Document:

EX-10.1

 

Exhibit 10.1

Form of Restricted Stock Agreement

Layne
Christensen Company 2006 Equity Incentive Plan

Restricted Stock Agreement 

	 	 	 	 	 	 	 
	 	 	Date of Grant:
	 	 	 	 
	 	 	 

	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Number of Restricted Shares Granted:

	 	 	 	(                    )
	 	 	 	 	 

     This Agreement dated                     , is made by and between Layne Christensen
Company, a Delaware corporation (the “Company”), and                      (“Participant”).

RECITALS:

          A. Effective June 8, 2006, the Company’s stockholders approved the Layne Christensen Company
2006 Equity Incentive Plan (the “Plan”) pursuant to which the Company may, from time to time, grant
Shares of Restricted Stock to eligible Service Providers of the Company.

          B. Participant is a Service Provider of the Company or one of its Affiliates and the Company
desires to encourage him/her to own Shares and to give him/her added incentive to advance the
interests of the Company, and desires to grant Participant shares of Restricted Stock of the
Company under the terms and conditions established by the Committee.

AGREEMENT:

          In consideration of the mutual covenants contained herein and other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

          1. Incorporation of Plan. All provisions of this Award Agreement and the rights of
Participant hereunder are subject in all respects to the provisions of the Plan and the powers of
the Committee therein provided. Capitalized terms used in this Agreement but not defined shall
have the meaning set forth in the Plan.

          2. Grant of Restricted Stock. Subject to the conditions and restrictions set forth in
this Agreement and in the Plan, the Company hereby grants to Participant that number of Shares of
Restricted Stock identified above opposite the heading “Number of Restricted Shares Granted” (the
“Restricted Shares”).

          3. Restrictions on Transfer/Vesting Date. Subject to any exceptions set forth in this
Agreement or in the Plan, the Restricted Shares or the rights relating thereto may not be sold,
transferred, gifted, bequeathed, pledged, assigned, or otherwise alienated or hypothecated,
voluntarily or involuntarily, prior to the vesting date for such Restricted Shares (the “Vesting
Date”), as identified below. On the Vesting Date, such restriction on transfer shall lapse and the
Restricted Shares, if not previously forfeited pursuant to Section 4 below, will become freely
transferable under this Agreement and the Plan, subject only to such further limitations on
transfer, if any, as may exist under applicable law or any other agreement binding upon
Participant. Subject to any exceptions listed in this Agreement or in the Plan, the Restricted
Shares shall become vested in accordance with the schedule set forth below:

	 	 	 
	Anniversary of Date of Grant
	 	Number/Percentage of Shares Vested
	 
	 	 

[Insert Vesting Schedule]

          The Committee may, in its sole discretion, accelerate the Vesting Date for any or all of the
Restricted Shares, if in its judgment the performance of Participant has warranted such
acceleration and/or such acceleration is in the best interests of the Company.

 

          4. Forfeiture Prior to Vesting. Unless otherwise provided below, if Participant’s
position as a Service Provider with the Company or any of its Affiliates is terminated prior to the
Vesting Date for one or more of the Restricted Shares, Participant will thereupon immediately
forfeit any and all unvested Restricted Shares, and the full ownership of such Restricted Shares
and rights will revert to the Company. Upon such forfeiture, Participant shall have no further
rights under this Agreement. For purposes of this Agreement, transfer of employment between the
Company and any of its Affiliates (or between Affiliates) does not constitute a termination of
Participant’s position as a Service Provider. If Participant’s position as a Service Provider with
the Company or any of its Affiliates is terminated by the Company or any of its Affiliates prior to
the Vesting Date due to Participant’s death or Disability, all restrictions on the Restricted
Shares will lapse and cease to be effective, as of the date of Participant’s termination as a
Service Provider.

          5. Certificates. The Restricted Shares shall be issued in the name of Participant or
a nominee of Participant as of the Date of Grant. One or more certificates representing the
Restricted Shares shall bear a legend similar to the following:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED SECURITIES AND
SUBJECT TO CERTAIN CONDITIONS UNDER THE LAYNE CHRISTENSEN COMPANY 2006
EQUITY INCENTIVE PLAN AND THE APPLICABLE RESTRICTED STOCK AGREEMENT PURSUANT
TO WHICH THE SHARES WERE ISSUED. THESE SHARES ARE SUBJECT TO A RISK OF
FORFEITURE AND CANNOT BE SOLD, DONATED, TRANSFERRED OR IN ANY OTHER MANNER
ENCUMBERED EXCEPT IN ACCORDANCE WITH THE TERMS OF SUCH PLAN AND AGREEMENT,
COPIES OF WHICH ARE AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF
LAYNE CHRISTENSEN COMPANY.

