Document:

Exhibit 10.20

 

 

NFL PLAYER CONTRACT

 

THIS CONTRACT is between MICHAEL BROCKERS, hereinafter “Player,” and THE ST LOUIS RAMS LLC, a DELAWARE limited liability company  hereinafter “Club,” operating under the name of the ST LOUIS RAMS as a member of the National Football League, hereinafter “League.” In consideration of the promises made by each to the other, Player and Club agree as follows:

 

1. TERM. This contract covers 4 football season(s), and will begin on the date of execution or March 1, 2012, whichever is later, and end on February 28 or 29, 2016, unless extended, terminated, or renewed as specified elsewhere in this contract.

 

2. EMPLOYMENT AND SERVICES. Club employs Player as a skilled football player. Player accepts such employment. He agrees to give his best efforts and loyalty to the Club, and to conduct himself on and off the field with appropriate recognition of the fact that the success of professional football depends largely on public respect for and approval of those associated with the game. Player will report promptly for and participate fully in Club’s official mandatory minicamp(s), official preseason training camp, all Club meetings and practice sessions, and all preseason, regular season and postseason football games scheduled for or by Club. If invited, Player will practice for and play in any all-star football game sponsored by the League. Player will not participate in any football game not sponsored by the League unless the game is first approved by the League.

 

3. OTHER ACTIVITIES. Without prior written consent of the Club, Player will not play football or engage in activities related to football otherwise than for Club or engage in any activity other than football which may involve a significant risk of personal injury. Player represents that he has special, exceptional and unique knowledge, skill, ability, and experience as a football player, the loss of which cannot be estimated with any certainty and cannot be fairly or adequately compensated by damages. Player therefore agrees that Club will have the right, in addition to any other right which Club may possess, to enjoin Player by appropriate proceedings from playing football or engaging in football-related activities other than for Club or from engaging in any activity other than football which may involve a significant risk of personal injury.

 

4. PUBLICITY AND NFLPA GROUP LICENSING PROGRAM.

 

(a) Player hereby grants to Club and the League, separately and together, the right and authority to use, and to authorize others to use solely as described below, his name, nickname, initials, likeness, image, picture, photograph, animation, persona, autograph/signature (including facsimiles thereof), voice, biographical information and/or any and all other identifying characteristics (collectively, “Publicity Rights”), for any and all uses or purposes that publicize and promote NFL Football, the League or any of its member clubs in any way in any and all media or formats, whether analog, digital or other, now known or hereafter developed, including, but not limited to, print, tape, disc, computer file, radio, television, motion pictures, other audio-visual and audio works, Internet, broadband platforms, mobile platforms, applications, and other distribution platforms. Without limiting the foregoing, this grant includes the right to use Player’s Publicity Rights for the purpose of publicizing and promoting the following aspects of NFL Football, the League and/or any of its member clubs: brands, games, ticket sales, game broadcasts and telecasts, programming focused on the NFL, one or more NFL clubs and/or their games and events (e.g., coaches shows, highlight based shows such as Inside the NFL, behind-the-scenes programming such as Hard Knocks), other NFL-related media offerings (e.g., branded content segments featuring NFL game footage and other programming enhancements), media distribution platforms (e.g., NFL.com, NFL Mobile, NFL Network), official events (e.g., NFL Kickoff, NFL Draft), officially sanctioned awards programs (e.g., Rookie of the Year), and public service or community oriented initiatives (e.g., Play60). For purposes of clarity, the foregoing grant of rights includes the right and authority to use, and to authorize affiliates or business partners to use, after the term of this Agreement any Publicity Rights fixed in a tangible medium (e.g., filmed, photographed, recorded or otherwise captured) during the term of this Agreement solely for the purposes described herein. Notwithstanding anything to the contrary, the foregoing grant does not confer, during or after the term of this Agreement, any right or authority to use Player’s Publicity Rights in o. manner that constitutes any endorsement by Player of a third-party brand, product or service (“Endorsement”). For purposes of clarity, and without limitation, it shall not be an Endorsement for Club or the League to use, or authorize others to use, including, without limitation, in third party advertising and promotional materials, footage anti photographs of Player’s participation in NFL games or other NFL events that does not unduly focus on, feature, or highlight, Player in a manner that leads the reasonable consumer to believe that Player is a spokesperson for, or promoter of, a third-party commercial product or service.

 

Player will cooperate with the news media, and will participate upon request in reasonable activities to promote the Club and the League.

 

Player and National Football League Players Association, including any of its affiliates (“NFLPA”) do not and will not contest during or after the term of this agreement, and this hereby confirms their acknowledgment of, the exclusive rights of the League, Club and any NFL member club (i) to telecast, broadcast, or otherwise distribute, transmit or perform, on a live, delayed, or archived basis, in any and all media now known or hereafter developed, any NFL games or any excerpts thereof and (ii) to produce, license, offer for sale, sell, market, or otherwise distribute or perform (or authorize a third party to do any of the foregoing), on a live, delayed, or archived basis, any NFL games or any excerpts thereof, in any and all media now known or hereafter developed, including, but not limited to, packaged or other electronic or digital media.

 

1

 

Nothing herein shall be construed to grant any Publicity Rights for use in licensed consumer products, whether traditional or digital (e.g., video games, trading cards, apparel), other than such products that constitute programming (as described herein) or news and information offerings regardless of medium (e.g., DVDs, digital highlight offerings).

 

(b) Player hereby assigns the NFLPA and its licensing affiliates, if any, the exclusive and unlimited right to use, license and sublicense the right to use his name, nickname, initials, autograph/signature (including facsimiles), voice, picture, photograph, animation, image, likeness, persona, jersey number, statistics, data, copyrights, biographical information and/or other personal indicia (individually and collectively, “Rights”) for use in connection with any product, brand, service, appearance, product line or other commercial use and any sponsorship, endorsement or promotion thereof, when more than five (5) NFL player Rights are involved, regardless of team affiliation and whether that number is reached using player Rights simultaneously or individually, in any form, media, or medium (now known or hereafter developed) during a consecutive 12-month period (a “group licensing program”). For sponsorships, endorsements, and promotions, group licensing programs are further defined as those: (a) in any one product category, as defined by industry standards; or (b) in different categories if the products all use similar or derivative design or artwork, or one player product is used to promote another player product.

 

The Rights may also be used for the promotion of the NFLPA, its affiliated entities and/or its designees (the “NFLPA Entities”), provided such promotion does not constitute an endorsement by Player of a commercial product not a part of a group licensing program. Player agrees to participate, upon request of the NFLPA and without additional compensation, in reasonable activities to promote the NFLPA Entities, which shall include (i) up to three (3) personal appearances per year or (ii) up to fifteen (15) minutes per week dedicated to promoting the NFLPA Entities. Player retains the right to grant permission to others to utilize his Rights if that individual or entity is not concurrently utilizing the Rights of five (5) or more other NFL players for any commercial purpose whatsoever. If Player’s inclusion in an NFLPA program is precluded by an individual exclusive endorsement agreement, and Player provides the NFLPA with immediate written notice of that preclusion, the NFLPA agrees to exclude Player from that particular program. Should Player fail to perform any of his obligations hereunder, the NFLPA may withhold payments owed to Player, if any, in connection with this Group Licensing Assignment.

