Document:

Document

			
	Exhibit 10.1

March 17, 2022

Mr. Jamaal Lesane
c/o Madison Square Garden Sports Corp. 
Two Pennsylvania Plaza
New York, NY 10121

Dear Jamaal:    

This letter agreement (the “Agreement”), effective as of March 21, 2022 (the “Effective Date”), will confirm the terms of your employment with Madison Square Garden Sports Corp. (the “Company”) following the Effective Date.

1. Your title will be Executive Vice President and General Counsel and you will report to the President & Chief Executive Officer of the Company.  You agree to devote all of your business time and attention to the business and affairs of the Company and to perform your duties in a diligent, competent, professional and skillful manner and in accordance with applicable law.  You shall not undertake any outside business commitments without the Company’s consent.  

2. Your annual base salary will be not less than $550,000 annually, paid bi-weekly, subject to annual review and potential increase by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) in its discretion.  The Compensation Committee will review your compensation package on an annual basis to ensure that you are paid consistently with other similarly situated executives as well as external peers. 

3. You will also participate in our discretionary annual bonus program with an annual target bonus opportunity equal to not less than 75% of your annual base salary.  Bonus payments depend on a number of factors including Company, unit and individual performance.  However, the decision of whether or not to pay a bonus, and the amount of that bonus, if any, is made by the Compensation Committee in its sole discretion.  Annual bonuses are typically paid early in the subsequent fiscal year.  Except as otherwise provided herein, in order to receive a bonus, you must be employed by the Company at the time bonuses are being paid.  

4. You will also, subject to your continued employment by the Company and actual grant by the Compensation Committee, participate in such equity and other long-term incentive programs that are made available in the future to similarly situated executives at the Company. It is expected that such awards will consist of annual grants of cash and/or equity awards with an annual target value of not less than $550,000, all as determined by the Compensation Committee in its discretion.  With respect to the Company’s current fiscal year (ending June 30, 2022), you will 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 2

be entitled to a mid-year long-term incentive grant representing the increase to your annual target pro-rated for the final three months of the fiscal year.  All awards described in this Paragraph, in addition to being subject to actual grant by the Compensation Committee, would be pursuant to the applicable plan document and would be subject to any terms and conditions established by the Compensation Committee in its sole discretion that would be detailed in separate agreements you would receive after any award is actually made; provided, however, that such terms and conditions shall be consistent with those in awards granted to similarly situated executives. Long-term incentive awards are currently expected to be subject to three-year vesting.            

5. You will also be eligible to participate in our standard benefits program, subject to meeting the relevant eligibility requirements, payment of the required premiums, and the terms of the plans themselves.  We currently offer medical, dental, vision, life, and accidental death and dismemberment insurance; short- and long- term disability insurance; a savings and retirement program; and ten paid holidays.  You will also to be eligible for flexible time off in accordance with Company policy.

6. If your employment with the Company is terminated on or prior to March 20, 2025 (the “Scheduled Expiration Date”) (i) by the Company (other than for “Cause”); or (ii) by you for “Good Reason” (other than if “Cause” then exists); then, subject to your execution and delivery, within 60 days after the date of termination of your employment, and non-revocation (within any applicable revocation period) of the Separation Agreement (as defined below), the Company will provide you with the following:
    
(a)    Severance in an amount to be determined by the Company (the “Severance Amount”), but in no event less than two (2) times the sum of your annual base salary and your annual target bonus as in effect at the time your employment terminates.  Sixty percent (60%) of the Severance Amount will be payable to you on the six-month anniversary of the date your employment so terminates (the “Termination Date”) and the remaining forty percent (40%) of the Severance Amount will be payable to you on the twelve-month anniversary of the Termination Date;

(b)    Any unpaid annual bonus for the Company’s fiscal year prior to the fiscal year which includes your Termination Date, and a pro rated bonus based on the amount of your base salary actually earned by you during the Company’s fiscal year through the Termination Date, each of which will be paid to you when such bonuses are generally paid to similarly situated active executives and will be based on your then current annual target bonus as well as Company and your business unit performance for the applicable fiscal year as determined by the Company in its sole discretion, but without adjustment for your individual performance; 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 3

(c)    Each of your outstanding long-term cash awards, if any, granted under the plans of the Company shall immediately vest in full and shall be payable to you at the same time as such awards are paid to active executives of the Company and the payment amount of such award shall be to the same extent that other similarly situated active executives receive payment as determined by the Compensation Committee (subject to satisfaction of any applicable performance criteria but without adjustment for your individual performance); 

(d)    (i) All of the time-based restrictions on each of your outstanding restricted stock or restricted stock unit awards granted to you under the plans of the Company shall immediately be eliminated, (ii) deliveries with respect to your restricted stock that are not subject to performance criteria or are subject to performance criteria that have previously been satisfied (as certified by the Compensation Committee) shall be made immediately after the effective date of the Separation Agreement, (iii) payment and deliveries with respect to your restricted stock units that are not subject to performance criteria or are subject to performance criteria that have previously been satisfied (as certified by the Compensation Committee) shall be made on the 90th day after the termination of your employment and (iv) payments or deliveries with respect to your restricted stock and restricted stock units that are subject to performance criteria that have not yet been satisfied shall be made on the 90th day after the applicable performance criteria is certified by the Compensation Committee as having been satisfied; and  

(e)    Each of your outstanding stock options and stock appreciation awards, if any, under the plans of the Company shall immediately vest and become exercisable, and you shall have the right to exercise each of those options and stock appreciation awards for the remainder of the term of such option or award.            

