Document:

Executive Employment Agreement

 
EXHIBIT 10.16

 
EXECUTIVE EMPLOYMENT AGREEMENT

 
This EXECUTIVE EMPLOYMENT AGREEMENT (the
“Agreement”) is entered into effective as of December 1, 2002 (the “Effective Date”), by and between Entravision Communications Corporation, a Delaware corporation (the “Company”), and John F. DeLorenzo (the
“Executive”). 
 

	  	 1.	  	 Employment: 

 
a.    Executive shall serve as the Company’s Executive Vice President and Chief Financial Officer
(“CFO”) during the term of this Agreement; provided, however, Executive’s appointment to the positions of Executive Vice President and Chief Financial Officer shall be effective as of the date approved by the Company’s Board of
Directors, which shall be no later than January 1, 2003. Executive will perform such duties as are customarily performed by CFOs of like organizations, including the duties as may reasonably be assigned from time to time by the Company’s Chief
Executive Officer (“CEO”) that are consistent with such title and position. Executive shall report directly to the CEO. In performing his duties, Executive will abide by all applicable Federal, state, and local laws, as well as the
Company’s bylaws, rules, regulations and policies, as may be amended from time to time. 
 
b.     Executive shall devote his entire productive time, ability and attention to the Company’s business during the term of this Agreement. Executive shall not engage in any
other business duties or pursuits whatsoever, or directly or indirectly render any services of a business, commercial, or professional nature to any other person or organization, whether for compensation or otherwise, without the prior written
consent of the CEO. The foregoing shall not preclude Executive from engaging in appropriate civic, charitable or religious activities or from devoting a reasonable amount of time to passive private investments or from serving on the boards of
directors of other entities (provided that any director position shall require the prior written consent of the CEO), as long as such activities and/or services do not interfere or conflict with his responsibilities to the Company, and any provision
of this Agreement. In addition, the foregoing shall not preclude Executive from spending a reasonable amount of time (including travel time) necessary to enable Executive to complete his MBA. Executive shall not directly or indirectly acquire, hold,
or retain any interest in any business competing with or similar in nature to the business of the Company, or which in any other way creates a conflict of interest, except for up to one percent (1%) ownership interests in public companies. During
the term of this Agreement, Executive shall not in any way engage or participate in any business that is in competition with the Company. 
 
2.     Term: Beginning on the Effective Date, the Company agrees to employ Executive and Executive accepts
employment with the Company until November 30, 2005, or until such time that Executive’s employment is terminated in accordance with the terms of this Agreement. 
 

	

	  	 3.	  	 Salary & Benefits: 

 
a.    Salary: Executive will receive a base monthly salary of Thirty Thousand Dollars ($30,000), payable in
equal installments according to the Company’s regular paydays, less any applicable taxes and withholding (the “Basic Annual Compensation”). The then-applicable Base Annual Compensation shall increase by five percent (5%) on each of
the first and second anniversaries of the Effective Date of this Agreement. 
 
b.    Discretionary Bonus: Executive is eligible for a discretionary annual bonus of up to fifty percent (50%) of his then-applicable Base Annual Compensation, subject to the
approval of the Company’s Compensation Committee. 
 
c.    Benefit Coverage: Executive is entitled to participate in all executive benefit programs and plans established by the Company from time to time for the benefit of its executives generally and for
which Executive is eligible. 
 
d.    Vacation and Holidays: Executive is entitled to paid vacation time in accordance with the vacation policies established by the Company for its employees, as may be amended from time to time. Executive
will also be entitled to the paid holidays as set forth in the Company’s policies. 
 
e.    Car Allowance: Executive will receive Four Hundred Dollars ($400) per month as a car allowance. 
 
f.     Stock Options: Executive is eligible for grants of stock options under the
Entravision Communications Corporation 2000 Omnibus Equity Incentive Plan. The initial grant will be one hundred fifty thousand (150,000) shares at an exercise price equal to the closing market price of the Company’s Class A Common Stock on the
date of grant, vesting in twenty five percent (25%) installments over four (4) years. The grant is subject to the approval of the Company’s Compensation Committee. 
 
g.    Moving Expenses: The Company will reimburse Executive for up to Ten Thousand
Dollars ($10,000) in moving expenses upon submission of acceptable documentation. 
 
h.    Miscellaneous: The Company will indemnify Executive consistent with the Company’s other executive officers and its legal obligations under California Labor Code
Section 2802. 
 