 

In consideration for this assignment of rights, the NFLPA agrees to use the revenues it receives from group licensing programs to support the objectives as set forth in the Bylaws of the NFLPA and as otherwise determined by the NFLPA Board. The NFLPA further agrees to use reasonable efforts to promote the use of NFL player Rights in group licensing programs, to provide group licensing opportunities to all NFL players, and to monitor and police unauthorized third-party use of the Rights. The NFLPA makes no representations regarding group licensing other than those expressed herein. This agreement shall be construed under Virginia law.

 

The assignment in this paragraph shall expire on December 31 of the latter of (i) the third year following the execution of this contract, or (i) the year after this contract expires, and may not be revoked, terminated or otherwise assigned in any manner by Player until such date. Neither Club nor the League is a party to the terms of this paragraph, which is included herein solely for the administrative convenience and benefit of Player and the NFLPA. Nothing in Paragraph 4b shall be construed or deemed to modify in any way the rights set forth in Paragraph 4a, and the fact that Paragraph 4b (or any of the terms thereof) appears in the Player Contract shall not be referred to, relied upon, or otherwise cited by Player and/or the NFLPA or any of its affiliates in any dispute or legal proceeding as evidence that the NFL, any NFL entity, any Club ox Club Affiliate, or any licensee of any of the foregoing has consented, agreed, acknowledged, or does not contest the applicability or interpretation of Paragraph 4b.

 

5. COMPENSATION. For performance of Player’s services and all other promises of Player, Club will pay Player a yearly salary as follows:

 

	
$
    	
 390,000
    	
 
    	
/*
    	
 
    	
for the 2012 season;
    
	
$
    	
 822,818
    	
 
    	
/*
    	
 
    	
for the 2013 season;
    
	
$
    	
1,255,636
    	
 
    	
/*
    	
 
    	
for the 2014 season;
    
	
$
    	
1,688,454
    	
 
    	
/*
    	
 
    	
for the 2015 season;
    
	
$
    	
 
    	
 
    	
/*
    	
 
    	
for the 20     season;
    
	
$
    	
 
    	
 
    	
/*
    	
 
    	
for the 20     season;
    
	
$
    	
 
    	
 
    	
/*
    	
 
    	
for the 20     season;
    
	
$
    	
 
    	
 
    	
/*
    	
 
    	
for the 20     season;
    
	
$
    	
 
    	
 
    	
/*
    	
 
    	
for the 20     season;
    
	
$
    	
 
    	
 
    	
/*
    	
 
    	
for the 20     season;
    
	
$
    	
 
    	
 
    	
/*
    	
 
    	
for the 20     season;
    
	
$
    	
 
    	
 
    	
/*
    	
 
    	
for the 20     season;
    

 

(* - designates the compensation Club will pay player if the player is not on Club’s Active/Inactive List)

 

2

 

In addition, Club will pay Player such earned performance bonuses as may be called for in this contract; Player’s necessary traveling expenses from his residence to training camp; Player’s reasonable board and lodging expenses during preseason training and in connection with playing preseason, regular season, and postseason football games outside Club’s home city; Player’s necessary traveling expenses to and from preseason, regular season, and postseason football games outside Club’s home city; Player’s necessary traveling expenses to his residence if this contract is terminated by Club; and such additional compensation, benefits and reimbursement of expenses as may be called for in any collective bargaining agreement in existence during the term of this contract. (For purposes of this contract, a collective bargaining agreement will be deemed to be “in existence” during its stated term or during any period for which, the parties to that agreement agree to extend it.)

 

6. PAYMENT. Unless this contract or any collective bargaining agreement in existence during the term of this contract specifically provides otherwise, Player will be paid 100% of his yearly salary under this contract in equal weekly or biweekly installments over the course of the applicable regular season period, commencing with the first regular season game played by Club in each season. Unless this contract specifically provides otherwise, if this contract is executed or Player is activated after the beginning of the regular season, the yearly salary payable to Player will be reduced proportionately and Player will be paid the weekly or biweekly portions of his yearly salary becoming due and payable after he is activated. Unless this contract specifically provides otherwise, if this contract is terminated after the beginning of the regular season, the yearly salary payable to Player will be reduced proportionately and Player will be paid the weekly or bi weekly portions of his yearly salary having become due and payable up to the time of termination.

 

7. DEDUCTIONS. Any advance made to Player will be repaid to Club, and any properly levied Club fine or Commissioner fine against Player will be paid, in cash on demand or by means of deductions from payments coming due to the Player under this contract, the amount of such deductions to be determined by Club unless this contract or any collective bargaining agreement in existence during the term of this contract specifically provides otherwise.

 

8. PHYSICAL CONDITION. Player represents to Club that he is and will maintain himself in excellent physical condition. Player will undergo a complete physical examination by the Club physician upon Club request, during which physical examination Player agrees to make full and complete disclosure of any physical or mental condition known to him which might impair his performance under this contract and to respond fully and in good faith when questioned by the Club physician about such condition. If Player fails to establish or maintain his excellent physical condition to the satisfaction of the Club physician, or make the required full and complete disclosure and good faith responses to the Club physician, then Club may terminate this contract.

 

9. INJURY. Unless this contract specifically provides otherwise, if Player is injured in the performance of his services under this contract and promptly reports such injury to the Club physician or trainer, then Player will receive such medical and hospital care during the term of this contract as the Club physician may deem necessary, and will continue to receive his yearly salary for so long, during the season of injury only and for no subsequent period covered by this contract, as Player is physically unable to perform the services required of him by this contract because of such injury. If Player’s injury in the performance of his services under this contract results in his death, the unpaid balance of his yearly salary for the season of injury will be paid to his stated beneficiary, or in the absence of a stated beneficiary, to his estate.

 

10. WORKERS’ COMPENSATION. Any compensation paid to Player under this contract or under any collective bargaining agreement in existence during the term of this contract for a period during which he is entitled to workers’ compensation benefits by reason of temporary total, permanent total, temporary partial, or permanent partial disability will be deemed an advance payment of workers’ compensation benefits due Player, and Club will be entitled to be reimbursed the amount of such payment out of any award of workers’ compensation.