If you die after a termination of your employment that is subject to this Paragraph 6, your estate or beneficiaries will be provided with any remaining benefits and rights under this Paragraph 6.

7.  If you cease to be an employee of the Company prior to the Scheduled Expiration Date as a result of your death or your Disability (as defined in the Company’s Long Term Disability Plan), and at such time Cause does not exist then, subject (other than in the case of death) to your execution and delivery, within 60 days after the date of termination of your employment, and non-revocation (within any applicable revocation period) of the Separation Agreement, you or your estate or beneficiary shall be provided with the benefits and rights set forth in Paragraphs 6(b), (d) and (e) above, and each of your outstanding long-term cash awards, if any, granted under the plans of the Company shall immediately vest in full, whether or not subject to performance criteria and shall be payable on the 90th day after the termination of your employment; provided, that if any such award is subject to any performance criteria, then (i) if 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 4

the measurement period for such performance criteria has not yet been fully completed, then the payment amount shall be at the target amount for such award and (ii) if the measurement period for such performance criteria has already been fully completed, then the payment of such award shall be at the same time and to the extent that other similarly situated executives receive payment as determined by the Compensation Committee (subject to satisfaction of the applicable performance criteria).

8.  For purposes hereof, “Separation Agreement” shall mean the Company’s standard severance agreement (modified to reflect the terms of this Agreement) which will include, without limitation, the provisions set forth in Paragraphs 6, 7 and 9 hereof and Annex A hereto regarding non-compete (limited to one year), non-disparagement, non-hire/non-solicitation, confidentiality (including, without limitation, the last paragraph of Section 3 of Annex A), and further cooperation obligations and restrictions on you (with Company reimbursement of your associated expenses and payment for your services as described in Annex A in connection with any required post-employment cooperation) as well as a general release by you of the Company and its affiliates (and their respective directors and officers), but shall otherwise contain no post-employment covenants unless agreed to by you.  The Company shall provide you with the form of Separation Agreement within seven days of your termination of employment.  For avoidance of doubt, your rights of indemnification under the Company’s Amended and Restated Certificate of Incorporation, under your indemnification agreement with the Company and under any insurance policy, or under any other resolution of the Board of Directors of the Company shall not be released, diminished or affected by any Separation Agreement or release or any termination of your employment. 

9.   Except as otherwise set forth in Paragraphs 6 and 7 hereof, in connection with any termination of your employment, your then outstanding equity and cash incentive awards shall be treated in accordance with their terms and, other than as provided in this Agreement, you shall not be eligible for severance benefits under any other plan, program or policy of the Company.  Nothing in this Agreement is intended to limit any more favorable rights that you may be entitled to under your equity and/or cash incentive award agreements, including, without limitation, your rights in the event of a termination of your employment, a “Going Private Transaction” or a “Change of Control” (as those terms are defined in the applicable award agreement).  

10.   For purposes of this Agreement, “Cause” means your (i) commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against the Company or an affiliate thereof, or (ii) commission of any act or omission that results in a conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.

For purposes of this Agreement, “Good Reason” means that (1) without your written consent, (A) your annual base salary or annual target bonus (as each may be increased from time to time in the Compensation Committee’s sole discretion) is reduced, (B) your title (as in effect from 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 5

time to time) is diminished, (C) you report to someone other than to the President & Chief Executive Officer of the Company, (D) you are no longer the Company’s most senior legal officer, (E) the Company requires that your principal office be located outside of the Borough of Manhattan, or (F) the Company materially breaches its obligations to you under this Agreement, (2) you have given the Company written notice, referring specifically to this Agreement and definition, that you do not consent to such action, (3) the Company has not corrected such action within 15 days of receiving such notice, and (4) you voluntarily terminate your employment with the Company within 90 days following the happening of the action described in subsection (1) above.

11.  This Agreement does not constitute a guarantee of employment for any definite period.  Your employment is at will and may be terminated by you or the Company at any time, with or without notice or reason.  

12.  The Company may withhold from any payment due to you any taxes required to be withheld under any law, rule or regulation.  If any payment otherwise due to you hereunder would result in the imposition of the excise tax imposed by Section 4999 of the Code, the Company will instead pay you either (i) such amount or (ii) the maximum amount that could be paid to you without the imposition of the excise tax, depending on whichever amount results in your receiving the greater amount of after-tax proceeds.  In the event that the payments and benefits payable to you would be reduced as provided in the previous sentence, then such reduction will be determined in a manner which has the least economic cost to you and, to the extent the economic cost is equivalent, such payments or benefits will be reduced in the inverse order of when the payments or benefits would have been made to you (i.e. later payments will be reduced first) until the reduction specified is achieved.  If the Company elects to retain any accounting or similar firm to provide assistance in calculating any such amounts, the Company shall be responsible for the costs of any such firm.

13.  It is intended that this Agreement will comply with Section 409A to the extent this Agreement is subject thereto, and that this Agreement shall be interpreted on a basis consistent with such intent.  If and to the extent that any payment or benefit under this Agreement, or any plan, award or arrangement of the Company or its affiliates, constitutes “non-qualified deferred compensation” subject to Section 409A and is payable to you by reason of your termination of employment, then (a) such payment or benefit shall be made or provided to you only upon a “separation from service” as defined for purposes of Section 409A under applicable regulations and (b) if you are a “specified employee” (within the meaning of Section 409A as determined by the Company), such payment or benefit shall not be made or provided before the date that is six months after the date of your separation from service (or your earlier death). Any amount not paid or benefit not provided in respect of the six month period specified in the preceding sentence will be paid to you, together with interest on such delayed amount at a rate equal to the average of the one-year LIBOR fixed rate equivalent for the ten business days prior to the date of your employment termination, in a lump sum or provided to you as soon as practicable after the 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 6

expiration of such six month period.  Each payment or benefit provided under this Agreement shall be treated as a separate payment for purposes of Section 409A to the extent Section 409A applies to such payment.
  