          6. Dividends and Voting. Participant is entitled to (i) receive all dividends,
payable in stock, in cash or in kind, or other distributions, declared on or with respect to any
Restricted Shares as of a record date that occurs on or after the Date of Grant hereunder and
before any transfer or forfeiture of the Restricted Shares by Participant, provided that any such
dividends paid in cash are to be held in escrow by the Company and, such cash dividends and
distributions are to be subject to the same rights, restrictions on transfer and conditions
regarding vesting and forfeiture as the Restricted Shares with respect to which such dividends or
distributions are paid at the time of payment, and (ii) exercise all voting rights with respect to
the Restricted Shares, if the record date for the exercise of such voting rights occurs on or after
the Date of Grant hereunder and prior to any transfer or forfeiture of such Restricted Shares. In
the event of forfeiture by Participant of any or all of the Restricted Shares or any of the equity
securities distributed to Participant with respect thereto, Participant shall forfeit all cash
dividends held in escrow and relating to the underlying forfeited Restricted Shares and must return
to the Company any distributions previously paid to Participant with respect to such Restricted
Shares.

          7. Withholding with Stock. Unless specifically denied by the Committee, Participant
may elect to pay all minimum required amounts of tax withholding, or any part thereof, by electing
to transfer to the Company Shares having a value equal to the minimum amount required to be
withheld under federal, state or local law or such lesser amount as may be elected by the
Participant. The value of Shares to be transferred to the Company shall be based on the Fair Market
Value of the Stock on the date that the amount of tax to be withheld is to be determined (the “Tax
Date”), as determined by the Committee. Any such elections by the Participant to have Shares
withheld for this purpose will be subject to the following restrictions:

          (a) All elections must be made prior to the Tax Date;

          (b) All elections shall be irrevocable; and

          (c) If Participant is an officer or director of the Company within the meaning of
Section 16 of the 1934 Act (“Section 16”), the Participant must satisfy the requirements of
such Section 16 and any applicable rules thereunder with respect to the use of Stock to
satisfy such tax withholding obligation.

          8. Titles. Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.

          9. Notice of I.R.C. Section 83(b) Election. If Participant makes an election under
Section 83(b) of the Code, Participant shall promptly notify the Company of such election.

2

 

          10. Amendment. This Agreement may be amended only by a writing executed by the
parties hereto which specifically states that it is amending this Agreement.

          11. Governing Law. The laws of the State of Delaware will govern the interpretation,
validity and performance of this Agreement regardless of the law that might be applied under
principles of conflicts of laws.

          12. Binding Effect. Except as expressly stated herein to the contrary, this Agreement
will be binding upon and inure to the benefit of the respective heirs, legal representatives,
successors and assigns of the parties hereto.

          This Agreement has been executed and delivered by the parties hereto.

	 	 	 	 	 	 	 	 	 	 	 
	The Company:	 	 	 	Participant:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Layne Christensen Company	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	Address of Participant:	 	 
	 

	 	 	 	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

3EX-10.1

 

EXHIBIT 10.1

SETTLEMENT AGREEMENT

     THIS SETTLEMENT AGREEMENT is made and entered into as of September 14, 2007 (“Agreement”) by
and among Regent Communications, Inc.(“Regent”), Riley Investment Management LLC (“RIM”), Riley
Investment Partners Master Fund, L.P.(“RIP”), SMH Capital Inc. (“SMH Capital”), SOF Management, LLC
(“SOF Management”), Sanders Opportunity Fund, L.P. (“SOF Fund”), Sanders Opportunity Fund
(Institutional) L.P. (“SOF Fund (Institutional) and Don A. Sanders (“Mr. Sanders”), and as to
Sections 1.2 and 2.4 only, John Ahn and Joseph Patrick Hannan.