 

11. SKILL, PERFORMANCE AND CONDUCT. Player understands that he is competing with other players for a position on Club’s roster within the applicable player limits. If at any time, in the sole judgment of Club, Player’s skill or performance has been unsatisfactory as compared with that of other players competing for positions on Club’s roster, or if Player has engaged in personal conduct reasonably judged by Club to adversely affect or reflect on Club, then Club may terminate this contract. In addition, during the period any salary cap is legally in effect, this contract may be terminated if, in Club’s opinion, Player is anticipated to make less of a contribution to Club’s ability to compete on the playing field than another player or players whom Club intends to sign or attempts to sign, or another player or players who is or are already on Club’s roster, and for whom Club needs room.

 

3

 

12. TERMINATION. The rights of termination set forth in this contract will be in addition to any other rights of termination allowed either party by law. Termination will be effective upon the giving of written notice, except that Player’s death, other than as a result of injury incurred in the performance of his services under this contract, will automatically terminate this contract. If this contract is terminated by Club and either Player or Club so requests, Player will promptly undergo a complete physical examination by the Club physician.

 

13. INJURY GRIEVANCE. Unless a collective bargaining agreement in existence at the time of termination of this contract by Club provides otherwise, the following Injury Grievance procedure will apply: If Player believes that at the time of termination of this contract by Club he was physically unable to perform the services required of him by this contract because of an injury incurred in the performance of his services under this contract, Player may, within 60 days after examination by the Club physician, submit at his own expense to examination by a physician of his choice. If the opinion of Player’s physician with respect to his physical ability to perform the services required of him by this contract is contrary to that of the Club’s physician, the dispute will be submitted within a reasonable time to final and binding arbitration by an arbitrator selected by Club and Player or, if they are unable to agree, one selected in accordance with the procedures of the American Arbitration Association on application by either party.

 

14. RULES. Player will comply with and be bound by all reasonable Club rules and regulations in effect during the term of this contract which are not inconsistent with the provisions of this contract or of any collective bargaining agreement in existence during the term of this contract, Player’s attention is also called to the fact that the League functions with certain rules and procedures expressive of its operation as a joint venture among its member clubs and that these rules and practices may affect Player’s relationship to the League and its member clubs independently of the provisions of this contract.

 

15. INTEGRITY OF GAME. Player recognizes the detriment to the League and professional football that would result from impairment of public confidence in the honest and orderly conduct of NFL games or the integrity and good character of NFL players. Player therefore acknowledges his awareness that if he accepts a bribe or agrees to throw or fix an NFL game; fails to promptly report a bribe offer or an attempt to throw or fix an NFL game; bets on an NFL game; knowingly associates with gamblers or gambling activity; uses or provides other players with stimulants or other drugs for the purpose of attempting to enhance on-field performance; or is guilty of any other form of conduct reasonably judged by the League Commissioner to be detrimental to the League or professional football, the Commissioner will have the right, but only after giving Player the opportunity for a hearing at which he may be represented by counsel of his choice, to fine Player in a reasonable amount; to suspend Player for a period certain or indefinitely; and/or to terminate this contract.

 

16. EXTENSION. Unless this contract specifically provides otherwise, if Player becomes a member of the Armed Forces of the United States or any other country, or retires from professional football as an active player, or otherwise fails or refuses to perform his services under this contract, then this contract will be tolled between the date of Player’s induction into the Armed Forces, or his retirement, or his failure or refusal to perform, and the later date of his return to professional football. During the period this contract is tolled, Player will not be entitled to any compensation or benefits. On Player’s return to professional football, the term of this contract will be extended for a period of time equal to the number of seasons (to the nearest multiple of one) remaining at the time the contract was tolled. The right of renewal, if any, contained in this contract will remain in effect until the end of any such extended term.

 

17. ASSIGNMENT. Unless this contract specifically provides otherwise, Club may assign this contract and Player’s services under this contract to any successor to Club’s franchise or to any other Club in the League. Player will report to the assignee Club promptly upon being informed of the assignment of his contract and will faithfully perform his services under this contract. The assignee club will pay Player’s necessary traveling expenses in reporting to it and will faithfully perform this contract with Player.

 

18. FILING. This contract will be valid and binding upon Player and Club immediately upon execution. A copy of this contract, including any attachment to it, will be filed by Club with the League Commissioner within 10 days after execution. The Commissioner will have the right to disapprove this contract on reasonable grounds, including but not limited to an attempt by the parties to abridge or impair the rights of any other club, uncertainty or incompleteness in expression of the parties’ respective rights and obligations, or conflict between the terms of this contract and any collective bargaining agreement then in existence. Approval will be automatic unless, within 10 days after receipt of this contract in his office, the Commissioner notifies the parties either of disapproval or of extension of this 10-day period for purposes of investigation or clarification pending his decision. On the receipt of notice of disapproval and termination, both parties will be relieved of their respective rights and obligations under this contract.

 

4

 

19. DISPUTES. During the term of any collective bargaining agreement, any dispute between Player and Club involving the interpretation or application of any provision of the NFL collective bargaining agreement or this contract will be submitted to final and binding arbitration in accordance with the procedure called for in any collective bargaining agreement in existence at the time the event giving rise to any such dispute occurs.

 

20. NOTICE. Any notice, request, approval or consent under this contract will be sufficiently given if in writing and delivered in person or mailed (certified or first class) by one party to the other at the address set forth in this contract or to such other address as the recipient may subsequently have furnished in writing to the sender.

 

21. OTHER AGREEMENTS. This contract, including any attachment to it, sets forth the entire agreement between Player and Club and cannot be modified or supplemented orally. Player and Club represent that no other agreement, oral or written, except as attached to or specifically incorporated in this contract, exists between them. The provisions of this contract will govern the relationship between Player and Club unless there are conflicting provisions in any collective bargaining agreement in existence during the term of this contract, in which case the provisions of the collective bargaining agreement will take precedence over conflicting provisions of this contract relating to the rights or obligations of either party.

 

22. LAW. This contract is made under and shall be governed by the laws of the State of MISSOURI.

 

23. WAIVER AND RELEASE. Player waives and releases: (i) any claims relating to the 2011 lockout; (ii) any antitrust claims relating to the Draft, restrictions on free agency, franchise player designations, transition player designations, the Entering Player Pool, the Rookie Compensation Pool, or any other term or condition of employment relating to conduct engaged in prior to the date of this Agreement; and (iii) any claims relating to conduct engaged in pursuant to the express terms of any collective bargaining agreement during the term of any such agreement. This waiver and release also extends to any conduct engaged in pursuant to the express terms of the Stipulation and Settlement Agreement in White. This waiver and release does not waive any rights player may have to commence a grievance under the 2006 CBA or to commence a grievance or other arbitration under the 2011 CBA,

 

24. OTHER PROVISIONS.

 

(a)   Each of the undersigned hereby confirms that (i) this contract, renegotiation, extension or amendment sets forth all components of the player’s remuneration for playing professional football (whether such compensation is being furnished directly by the Club or by a related or affiliated entity); and (ii) there are not undisclosed agreements of any kind, whether express or implied, oral or written, and there are no promises, undertakings, representations, commitments, inducements, assurances of intent, or understandings of any kind that have not been disclosed to the NFL involving consideration of any kind to be paid, furnished or made available to Player or any entity or person owned or controlled by, affiliated with, or related to Player, either during the term of this contract or thereafter.