14.  To the extent you are entitled to any expense reimbursement from the Company that is subject to Section 409A, (i) the amount of any such expenses eligible for reimbursement in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except under any lifetime limit applicable to expenses for medical care), (ii) in no event shall any such expense be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expense, and (iii) in no event shall any right to reimbursement be subject to liquidation or exchange for another benefit.

15.  The Company will not take any action, or omit to take any action, that would expose any payment or benefit to you to the additional tax of Section 409A, unless (i) the Company is obligated to take the action under an agreement, plan or arrangement to which you are a party, (ii) you request the action, (iii) the Company advises you in writing that the action may result in the imposition of the additional tax and (iv) you subsequently request the action in a writing that acknowledges you will be responsible for any effect of the action under Section 409A.  The Company will hold you harmless for any action it may take or omission in violation of this Paragraph 15, including any attorney’s fees you may incur in enforcing your rights.

16.  It is our intention that the benefits and rights to which you could become entitled in connection with termination of employment be exempt from or comply with Section 409A.  If you or the Company believes, at any time, that any of such benefit or right is not exempt or does not comply, it will promptly advise the other and will negotiate reasonably and in good faith to amend the terms of such arrangement such that it complies (with the most limited possible economic effect on you and on the Company).  

17. This Agreement is personal to you and without the prior written consent of the Company shall not be assignable by you.  This Agreement shall inure to the benefit of and be enforceable by your legal representatives.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. The rights or obligations of the Company under this Agreement may only be assigned or transferred pursuant to a merger or consolidation in which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of Company; provided, however, that the assignee or transferee is the successor to all or substantially all of the assets of Company and such assignee or transferee assumes the liabilities and duties of Company, as contained in this Agreement, either contractually or as a matter of law.

18.  To the extent permitted by law, you and the Company waive any and all rights to a jury trial with respect to any matter relating to this Agreement (including the covenants set forth in Annex A hereof). This Agreement will be governed by and construed in accordance 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 7

with the law of the State of New York applicable to contracts made and to be performed entirely within that State.

19. Both the Company and you hereby irrevocably submit to the jurisdiction of the courts of the State of New York and the federal courts of the United States of America in each case located in the City of New York, Borough of Manhattan, solely in respect of the interpretation and enforcement of the provisions of this Agreement, and each party hereby waives, and agrees not to assert, as a defense that either party, as appropriate, is not subject thereto or that the venue thereof may not be appropriate.  You and the Company each agree that mailing of process or other papers in connection with any such action or proceeding in any manner as may be permitted by law shall be valid and sufficient service thereof.

20.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.  It is the parties’ intention that this Agreement not be construed more strictly with regard to you or the Company.

21.  This Agreement reflects the entire understanding and agreement of you and the Company with respect to the subject matter hereof and supersedes all prior understandings or agreements relating thereto.  

22.  This Agreement will automatically terminate, and be of no further force or effect, on the Scheduled Expiration Date; provided, however, that the provisions of Paragraphs 6 through 9, 12 through 22 and Annex A, and any amounts earned but not yet paid to you pursuant to the terms of this Agreement as of the Scheduled Expiration Date shall survive the termination of the Agreement and remain binding on you and the Company in accordance with their terms. 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 8

Sincerely,

MADISON SQUARE GARDEN SPORTS CORP. 

/s/ Andrew Lustgarten                                     
By: Andrew Lustgarten
Title:  President & Chief Executive Officer
        

Accepted and Agreed:

/s/ Jamaal Lesane      
Jamaal Lesane

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 9

 
ANNEX A
ADDITIONAL COVENANTS
(This Annex constitutes part of the Agreement) 

You agree to comply with the following covenants in addition to those set forth in the Agreement. 

1. CONFIDENTIALITY

You agree to retain in strict confidence and not divulge, disseminate, copy or disclose to any third party any Confidential Information, other than for legitimate business purposes of the Company and its subsidiaries. As used herein, “Confidential Information” means any non-public information that is material or of a confidential, proprietary, commercially sensitive or personal nature of, or regarding, the Company or any of its subsidiaries or any current or former director, officer or member of senior management of any of the foregoing (collectively “Covered Parties”). The term Confidential Information includes information in written, digital, oral or any other format and includes, but is not limited to (i) information designated or treated as confidential; (ii) budgets, plans, forecasts or other financial or accounting data; (iii) customer, guest, fan, vendor, sponsor, marketing affiliate or shareholder lists or data; (iv) technical or strategic information regarding the Covered Parties’ advertising, sports, entertainment, theatrical, or other businesses; (v) advertising, sponsorship, business, sales or marketing tactics, strategies or information; (vi) policies, practices, procedures or techniques; (vii) trade secrets or other intellectual property; (viii) information, theories or strategies relating to litigation, arbitration, mediation, investigations or matters relating to governmental authorities; (ix) terms of agreements with third parties and third party trade secrets; (x) information regarding employees, talent, players, coaches, agents, consultants, advisors or representatives, including their compensation or other human resources policies and procedures; (xi) information or strategies relating to any potential or actual business development transactions and/or any potential or actual business acquisition, divestiture or joint venture, and (xii) any other information the disclosure of which may have an adverse effect on the Covered Parties’ business reputation, operations or competitive position, reputation or standing in the community. 

