’s business goals.   You agree that you will devote your full time and best efforts to the Company’s business and will not accept any outside employment without the prior written consent of the Company.

 

8.             Termination.  This Agreement may be terminated during the initial term or any renewal term as follows:

 

a.     The Company may terminate this Agreement at any time for Cause and without further obligation hereunder.

 

b.     The Company may terminate this Agreement at any time for its convenience and without Cause.  In addition, the following terminations shall be deemed a termination by the Company without Cause: (i) in the event that the Company changes the location of the principal place for the performance of your duties hereunder to a location which is greater than fifty (50) miles from Bala Cynwyd, PA, then you may terminate this Agreement within 30 days of the effective date of such change in the principal place for the performance of your duties; and (ii) in the event the shareholder approval referenced in Section 5(c) hereof is not obtained by May 31, 2011, you may terminate this Agreement at any time during the month of June 2011.

 

In the event of a termination of this Agreement by the company without Cause, subject to the conditions set forth below, the Company shall be obligated to: (x) pay to you on the sixtieth (60th) day after your termination, a one-time bonus (computed as set forth below) and (y)

 

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beginning with the first payroll period following the sixtieth (60th) day following your termination, continue to pay you the salary and auto allowance in accordance with the Company’s regular payroll practices for the period through February 28, 2014 or one (1) year from the date of such termination, whichever is longer, provided, however, that the initial payment shall include salary and auto allowance amounts for all payroll periods from the date of termination through the date of such initial payment; and (z) provide that all grants of options and RSU’s made through the effective date of such termination will continue to vest through the period ending on February 28, 2014, as if you had remained employed hereunder through that date.  Any vested options at the time of such termination of your employment, or which later vest as provided in this Section 8(b), may be exercised at any time within the later of two (2) years from your date of termination or ninety (90) days from the date of vesting, but in no event later than the expiration of the original 10 year term of the option.  Such continued payments and vesting of options and RSU’s are expressly conditioned on: (I) your signing a release in form satisfactory to the Company releasing the Company and all of its officers, directors, employees and agents from any and all claims or liabilities arising out of your employment and/or the termination of employment and such release becoming effective prior to the sixtieth (60th) day following the date of your termination of employment, and (II) your full compliance with the restrictive covenants contained in Section 9 hereof.   For purpose of the foregoing, the one-time bonus to be paid in accordance with the above shall be the sum of the target amount of your Annual Incentive Bonus set forth in Section 3 hereof, plus the Prorated Prior Year’s Bonus.   For purposes of the preceding sentence the Prorated Prior Year’s Bonus shall be the amount of the annual bonus that you were paid in the year immediately preceding the year in which the termination occurs prorated in accordance with the number of days from January 1, to the date of such termination in the year in which such termination occurs.  Any payments made under this Section 8(b) incident to a termination of employment shall be in lieu of and in satisfaction of all claims for severance, payment in lieu of notice or other compensation which may otherwise arise upon termination of employment with the Company except for salary and auto allowance earned through the date of termination and payment of earned but unused vacation in accordance with Company policy then in existence.

 

c.     If this Agreement terminates as of February 28, 2014 or any February 28th (29th in the case of a leap year) thereafter, due to a notice pursuant to Section 1 hereof and Company makes you an offer to continue your employment for a period of at least one year with a salary and bonus package which is equal to or greater than your then current salary and Annual Incentive Bonus package (a “Qualified Offer”), it shall not be deemed a termination by the Company and there shall be no acceleration of the vesting of options or RSU’s or extension of the period for exercise of options after termination from that provided in the Plan and there shall be no payment of severance or continuation of salary or bonus payments thereafter.   In the event of such a termination where the Company has not made a Qualified Offer, then the Company shall be obligated to pay to you on the sixtieth (60th) day after your termination a one-time bonus equal to your then current Annual Incentive Bonus target as specified in Section 3 hereof and beginning with the first payroll period following the sixtieth (60th) day following your termination, continue to pay you the salary and auto allowance in accordance with the Company’s regular payroll practices for a period of one (1) year from the date of such termination; provided, however, that the initial payment shall include salary and auto allowance amounts for all payroll periods from the date of termination through the date of

 

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such initial payment.  Any continued employment pursuant to a Qualified Offer or any alternative thereto agreed to by the parties shall be deemed an extension of the term and the provisions of this Agreement shall continue in full force and effect, except to the extent modified by the Qualified Offer or any alternative thereto agreed to by the parties.

 

9.                                       Restrictive Covenants.  You agree to the following restrictive covenants:

 

a.     Non-Competition.  It is understood and agreed that so long as you are employed by the Company or being paid your salary after termination of employment as provided in this Agreement and for a period of one year thereafter you will not directly or indirectly, provide any service either as an employee, employer, consultant, contractor, agent, principal, partner, substantial stockholder, corporate officer or director of or for a company or enterprise which competes in any material manner with the then present or planned business activities of the Company.  The foregoing notwithstanding, if the Company either (i) elects to terminate your employment for reasons other than Cause or (ii) offers you a salary and bonus package which is lower than your then current package in connection with an election by the Company to renegotiate the terms of this Agreement and your employment terminates due to a failure to reach Agreement on a lower salary and bonus package, then in either such event the length of the foregoing covenant against competition shall be reduced to the period following the termination of your employment which is the sum of: (i) any period of notice provided for in this Agreement for which you are given payment in lieu thereof; (ii) the time of any salary continuation as provided in this Agreement plus the time equivalent, at your then current salary rate, of any additional payments made to you in connection with such termination; and (iii) three (3) months.  For purpose of the foregoing “planned business activities” shall mean a business initiative materially discussed by the Board of Directors or which is currently under material consideration by the Board of Directors or which has been approved by the Board of Directors.