 

(b)   Each of the undersigned further confirms that, except as separately set forth in any attachment submitted herewith consistent with the Collective Bargaining Agreement, the .pdf NFL Player Contract Form as set forth herein has not been modified from the form officially authorized for use by the NFL and the NFLPA.

 

(c)   Each of the undersigned further confirms that, except insofar as any of the undersigned may describe in an addendum to this contract, to the best of their knowledge, no conduct in violation of the Anti-Collusion rules took place with respect to this contract. Each of the undersigned further confirms that nothing in this contract is designed or intended to defeat or circumvent any provisions of the collective bargaining agreement dated August 4, 2011, including but not limited to the Rookie Compensation Pool and Salary Cap provisions; however, any conduct permitted by that Agreement shall not be considered a violation of this confirmation.

 

(d)   PERFORMANCE-BASED PAY. Player’s attention is called to the fact that he may be entitled to Performance-Based Pay in accordance with the procedures outlined in Article 28, and that his eligibility for such pay is based on a formula that takes into account his playtime percentage and compensation.

 

5

 

25. SPECIAL PROVISIONS.

 

THIS CONTRACT is executed in six (6) copies. Player acknowledges that before signing this contract he was given the opportunity to seek advice from or he respected by persons of his own selection.

 

 

	
/s/ MICHAEL BROCKERS
    	
 
    	
/s/ Tony Pastoors
    
	
PLAYER SIGNATURE
    	
 
    	
CLUB EXECUTIVE   SIGNATURE
    
	
 
    	
 
    	
 
    
	
MICHAEL BROCKERS
    	
 
    	
Tony Pastoors
    
	
PLAYER PRINT
    	
 
    	
CLUN EXECUTIVE PRINT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE ST LOUIS RAMS LLC
    
	
PLAYER HOME ADDRESS
    	
 
    	
CLUB NAME
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ONE RAMS WAY
    
	
 
    	
 
    	
CLUB ADDRESS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
EARTH CITY, MO 63045
    
	
telephone   number
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6/7/12
    	
 
    	
6/7/12
    
	
DATE
    	
 
    	
DATE
    

 

	
 
    	
/s/ Albert Elias
    	
 
    
	
 
    	
players   agent signature
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Albert Elias
    	
 
    
	
 
    	
player’s   agent print
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
address
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
telephone   number
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
6/7/12
    	
 
    
	
 
    	
Date
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Copy   Distribution:    
    	
Management   Council (Original Signature)
    
	
 
    	
Player, Member Club   (Photocopy)
    
	
 
    	
League Office, NFLPA,   Player Agent (Electronic Mail)
    

 

6

 

ADDENDUM A TO THE NFL PLAYER CONTRACT BY AND BETWEEN THE ST. LOUIS

RAMS, LLC (“CLUB”) AND MICHAEL BROCKERS (“PLAYER”) DATED
 JUNE 7th, 2012 (“CONTRACT”)

 

26.       The parties hereto acknowledge that this Player Contract has been negotiated and executed in Missouri; that should any dispute, claim or cause of action (collectively “Dispute”) arise concerning rights or liabilities arising from the relationship between the Player and the Club, the parties hereto agree that the law governing such Dispute shall be the law of the State of Missouri. Furthermore, the exclusive jurisdiction for resolving Workers’ Compensation related claims shall be the Division of Workers’ Compensation of Missouri, and the Missouri Workers’ Compensation Act shall govern. This provision shall survive the expiration and/or termination of this Contract and continue in full force and effect in accordance with its terms.

 

27.       Player hereby represents that he is not under contract to any other professional football league, or any other professional football club, and is free to negotiate, and sign this Contract. Player further recognizes that the Club is relying on this representation in entering into this agreement, and he agrees that any such false representation shall be a material breach of this Contract, in which event the Club fully reserves all of its rights and remedies under this Contract and the NFL Collective Bargaining Agreement.

 

28.       Player and Player Representative acknowledge and agree that neither Club nor any of its advisors or affiliates have any responsibility to provide Player, Player Representative or any of Player’s advisors or affiliates with tax advice. Club does not assume any responsibility with respect to any income, employment or other tax incurred by Player (including, without limitation, any tax incurred pursuant to Section 409A of the Internal Revenue Code).

 

29.       Player hereby agrees to make five (5) personal appearances per year during the term of his 2012, 2013, 2014 and 2015 NFL Player Contract(s) for Club promotional and charitable purposes. Club agrees that all activities and appearances shall be scheduled in a reasonable manner.

 

30.       To the extent any term, phrase, clause, paragraph, section or provision set forth in the Contract is found or deemed to be unenforceable (because such term, phrase, clause, paragraph, section or provision conflicts with any applicable collective bargaining agreement or for any other reason), such unenforceability will not affect any other term, phrase, clause, paragraph, section or provision of the Contract, and the Contract will be construed as if such unenforceable term, phrase, clause, paragraph, section or provision had not been contained in the Contract, preserving to the fullest extent possible all of the other terms, phrases, clauses, paragraphs, sections and provisions in the Contract.

 

 

	
/s/ MICHAEL BROCKERS
    	
 
    	
THE ST. LOUIS RAMS, LLC
    
	
MICHAEL BROCKERS
    	
 
    	
CLUB
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6/7/12
    	
 
    	
/s/ TONY PASTOORS
    
	
DATE
    	
 
    	
CLUB OFFICIAL
    

 

7

 

ADDENDUM B TO THE NFL PLAYER CONTRACT BY AND BETWEEN ST. LOUIS RAMS,

LLC (“CLUB”) AND MICHAEL BROCKERS (“PLAYER”) DATED
 JUNE 7, 2012 (“CONTRACT”)

 

2012 SKILL, INJURY AND SALARY CAP GUARANTEE

 

For the 2012 Regular Season only, despite any contrary language in the Contract and despite any of the following occurrences:

 

I.                                        In Club’s judgment, Player’s skill or performance has been unsatisfactory as compared with that of other players competing for positions on Club’s roster, and Player’s contract is terminated via the NFL waiver system; OR

 

II.                                   (a) Player sustains an NFL football-related injury (or death resulting therefrom) while practicing or playing with Club at any time after passing Club’s 2012 initial physical; (b) said injury (or death resulting therefrom) renders Player physically unable to pass Club’s physical upon termination; and (c) Player’s Contract is terminated via the NFL waiver system;

 

III.                              Player is released from Club  for salary cap reasons and Player’s Contract is terminated via NFL waiver system

 

Club agrees to pay Player Three Hundred Ninety Thousand Dollars ($390,000.00) of Player’s 2012 Paragraph 5 Salary.