	  	 4.	  	 Termination of Employment: 

 
a.    The Company or Executive may terminate this Agreement and Executive’s employment at any time, with or
without Cause (as defined below). 
 
b.    In the event Executive is terminated for “Cause,” Executive shall not be entitled to any severance compensation or any other compensation from the Company except 

 

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for such salary and benefits as Executive may have earned prior to Executive’s termination. If terminated for “Cause,”
Executive shall be ineligible for any bonus, prorated or otherwise. For purposes of this Agreement, the Company may terminate this Agreement for “Cause” for any of the following reasons: 
 
(i)    Executive’s continued failure
to substantially perform his job duties and responsibilities, provided that written notice is provided by the Company and the performance problem is not satisfactorily cured within sixty (60) days. 
 
(ii)    Executive’s serious
misconduct, dishonesty or disloyalty, which is actually or potentially harmful to the Company. 
 
(iii)    Executive’s willful, reckless or grossly negligent act or omission that is materially harmful to the Company. 
 
(iv)    Executive’s material breach
of any provision of this Agreement, provided written notice of such breach is given by the Company and Executive is given at least thirty (30) days to cure the breach. 
 
c.    Should the Company terminate Executive’s employment without Cause, or should
Executive voluntarily terminate his employment for Good Reason (as defined below), in addition to (i) salary and benefits Executive might have earned prior to his termination and (ii) any discretionary bonus approved by the Company’s
Compensation Committee prior to his termination, the Company will pay Executive severance pay in an amount equal to Executive’s then-current base monthly salary (exclusive of incentive or bonus pay, benefits and other non-cash remuneration)
multiplied by six (6). Payment of severance compensation under this Section 4 shall be paid in equal payments, corresponding to the Company’s usual executive paydays. Executive’s receipt of the severance payment described in this Paragraph
4(c) is conditioned upon Executive’s executing a customary form of release whereby Executive waives all claims arising out of his employment and termination of employment. 
 
d.    For purposes of this Agreement, “Good Reason” shall mean the requirement,
within 120 days following a Change in Control of the Company (as defined below), that Executive move his residence outside the greater Los Angeles, California metropolitan area. For purposes of this Agreement, “Change in Control” shall
mean the acquisition of the Company by another entity by means of any transaction or series or related transactions (including, without limitation, any reorganization, merger or consolidation, but excluding any merger effected exclusively for the
purpose of changing the domicile of the Company), where the Company’s stockholders of record as constituted immediately prior to such acquisition will, immediately after such acquisition, hold less than fifty percent (50%) of the voting power
of the surviving or acquiring entity. Any termination for Good Reason shall be communicated by Executive’s delivery of written notice to the Company, in accordance with Section 6 hereof, indicating that the Executive is voluntarily terminating
his employment for Good Reason and setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment for Good Reason. 
 

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	  	 5.	  	 Confidentiality: 

 
a.    Executive recognizes that his employment with the Company will involve contact with information of substantial
value to the Company, which is not generally known to the public and which gives the Company an advantage over its competitors who do not know or use it, including, but not limited to, techniques, designs, drawings, processes, inventions,
developments, equipment, prototypes, sales and customer information, and business and financial information relating to the business, products, practices and techniques of the Company (hereinafter referred to as “Confidential
Information”). Confidential Information includes all information disclosed by the Company or its clients, and information learned by the Executive during the course of employment with the Company. Notwithstanding the foregoing, Confidential
Information shall not be information which: (i) has entered the public domain through no action or failure to act of Executive; (ii) prior to disclosure hereunder was already lawfully in Executive’s possession without any obligation of
confidentiality; (iii) subsequent to disclosure hereunder is obtained by Executive on a non-confidential basis from a third party who has the right to disclose such information to Executive; or (iv) is ordered to be or otherwise required to be
disclosed by Executive by a court of law or other governmental body; provided, however, that the Company is notified of such order or requirement and given a reasonable opportunity to intervene. 
 
b.    At all times during and after
Executive’s employment with the Company, he will keep confidential and not use or disclose to any third party any Confidential Information, except in the course of his employment with the Company. 
 
c.    While employed by the Company and
for one (1) year thereafter, Executive may not, either directly or through any other person or entity (i) use Confidential Information to solicit or attempt to solicit any employee, consultant, vendor or independent contractor of the Company; or
(ii) use Confidential Information to solicit or attempt to solicit the business of any customer, vendor or distributor of the Company which, at the time of termination or one (1) year immediately prior thereto, was listed on the Company’s
customer, vendor or distributor list. 
 
6.     Notices: Notices and all other communications under this Agreement shall be in writing and shall be deemed given when personally delivered or when mailed by U.S. registered or certified mail, return
receipt requested, postage prepaid, addressed to the party’s last know address. 
 
7.    Waiver of Breach: The waiver by either party, or the failure of either party to claim a breach of any provision of this Agreement, shall not operate or be construed as
a waiver of any subsequent breach. 
 
8.    Assignment: The rights and obligations of the respective parties hereto under this Agreement shall inure to the benefit of and shall be binding upon the heirs, legal representatives, successors and
assigns of the parties hereto; provided, however, that this Agreement shall not be assignable by Executive without prior written consent of the Company. 
 