If disclosed, Confidential Information or Other Information could have an adverse effect on the Company’s standing in the community, its business reputation, operations or competitive position or the standing, reputation, operations or competitive position of any of its affiliates, subsidiaries, officers, directors, employees, coaches, consultants or agents or any of the Covered Parties. 

Notwithstanding the foregoing, the obligations of this section, other than with respect to subscriber information, shall not apply to Confidential Information which is: 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 10

a) already in the public domain or which enters the public domain other than by your breach of this Paragraph 1; 

b) disclosed to you by a third party with the right to disclose it in good faith; or

c) specifically exempted in writing by the Company from the applicability of this Agreement.

Notwithstanding anything elsewhere in this Agreement, including this Paragraph 1 and Paragraph 3 below, you are authorized to make any disclosure required of you by any federal, state and local laws or judicial, arbitral or governmental agency proceedings (including making truthful statements in connection with a judicial or arbitral proceeding to enforce your rights under this Agreement, to the extent reasonably required and made in good faith), after, to the extent legal and practicable, providing the Company with prior written notice and an opportunity to respond prior to such disclosure. In addition, this Agreement in no way restricts or prevents you from providing truthful testimony concerning the Company to judicial, administrative, regulatory or other governmental authorities. 

2. NON-COMPETE

You acknowledge that due to your executive position in the Company and the knowledge of the Company’s and its affiliates’ confidential and proprietary information which you will obtain during the term of your employment hereunder, your employment by certain businesses would be irreparably harmful to the Company and/or its affiliates. During your employment with the Company and thereafter through the first anniversary of the date on which your employment with the Company has terminated for any reason, you agree, to the extent permissible under applicable rules of professional responsibility, not to (other than with the prior written consent of the Company), become employed by any Competitive Entity (as defined below). A “Competitive Entity” shall mean any NHL or NBA team located in New York, New Jersey or Connecticut.  The ownership by you of not more than 1% of the outstanding equity of any publicly traded company shall not, by itself, be a violation of this Paragraph.  

3.  ADDITIONAL UNDERSTANDINGS

You agree, for yourself and others acting on your behalf, that you (and they) have not disparaged and will not disparage, make negative statements about (either “on the record” or “off the record”) or act in any manner which is intended to or does damage to the good will of, or the business or personal reputations of the Company or any of its incumbent or former officers, directors, agents, consultants, employees, successors and assigns or any of the Covered Parties. 

The Company agrees that, except as necessary to comply with applicable law or the rules of the New York Stock Exchange or any other stock exchange on which the Company’s stock may be 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 11

traded (and any public statements made in good faith by the Company in connection therewith), it and its corporate officers and directors, employees in its public relations department or third party public relations representatives retained by the Company will not disparage you or make negative statements in the press or other media which are damaging to your business or personal reputation. In the event that the Company so disparages you or makes such negative statements, then notwithstanding the “Additional Understandings” provision to the contrary, you may make a proportional response thereto. 

In addition, you agree that the Company is the owner of all rights, title and interest in and to all documents, tapes, videos, designs, plans, formulas, models, processes, computer programs,  
inventions (whether patentable or not), schematics, music, lyrics and other technical, business, financial, advertising, sales, marketing, customer or product development plans, forecasts, strategies, information and materials (in any medium whatsoever) developed or prepared by you or with your cooperation in connection with your employment by the Company (the “Materials”). The Company will have the sole and exclusive authority to use the Materials in any manner that it deems appropriate, in perpetuity, without additional payment to you. 

If requested by the Company, you agree to deliver to the Company upon the termination of your employment, or at any earlier time the Company may request, all memoranda, notes, plans, files, records, reports, and software and other documents and data (and copies thereof regardless of the form thereof (including electronic copies)) containing, reflecting or derived from Confidential Information or the Materials of the Company or any of its affiliates which you may then possess or have under your control. If so requested, you shall provide to the Company a signed statement confirming that you have fully complied with this Paragraph.  Notwithstanding the foregoing, you shall be entitled to retain your contacts, calendars and personal diaries and any materials needed for your tax return preparation or related to your compensation.

In addition, you agree for yourself and others acting on your behalf, that you (and they) shall not, at any time, participate in any way in the writing or scripting (including, without limitation, any “as told to” publications) of any book,  periodical story, movie, play, or other similar written or theatrical work or video that (i) relates to your services to the Company or any of its affiliates or (ii) otherwise refers to the Company or its respective businesses, activities, directors, officers, employees or representatives (other than identifying your biographical information), without the prior written consent of the Company.

4.  FURTHER COOPERATION

Following the date of termination of your employment with the Company (the “Expiration Date”), you will no longer provide any regular services to the Company or represent yourself as a Company agent. If, however, the Company so requests, you agree to cooperate fully with the Company in connection with any matter with which you were involved prior to the Expiration Date, or in any litigation or administrative proceedings or appeals (including any preparation 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 12

therefore) where the Company believes that your personal knowledge, attendance and participation could be beneficial to the Company. This cooperation includes, without limitation, participation on behalf of the Company in any litigation or administrative proceeding brought by any former or existing Company employees, representatives, agents or vendors. The Company will pay you for your services rendered under this provision at the rate of $5,000 per day for each day or part thereof, within 30 days of the approval of the invoice therefor. 

The Company will provide you with reasonable notice in connection with any cooperation it requires in accordance with this section and will take reasonable steps to schedule your cooperation in any such matters so as not to materially interfere with your other professional and personal commitments. The Company will reimburse you for any reasonable out-of-pocket expenses you reasonably incur in connection with the cooperation you provide hereunder as soon as practicable after you present appropriate documentation evidencing such expenses. You agree to provide the Company with an estimate of such expense before you incur the same. 