 

ONE-YEAR LIMITATION: This Skill, Injury and Salary Cap Guarantee by Club will not apply in any year after 2012, regardless of whether Player is, as of this date, under contract or option to Club for a subsequent year; and regardless of whether Player passes Club’s physical examination for a year subsequent to 2012.

 

WAIVER-SYSTEM:  This Skill, Injury and Salary Cap Guarantee in no way supersedes or obviates the applicability of the NFL’s waiver system.

 

PLAYER DEFAULT: In the event Player fails to honor any provision of this Contract, including, but not limited to, by leaving the Club without its consent or failing or refusing to report, practice or play with Club for any reason whatsoever, including, but not limited to, retirement; “holding out,” incarceration; as a result of engaging in any activity which may involve a significant risk of personal injury or a breach of Paragraph 3 of the Contract, including, but not limited to, jet skiing, water or snow skiing, surfing, hang gliding, bungee jumping, diving, sky diving, rock or mountain climbing, race car driving as driver or passenger, riding a motorcycle, motor bike, all-terrain or similar vehicle as driver or passenger; or Player’s suspension by the NFL or Club for Conduct Detrimental or Player’s suspension for violation of the NFL Policy and Program for Substances of Abuse, the NFL Policy on Anabolic Steroids and Related Substances or the NFL Personal Conduct Policy; then Player shall be in default of this Agreement. Should Player be in default, this Skill, Injury and Salary Cap Guarantee will be null and void immediately and Club will not guarantee any payment of the $390,000.00 for the 2012 contract year.

 

 

	
/s/ MICHAEL BROCKERS
    	
 
    	
ST. LOUIS RAMS, LLC
    
	
MICHAEL BROCKERS
    	
 
    	
CLUB
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6/7/12
    	
 
    	
/s/ TONY PASTOORS
    
	
DATE
    	
 
    	
CLUB OFFICIAL
    

 

8

 

ADDENDUM C TO THE NFL PLAYER CONTRACT BY AND BETWEEN ST. LOUIS RAMS,

LLC (“CLUB”) AND MICHAEL BROCKERS (“PLAYER”) DATED
 JUNE 7, 2012 (“CONTRACT”)

 

2013 SKILL, INJURY AND SALARY CAP GUARANTEE

 

For the 2013 Regular Season only, despite any contrary language in the Contract and despite any of the following occurrences:

 

I.                                        In Club’s judgment, Player’s skill or performance has been unsatisfactory as compared with that of other players competing for positions on Club’s roster, and Player’s contract is terminated via the NFL waiver system; OR

 

II.                                   (a) Player sustains an NFL football-related injury (or death resulting therefrom) while practicing or playing with Club at any time after passing Club’s 2012 initial physical; (b) said injury (or death resulting therefrom) renders Player physically unable to pass Club’s physical upon termination; and (c) Player’s Contract is terminated via the NFL waiver system;

 

III.                              Player is released from Club for salary cap reasons and Player’s Contract is terminated via NFL waiver system

 

Club agrees to pay Player Eight Hundred Twenty-Two Thousand Eight Hundred and Eighteen Dollars ($822,818.00) of Player’s 2013 Paragraph 5 Salary.

 

ONE-YEAR LIMITATION: This Skill, Injury and Salary Cap Guarantee by Club will not apply in any year after 2013, regardless of whether Player is, as of this date, under contract or option to Club for a subsequent year; and regardless of whether Player passes Club’s physical examination for a year subsequent to 2013.

 

WAIVER-SYSTEM:  This Skill, Injury and Salary Cap Guarantee in no way supersedes or obviates the applicability of the NFL’s waiver system.

 

PLAYER DEFAULT: In the event Player fails to honor any provision of this Contract, including, but not limited to, by leaving the Club without its consent or failing or refusing to report, practice or play with Club for any reason whatsoever, including, but not limited to, retirement; “holding out,” incarceration; as a result of engaging in any activity which may involve a significant risk of personal injury or a breach of Paragraph 3 of the Contract, including, but not limited to, jet skiing, water or snow skiing, surfing, hang gliding, bungee jumping, diving, sky diving, rock or mountain climbing, race car driving as driver or passenger, riding a motorcycle, motor bike, all-terrain or similar vehicle as driver or passenger; or Player’s suspension by the NFL or Club for Conduct Detrimental or Player’s suspension for violation of the NFL Policy and Program for Substances of Abuse, the NFL Policy on Anabolic Steroids and Related Substances or the NFL Personal Conduct Policy; then Player shall be in default of this Agreement. Should Player be in default, this Skill, Injury and Salary Cap Guarantee will be null and void immediately and Club will not guarantee any payment of the $822,818.00 for the 2013 contract year.

 

 

	
/s/ MICHAEL BROCKERS
    	
 
    	
ST. LOUIS RAMS, LLC
    
	
MICHAEL BROCKERS
    	
 
    	
CLUB
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6/7/12
    	
 
    	
/s/ TONY PASTOORS
    
	
DATE
    	
 
    	
CLUB OFFICIAL
    

 

9

 

ADDENDUM D TO THE NFL PLAYER CONTRACT BY AND BETWEEN ST. LOUIS RAMS,

LLC (“CLUB”) AND MICHAEL BROCKERS (“PLAYER”) DATED
 JUNE 7, 2012 (“CONTRACT”)

 

2014 SKILL, INJURY AND SALARY CAP GUARANTEE

 

For the 2014 Regular Season only, despite any contrary language in the Contract and despite any of the following occurrences:

 

I.                                        In Club’s judgment, Player’s skill or performance has been unsatisfactory as compared with that of other players competing for positions on Club’s roster, and Player’s contract is terminated via the NFL waiver system; OR

 

II.                                   (a) Player sustains an NFL football-related injury (or death resulting therefrom) while practicing or playing with Club at any time after passing Club’s 2012 initial physical; (b) said injury (or death resulting therefrom) renders Player physically unable to pass Club’s physical upon termination; and (c) Player’s Contract is terminated via the NFL waiver system;

 

III.                              Player is released from Club for salary cap reasons and Player’s Contract is terminated via NFL waiver system

 

Club agrees to pay Player One Million Two Hundred Fifty-Five Thousand Six Hundred and Thirty-Six Dollars ($1,255,636.00) of Player’s 2014 Paragraph 5 Salary.

 

ONE-YEAR LIMITATION: This Skill, Injury and Salary Cap Guarantee by Club will not apply in any year after 2014, regardless of whether Player is, as of this date, under contract or option to Club for a subsequent year; and regardless of whether Player passes Club’s physical examination for a year subsequent to 2014.

 

WAIVER-SYSTEM:  This Skill, Injury and Salary Cap Guarantee in no way supersedes or obviates the applicability of the NFL’s waiver system.