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9.     Entire Agreement: This Agreement supersedes any and all
other agreements, either oral or in writing, between the parties hereto with respect to the subject matter hereof and contains all of the covenants and agreements between the parties with respect to said subject matter in any manner whatsoever. Any
modification of this Agreement will be effective only if it is in writing and signed by both Executive and the CEO of the Company. 
 
10.     Governing Law: This Agreement shall be governed by, construed and enforced in accordance with the laws
of the State of California. 
 
11.     Partial Invalidity: If any provision of this Agreement is found to be invalid or unenforceable by any court, the remaining provisions hereof shall remain in effect unless such partial invalidity or
unenforceability would defeat an essential business purpose of this Agreement. 
 
12.     Remedy for Breach: In the event any action at law or in equity or other proceeding is brought to interpret or enforce this Agreement, or in connection with any
provision with this Agreement, the prevailing party shall be entitled to its reasonable attorneys’ fees and other costs reasonable incurred in such action or proceeding. 
 
13.     Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which shall together constitute one and the same instrument. To the maximum extent permitted by law or any applicable governmental authority, any document may be signed and
transmitted by facsimile with the same validity as if it were an ink-signed document. 
 
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the date first written above. 
 

	  “Company”
	  	  	  	  Entravision Communications Corporation
  a Delaware corporation

	
	  	  	  	  	  	  	  By:
	  	  /s/    WALTER F. ULLOA
        

	  	  	  	  	  	  	  	  	  Walter F. Ulloa
  Chairman & Chief Executive Officer

 

	  “Executive”
	  	  	  	  
	
	  	  	  	  	  	  	  By:
	  	  /s/    JOHN F. DELORENZO
        

	  	  	  	  	  	  	  	  	  John F. DeLorenzo

 
 
[Signature Page to Executive Employment Agreement] 
 

5<PAGE>

                                                                    EXHIBIT 10.1

                                Option Agreement

                                     between

                            Harken Energy Corporation

                                       and

                        The Liverpool Limited Partnership

                                       and

                            Elliott International LP

                                13 February 2003

<PAGE>

This Option Agreement is entered into this 13th day of February 2003 between:

     (1)  HARKEN ENERGY CORPORATION ("HEC") of 580 WestLake Park Boulevard,
          Suite 600, Houston, Texas 77079, United States of America;

     (2)  The Liverpool Limited Partnership ("Liverpool") of 41 Cedar Avenue,
          Cedar House, Hamilton HM12, Bermuda; and

     (3)  Elliott International LP ("International") of c/o HSBC Financial
          Services (Cayman) Ltd., P.O. Box 1109, Mary Street, Grand Cayman,
          Cayman Islands.

WHEREAS

     (a)  The Funds hold in aggregate $8.57 million nominal of Harken Energy
          Corporation 5% Senior Convertible Notes due 2003 (the "2003 Notes");
          and

     (b)  The Funds have agreed to exchange $2 million nominal of the 2003 Notes
          for $1.6 million nominal of Harken Energy Corporation 7% Senior
          Convertible Notes due 2006, Series A, with principal terms as set out
          in the memorandum of understanding executed by HEC and Elliott dated
          16 January 2003;

NOW, for full and valuable consideration which the parties hereto acknowledge,
HEC and the Funds agree as follows:

1 Definitions

          In this Agreement, unless the context otherwise requires, the
          following expressions have the following meanings:

          (A) "business day" means each Monday, Tuesday, Wednesday, Thursday,
          and Friday which is a day on which banking institutions in the City of
          New York, Houston Texas, and London England are not obligated or
          authorized by law, regulation or executive order to close.

          (B) "the Call Options" means the options granted in accordance with
          Section 2

          (C) "the Call Option Period" means the period beginning on the date
          hereof and ending on 30 April 2003

          (D) "Elliott" means Elliott Advisors (UK) Limited

          (E) "the Funds" means Liverpool and International

          (F) "the Option Price" means the price, payable in cash, of 60% of
          nominal value of the 2003 Notes to be purchased by HEC pursuant to the
          Put Options or Call Options, plus accrued and unpaid interest up to
          the date of payment of the Option Price for such Notes to the Funds

                                       2

<PAGE>

          (G) "the Put Options" means the options granted in accordance with
          Section 3

          (H) "the Put Option Period" means the period beginning on 1 May 2003
          and ending on 31 May 2003

2 Grant and Exercise of the Call Options

          (A) In consideration of these presents, Liverpool and International
          hereby grant to HEC the right and option during the Call Option Period
          to purchase from them, and each Fund shall be obliged to sell, up to
          $2.95 million and up to $3.62 million nominal of 2003 Notes
          respectively at the Option Price on the terms of this Agreement.