5.  NON-HIRE OR SOLICIT

You agree not to hire, seek to hire, or cause any person or entity to hire or seek to hire (without the prior written consent of the Company), directly or indirectly (whether for your own interest or any other person or entity’s interest) any person who is or was in the prior six months an employee of the Company, or any of its subsidiaries, until the first anniversary of the date of your termination of employment with the Company. This restriction does not apply to any former employee who was discharged by the Company or any of its affiliates. In addition, this restriction will not prevent you from providing references. If you remain continuously employed with the Company through the Scheduled Expiration Date, then this agreement not to hire or solicit will expire on the Scheduled Expiration Date.

6.  ACKNOWLEDGMENTS

You acknowledge that the restrictions contained in this Annex A, in light of the nature of the Company’s business and your position and responsibilities, are reasonable and necessary to protect the legitimate interests of the Company. You acknowledge that the Company has no adequate remedy at law and would be irreparably harmed if you breach or threaten to breach the provisions of this Annex A, and therefore agree that the Company shall be entitled to injunctive relief, to prevent any breach or threatened breach of any of those provisions and to specific performance of the terms of each of such provisions in addition to any other legal or equitable remedy it may have. You further agree that you will not, in any equity proceeding relating to the enforcement of the provisions of this Annex A, raise the defense that the Company has an adequate remedy at law. Nothing in this Annex A shall be construed as prohibiting the Company from pursuing any other remedies at law or in equity that it may have or any other rights that it may have under any other agreement. If it is determined that any of the provisions of this Annex A or any part thereof, is unenforceable because of the duration or scope (geographic or 

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000

Mr. Jamaal Lesane
Page 13

otherwise) of such provision or because of applicable rules of professional responsibility, it is the intention of the parties that the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced. 

7. SURVIVAL

The provisions of this Annex A shall survive any termination of your employment by the Company or the expiration of the Agreement except as otherwise provided herein. 
  

MADISON SQUARE GARDEN SPORTS CORP.
TWO PENNSYLVANIA PLAZA, NEW YORK, NY 10121-0091 
TEL 212-465-6000ex_365378.htm

Exhibit 10.2

 

PRIVATE AND CONFIDENTIAL

 

	
			To:

				
			DNB Bank ASA, London Branch

			8th Floor, The Walbrook Building

			25 Walbrook

			London EC4N 8AF

			 

			(as Agent under the Revolving Facility Agreement referred to below)

			

 

	
			Attn:

				
			Kay Newman

			

 

	
			Fax:

				
			+ 44 207 283 6931

			

 

	
			Email:

				
			cmoalondon@dnb.no

			

 

10 March 2022

 

Dear Sirs or Madams,

 

CONSENT REQUEST LETTER

 

We refer to the revolving facility agreement originally dated 1 October 2021 between, among others, Expro Group Holdings N.V. (f/k/a Frank’s International N.V.) as the Parent, the Borrowers and Guarantors party thereto, and DNB Bank ASA, London Branch as Agent (as amended, restated, supplemented, waived or otherwise modified from time to time prior to the date of this letter, the “Revolving Facility Agreement”).

 

Unless otherwise defined in this letter or unless the context otherwise requires, capitalised terms defined in the Revolving Facility Agreement shall have the same meaning when used in this letter.

 

Clause 1.2 (Construction) of the Revolving Facility Agreement shall apply in the interpretation hereof as if expressly set out herein.

 

	
			1. 

				
			BACKGROUND INFORMATION

			

 

The Parent desires to effectuate the following transactions, for which it requires the necessary support from the Lenders, as further described below:

 

	 	
			A)

				
			Reverse Factoring

			

 

Expro Americas, LLC, one of the Guarantors under the Revolving Facility Agreement and which has pledged substantially all its assets to secure the loans and other extensions of credit thereunder, at the request of one of its customers, Eni Petroleum Co. Inc. (“Eni”), is looking to participate in Eni’s reverse factoring arrangement with JPMorgan Chase Bank, N.A. (“JPM”). Eni is requesting all its suppliers to participate in such reverse factoring, as a result of which, Expro Americas, LLC would receive payment on its receivables against Eni immediately upon transfer the transfer or such receivables to JPM, instead of within 180-day payment period requested by Eni. Therefore, such reverse factoring is to the benefit of both Eni and Expro Americas, LLC.

 

 

 

 

 

The Revolving Facility Agreement permits non-recourse factoring on arm’s length terms for cash but only to the extent the underlying receivables are not subject to Transaction Security. Therefore, the Parent desires to obtain the consent of the Lenders for Expro Americas, LLC to be able to participate in such reverse factoring arrangement in respect of the Eni receivables in an aggregate amount up to USD5,500,000 per financial year and to permit the Agent to sign any releases, confirmations and other instruments, and take any other actions, as may be reasonably requested by the Parent, Expro Americas, LLC or JPM in order to effectuate or evidence the release of such receivables from the Transaction Security upon transfer to JPM, including the letter in substantially the form attached hereto as Exhibit A (the foregoing being referred to as the “Eni Factoring Consent”).

 

	 	
			B)

				
			Internal Reorganization

			

 

The Parent and its Subsidiaries intend to enter into certain internal corporate reorganizations steps to optimize operations and simplify the Group’s structure. This internal reorganization, among other things, seeks to simplify the corporate structure by eliminating certain holding companies (including, Frank’s International LP B.V., Frank’s International Partners B.V. and Frank’s International Management B.V.) and reducing inefficiencies and burdens of the current structure, and to enhance the efficiency of the US group treasury functions and maximize access to certain US tax attributes, including by transferring certain entities to Expro US through a newly-formed US entity (“US Newco”). Such reorganization and its various steps are more fully described in the restructuring memo from KPMG attached hereto as Exhibit B (the “Expro Reorganization”).