 

PLAYER DEFAULT:  In the event Player fails to honor any provision of this Contract, including, but not limited to, by leaving the Club without its consent or failing or refusing to report, practice or play with Club for any reason whatsoever, including, but not limited to, retirement; “holding out,” incarceration; as a result of engaging in any activity which may involve a significant risk of personal injury or a breach of Paragraph 3 of the Contract, including, but not limited to, jet skiing, water or snow skiing, surfing, hang gliding, bungee jumping, diving, sky diving, rock or mountain climbing, race car driving as driver or passenger, riding a motorcycle, motor bike, all-terrain or similar vehicle as driver or passenger; or Player’s suspension by the NFL or Club for Conduct Detrimental or Player’s suspension for violation of the NFL Policy and Program for Substances of Abuse, the NFL Policy on Anabolic Steroids and Related Substances or the NFL Personal Conduct Policy; then Player shall be in default of this Agreement. Should Player be in default, this Skill, Injury and Salary Cap Guarantee will be null and void immediately and Club will not guarantee any payment of the $1,255,636.00 for the 2014 contract year.

 

 

	
/s/ MICHAEL BROCKERS
    	
 
    	
ST. LOUIS RAMS, LLC
    
	
MICHAEL BROCKERS
    	
 
    	
CLUB
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6/7/12
    	
 
    	
/s/ TONY PASTOORS
    
	
DATE
    	
 
    	
CLUB OFFICIAL
    

 

10

 

ADDENDUM E TO THE NFL PLAYER CONTRACT BY AND BETWEEN ST. LOUIS RAMS,
 LLC (“CLUB”) AND MICHAEL BROCKERS (“PLAYER”) DATED
 JUNE 7, 2012 (“CONTRACT”)

 

2015 SKILL, INJURY AND SALARY CAP GUARANTEE

 

For the 2015 Regular Season only, despite any contrary language in the Contract and despite any of the following occurrences:

 

I.                                        In Club’s judgment, Player’s skill or performance has been unsatisfactory as compared with that of other players competing for positions on Club’s roster, and Player’s contract is terminated via the NFL waiver system; OR

 

II.                                   (a) Player sustains an NFL football-related injury (or death resulting therefrom) while practicing or playing with Club at any time after passing Club’s 2012 initial physical; (b) said injury (or death resulting therefrom) renders Player physically unable to pass Club’s physical upon termination; and (c) Player’s Contract is terminated via the NFL waiver system;

 

III.                              Player is released from Club for salary cap reasons and Player’s Contract is terminated via NFL waiver system

 

Club agrees to pay Player One Million Six Hundred Eighty-Eight Thousand Four Hundred and Fifty-Four Dollars ($1,688,454.00) of Player’s 2015 Paragraph 5 Salary.

 

ONE-YEAR LIMITATION: This Skill, Injury and Salary Cap Guarantee by Club will not apply in any year after 2015, regardless of whether Player is, as of this date, under contract or option to Club for a subsequent year; and regardless of whether Player passes Club’s physical examination for a year subsequent to 2015.

 

WAIVER-SYSTEM:  This Skill, Injury and Salary Cap Guarantee in no way supersedes or obviates the applicability of the NFL’s waiver system.

 

PLAYER DEFAULT: In the event Player fails to honor any provision of this Contract, including, but not limited to, by leaving the Club without its consent or failing or refusing to report, practice or play with Club for any reason whatsoever, including, but not limited to, retirement; “holding out,” incarceration; as a result of engaging in any activity which may involve a significant risk of personal injury or a breach of Paragraph 3 of the Contract, including, but not limited to, jet skiing, water or snow skiing, surfing, hang gliding, bungee jumping, diving, sky diving, rock or mountain climbing, race car driving as driver or passenger, riding a motorcycle, motor bike, all-terrain or similar vehicle as driver or passenger; or Player’s suspension by the NFL or Club for Conduct Detrimental or Player’s suspension for violation of the NFL Policy and Program for Substances of Abuse, the NFL Policy on Anabolic Steroids and Related Substances or the NFL Personal Conduct Policy; then Player shall be in default of this Agreement. Should Player be in default, this Skill, Injury and Salary Cap Guarantee will be null and void immediately and Club will not guarantee any payment of the $1,688,454.00 for the 2015 contract year.

 

 

	
/s/ MICHAEL BROCKERS
    	
 
    	
ST. LOUIS RAMS, LLC
    
	
MICHAEL BROCKERS
    	
 
    	
CLUB
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6/7/12
    	
 
    	
/s/ TONY PASTOORS
    
	
DATE
    	
 
    	
CLUB OFFICIAL
    

 

11

 

SIGNING BONUS ADDENDUM

 

This Signing Bonus Agreement is made this 7th day of June, 2012, by and between THE ST. LOUIS RAMS, LLC (“Club”) and MICHAEL BROCKERS (“Player”).

 

As additional consideration for Player’s execution of NFL Player Contract for the 2012, 2013, 2014 and 2015 League Years dated June 7, 2012 (“Contract”), and for Player’s passing Club’s initial 2012 physical. Club will pay Player the sum of Five Million  Three Hundred and Sixty-Five Thousand and Ninety-Two Dollars ($5,365,092,00) (“Bonus”) pursuant to the following schedule:

 

	
$100,000.00
   $2,500,000.00
   $2,765,092.00
    	
within ten (10) business   days of League Approval of Contract;
   on or before July 15th 2012
   on or before March 15th 2013
    

 

It is expressly understood that no part of this Bonus is part of any salary in the Contract and will not be deemed part of any salary in the Contract if Club exercises any option for Player’s services in a season subsequent to the final year of the Contract. The obligations of Club are not terminable if the Contract is terminated via the NFL waiver system, unless, however, such termination is as a result of Player’s default and/or breach of the terms of the Contract and/or this agreement.

 

Player shall be subject to forfeiture of Salary to the maximum extent permitted under Article 4, Section 9 of the 2011 Collective Bargaining Agreement.

 

Player’s waiver of rights to certain unpaid amounts and Player’s obligation to repay any portion of this Bonus is an express provision of this Agreement and, but for this provision, Club would not have executed this agreement.

 

If Player does not repay amounts as provided for herein, Club will have the right to off-set any and all amounts due hereunder from Player pursuant to Article 4 Section 9 of the 2011 Collective Bargaining Agreement. Additionally, Player authorizes any subsequent NFL Club that employs Player to deduct any amount due Club pursuant to this agreement.

 

No term or condition of this agreement, and no breach thereof, shall be waived, altered or modified except by written instrument executed by both parties.

 

 

	
/s/ MICHAEL BROCKERS
    	
 
    	
THE ST. LOUIS RAMS, LLC
    
	
MICHAEL BROCKERS
    	
 
    	
CLUB
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6/7/12
    	
 
    	
/s/ TONY PASTOORS
    
	
DATE
    	
 
    	
CLUB OFFICIAL
    

 

12Exhibit 10.21

 

FANTEX HOLDINGS, INC.