     For purposes of this Agreement, the term “Company” shall mean Regent and all of its
affiliates, the term “Riley” shall mean RIM, RIP and all of their respective affiliates, the term
“Sanders” shall mean SMH Capital, SOF Management, SOF Fund, SOF Fund (Institutional), Mr. Sanders
and all of their respective affiliates, and the term “affiliates” shall mean any officer, director,
employees, investment advisory clients, attorney, agent, assignee, predecessor, successor, parent,
subsidiary, affiliate, division, or related company.

     WHEREAS, pursuant to a series of letters dated in the period July 19, 2007 through August 8,
2007, Riley, Sanders, and certain other Regent stockholders have demanded a special meeting of
Regent’s stockholders (the “Proposed Special Meeting”) for the purpose of amending Regent’s bylaws
in certain respects and to expand Regent’s Board of Directors from five directors to nine
directors, and have nominated four individuals for election to fill such newly created positions in
the event that the Regent stockholders would vote to increase the size of the Board;

     WHEREAS, the Proposed Special Meeting and related matters have given rise to certain claims
and counterclaims that various parties hereto have asserted against each other in (a) Civil Action
No. 3154-CC pending in the Court of Chancery of the State of Delaware, and (b) Civil Action No.
07-499 pending in the United States District Court for the District of Delaware (collectively, such
Civil Actions are referred to herein as the “Pending Litigation”); and

     WHEREAS, the parties to this Agreement mutually agree that it is in their respective best
interests and in the best interests of Regent and Regent’s stockholders to avoid the time, costs,
and disruptions that a potential proxy contest may cause the parties in connection with the
Proposed Special Meeting, to settle the Pending Litigation, to revise the composition of Regent’s
Board of Directors, and to agree on certain related matters, all as set forth in this Agreement;

     NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and
agreements set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

 

 

ARTICLE I. COMPOSITION OF BOARD AND BOARD COMMITTEES

     1.1 Board Size. In accordance with Regent’s bylaws, Regent’s Board of Directors will
vote to set the number of Directors to serve on the Board at seven as of the date of this
Agreement. Unless approved by a majority of the Board, which approval must include the approval of
either John Ahn or Joseph Patrick Hannan, the size of the Board shall remain fixed at seven;
provided, however, that the Board shall not increase or decrease the size of the Board from seven
Directors at any time for a period of one year from the date of this Agreement.

     1.2 Appointment of Riley Nominees. No later than the close of business on September
14, 2007, the Nominating and Corporate Governance Committee of Regent’s Board shall review the
qualifications of Riley’s proposed Director nominees, Messrs. Ahn and Hannan, to serve as Directors
on Regent’s Board and to fill the two vacancies created upon the expansion of Regent’s Board to
seven Directors. The Nominating and Corporate Governance Committee’s review shall include without
limitation a telephonic interview by the Committee of the proposed nominees and review of Regent’s
standard director and officer questionnaire as completed by such nominees. Upon completion of its
review, the Nominating and Corporate Governance Committee shall make a recommendation to the full
Board as to the appointment of Messrs. Ahn and Hannan to fill the two vacancies on the Board, and
the Board shall consider such recommendation in good faith immediately thereafter. Messrs. Ahn and
Hannan agree to make themselves available for a telephonic interview and to return the completed
questionnaire no later than the close of business on September 14, 2007.

     1.3 Board Committees. Upon the appointment of Messrs. Ahn and Hannan to Regent’s
Board, the Board also immediately will appoint Mr. Ahn to the Board’s Nominating and Corporate
Governance Committee and Mr. Hannan to the Board’s Audit and Compensation Committees. For any
other Board Committee established by the Board at any time, the Board will appoint either Mr. Ahn
or Mr. Hannan to such Committee.

     1.4 Effect of Failure to Appoint. If Messrs. Ahn and/or Hannan, or another proposed
Riley nominee in lieu of either or both such individuals, are not appointed to Regent’s Board and
to the appropriate Board Committees as specified in Section 1.3 by 9:00 p.m., Eastern Daylight
Savings Time, on September 14, 2007, then this Agreement shall be null and void.

ARTICLE II. MEETINGS OF REGENT’S STOCKHOLDERS

     2.1 Withdrawal of Demand for Special Meeting. By execution of this Agreement and
subject to the satisfaction of the condition specified in Section 1.4, Riley and Sanders agree that
their demands for the Proposed Special Meeting are cancelled and withdrawn. Riley and Sanders
waive any failure of Regent to call such Proposed Special Meeting.