 

The Expro Reorganization is not intended to impact the guarantor and collateral position of the Lenders as a whole. The newly-formed US Newco is intended to become guarantor under the Revolving Facility Agreement and pledge substantially all its assets, such that any assets of the Obligors that constituted Transaction Security will continue to be so after giving effect to the Expro Reorganization.

 

In light of the foregoing, the Parent requests the consent of the Lenders to consummate the Expro Reorganization, as well as to any necessary amendments to the Revolving Facility Agreement in connection therewith (as further described below) and to authorize the Agent to enter into any agreements, deliver any instruments, release any possessory collateral and carry out any other actions as may be necessary to implement the Expro Reorganization (the foregoing being referred to as the “Reorganization Consent”).

 

	 	
			C)

				
			Dividend/Stock Buybacks Basket

			

 

The Revolving Facility Agreement prohibits all dividends and distributions by the Parent. Given the nature of the company, flexibility for an agreed basket for dividends and other distributions and stock redemptions during the life of the facility, particularly for share buybacks, is important to the business. Therefore, the Parent hereby requests the Lenders to consent to the addition of a general dividend basket of USD50,000,000 (or its equivalent in other currencies) for dividends and share redemptions to the Revolving Facility Agreement subject to pro forma compliance with the Senior Leverage financial covenant ratio test (the foregoing being referred to as the “Share Buyback Consent”, and together with the Eni Factoring Consent and the Reorganization Consent, the “Consents”).

 

2

 

 

	
			2.

				
			REQUIRED AMENDMENTS AND CONSENTS

			

 

Further to the foregoing and pursuant to Clause 41 (Amendments and Waivers) of the Revolving Facility Agreement, we hereby request the consent of the Lenders in respect of the following:

 

	 	
			(a)

				
			The Eni Factoring Consent.

			

 

	 	
			(b)

				
			the Reorganization Consent; provided that no later than 60 days of completion of the Expro Reorganization (or such later time as the Agent may agree in its sole discretion), the Parent and its Subsidiaries shall (x) cause US Newco to become an Additional Guarantor, grant the applicable Transaction Security held by it as a result of the Expro Reorganization and accede to the Intercreditor Agreement, in accordance Clause 31.4 (Additional Guarantors), and (y) carry out any other actions necessary to effectively preserve the Transaction Security after giving effect to the Expro Reorganization by entering into such security agreements or accessions and joinders to security documents as may be reasonably agreed between counsel to the Parent and White & Case LLP, as counsel to the Lenders, in each case in accordance with the terms of the Revolving Facility Agreement, including the Agreed Security Principles. We also request the consent of the Lenders to any change in tax residency of the Parent occurring after the Expro Reorganization (which, for the avoidance of doubt, may not be a jurisdiction that is an Original Jurisdiction) to the extent such change were otherwise deemed to violate any provisions regarding Centre of Main Interests contained in the Revolving Facility Agreement, and such consent shall be deemed to be part of the Reorganization Consent.

			

 

Additionally, in furtherance of the Expro Reorganization and in light of the intended dissolution of the entities referred to herein, to amend the definition of “Change of Control” by removing paragraphs (b), (c) and (d) from such defined term as follows:

 

“Change of Control” means

 

	 	
			(a)

				
			any person or group of persons acting in concert who do not control the Group as of the date of this Agreement acquire (directly or indirectly) beneficially more than 30 per cent. of the issued voting share capital of the Parent where acting in concert means a group of persons who, pursuant to an agreement or understanding (whether formal or informal), actively co‐operate, through the acquisition and/or ownership of voting shares in the Parent, to obtain or consolidate control (directly or indirectly) of the Parent provided that the persons voting in the same or consistent manner at any general meeting of the Parent will not be considered to be acting in concert by virtue only of exercising their votes in such manner;

			

 

	 	
			(b)

				
			the Parent ceasing to own and control all of the shares in Frank’s International LP B.V.; 

			

 

3

 

 

	 	
			(c)

				
			the Parent ceasing to own and control all of the shares in Frank’s International Partners B.V.; 

			

 

	 	
			(d)

				
			the Parent ceasing to own and control all of the shares in Blackhawk Group Holdings LLC; or 

			

 

	 	
			(b)

				
			the Parent or another Obligor ceasing to own and control all of the shares in Frank’s International (Gibraltar) Limited, other than pursuant to a Third Party Disposal or paragraph (d) of the definition of “Permitted Transaction”; or

			

 

	 	
			(c)

				
			the Parent ceasing to own and control all of the shares in New Eagle Holdings Limited.

			

 

Additionally, to continue to meet the ongoing operational needs of the Group with respect to the issuance of Letters of Credit and to increase the efficiency of the issuance of Letters of Credit after giving effect to the Expro Reorganization, to amend Clause 6.2 (Delivery of a Utilisation Request for Letters of Credit), paragraph (b) of Clause 6.3 (Completion of a Utilisation Request for Letters of Credit) and paragraphs (a) through (d) of Clause 7.3 (Indemnities) of the Revolving Facility Agreement to add the highlighted text as follows and such other amendments as may be requested by the Fronting Bank and agreed by the Parent to increase the efficiency of the issuances of Letters of Credit, including but not limited to increasing the threshold in the definition of Facility B Letters of Credit from $500,000 to $1,000,000:

 

6.2         Delivery of a Utilisation Request for Letters of Credit

 

A Borrower (or the Parent on its behalf) may request a Letter of Credit to be issued for itself (including for and on behalf of a Subsidiary of the Parent) by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time. For the avoidance of doubt, the obligations of the Borrower (or the Parent) under this Agreement shall not be affected in any way whatsoever when a Letter of Credit is issued for and on behalf of a Subsidiary of the Parent and that Subsidiary shall have no rights, remedies nor obligations under this Agreement. This Agreement does not purport to regulate the relations between any Borrower or the Parent and their Subsidiaries for and on behalf of which a Letter of Credit is issued pursuant to this Agreement.