 

b.     Non-Solicitation.  In addition it is understood and agreed that for the one year period following any termination of your employment with the Company you will not, without the express prior written permission of the Company, employ under your direct supervision, offer to employ, counsel a third party to employ, or participate in any manner in the recommendation, recruitment or solicitation of the employment of any person who was an employee of the Company on the date of the termination of your employment or at any time within the 90 days prior thereto.

 

c.     You agree that a material portion of the covenants of the Company contained in this Agreement and of the compensation, including any bonuses set forth herein, benefits and training that you will receive hereunder are consideration for the restrictions contained in this Section 9.  In the event you violate the restrictive covenants set forth in this Section 9, it is agreed that the time period for which the restrictive covenant so violated is applicable shall be extended for a period of one (1) year from the date you cease such violation.  You acknowledge that any violation of the provisions set forth in this Section 9 may cause irreparable harm to the Company.  You, therefore, expressly agree that the Company, in addition to any other rights or remedies which it may possess, shall be entitled to injunctive and other equitable relief to prevent a breach of these restrictions.

 

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10.                                 Confidentiality and Intellectual Property Rights.  Your position involves a close and confidential relationship in which you will be privy to proprietary information of the Company, including without limitation strategic planning, acquisition and investment analysis, research, consulting reports, computer programs and sales, technical, financial and programming practices and data, all of which you agree will be held in the strictest confidence at all times.  All copyright, trademark and/or other intellectual property rights of any kind developed during the term of this Agreement and relating to or useful in the Company’s business, or to your duties hereunder (“Works”) shall be deemed a “work for hire” and shall be and remain the sole and exclusive property of the Company, and you shall, to the extent deemed necessary or desirable by the Company, cooperate and assist the Company in perfecting, filing and recording any such rights.  To the extent that any Works are not deemed “work for hire”, Employee hereby assigns all of the Employee’s rights in such Works to the Company and waives any and all moral rights the Employee may have in such Works.  Employee’s obligations under this Section 10 shall survive the expiration or termination of this Agreement.

 

11.           No Restrictions.  In making this Agreement you represent and warrant that you are free to enter into and perform this Agreement and are not and will not be under any disability, restriction or prohibition, contractual or otherwise, with respect to (a) your right to execute this Agreement; (b) your right to make the covenants contained herein; and (c) your right to fully perform each and every term and obligation hereunder.  You further agree not to do or attempt to do, or suffer to be done, during or after the term hereof, any act in derogation of or inconsistent with the obligations under this Agreement.

 

12.           Miscellaneous.  This Agreement constitutes the entire agreement and understanding between you and the Company concerning the compensation to be paid to you and all of the terms and conditions of your employment and supersedes all prior agreements concerning same, whether written or oral, except as specifically set forth herein.  Each party agrees to pay reasonable attorney’s fees and costs incurred by the other if the other party is successful in enforcing its rights under this Agreement in any court action, arbitration or other proceeding.  This Agreement may not be modified or amended except by written instrument duly executed by each of the parties.  A waiver by either party of any term or condition of this Agreement or the breach thereof shall not be deemed to constitute a waiver of any other term or condition of this Agreement or of any subsequent breach of any term or condition hereof.

 

13.                                 Section 409A.

 

(a)          Notwithstanding any provision to the contrary in the Agreement, in order to be eligible to receive any termination benefits under this Agreement that are deemed deferred compensation subject to Section 409A of the Code, your termination of employment must constitute a “separation from service” within the meaning of Treas. Reg. Section 1.409A-1(h) (a “Separation from Service”).

 

(b)           Notwithstanding anything herein to the contrary, if you are deemed at the time of your termination of employment with the Company to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), then to the extent delayed commencement of any portion of the termination benefits

 

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to which you are entitled under the Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of your termination benefits shall not be provided to you prior to the earlier of (i) the expiration of the six-month period measured from the date of the your Separation from Service with the Company or (ii) the date of your death.  Upon the earlier of such dates, all payments deferred pursuant to this Section shall be paid in a lump sum to you, and any remaining payments due under the Agreement shall be paid as otherwise provided herein. The determination of whether you are a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of your Separation from Service shall made by the Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Treas. Reg. Section 1.409A-1(i) and any successor provision thereto).  Notwithstanding the foregoing or any other provisions of the Agreement, you and the Company agree that, for purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under the Agreement shall be treated as a right to receive a series separate and distinct payments of compensation for purposes of applying the Section 409A of the Code.

 

(c)           Notwithstanding anything herein to the contrary, if you are deemed at the time of your termination of employment with the Company to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), then to the extent delayed commencement of any portion of the termination benefits to which you are entitled under the Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of your termination benefits shall not be provided to you prior to the earlier of (i) the expiration of the six-month period measured from the date of the your Separation from Service with the Company or (ii) the date of your death.  Upon the earlier of such dates, all payments deferred pursuant to this Section shall be paid in a lump sum to you, and any remaining payments due under the Agreement shall be paid as otherwise provided herein. The determination of whether you are a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of your Separation from Service shall made by the Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Treas. Reg. Section 1.409A-1(i) and any successor provision thereto).  Notwithstanding the foregoing or any other provisions of the Agreement, you and the Company agree that, for purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under the Agreement shall be treated as a right to receive a series separate and distinct payments of compensation for purposes of applying the Section 409A of the Code.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, intending to be legally bound hereby, the parties have affixed their hands and seals as of the date first written above.

 

 

	
 
    	
 
    	
 
    
	
 
    	
Stephen F. Fisher
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
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Entercom   Communications Corp.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
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