     2.2 No Change in Bylaws as to Special Meetings. Unless approved by a majority of the
Board, including the approval of at least one of Messrs. Ahn and Hannan, the Board shall not amend
Regent’s bylaws with respect to calling a special meeting of stockholders. This restriction from
amending Regent’s bylaws relating to calling a special meeting will continue for two months after
no designees of Riley serve on Regent’s Board; provided, that, any amendment to Regent’s bylaws
shall not apply retroactively to a special meeting that is validly called prior to the end of such
two month period.

2

 

     2.3 2008 Annual Meeting of Stockholders. So long as through the date of Regent’s 2008
Annual Meeting of Stockholders, (a) Riley maintains beneficial ownership of at least 5.0% of
Regent’s outstanding shares of common stock, and (b) Sanders maintains beneficial ownership of at
least 5.0% of Regent’s outstanding shares of common stock, then Regent’s Board will nominate
Messrs. Ahn and Hannan for reelection to the Board to serve as Directors through Regent’s 2009
Annual Meeting of Stockholders.

     2.4 Limitations as to Future Special and Annual Meetings of Stockholders. Without the
consent of a majority of the then current members of Regent’s Board, Riley, Sanders, and Messrs.
Ahn and Hannan agree that they will not call for any special meeting of Regent’s stockholders and
will not nominate any person for election to Regent’s Board at any special or annual meeting of
Regent’s stockholders, or to form or join a group or act in concert with any person or entity to
change the composition of the Board, through one year after the date of this Agreement; provided,
that, for the avoidance of doubt, the foregoing shall not restrict any vote or actions by Messrs.
Ahn and Hannan in their capacity as directors of Regent (including on the Nominating Committee) and
Riley, Sanders and Messrs. Ahn and Hannan shall not be restricted from voting any shares of, or
giving a proxy or executing a written consent with respect to, their Regent stock in response to a
request from a third party that is not part of a group, as defined in Rule 13d-1, of which Riley,
Sanders, Mr. Hannan or Mr. Ahn is also a member and such actions shall not in and of itself be
deemed to be acting in concert with the person or persons requesting the vote, proxy or written
consent. Notwithstanding the foregoing, the restrictions set forth in this paragraph 2.4 shall
terminate at any time that the Company breaches any of its covenants set forth in Article I,
Section 2.2, or Section 2.3 hereof, nor shall the restrictions set forth in this Section 2.4 apply
to any attorney or agent of Riley or Sanders who is not subject to the direct or indirect control
of either Riley or Sanders.

ARTICLE III. ADDITIONAL AGREEMENTS

     3.1 Mutual Release of Claims. Upon the satisfaction of the condition specified in
Section 1.4, the parties hereto immediately shall enter into the Release attached hereto as
Exhibit A.

     3.2 Dismissal of Pending Litigation. Upon the satisfaction of the condition specified
in Section 1.4, the parties hereto promptly shall dismiss all Pending Litigation with prejudice and
in no event later than the second business day following the satisfaction of such condition, and no
party shall hereafter initiate or encourage any litigation, inquiry, challenge or other proceeding
with respect to any matter encompassed within the Pending Litigation or covered by the Release
attached hereto as Exhibit A.

     3.3 No Effect as to Litigation Regarding Any Future Special Meeting. For the
avoidance of doubt, the releases specified in Section 3.1 and the dismissals specified in Section
3.2 will not prevent the parties hereto from litigating with respect to any future special meeting
of Regent’s stockholders or other similar issues regarding the composition of Regent’s Board or
matters then arising under the federal securities laws or the Delaware General Corporation Act

3

 

that may arise after the earlier of (a) the date Messrs. Ahn and Hannan cease to serve on
Regent’s Board, (b) a breach of this Agreement, or (c) one year from the date of this Agreement.

     3.4 Costs. Each party hereto agrees to bear its own costs relating to the Pending
Litigation, the Proposed Special Meeting, this Agreement, the Release, and all related matters.