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

 

This Change In Control Severance Agreement (the “Agreement”), dated as of August 19, 2014 (the “Effective Date”), is made by and between Fantex Holdings, Inc., a Delaware corporation (the “Company”) and William Garvey (“Executive”) (collectively referred to herein as the “Parties”).

 

WHEREAS, the Board of Directors of the Company (the “Board”) recognizes that Executive’s role at the Company and that the possibility of an acquisition of the Company can be a distraction to Executive and can cause Executive to consider alternative employment opportunities.  The Board has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of such an event;

 

WHEREAS, the Board believes that it is in the best interests of the Company and its shareholders to provide Executive with an incentive to continue Executive’s employment and to motivate Executive to maximize the value of the Company upon a Change in Control (as defined below) for the benefit of its stockholders; and

 

WHEREAS, the Board believes that it is imperative to provide Executive with severance benefits upon certain terminations of Executive’s employment with the Company in connection with a Change in Control that enhance Executive’s financial security and provide incentive and encouragement to Executive to remain with the Company notwithstanding the possibility of such an event.

 

NOW, THEREFORE, for other good and valuable consideration, including the respective covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

 

1.             Definitions.

 

(a)           Cause.  For purposes of this Agreement, “Cause” shall mean the occurrence of any one or more of the following events unless, to the extent capable of correction, Executive fully corrects the circumstances constituting Cause within fifteen (15) days after Executive’s receipt of a notice of termination of employment from the Company:

 

(i)            Executive’s gross misconduct in connection with the performance of his duties with the Company (other than any such failure resulting from Executive’s incapacity due to physical or mental illness or any such actual or anticipated failure after his issuance of a notice of termination for Good Reason), after a written demand for performance is delivered to Executive by the Company, which demand specifically identifies the manner in which the Company believes that Executive has not performed his duties;

 

1

 

(ii)           Executive’s commission of an act of fraud or material dishonesty resulting in reputational, economic or financial injury to the Company;

 

(iii)         Executive’s conviction of, including any entry by Executive of a guilty or no contest plea to, a felony or other crime involving moral turpitude;

 

(iv)          a material breach by Executive of his fiduciary duty to the Company which results in reputational, economic or other injury to the Company; or

 

(v)           Executive’s material breach of Executive’s obligations under a written agreement between the Company and Executive, including without limitation, such a breach of this Agreement.

 

(b)           Change in Control.  A Change in Control shall be as defined in the Fantex Holdings, Inc. 2012 Equity Incentive Plan.

 

(c)           Good Reason.  For purposes of this Agreement, “Good Reason” shall mean the occurrence of any one or more of the following events, in any case, without Executive’s prior written consent, unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction) as provided below:

 

(i)            a material diminution in Executive’s position (including status, titles and reporting requirements), authority, duties or responsibilities, excluding for this purpose any isolated, insubstantial or inadvertent actions not taken in bad faith and which are remedied by the Company promptly after receipt of notice thereof given by Executive;

 

(ii)           a material reduction in Executive’s annual base salary, as the same may be increased from time to time; or

 

(iii)         a material breach by the Company of this Agreement.

 

Notwithstanding the foregoing, Executive will not be deemed to have resigned for Good Reason unless (1) Executive provides the Company with written notice setting forth in reasonable detail the facts and circumstances claimed by Executive to constitute Good Reason within sixty (60) days after the date of the occurrence of any event that Executive knows or should reasonably have known to constitute Good Reason, (2) the Company fails to cure such acts or omissions within thirty (30) days following its receipt of such notice, and (3) the effective date of Executive’s termination for Good Reason occurs no later than sixty (60) days after the expiration of the Company’s cure period.

 

2.             Term.  The Term of this Agreement shall commence on the Effective Date and terminate upon the date that all obligations of the parties hereto with respect to this Agreement have been satisfied.  The Company and Executive acknowledge that Executive’s employment shall be “at-will,” as defined under applicable law.

 

3.             Change in Control.  Subject to Section 4(c) hereof, in the event of a Change in Control of the Company, each outstanding unvested Company stock options and equity awards held by Executive as of such date shall become vested and, as applicable, exercisable, immediately

 

2

 

prior to such Change in Control with respect to 50% of the then-unvested portion of each such option and equity award.

 

4.             Qualifying Termination in Connection with a Change in Control. If Executive’s employment with the Company is terminated by the Company without Cause or by Executive with Good Reason (each, a “Qualifying Termination”), in either case, (A) on or within thirty (30) days prior to a Change in Control or (B) within one (1) year after a Change in Control, in either case, the Company shall provide the Executive, in addition to any accrued but unpaid salary, bonus, vacation and expense reimbursement payable in accordance with applicable law, with the following payments and benefits:

 

(a)           Cash Severance.  The Company shall pay Executive, in a single lump-sum payment on the sixtieth (60th) day after the date of termination, an amount equal to fifty percent (50%) of Executive’s annual base salary as of the date of termination (disregarding any reduction in annual base salary that would give rise to Executive’s right to terminate for Good Reason).

 

(b)           COBRA Benefits. During the period commencing on the date of termination and ending on the six (6)-month anniversary of the date of termination (the “COBRA Period”), subject to Executive’s valid election to continue healthcare coverage under Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”), the Company shall continue to provide Executive and Executive’s eligible dependants with coverage under its group health plans at the same levels and the same cost to Executive as would have applied if Executive’s employment had not been terminated based on Executive’s elections in effect on the date of termination, provided, however, that (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A (as defined below) under Treasury Regulation Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover Executive under its group health plans without incurring penalties (including without limitation, pursuant to Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to Executive in substantially equal monthly installments over the continuation coverage period (or the remaining portion thereof); and

 

(c)           Accelerated Vesting of Company Equity Awards. Each outstanding Company stock option and equity award held by Executive on the date of termination that has not yet vested shall conditionally vest and, as applicable, become exercisable on the later of the date of termination and immediately prior to such Change in Control (and such vesting shall become unconditional upon such execution and non-revocation of a Release (as defined below)); provided, however, that if Executive fails to timely execute or revokes the Release, all such conditionally vested awards (and any shares received in respect of such awards) shall be forfeited upon such failure or revocation (subject to repayment by the Company to Executive of any amounts (if any) paid by Executive with respect to shares underlying such conditionally vested awards.  For the avoidance of doubt, if a Qualifying Termination occurs prior to a Change in Control, all outstanding, unvested Company compensatory equity awards shall remain outstanding and eligible to vest solely upon a Change in Control occurring within thirty (30) days after the date of termination (but shall not otherwise vest following the date of termination) and shall terminate on the thirtieth (30th) day following the date of termination if a Change in Control has not occurred

 

3

 

on or prior to such thirtieth (30th) day (or such earlier expiration date applicable to the award (other than due to a termination of employment)).