          (B) Notice of exercise of the Call Options may be given at any time
          and from time to time to the Funds during the Call Option Period in
          respect of any multiple of $100,000 in aggregate principal amount of
          2003 Notes. Such notice shall be given in writing specifying a date
          for completion which date shall be not more than 5 business days nor
          less than 3 business days after the date of service of the notice. If
          HEC exercises any Call Option, 44.91 percent of the 2003 Notes
          underlying such Call Option must be purchased from Liverpool and the
          remainder from International.

3 Grant and Exercise of the Put Options

          (A) In consideration of these presents, HEC grants to the Funds the
          right and option to sell to HEC, and HEC shall be obliged to purchase
          from the Funds, at the Option Price such nominal amount of 2003 Notes
          which shall equal, when aggregated with the 2003 Notes purchased by
          HEC from the Funds pursuant to the Call Options by the end of the Call
          Option Period, $3.3 million nominal of 2003 Notes.

          (B) The Put Options may only be exercised if the Company receives
          $10,000,000 in gross proceeds pursuant to the consummation of the
          transactions contemplated by the Rights Offering and the Standby
          Purchase Agreement between the Company and Lyford Investments
          Enterprises Ltd. dated September 6, 2002, as amended, before the date
          of exercise of the Put Options.

          (C) Notice of the exercise of the Put Options may be given by the
          Funds at any time and from time to time to HEC during the Put Option
          Period in respect of any multiples of $100,000 of 2003 Notes. Such
          notice shall be in writing specify a date for completion which date
          shall be not more than 5 business days nor fewer than 3 business days
          after the date of service of the notice.

                                       3

<PAGE>

4 Undertakings by HEC

          HEC hereby undertakes with the Funds it will use its best efforts to
          complete the Rights Offering and the transactions contemplated in the
          Standby Purchase Agreement by 30 April 2003.

5 Non- Assignability

          The Put Options and the Call Options may not be assigned in whole or
          in part.

6 Notices

          Any notice to be given by HEC hereunder shall be deemed served if
          faxed to Elliott at facsimile number 44 (0)20 7577 3737 with a
          telephone confirmation from Elliott of receipt or if delivered to
          Elliott at 4th Floor, 33 King Street, London SW1Y 6RE. Any notice to
          be given by the Funds hereunder shall be given by Elliott and shall be
          deemed served if faxed to HEC at facsimile number 001 281 504 4100
          (Attention A. Wayne Hennecke, Senior Vice President-Finance and
          Secretary) with a telephone confirmation from HEC of receipt or if
          delivered to HEC at its address set out in this Agreement.

7 Counterparts

          This Agreement may be executed in any number of counterparts, all of
          which taken together shall constitute one and the same instrument.
          Either party may enter into this Agreement by executing any such
          counterpart.

8 Choice of law / Arbitration

          With respect to any matters under this Agreement that are governed by
          state law, but excluding the next paragraph of this Section 8, which
          shall be governed by the United States Federal Arbitration Act, the
          parties agree that this Agreement shall be construed and governed by
          the laws of the State of New York.

          Any dispute between the Funds and HEC as to a violation or alleged
          violation of any provision of this Agreement shall be resolved by
          final and binding arbitration, which arbitration shall be conducted in
          accordance with the rules of the American Arbitration Association
          insofar as said rules are not in conflict with the provisions of this
          Agreement, with such arbitration hearing to be conducted in New York.
          The arbitration provisions of this Paragraph shall be governed by the
          United States Federal Arbitration Act. THE PARTIES UNDERSTAND AND
          AGREE THAT THIS SECTION CONSTITUTES A WAIVER OF THEIR RIGHT TO A TRIAL
          BY JURY OF ANY CLAIMS OR CONTROVERSIES COVERED BY THIS AGREEMENT, AND
          THAT NONE OF THOSE CLAIMS OR CONTROVERSIES SHALL BE RESOLVED BY A JURY
          TRIAL.

                                       4

<PAGE>

          The arbitration provided for in this Agreement shall be final and
          binding and enforceable in any court of competent jurisdiction, and
          such arbitration shall be the sole method of resolving disputes
          between the parties with respect hereto.

10.  Miscellaneous

          Any facsimile signature of any person on a document required or
          permitted pursuant to this Agreement shall constitute a legal, valid
          and binding execution thereof by such person.

IN WITNESS whereof, this Agreement has been entered into as of the day and year
first above written.

HARKEN ENERGY CORPORATION

By:      /s/ Bruce N. Huff, President and Chief Operating Officer
    -------------------------------------------------------------

LIVERPOOL LIMITED PARTNERSHIP

By:      /s/ Elliot Greenberg, Vice President
   --------------------------------------------------------------

ELLIOTT INTERNATIONAL LP

By:      /s/ Elliot Greenberg, Vice President
   --------------------------------------------------------------

                                       5

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