     3.5 Public Disclosures. Promptly following the execution of this Agreement, Regent
will prepare and issue a press release announcing the resolution of all matters, which press
release shall be mutually agreeable to all parties hereto (the “Press Release”). Regent also will
promptly file a Form 8-K with the Securities and Exchange Commission to which this Agreement and
the Press Release will be attached as exhibits. This Agreement and the Press Release may be filed
as an exhibit to any amendment required to be filed under Section 13(d) of the Securities Exchange
Act of 1934, as amended, to the Schedule 13Ds filed by Riley and Sanders. None of the parties
hereto will make any public statements regarding this Agreement and related matters that are
inconsistent with or contrary to the statements in the Press Release. Any statement otherwise
prohibited by this Section 3.5 may nevertheless be made without violating this Agreement if such
statement is either required by applicable law, rule of regulation or is required to be made by the
person seeking to make such statement in order to comply with such party’s fiduciary duties to
Regent or its stockholders, in each case as reasonably determined by such person based on the
advice of outside counsel and upon reasonable prior notice to the parties hereto of the nature of
the statement and the basis pursuant to which it is required to be made.

     3.6 Expiration of Covenants and Restrictions. Except as otherwise specifically
provided in this Agreement, all covenants and restrictions set forth herein shall lapse and be of
no further effect at the earlier of (a) such time that no Riley designees serve on Regent’s Board,
or (b) adjournment and close of Regent’s 2009 Annual Meeting of Stockholders.

     3.7 References to Riley Designees. All references in this Agreement to either Mr. Ahn
or Mr. Hannan, also shall mean any other person designated by Riley and approved by Regent’s Board
to serve as a Director of Regent.

ARTICLE IV. MISCELLANEOUS

     4.1 Binding Agreement. Each term of this Agreement is binding upon the parties hereto
and their respective predecessors, successors, transferees, permitted assignees, insurers, and
reinsurers. If any provision of this Agreement shall be deemed or declared to be unenforceable,
invalid or void, such provision shall not impair any other provision of this Agreement. It is
hereby expressly understood and agreed that the terms of this Agreement are contractual and not
merely recitals.

     4.2 Complete Agreement. This Agreement, including the Release attached hereto, sets
forth the entire agreement and understanding of the parties hereto in respect of all matters
contained in this Agreement and the Release, and supersedes all prior and/or contemporaneous oral
or written agreements, representations or understandings of any nature. There are no unwritten
agreements or understandings between the parties.

4

 

     4.3 Authority. Each of the parties hereto acknowledges and represents that it has the
full power, authority and capacity to enter into this Agreement and that the person(s) signing this
Agreement on its behalf has the full power, capacity and authority to do so. Each party hereby
represents that it has read the foregoing Agreement, presented it to competent legal counsel for
review, fully understands it, and has executed it voluntarily with full knowledge of its legally
binding effect.

     4.4 No Admission of Liability. This Agreement is entered into by the parties for the
sole purpose of effecting a settlement of all matters relating to the Proposed Special Meeting and
the Pending Litigation and nothing herein is intended or shall be construed as an admission of
liability with respect to any claims or allegations made relating to such Proposed Special Meeting
or Pending Litigation.

     4.5 Governing Law; Jurisdiction. This Agreement shall be interpreted under and in
accordance with the laws of the State of Delaware without regard to its conflicts of law
provisions. Each of the parties hereto agree that any action or proceeding relating to or arising
out of this Agreement shall be adjudicated exclusively in the courts located in Delaware.

     4.6 Injunctive Relief. The parties agree that in the event of any actual or
threatened breach by any other party of any of the provisions contained in this Agreement, the
non-breaching parties shall be entitled to seek immediate temporary injunctive and other equitable
relief, without the necessity of showing actual monetary damages, subject to hearing as soon
thereafter as possible. Nothing contained herein shall be construed as prohibiting any party from
pursuing any other remedies available to it for such breach or threatened breach, including the
recovery of any damages which it is able to prove.

     4.7 Amendment. This Agreement may be amended or modified only by a written instrument
duly executed by all of the parties hereto.

     4.8 Successors and Assigns. This Agreement shall not be assigned or transferred to
any third party without the prior express written consent of all of the parties. Any permitted
assignment or transfer of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, assigns and legal representatives.

     4.9 Section Headings. Section headings are inserted herein for convenience only and
shall not affect any construction or interpretation of this Agreement.

     4.10 Counterparts. This Agreement may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which so executed and delivered shall
be deemed to be an original and all of which taken together shall constitute but one and the same
instrument.

[Signatures follow on pages 6 and 7]

5

 

     IN WITNESS WHEREOF, the parties, each individually or through their duly authorized
representative, have executed this Agreement as of the date first set forth above.

