Document:

EX-10.1

 

Exhibit 10.1

DIRECTOR INDEMNIFICATION AGREEMENT

     This DIRECTOR INDEMNIFICATION AGREEMENT (the “Agreement”) made and entered into as of the
21st day of September, 2007, by and between Haights Cross Communications, Inc., a
Delaware corporation (the “Company”), and Paul J. Crecca (the “Indemnitee”).

     WHEREAS, it is essential that the Company be able to retain and attract as directors, officers
and employees the most capable persons available;

     WHEREAS, increased corporate litigation has subjected directors to litigation risks and
expenses, and the limitations on the availability of director and officer liability insurance has
made it increasingly difficult for the Company to attract and retain such persons;

     WHEREAS, the Company’s By-laws permit it to enter into indemnification arrangements and
agreements;

     WHEREAS, the Company desires to provide the Indemnitee with specific contractual assurances of
the Indemnitee’s rights to full indemnification against litigation risks and expenses (regardless,
among other things, of any amendment to or revocation of the Company’s By-laws or any change in the
ownership of the Company or the composition of its Board of Directors), which indemnification is
intended to be greater than that which is afforded by the Company’s Certificate of Incorporation
and By-laws and, to the extent insurance is available, the coverage of the Indemnitee under the
Company’s directors and officers liability insurance policies; and

     WHEREAS, the Indemnitee is relying upon the rights afforded under this Agreement in accepting
Indemnitee’s position as a director, officer or employee of the Company.

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     1. Definitions.

          (a) “Corporate Status” describes the status of a person who is serving or has served (i) as a
director, officer or employee of the Company, (ii) in any capacity with respect to any employee
benefit plan of the Company, or (iii) as a director, partner, member, trustee, officer, employee,
or agent of any other Entity at the request of the Company.

          (b) “Entity” shall mean any corporation, partnership, limited liability company, joint
venture, trust, foundation, association, organization or other legal entity and any group or
division of the Company or any of its subsidiaries.

          (c) “Expenses” shall mean all reasonable fees, costs and expenses incurred in connection with
any Proceeding (as defined below), including, without limitation, attorneys’ fees, disbursements
and retainers (including, without limitation, any such fees, disbursements and retainers incurred
by Indemnitee pursuant to Section 10 of this Agreement), fees and disbursements of expert
witnesses, private investigators and professional advisors (including,

 

 

without limitation, accountants and investment bankers), court costs, transcript costs, fees
of experts, travel expenses, duplicating, printing and binding costs, telephone and fax
transmission charges, postage, delivery services, secretarial services, and other disbursements and
expenses.

          (d) “Indemnifiable Expenses,” “Indemnifiable Liabilities” and “Indemnifiable Amounts” shall
have the meanings ascribed to those terms in Section 3(a) below.

          (e) “Liabilities” shall mean judgments, damages, liabilities, losses, penalties, excise taxes,
fines and amounts paid in settlement.

          (f) “Proceeding” shall mean any threatened, pending or completed claim, action, suit,
arbitration, alternate dispute resolution process, investigation, administrative hearing, appeal,
or any other proceeding, whether civil, criminal, administrative or investigative, whether formal
or informal, including a proceeding initiated by Indemnitee pursuant to Section 10 of this
Agreement to enforce Indemnitee’s rights hereunder.

     2. Services of Indemnitee. In consideration of the Company’s covenants and
commitments hereunder, Indemnitee agrees to serve or continue to serve as a director, officer or
employee of the Company. However, this Agreement shall not impose any obligation on Indemnitee or
the Company to continue Indemnitee’s service to the Company beyond any period otherwise required by
law or by other agreements or commitments of the parties, if any.

     3. Agreement to Indemnify. The Company agrees to indemnify Indemnitee as follows:

          (a) Subject to the exceptions contained in Section 4(a) below, if Indemnitee was or is a party
or is threatened to be made a party to any Proceeding (other than an action by or in the right of
the Company) by reason of Indemnitee’s Corporate Status, Indemnitee shall be indemnified by the
Company against all Expenses and Liabilities incurred or paid by Indemnitee in connection with such
Proceeding (referred to herein as “Indemnifiable Expenses” and “Indemnifiable Liabilities,”
respectively, and collectively as “Indemnifiable Amounts”).