 

6.3         Completion of a Utilisation Request for Letters of Credit

 

Each Utilisation Request for a Letter of Credit is irrevocable and will not be regarded as having been duly completed unless:

 

	 	
			(a)

				
			it specifies that it is for a Letter of Credit;

			

 

	 	
			(b)

				
			it identifies the Borrower of the Letter of Credit and if the Letter of Credit is issued for that Borrower for and on behalf of a Subsidiary of the Parent, that Borrower shall (a) identify the relevant Subsidiary; (b) supply such documentation and other evidence in respect of the underlying transaction of that Letter of Credit, as is reasonably requested by the Fronting Bank in order for the Fronting Bank to carry out and be satisfied it has complied with all necessary anti-money laundering and financial crime prevention checks under all applicable laws and regulations; and (c) if such Subsidiary is not a wholly-owned member of the Group (A) supply the identity of all minority shareholders if their interests in that Subsidiary represent (in aggregate) less than 10% of its issued capital stock; and (B) supply such documentation and other evidence in respect of the minority shareholders if their interests in that Subsidiary represent (in aggregate) 10% or more of its issued capital stock, as such documentation or other evidence is reasonably requested by the Fronting Bank in order for the Fronting Bank to carry out and be satisfied it has complied with all necessary “know your customer” or similar identification checks under all applicable laws and regulations;

			

 

4

 

 

7.3         Indemnities

 

	 	
			(a)

				
			Each Borrower shall immediately on demand indemnify the Fronting Bank against any cost, loss or liability incurred by the Fronting Bank (otherwise than by reason of the Fronting Bank’s gross negligence or wilful misconduct, as determined by a court of competent jurisdiction in a final non‐appealable judgment) in acting as the Fronting Bank under any Letter of Credit requested by (or on behalf of) that Borrower (including for and on behalf of a Subsidiary of the Parent) (including, without limitation, as a result of the relevant Borrower’s failure to provide cash collateral or a counter‐indemnity, as required pursuant to paragraph (d) of Clause 6.5 (Term of Facility B Letters of Credit)).

			

 

	 	
			(b)

				
			Each Lender shall (according to its L/C Proportion) immediately on demand indemnify the Fronting Bank against any cost, loss or liability incurred by the Fronting Bank (otherwise than by reason of the Fronting Bank’s gross negligence or wilful misconduct, as determined by a court of competent jurisdiction in a final non‐appealable judgment) in acting as the Fronting Bank under any Letter of Credit (unless the Fronting Bank has been reimbursed by an Obligor pursuant to a Finance Document).

			

 

	 	
			(c)

				
			The Borrower which requested (or on behalf of which the Parent requested) a Letter of Credit (including for and on behalf of a Subsidiary of the Parent) shall immediately on demand reimburse any Lender for any payment it makes to the Fronting Bank under this Clause 7.3 in respect of that Letter of Credit.

			

 

	 	
			(d)

				
			The obligations of each Lender or Borrower under this Clause are continuing obligations and will extend to the ultimate balance of sums payable by that Lender or Borrower in respect of any Letter of Credit, regardless of any intermediate payment or discharge in whole or in part. For the avoidance of doubt, the Borrower which requested (or on behalf of which the Parent requested) a Letter of Credit shall remain primarily liable for the Letter of Credit irrespective of whether such Letter of Credit is issued for and on behalf of a Subsidiary of the Parent.

			

 

5

 

 

	 	
			(c)

				
			The Share Buyback Consent, by amending Clause 27.20 (Dividends and Share Redemption) of the Revolving Facility Agreement to add the exception highlighted as new clause (iii) of paragraph (b) thereof:

			

 

	 	
			27.20

				
			  Dividends and Share Redemption

			

 

	 	
			(a)

				
			No member of the Group shall:

			

 

(i)     declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of its share capital (or any class of its share capital);

 

(ii)     repay or distribute any dividend or share premium reserve;

 

(iii)    pay or allow any member of the Group to pay any management, advisory or other fee to or to the order of any of the shareholders of the Parent; or

 

(iv)    redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so.

 

	 	
			(b)

				
			Paragraph (a) above does not apply to:

			

 

	 	
			(i)

				
			the extent that the actions set out in paragraphs (a)(a) and (a)(i) are taken by (A) an Obligor for the benefit of another Obligor; or (B) a member of the Group which is not an Obligor for the benefit of another member of the Group;

			

 

	 	
			(ii)

				
			a Permitted Transaction (other than one referred to in paragraph (c) of the definition of that term); or

			

 

	 	
			(iii)

				
			any dividend or distribution by the Parent or any redemption, repurchase, defeasance, retirement or repayment of share capital of the Parent; provided that the total amount of any such payments in the aggregate does not exceed USD50,000,000 (or its equivalent in other currencies) during the term of the Facilities; provided further that, at the time of any such dividend, distribution, redemption, repurchase, defeasance, retirement or repayment, the Parent shall be in compliance on a pro forma basis with the financial covenant set forth in paragraph (c) (Senior Leverage) of Clause 26.2 (Financial Condition) for the Relevant Period ending on the most recent Quarter Date (after giving effect to such dividend, distribution, redemption, repurchase, defeasance, retirement or repayment).