	 	 	 	 	 
	 	REGENT COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ WILLIAM L. STAKELIN
 	 
	 	 	Name:  	William L. Stakelin 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RILEY INVESTMENT PARTNERS MASTER FUND, L.P.

     By: Riley Investment Management LLC, the General 

     Partner 	 
	 
	 	By:  	/s/ JOHN AHN
 	 
	 	 	Name:  	John Ahn	 
	 	 	Title:  	Principal	 

	 	 	 	 	 
	 	RILEY INVESTMENT MANAGEMENT LLC

 	 
	 	By:  	/s/ JOHN AHN
 	 
	 	 	Name:  	John Ahn 	 
	 	 	Title:  	Principal 	 
	 

	 	 	 	 	 
	 	SMH CAPITAL INC.

 	 
	 	By:  	/s/ B. T. Morris
 	 
	 	 	Name:  	Ben T. Morris 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	SOF MANAGEMENT LLC

 	 
	 	By:  	/s/ DON A. SANDERS
 	 
	 	 	Name:  	Don A. Sanders 	 
	 	 	Title:  	Manager 	 

6

 

	 	 	 	 	 

	 	 	 	 	 
	 	SANDERS OPPORTUNITY FUND, L.P.

 	 
	 	By:  	/s/ DON A. SANDERS
 	 
	 	 	Name:  	Don A. Sanders 	 
	 	 	Title:  	Manager, SOF Management LLC, General Partner 	 
	 

	 	 	 	 	 
	 	SANDERS OPPORTUNITY FUND (INSTITUTIONAL), L.P.

 	 
	 	By:  	/s/ DON A. SANDERS
 	 
	 	 	Name:  	Don A. Sanders 	 
	 	 	Title:  	Manager, SOF Management LLC, General Partner 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                /s/ DON A. SANDERS
 	 
	 	Don Sanders 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	                              /s/ JOHN AHN
 	 
	 	John Ahn, as to Sections 1.2 and 2.4 only 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	                              /s/ J. P. Hannan
 	 
	 	Joseph Patrick Hannan, as to Sections 1.2 and 2.4 only 	 
	 	 	 
	 

7

 

EXHIBIT A

RELEASE

 

RELEASE

     THIS RELEASE is entered into by and between Regent Communications, Inc., Riley Investment
Partners Master Fund, L.P., Riley Investment Management, LLC, SMH Capital Inc., SOF Management,
LLC, Sanders Opportunity Fund, L.P. and Sanders Opportunity Fund (Institutional) L.P., John Ahn,
Don A. Sanders and Bryant Riley.

1 DEFINITIONS

	 	1.1	 	“Claims” mean claims and counterclaims arising under or relating to (1) Civil
Action No. 3154-CC pending in the Court of Chancery of the State of Delaware and (2)
Civil Action No. 07-499 pending in the United States District Court for the District of
Delaware.
	 
	 	1.2	 	“Investment Advisory Clients” mean shareholders of Regent who are clients or
customers of Riley Investment Partners Master Fund, L.P., Riley Investment Management,
LLC, SMH Capital Inc., John Ahn, or Don A. Sanders.
	 
	 	1.3	 	“Mr. Ahn” means John Ahn and all agents, employees, Investment Advisory
Clients, counsel and other persons acting on his behalf.
	 
	 	1.4	 	“Mr. Riley” means Bryant Riley and all agents, employees, Investment Advisory
Clients, counsel and other persons acting on his behalf.
	 
	 	1.5	 	“Regent” means Regent Communications Inc., and any officer, director,
employees, attorney, agent, assignee, predecessor, successor, parent, subsidiary,
affiliate, division, or related company of the foregoing.
	 
	 	1.6	 	“Release” means this Release.
	 
	 	1.7	 	“RIM” means Riley Investment Management, LLC and any officer, director,
employees, Investment Advisory Clients, attorney, agent, assignee, predecessor,

1

 

	 	 	 	successor, parent, subsidiary, affiliate, division, or related company of the
foregoing.
	 
	 	1.8	 	“RIP” means Riley Investment Partners Master Fund, L.P., and any officer,
director, employees, Investment Advisory Clients, attorney, agent, assignee,
predecessor, successor, parent, subsidiary, affiliate, division, or related company of
the foregoing.
	 