          (b) Subject to the exceptions contained in Section 4(b) below, if Indemnitee was or is a party
or is threatened to be made a party to any Proceeding by or in the right of the Company to procure
a judgment in its favor by reason of Indemnitee’s Corporate Status, Indemnitee shall be indemnified
by the Company against all Indemnifiable Expenses.

     4. Exceptions to Indemnification. Indemnitee shall be entitled to indemnification
under Sections 3(a) and 3(b) above in all circumstances other than the following:

          (a) If indemnification is requested under Section 3(a) and it has been adjudicated finally by
a court of competent jurisdiction that, in connection with the subject of the Proceeding out of
which the claim for indemnification has arisen, (i) Indemnitee failed to act in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company,
(ii) with respect to any criminal action or proceeding, Indemnitee had reasonable cause to believe
that Indemnitee’s conduct was unlawful or (iii) Indemnitee’s conduct constituted willful misconduct
or recklessness, then Indemnitee shall not be entitled to payment of Indemnifiable Amounts
hereunder.

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          (b) If indemnification is requested under Section 3(b) and

          (i) it has been adjudicated finally by a court of competent jurisdiction that, in
connection with the subject of the Proceeding out of which the claim for indemnification has
arisen, Indemnitee failed to act in good faith and in a manner Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company, Indemnitee shall not
be entitled to payment of Indemnifiable Expenses hereunder; or

          (ii) it has been adjudicated finally by a court of competent jurisdiction that
Indemnitee is liable to the Company with respect to any claim, issue or matter involved in
the Proceeding out of which the claim for indemnification has arisen, including, without
limitation, a claim that Indemnitee received an improper personal benefit or improperly took
advantage of a corporate opportunity, Indemnitee shall not be entitled to payment of
Indemnifiable Expenses hereunder with respect to such claim, issue or matter unless the
court in which such Proceeding was brought shall determine upon application that, despite
the adjudication of liability, but in view of all the circumstances of the case, Indemnitee
is fairly and reasonably entitled to indemnity for such Indemnifiable Expenses which such
court shall deem proper.

     5. Procedure for Payment of Indemnifiable Amounts. Indemnitee shall submit to the
Company a written request specifying the Indemnifiable Amounts for which Indemnitee seeks payment
under Section 3 of this Agreement and the basis for the claim. The Company shall pay such
Indemnifiable Amounts to Indemnitee within twenty (20) calendar days of receipt of the request. At
the request of the Company, Indemnitee shall furnish such documentation and information as are
reasonably available to Indemnitee and necessary to establish that Indemnitee is entitled to
indemnification hereunder.

     6. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, and without limiting any such provision, to
the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a party to and is
successful, on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified against
all Expenses reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.
If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee against those Expenses reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with each successfully resolved claim, issue or matter. For
purposes of this Agreement, the termination of any claim, issue or matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim,
issue or matter.

     7. Effect of Certain Resolutions. Neither the settlement nor termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create an adverse presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not create a
presumption that Indemnitee did not act in good faith and in a manner which Indemnitee

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reasonably believed to be in or not opposed to the best interests of the Company or, with
respect to any criminal action or proceeding, had reasonable cause to believe that Indemnitee’s
action was unlawful.

     8. Agreement to Advance Interim Expenses; Conditions. The Company shall pay to
Indemnitee all Indemnifiable Expenses incurred by Indemnitee in connection with any Proceeding,
including a Proceeding by or in the right of the Company, in advance of the final disposition of
such Proceeding, if Indemnitee furnishes the Company with a written undertaking to repay the amount
of such Indemnifiable Expenses advanced to Indemnitee if it is finally determined by a court of
competent jurisdiction that Indemnitee is not entitled under this Agreement to indemnification with
respect to such Indemnifiable Expenses. Such undertaking shall be an unlimited general obligation
of Indemnitee, shall be accepted by the Company without regard to the financial ability of
Indemnitee to make repayment, and in no event shall be required to be secured.

     9. Procedure for Payment of Interim Expenses. Indemnitee shall submit to the Company
a written request specifying the Indemnifiable Expenses for which Indemnitee seeks an advancement
under Section 8 of this Agreement, together with documentation evidencing that Indemnitee has
incurred such Indemnifiable Expenses. Payment of Indemnifiable Expenses under Section 8 shall be
made no later than twenty (20) calendar days after the Company’s receipt of such request and the
undertaking required by Section 8.