			

 

6

 

 

	
			3. 

				
			AMENDMENT PROCESS

			

 

Subject to obtaining the required consents referred to in paragraph 4 below, the Parent (for itself and on behalf of the Obligors) and the Agent (for itself and on behalf of the Lenders) shall, promptly after such consents have been obtained, enter into an amendment and consent (the “First Amendment and Consent”) as the Parent and the Agent agree are necessary to reflect each of the amendments and consents referred to in paragraph 2 above for which the agreement of the applicable percentage of Lenders has been obtained (the “Approvals”) and the other terms of this letter.

 

The First Amendment and Consent shall come into effect in respect of the Approvals immediately upon the date the First Amendment and Consent becomes effective in accordance with its terms (the “Effective Date”).

 

Subject to the terms of the Finance Documents, the Parent reserves the right to withdraw, supplement or revise the requests set out in this letter (or any conditions relating thereto) at any time prior to the Effective Date (subject to such further consents as may be required under the Finance Documents in connection therewith).

 

	
			4. 

				
			CONSENT PROCESS

			

 

The Share Buyback Consent requires the consent of the Majority Lenders. The Eni Factoring Consent and the Reorganization Consent each require the consent of all Lenders.

 

For the purpose of this letter:

 

	 	
			(a)

				
			the consent referred to in this paragraph 4 is the “Lender Consent”; and

			

 

	 	
			(b)

				
			each Lender who provides the Lender Consent as contemplated by this paragraph 4 with respect to any Consent shall be a “Consenting Lender” with respect to such Consent.

			

 

Lenders are requested to provide their formal Lender Consent by completing, executing and returning to the Agent (with a copy to the Parent) the response form attached at Schedule 1 (Consent Request Response) to this letter (the “Response Form”) by 5.00 p.m. (London time) on 21 March 2022 (or such later date specified by Parent giving notice to the Agent in writing from time to time).

 

	
			5. 

				
			DOCUMENTING THE MODIFICATIONS

			

 

The Approvals shall be documented through the Parent and the Agent entering into the First Amendment and Consent. Pursuant to the terms of Clause 41.2(b) (Required Consents) of the Revolving Facility Agreement, by providing its Lender Consent, each Consenting Lender irrevocably and unconditionally authorises the Agent (once it has received the approval of the Lenders under paragraph 4 above) to (x) execute the First Amendment and Consent to give effect to the Approvals and (y) enter into any pledge, instrument, agreement or other document (including lien release documents) to give effect to the transactions contemplated by or arising as a result of each Consent.

 

7

 

 

	
			6. 

				
			CONTINUATION OF CONSENT

			

 

By returning the Response Form, each Lender confirms that the Lender Consent given by it in that Response Form shall be binding upon it and undertakes to procure that any assignee or transferee of its Commitments confirms to the Parent and the Agent at the time of assignment or transfer that such assignee or transferee shall be bound by the Lender Consent previously provided by that assigning or transferring Lender.

 

	
			7. 

				
			MISCELLANEOUS

			

 

(a)    The Parent and, by its signature below, the Agent hereby designate this letter as a Finance Document.

 

(b)    Other than the Lenders, a person who is not a party to this letter has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any terms of this letter.

 

(c)    Except as set out in the First Amendment and Consent (with effect from the Effective Date), the Revolving Facility Agreement continues in full force and effect.

 

(d)    Except as amended or waived by the terms of this letter, nothing in this letter shall constitute or be construed as an amendment, waiver, consent or release of any other term or condition of the Finance Documents or any right or remedy of the Finance Parties under the Finance Documents. All such rights and remedies, and all other provisions of the Revolving Facility Agreement and the other Finance Documents, shall remain in full force and effect.

 

	
			8. 

				
			GOVERNING LAW AND JURISDICTION

			

 

This letter and any non-contractual obligations arising out of or in connection with it are governed by English law. Clauses 47.1 (Jurisdiction of English Courts) and 47.2 (Service of Process) of the Revolving Facility Agreement shall apply to this letter and shall be binding on all parties to this letter as if set out in full in this letter and as if references to “this Agreement” or “any Finance Document” were references to “this letter”.

 

	
			9. 

				
			COUNTERPARTS

			

 

This letter may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this letter.

 

Please confirm that the Approval of the necessary Lenders in respect of each Consents has been obtained by signing and returning the enclosed copy of this letter to the attention of the Parent.

 

8

 

 

Yours faithfully,

 

For and on behalf of

EXPRO GROUP HOLDINGS N.V.

for and on behalf of itself and as agent for the Obligors under the Revolving Facility Agreement

 

	/s/ LJW McAlister	 
	 	 

Name: LJW McAlister

 

Title: General Counsel

 

9

 

 

We confirm that the Approval of the necessary Lenders has been obtained in respect of the following Consents and Amendments:

 

	 	
			a.

				
			the Eni Factoring Consent;

			

 

	 	
			b.

				
			the Reorganization Consent;

			

 

	 	
			c.

				
			the Share Buyback Consent.

			

 

 

	/s/ Craig Ramsay	/s/ Danielle Eastop	 
	
			Craig Ramsay

			Authorised Signatory

				
			Danielle Eastop

			Authorised Signatory

				 

 

For and on behalf of

DNB BANK ASA, LONDON BRANCH

as Agent (for itself and on behalf of the Finance Parties under and as defined in the Revolving Facility Agreement)

 

	
			Name:

				
			 

			

 

	
			Title:

				
			 

			

 

	
			Date:

				
			31/03/2022

			

10

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