 

The payments and benefits described in the preceding Sections 4(a), (b) and (c) are referred to herein as the “Severance”.  Notwithstanding the foregoing, it shall be a condition to Executive’s right to receive the Severance that Executive execute and deliver to the Company of an effective release of claims in a form approved by the Company (a “Release”) within twenty-one (21) days (or, to the extent required by law, forty-five (45) days) following the termination date and that Executive does not revoke such release during any applicable revocation period.

 

5.             No Other Severance.  The provisions of Section 4 hereof shall supersede in their entirety any severance payment provisions upon a termination in connection with a Change in Control in any severance plan, offer letter, equity award plan, policy, program or other arrangement maintained by the Company.

 

6.             No Requirement to Mitigate; Survival.  Executive shall not be required to mitigate the amount of any payment provided for under this Agreement by seeking other employment or in any other manner.  Notwithstanding anything to the contrary in this Agreement, the termination of Executive’s employment shall not impair the rights or obligations of any Party.

 

7.             Company Property.  Executive hereby acknowledges and agrees that all Personal Property (as defined below) and equipment furnished to, or prepared by, Executive in the course of, or incident to, Executive’s employment, belongs to the Company and shall be promptly returned to the Company upon termination of Executive’s employment (and will not be kept in Executive’s possession or delivered to anyone else).  For purposes of this Agreement, “Personal Property” includes, without limitation, all books, manuals, records, reports, notes, contracts, lists, blueprints and other documents, or materials, or copies thereof (including computer files), keys, building card keys, company credit cards, telephone calling cards, computer hardware and software, cellular and portable telephone equipment, personal digital assistant (PDA) devices, and all other proprietary information relating to the business of the Company or its subsidiaries or affiliates.  Following termination, Executive shall not retain any written or other tangible material containing any proprietary information of the Company or its subsidiaries or affiliates other than in connection with any continued service by Executive in any other capacity.

 

8.             Assignment and Successors.  This Agreement shall be binding upon and inure to the benefit of the Company, Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable.  None of Executive’s rights or obligations may be assigned or transferred by Executive, other than Executive’s rights to payments hereunder, which may be transferred only by will, operation of law or as otherwise provided herein.  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

4

 

9.             Miscellaneous Provisions.

 

(a)                           Governing Law.  This Agreement shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance with the substantive laws of the State of California, without giving effect to any principles of conflicts of law, whether of the State of California or any other jurisdiction, and where applicable, the laws of the United States, that would result in the application of the laws of any other jurisdiction.

 

(b)                           Validity.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

(c)                           Notices.  Any notice, request, claim, demand, document and other communication hereunder to any Party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by facsimile or certified or registered mail, postage prepaid (or if it is sent through any other method agreed upon by the Parties), as follows:

 

If to the Company:

Fantex Holdings, Inc. and Fantex, Inc.

330 Townsend Street, Suite 234

San Francisco, CA 94107

Attn: CFO

 

If to Executive, at the address set forth on the signature page hereto.

 

Or at any other address as any Party shall have specified by notice in writing to the other Party.

 

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

 

(e)           Entire Agreement.  The terms of this Agreement are intended by the Parties to be the final expression of their agreement with respect to matters set forth herein and supersede all prior understandings and agreements, whether written or oral regarding such benefits.  The Parties further intend that this Agreement shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.

 

(f)            Amendments; Waivers.  This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by Executive and a duly authorized representative of the Company.

 

(g)           Severability; Enforcement.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable

 

5

 

provision or by its severance from this Agreement.  Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

 

(h)           Withholding.  The Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise.

 

10.          Excess Parachute Payments, Limitation on Payments.

 

(a)           Best Pay Cap.  Notwithstanding any other provision of this Agreement, in the event that any payment or benefit received or to be received by Executive (including any payment or benefit received in connection with a termination of Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, including the payments and benefits under Section 3 or 4 hereof, being hereinafter referred to as the “Total Payments”) would be subject (in whole or part), to the excise tax imposed under Section 4999 of the Code (such excise tax, the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement or agreement, the cash severance payments under this Agreement shall first be reduced, and the noncash severance payments hereunder shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

 

(b)           Certain Exclusions.  For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which, in the written opinion of an independent, nationally recognized accounting firm (the “Independent Advisors”) selected by the Company, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation; and (iii) the value of any non cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

 

6

 

11.          Section 409A.

 

(a)           General.  The intent of the Parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date, (“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  Notwithstanding any provision of this Agreement to the contrary, if the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A of the Code, the Company shall work in good faith with Executive to adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to avoid the imposition of taxes under Section 409A of the Code, including without limitation, actions intended to (i) exempt the compensation and benefits payable under this Agreement from Section 409A of the Code, and/or (ii) comply with the requirements of Section 409A; provided, however, that this Section 11 shall not create an obligation on the part of the Company to adopt any such amendment, policy or procedure or take any such other action, nor shall the Company have any liability for failing to do so.

 

(b)           Separation from Service.  Notwithstanding any provision to the contrary in this Agreement:  (i) no amount that constitutes “deferred compensation” under Section 409A shall be payable pursuant to Section 4 above unless the termination of Executive’s employment constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the Department of Treasury Regulations (“Separation from Service”); (ii) for purposes of Section 409A, Executive’s right to receive installment payments shall be treated as a right to receive a series of separate and distinct payments, and to the extent permitted under Section 409A, any separate payment or benefit under the Agreement or otherwise shall not be deemed “nonqualified deferred compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision of Section 409A; and (iii) to the extent that any payments, in-kind benefits or reimbursements provided to Executive under this Agreement are deemed to constitute compensation to Executive to which Treasury Regulation Section 1.409A-3(i)(1)(iv) would apply, such amounts shall be paid no later than December 31st of the year following the year in which the expense was incurred.  The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year.  The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other year.  Executive’s right to such payments, in-kind benefits or reimbursements shall not be subject to liquidation or exchange for any other benefit.

 

(c)           Specified Employee.  Notwithstanding anything in this Agreement to the contrary, if Executive is deemed by the Company at the time of Executive’s Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of Executive’s Separation from Service with the Company or (ii) the date

 

7

 

of Executive’s death.  Upon the first business day following the expiration of the applicable Section 409A period, all payments deferred pursuant to the preceding sentence shall be paid in a lump sum to Executive (or Executive’s estate or beneficiaries), and any remaining payments due to Executive under this Agreement shall be paid as otherwise provided herein.

 

12.          Employee Acknowledgement.  Executive acknowledges that Executive has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on Executive’s own judgment.

 

[Signature Page Follows]

 

8

 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date and year first above written.

 

	
 
    	
FANTEX   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Mullin
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
David   Mullin
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William Garvey
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
William   Garvey
    

 

SIGNATURE PAGE TO FANTEX HOLDINGS, INC. CHANGE IN CONTROL SEVERANCE AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]