     10. Remedies of Indemnitee.

          (a) Right to Petition Court. In the event that Indemnitee makes a request for payment of
Indemnifiable Amounts under Sections 3 and 5 above or a request for an advancement of Indemnifiable
Expenses under Sections 8 and 9 above and the Company fails to make such payment or advancement in
a timely manner pursuant to the terms of this Agreement, Indemnitee may petition the appropriate
judicial authority to enforce the Company’s obligations under this Agreement.

          (b) Burden of Proof. In any judicial proceeding brought under Section 10(a) above, the
Company shall have the burden of proving that Indemnitee is not entitled to payment of
Indemnifiable Amounts hereunder.

          (c) Expenses. The Company agrees to reimburse Indemnitee in full for any Expenses incurred by
Indemnitee in connection with investigating, preparing for, litigating, defending or settling any
action brought by Indemnitee under Section 10(a) above, or in connection with any claim or
counterclaim brought by the Company in connection therewith.

          (d) Validity of Agreement. The Company shall be precluded from asserting in any Proceeding,
including, without limitation, an action under Section 10(a) above, that the provisions of this
Agreement are not valid, binding and enforceable or that there is insufficient consideration for
this Agreement and shall stipulate in court that the Company is bound by all the provisions of this
Agreement.

          (e) Failure to Act Not a Defense. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders) to

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make a determination concerning the permissibility of the payment of Indemnifiable Amounts or
the advancement of Indemnifiable Expenses under this Agreement shall not be a defense in any action
brought under Section 10(a) above, and shall not create a presumption that such payment or
advancement is not permissible.

     11. Representations and Warranties of the Company. The Company hereby represents and
warrants to Indemnitee as follows:

          (a) Authority. The Company has all necessary corporate power and authority to enter into, and
be bound by the terms of, this Agreement, and the execution, delivery and performance of the
undertakings contemplated by this Agreement have been duly authorized by the Company.

          (b) Enforceability. This Agreement, when executed and delivered by the Company in accordance
with the provisions hereof, shall be a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting
the enforcement of creditors’ rights generally.

     12. Insurance. The Company will use commercially reasonable efforts to obtain and
maintain a policy or policies of insurance in an amount not less than $1,000,000 with a deductible
of not greater than $50,000, with reputable insurance companies providing the Indemnitee with
coverage for losses from wrongful acts, and to ensure the Company’s performance of its
indemnification obligations under this Agreement. In all policies of director and officer liability
insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee at
least the same rights and benefits as are accorded to the most favorably insured of the Company’s
officers and directors. Notwithstanding the foregoing, if the Company, after employing commercially
reasonable efforts as provided in this Section, determines in good faith that such insurance is not
reasonably available, if the premium costs for such insurance are disproportionate to the amount of
coverage provided, or if the coverage provided by such insurance is limited by exclusions so as to
provide an insufficient benefit, the Company shall use its commercially reasonable efforts to
obtain and maintain a policy or policies of insurance with coverage having features as similar as
practicable to those described above.

     13. Fees and Expenses. During the term of the Indemnitee’s service as a director, the
Company shall promptly reimburse the Indemnitee for all expenses incurred by him in connection with
his service as a director or member of any board committee or otherwise in connection with the
Company’s business and shall pay or provide the Indemnitee with fees and other compensation,
including stock options or awards, in amounts and value which are at least equal to those provided
to any of the Company’s other directors from time to time.

     14. Contract Rights Not Exclusive. The rights to payment of Indemnifiable Amounts and
advancement of Indemnifiable Expenses provided by this Agreement shall be in addition to, but not
exclusive of, any other rights which Indemnitee may have at any time under applicable law, the
Company’s By-laws or Certificate of Incorporation, or any other agreement, vote of stockholders or
directors, or otherwise, both as to action in Indemnitee’s official capacity and as to action in
any other capacity as a result of Indemnitee’s serving as a director of the Company.

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     15. Successors. This Agreement shall be (a) binding upon all successors and assigns
of the Company (including any transferee of all or a substantial portion of the business, stock
and/or assets of the Company and any direct or indirect successor by merger or consolidation or
otherwise by operation of law) and (b) binding on and shall inure to the benefit of the heirs,
personal representatives, executors and administrators of Indemnitee. This Agreement shall continue
for the benefit of Indemnitee and such heirs, personal representatives, executors and
administrators after Indemnitee has ceased to have Corporate Status.