	 	1.9	 	“Riley” means RIM, RIP, Mr. Ahn and Mr. Riley collectively.
	 
	 	1.10	 	“Mr. Sanders” means Don A. Sanders and all agents, employees, counsel and other
persons acting on his behalf.
	 
	 	1.11	 	“SMH Capital” means SMH Capital Inc. and any officer, director, employees,
Investment Advisory Clients, attorney, agent, assignee, predecessor, successor, parent,
subsidiary, affiliate, division, or related company of the foregoing.
	 
	 	1.12	 	“SOF Fund” means Sanders Opportunity Fund, L.P., and any officer, director,
employees, attorney, agent, assignee, predecessor, or successor of the foregoing.
	 
	 	1.13	 	“SOF Fund (Institutional)” means Sanders Opportunity Fund (Institutional),
L.P., and any officer, director, employees, attorney, agent, assignee, predecessor, or
successor of the foregoing.
	 
	 	1.14	 	“SOF Management” means SOF Management LLC, and any officer, director,
employees, Investment Advisory Clients, attorney, agent, assignee, predecessor,
successor, parent, subsidiary, affiliate, division, or related company of the
foregoing.
	 
	 	1.15	 	“Sanders” means SMH Capital, SOF Fund, SOF Fund (Institutional), SOF Management
and Mr. Sanders collectively.

2

 

	 	1.16	 	“Settlement Agreement” means the Settlement Agreement entered into by and
between Regent, RIP, RIM, SMH Capital, SOF Management, SOF Fund, SOF Fund
(Institutional), Sanders, Ahn and Joseph Patrick Hannan to which this document is
attached.
	 
	 	1.17	 	All Definitions from the Settlement Agreement not otherwise defined in this
Release are incorporated as though referenced fully herein.
	 
	 	1.18	 	“Releasing Parties” means Regent, RIM, RIP, SMH Capital, SOF Management, SOF
Fund, SOF Fund (Institutional), Mr. Sanders, Mr. Ahn, and Mr. Riley collectively.

2 RECITALS

	 	2.1	 	All Recitals from the Settlement Agreement are incorporated as though
referenced fully herein.
	 
	 	2.2	 	Regent, RIP, RIM, SMH Capital, SOF Management, SOF Fund, SOF Fund
(Institutional), Mr. Sanders, Mr. Ahn and Mr. Riley desire to fully and finally resolve
all disputes that exist between them with respect to the Claims without any admissions
of liability, by entering into this Release.
	 
	 	2.3	 	The Releasing Parties hereby agree as follows.

3 REGENT’S RELEASES

	 	3.1	 	Regent discharges, releases, and remises RIP, RIM, SMH Capital, SOF Management,
SOF Fund, SOF Fund (Institutional), Mr. Sanders, Mr. Ahn and Mr. Riley from any and all
liabilities, entitlements, obligations, agreements, claims, demands, actions, suits,
causes of action, damages, losses, costs, and expenses of any nature or kind whatsoever
that have been, could have been, or might in the

3

 

	 	 	 	future be asserted by Regent in connection with or related in any way, directly or
indirectly, to the Claims, whether or not such liabilities, entitlements,
obligations, agreements, claims, demands, actions, suits, causes of action, damages,
costs, losses, and expenses are currently known to exist.

4 RILEY’S RELEASE

	 	4.1	 	Riley discharges, releases, and remises Regent from any and all liabilities,
entitlements, obligations, agreements, claims, demands, actions, suits, causes of
action, damages, losses, costs, and expenses of any nature or kind whatsoever that have
been, could have been, or might in the future be asserted by Riley in connection with
or related in any way, directly or indirectly, to the Claims, whether or not such
liabilities, entitlements, obligations, agreements, claims, demands, actions, suits,
causes of action, damages, costs, losses, and expenses are currently known to exist.

5 SANDERS’ RELEASE

	 	5.1	 	Sanders discharges, releases, and remises Regent from any and all liabilities,
entitlements, obligations, agreements, claims, demands, actions, suits, causes of
action, damages, losses, costs, and expenses of any nature or kind whatsoever that have
been, could have been, or might in the future be asserted by Sanders in connection with
or related in any way, directly or indirectly, to the Claims, whether or not such
liabilities, entitlements, obligations, agreements, claims, demands, actions, suits,
causes of action, damages, costs, losses, and expenses are currently known to exist.