     16. Subrogation. In the event of any payment of Indemnifiable Amounts under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of
contribution or recovery of Indemnitee against other persons, and Indemnitee shall take, at the
request of the Company, all reasonable action necessary to secure such rights, including the
execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights.

     17. Change in Law. To the extent that a change in applicable law (whether by statute
or judicial decision) shall permit broader indemnification than is provided under the terms of the
Certificate of Incorporation or By-laws of the Company and this Agreement, Indemnitee shall be
entitled to such broader indemnification and this Agreement shall be deemed to be amended to such
extent.

     18. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law, but if any
provision of this Agreement, or any clause thereof, shall be determined by a court of competent
jurisdiction to be illegal, invalid or unenforceable, in whole or in part, such provision or clause
shall be limited or modified in its application to the minimum extent necessary to make such
provision or clause valid, legal and enforceable, and the remaining provisions and clauses of this
Agreement shall remain fully enforceable and binding on the parties.

     19. Indemnitee as Plaintiff. Except as provided in Section 10(c) of this Agreement
and in the next sentence, Indemnitee shall not be entitled to payment of Indemnifiable Amounts or
advancement of Indemnifiable Expenses with respect to any Proceeding brought by Indemnitee against
the Company, any Entity which it controls, any director or officer thereof, or any third party,
unless the Company has consented to the initiation of such Proceeding. This Section shall not apply
to counterclaims or affirmative defenses asserted by Indemnitee in an action brought against
Indemnitee.

     20. Modifications and Waiver. Except as provided in Section 17 above with respect to
changes in applicable law which broaden the right of Indemnitee to be indemnified by the Company,
no supplement, modification or amendment of this Agreement shall be binding unless executed in
writing by each of the parties hereto. No waiver of any of the provisions of this Agreement shall
be deemed or shall constitute a waiver of any other provisions of this Agreement (whether or not
similar), nor shall such waiver constitute a continuing waiver.

     21. General Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given when delivered by hand,
(b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by certified

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or registered mail with postage prepaid, on the third business day after the date on which it
is so mailed:

	 	 	 	 	 	 	 
	 

	 	(a)
	 	If to Indemnitee, to:
	 	Paul J. Crecca
	 

	 	 	 	 	 	30 Oak Hill Drive,
	 

	 	 	 	 	 	Wayne, NJ 07470
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	If to the Company, to:
	 	Haights Cross Communications, Inc.
	 

	 	 	 	 	 	10 New King Street
	 

	 	 	 	 	 	Suite 110
	 

	 	 	 	 	 	White Plains, NY 10604
	 

	 	 	 	 	 	Facsimile: (914) 289-9401
	 

	 	 	 	 	 	Attn: President

or to such other address as may have been furnished in the same manner by any party to the others.

     22. Governing Law. This Agreement shall be governed by and construed and enforced
under the laws of the State of New York without giving effect to the provisions thereof relating to
conflicts of law.

     23. Consent to Jurisdiction. The Company hereby irrevocably and unconditionally
consents to the jurisdiction of the courts located in the State of New York to construe and enforce
the covenants contained in this Agreement. The Company hereby irrevocably and unconditionally
waives any objection to the laying of venue of any Proceeding arising out of or relating to this
Agreement in the courts located in the State of New York, and hereby irrevocably and
unconditionally waives and agrees not to plead or claim that any such Proceeding brought in any
such court has been brought in an inconvenient forum.

     24. Agreement Governs. This Agreement is to be deemed consistent wherever possible
with relevant provisions of the Company’s Amended and Restated By-laws and Certificate of
Incorporation; however, in the event of a conflict between this Agreement and such provisions, the
provisions of this Agreement shall control.

[End of Text]

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     IN WITNESS WHEREOF, the parties hereto have executed this Director Indemnification Agreement
as of the day and year first above written.

	 	 	 	 	 
	 	THE COMPANY:

HAIGHTS CROSS COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ Linda Koons
 	 
	 	 	Name:  	Linda Koons 	 
	 	 	Title:  	EVP, Publisher 	 
	 
	 	INDEMNITEE:

 	 
	 	/s/ Paul J. Crecca
 	 
	 	Name:  	Paul J. Crecca 	 
	 	 	 
	 

8EX-10.1

 

Exhibit 10.1

September 21, 2007

Jay Larkin

Dear Jay:

It is with a great deal of pleasure that I am extending to you an offer to join the International
Fight League, Inc. (“IFL” or the “Company”) as President and Chief Operating Officer, pursuant to
the terms of this letter.  Your employment is effective as of September 21, 2007 and you will
report directly to the Company’s Chairman and Chief Executive Officer. In your position, you will
have responsibility and decision making authority for the day-to-day operations of the Company’s
business, including event staging and television and media production.

Your salary will initially be at the annual rate of $275,000 and we will pay you on a semi-monthly
basis in accordance with the Company’s regular payroll procedures. On the six month anniversary of
your start date, your annual salary will increase to $325,000. You will be eligible to receive an
annual bonus award based upon, and subject to, the achievement of target annual performance
objectives established by the Board or its Compensation Committee after consultation with you.

You will become eligible on your first day of employment to participate in the Company’s employee
benefit plans, including health care, life insurance and disability benefits, pursuant to the terms
of the relevant employee benefit plans.  You will be entitled to vacation and sick days pursuant to
Company policy, which initially allows for 2 weeks of paid vacation and five (5) personal days per
year. You will receive customary expense reimbursement pursuant to the Company’s regular executive
officer expense reimbursement policies, and when traveling on Company related business, you will be
entitled to one class upgrade from coach for air travel, with an airline of your selection, and
hotel accommodations at a hotel of your choice (other than at IFL events where IFL has a block of
rooms).

You will be granted stock options to purchase 500,000 shares of IFL common stock under the
Company’s 2006 Equity Incentive Plan (the “Plan”) (the “Initial Grant”).  In addition, you will be
eligible for an additional grant under the Plan of stock options for 250,000 shares of common stock
in January 2008 (the “Subsequent Grant”). The Initial Grant and the Subsequent Grant will expire
ten years after the date of the Initial Grant, and each will have an exercise price equal to the
Fair Market Value (as defined in the Plan) on the date of its grant. If the exercise price of the
Subsequent Grant is greater than the exercise price of the Initial Grant, then you will be entitled
to receive an award of restricted stock under the Plan for a number of shares of IFL common stock
(not to exceed 250,000 shares) equal to (i) the product of (x) the amount by which the exercise
price of the Subsequent Grant exceeds the exercise price of the Initial Grant, multiplied by (y)
250,000, divided by (ii) the exercise price of the Subsequent Grant. The Subsequent Grant, and any
restricted stock award required by the foregoing sentence, will be subject to approval by the
Company’s Board of Directors or a committee of the Board. All of the options and the restricted
stock granted under this paragraph will vest as to 1/12 of the shares covered thereby after
completion of your first three months of employment with the Company and as to 1/12 of the shares
covered thereby after the completion of each three-month period of employment thereafter; provided
that you are in the employ of the Company on each such vesting date (the first 1/12 of the shares
covered by the Subsequent Grant and any restricted stock awarded under this paragraph will vest
immediately upon their grant). In addition, the foregoing equity awards will fully vest upon a
“Change of Control Event” (as defined in the Plan). These grants will be evidenced by and be
subject to separate grant agreements the Company will deliver to you, and which will become
effective upon the Company’s receipt of a counter-signed copy from you. As permitted by the Plan,
you may elect to have the Company withhold shares of restricted stock as the shares vest in order
to pay withholding taxes which may be due upon vesting.

You will be an employee-at-will, which means that either IFL or you may terminate your employment
at any time, with or without “Cause” or “Good Reason” and with or without notice.  If your
employment is terminated for

 

 

Jay Larkin Employment Letter

September 21, 2007

Page 2

“Cause” or you resign without “Good Reason,” you will not receive the
post-termination payments described below.  “Cause” shall mean (a) gross negligence, or willful or
wanton breach, by you of any of your material duties to IFL, (b) gross malfeasance by you in the
performance of your material duties to IFL, (c) material violation by you of a material Company
policy, (d) conduct by you constituting fraud or dishonesty, or (e) you are convicted of a felony.
“Good Reason” shall mean a material breach of this agreement by IFL, including the failure to award
you
the Subsequent Grant and the restricted stock award in January 2008. If you believe that the
Company has breached this agreement and has thereby given you Good Reason to terminate you
employment hereunder, which would entitle you the severance benefits described below, you must
notify the Company of your entitlement to terminate your employment with the Company for Good
Reason within 90 days of the day on which you believe the Company has so breached this agreement,
and the Company will then have 60 days for its receipt of your notice to cure such breach to your
reasonable satisfaction.