4

 

6 EXPRESS WAIVER BY RELEASING PARTIES

	 	6.1	 	The Releasing Parties further hereby acknowledge that they have expressly
waived any and all rights that they may have under any and all statutes or laws that
purport to limit the scope of a general release, including without limitation Section
1542 of the Civil Code of the State of California, which provides as follows:

     A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN
BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

7 GENERAL CONDITIONS

	 	7.1	 	Consideration. The Releasing Parties hereby agree that in
consideration of this Release the Releasing Parties will perform or have performed the
obligations and promises as set forth in the Settlement Agreement to which this
document is attached.
	 
	 	7.2	 	Binding Agreement. Each term of this Release is binding upon the
Releasing Parties and their respective predecessors, successors, transferees,
assignees, insurers, and reinsurers.
	 
	 	7.3	 	Complete Agreement. This Release sets forth the entire agreement and
understanding of the Releasing Parties hereto in respect of the subject matter
contained herein.

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	 	7.4	 	Governing Law. This Release shall be interpreted under and in
accordance with the laws of the State of Delaware without regard to its conflicts of
law provisions.
	 
	 	7.5	 	Counterparts. This Release may be executed in any number of
counterparts and by different Releasing Parties hereto in separate counterparts, each
of which so executed and delivered shall be deemed to be an original and all of which
taken together shall constitute but one and the same instrument.

     THE RELEASING PARTIES, each through their duly authorized representative, have executed this
Release on the respective dates set forth below.

	 	 	 	 	 
	 	REGENT COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ WILLIAM L. STAKELIN
 	 
	 	 	Name:  	William L. Stakelin 	 
	 	 	Title:  	President and Chief Executive Officer	 
	 	 	DATED:  	September 14, 2007 	 

	 	 	 	 	 
	 	RILEY INVESTMENT PARTNERS MASTER FUND, L.P.

     By: Riley Investment Management LLC, the General 

     Partner 	 
	 
	 	By:  	/s/ JOHN AHN
 	 
	 	 	Name:  	John Ahn	 
	 	 	Title:  	Principal	 
	 	 	DATED:  	September 14, 2007 	 

6

 

	 	 	 	 	 
	 	RILEY INVESTMENT MANAGEMENT LLC

 	 
	 	By:  	/s/ JOHN AHN
 	 
	 	 	Name:  	John Ahn 	 
		 	Title:  	Principal

		 	DATED:	September 14, 2007
	 
	 

	 	 	 	 	 
	 	SMH CAPITAL INC.

 	 
	 	By:  	/s/ B. T. Morris
 	 
	 	 	Name:  	Ben T. Morris 	 
		 	Title:  	Chief Executive Officer
	 
		 	DATED:	September 14, 2007

	 

	 	 	 	 	 
	 	SOF MANAGEMENT LLC

 	 
	 	By:  	/s/ DON A. SANDERS
 	 
	 	 	Name:  	Don A. Sanders 	 
		 	Title:  	Manager
	 
		 	DATED:	September 14, 2007

	 

	 	 	 	 	 
	 	SANDERS OPPORTUNITY FUND, L.P.

 	 
	 	By:  	/s/ DON A. SANDERS
 	 
	 	 	Name:  	Don A. Sanders 	 
		 	Title:  	Manager, SOF Management LLC, General Partner
	 
		 	DATED:	September 14, 2007

	 

7

 

	 	 	 	 	 
	 	SANDERS OPPORTUNITY FUND (INSTITUTIONAL), L.P.

 	 
	 	By:  	/s/ DON A. SANDERS
 	 
	 	 	Name:  	Don A. Sanders 	 
		 	Title:  	Manager, SOF Management LLC, General Partner
	 
		 	DATED:	September 14, 2007

	 

	 	 	 	 	 
	 	 	 
	 	                              /s/ DON A. SANDERS
 	 
	 	DON A. SANDERS 	 
		 	DATED:	September 14, 2007

	 

	 	 	 	 	 
	 	 	 
	 	                               /s/ JOHN AHN
 	 
	 	JOHN AHN 	 
		 	DATED:	September 14, 2007

	 

	 	 	 	 	 
	 	 	 
	 	                              /s/ BRYANT RILEY
 	 
	 	BRYANT RILEY 	 
		 	DATED:	September 14, 2007

	 

8

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