If your employment with the Company is terminated by the Company without Cause, or if you terminate
your employment with the Company for Good Reason, the Company will continue to pay you your
then-rate of base salary for a period of three (3) months, at the same time and in the same amounts
as if your employment had not terminated..  Any such payments shall be contingent upon your signing
a general release in substantially the form attached hereto as Annex A and shall be less applicable
federal, state, and local taxes and other appropriate payroll deductions.  If your employment with
the Company terminates, you will be entitled to any rights guaranteed by the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (“COBRA”).  If your employment with the Company is
terminated by the Company without Cause or you terminate your employment for Good Reason, and you
elect to receive health insurance coverage in accordance with COBRA, (a) IFL will place you on
administrative leave as an inactive employee during your three month severance period, during which
IFL will continue to pay on your behalf any required premiums for such health insurance coverage,
and then (b) for any period thereafter in which you are eligible for COBRA benefits, IFL will pay
any required premiums for a three-month period following the date your three-month administrative
leave terminates.  Any such premium payments will also be contingent upon your signing a general
release in a form acceptable to the Company in substantially the form of Annex A. In addition, if
your employment is terminated by the Company without Cause or you terminate your employment with
the Company for Good Reason, your stock options, restricted stock and any other equity awards you
may have received will immediately vest, and you will have one year to exercise any unexercised
stock options. Notwithstanding anything to the contrary contained in this paragraph, should either
or both of the above severance benefits payable to you at a time when (i) any of the Company’s
common stock is publicly traded on an established securities market or otherwise, and (ii) you are
a “specified employee” of the Company within the meaning of Section 409A(a)(2)(B)(i) of the
Internal Revenue Code of 1986, as amended (the “Code”), constitute “nonqualified deferred
compensation” under Section 409A of the Code (“Section 409A”), its or their payment shall be
suspended for a period of six full calendar months, commencing with the first calendar month next
following the date of termination of your employment with the Company, and such suspended payment
amount will be paid to you in a lump sum payment on the first day following the end of such
required payment suspension period. However, and notwithstanding anything to the contrary
contained in the immediately preceding sentence, should either or both of such payments come within
the definition of “involuntary severance” under Section 409A, an amount up to the lesser of (a)
200% of your annual compensation from the Company for the calendar year preceding the calendar year
in which the termination of your employment with the Company occurs, or (b) 200% of the limitation
under Section 401(a)(17) of the Code on tax-qualified retirement plan compensation in effect for
the calendar year in which the termination of your employment with the Company occurs, shall be
excluded from “deferred compensation” as permitted under Section 409A and shall not be subject to
the above 6-month payment suspension requirement. Notwithstanding anything to the contrary in this
letter, the terms hereof will in all cases be interpreted consistent with the intention of both the
parties hereto that such terms comply with all applicable requirements of both Section 409A and
further, that neither the Company nor you, individually or in combination, will pay or accelerate
any payment hereunder except in compliance with Section 409A.

International Fight League

424 West 33rd Street, Suite 650

New York, NY 10001

(212) 356-4000

 

 

Jay Larkin Employment Letter

September 21, 2007

Page 3

Your employment with the Company is subject to your providing us with proper documentation that you
are authorized to work in the United States.  You will also be required to sign a separate confidentiality and works for
hire agreement.

We understand that you will be working on other projects while you are employed with IFL, and IFL
agrees you may do so, so long as those other projects do not interfere with your duties as
President and Chief Operating Officer of IFL and are not competitive with or adverse to the
interests of IFL.

This offer letter represents the entire agreement between you and the Company with respect to your
employment with the Company, and supersedes any and all other prior agreements or understandings,
whether oral or written, relating to your employment with the Company.

By signing this letter, you represent and warrant that you are not subject to any agreement, order,
judgment or decree of any kind which would prevent you from entering into employment with IFL or
from fully performing your duties as President and Chief Operating Officer pursuant to the terms
hereof.

If the foregoing is acceptable to you, please indicate your agreement and acceptance of the terms
hereof by signing two copies of this letter in the appropriate space.  Please return both copies to
me for execution as soon as possible and I will return a fully signed copy to you. 

 

Again, I am extremely enthusiastic about you joining the IFL team!

Sincerely,

International Fight League, Inc.

Gareb Shamus

Chairman and Chief Executive Officer

Agreed to and accepted by:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Jay Larkin

	 	 	 	Date	 	 

International Fight League

424 West 33rd Street, Suite 650

New York, NY 10001

(212) 356-4000

 

 

Annex A

Form of Release and Covenant Not to Sue

      (a) Executive, in consideration of the monies and other consideration paid to him pursuant to
this Agreement, releases and forever discharges the Company and the
Company’s current, former, and future controlling shareholders, subsidiaries, affiliates, related
companies, divisions, directors, trustees, officers, employees, agents, attorneys, successors, and
assigns (and the current, former and future controlling shareholders, directors, trustees,
officers, employees, agents, and attorneys of such controlling shareholders, subsidiaries,
affiliates, related companies and divisions), and all persons acting by, through, under, or in
concert with any of them (the Company, and the foregoing other persons and entities are hereinafter
defined separately and collectively as the “Releasees”), from all actions, causes of
action, claims, and demands whatsoever, whether known or unknown,
in law or equity, whether statutory or common law, whether federal, state, local, or otherwise, for
any claims related to, or arising out of any aspect of Executive’s employment with the Company, any
agreement concerning such employment, or the termination of such employment, including, but not
limited to, any and all claims of wrongful discharge or breach of contract, any and all claims for
equitable estoppel, any and all claims for employee benefits, including, but not limited to, any
and all claims under the Employee Retirement Income Security Act of 1974, as amended, the Family
and Medical Leave Act of 1993, and any and all claims of employment discrimination on any basis or
of unlawful retaliation, including, but not limited to, any and all claims under Title VII of the
Civil Rights Act of 1964, as amended, under the Age Discrimination in Employment Act of 1967, as
amended (“ADEA”), under the Civil Rights Act of 1866, 42 U.S.C. § 1981, as amended, under
the Americans With Disabilities Act of 1990, under the Civil Rights Act of 1991, under the
Sarbanes-Oxley Act of 2002, under the Immigration Reform and Control Act of 1986, as amended, under
the New York State Labor Law, as amended, under the New York State Human Rights Law, as amended,
and under the New York City Human Rights Law, as amended; and any claim for attorneys’ fees,
experts’ fees, disbursements or costs; which against the Releasees, Executive, Executive’s heirs,
executors, administrators, or assigns ever had, now have, or hereafter may have, by reason of any
matter, cause, or thing whatsoever from the beginning of the world to the date of Executive’s
execution of this Agreement.

           (b) Notwithstanding anything to the contrary set forth in paragraph (a), the Company and
Executive agree that, by entering into this Agreement: (x) Executive does not waive rights or
claims that may arise after the date the Agreement is executed; or (y) Executive does not waive or
release the Releasees, or any of them, from claims that may arise under this Agreement.

           (c) Except as set forth on Schedule A attached hereto, Executive represents and warrants that
he has never commenced or filed, and Executive covenants and agrees never to commence, file, aid,
or in any way prosecute or cause to be commenced or prosecuted, any claims or actions against the
Releasees or any of them relating to employment matters.

           (d) Executive further acknowledges, represents, and warrants that Executive has not reported
any purported improper, unethical or illegal conduct or activities by the Company or any Company
representative to any supervisor, manager, agent or other representative of the Company (including
its Board of Directors) or to any member of the Company’s legal or compliance personnel.
Notwithstanding the foregoing, nothing in this Agreement shall prohibit or restrict Executive from
(i) making any disclosure of information required by law; (ii) providing information to, or
testifying or otherwise assisting in, any investigation or proceeding brought by any federal, state
or local regulatory or law enforcement agency or legislative body, any self-regulatory
organization, or the Company’s legal or compliance personnel or to legal advisers and consultants
retained by Executive for such purposes; or (iii) testifying, participating in or otherwise
assisting in a proceeding relating to an alleged violation of the Sarbanes-Oxley Act of 2002, or
any federal, state or municipal law relating to fraud or any rule or regulation of the Securities
and Exchange Commission, or any self-regulatory organization.

           (e) Executive agrees that neither he nor any person authorized by him to act on his behalf
shall, directly or indirectly, intentionally defame or disparage the Company or any director or
officer of the Company to the media or in a public forum or, with the intent to damage the Company
or any director or officer of the Company. Neither the Company (acting in a formal capacity
through an authorized representative) nor any officer or director of the Company shall, directly or
indirectly, intentionally defame or disparage Executive to the media or in a public forum or, with
the intent to damage Executive.

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