SEC Contract Filing

Filing Date: 2015-03-06

Document Content:
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<TYPE>EX-10.16
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<FILENAME>d825222dex1016.htm
<DESCRIPTION>EX-10.16
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<TITLE>EX-10.16</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.16 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February&nbsp;16, 2015 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Gerry Salemme </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Arlington, VA 22207 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Gerry, </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This letter relates to your employment with Pendrell Corporation, a Washington corporation (&#147;Pendrell&#148;). You have served as
Pendrell&#146;s full-time chief strategy officer under the terms and conditions of an employment letter dated July&nbsp;1, 2011, as supplemented by addenda dated August&nbsp;25, 2014 and January&nbsp;1, 2015 (collectively, the
&#147;Agreement&#148;). We have mutually determined that your duties no longer warrant full-time employment, which coincides with your desire to pursue activities outside of Pendrell. Therefore, we wish to terminate the Agreement to eliminate your
full time employment relationship and replace the employment relationship with the consulting relationship described in this letter. We have agreed on the following. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As of the date of this letter (&#147;Effective Date&#148;), your employment is terminated and you are relieved of your duties as
Pendrell&#146;s chief strategy officer. Instead, you will be a consultant to Pendrell, with freedom to pursue professional activities outside Pendrell, subject to (i)&nbsp;devotion of sufficient time to perform your duties, as you deem necessary and
appropriate; and (ii)&nbsp;the absence of activities that interfere with the effective performance of your duties to Pendrell. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In your
new role, you will provide strategic advice, identify business opportunities for Pendrell, and assess opportunities that are presented to you by the Pendrell Board of Directors or Pendrell management. You will report to the chairperson of
Pendrell&#146;s board of directors. You will perform these services in a first class, professional manner with skill, care and diligence, in compliance with all applicable federal, state, and local laws, ordinances, and regulations. You will
personally perform the services, and not retain third parties to perform the services unless you obtain Pendrell&#146;s prior written consent, which shall be granted or withheld in Pendrell&#146;s sole discretion. For your consulting services, you
will receive a monthly consulting fee of $20,000. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">With the exception of your salary through the day prior to the Effective Date and your
2014 performance bonus, which shall be paid to you on the first pay roll date after the Effective Date, all payments under your terminated Agreement will cease as of the Effective Date, and you are hereby relinquishing any and all entitlement to or
eligibility for bonus compensation and severance benefits, including any amounts payable under the Agreement. Moreover, you will no longer be eligible for any base salary, bonus, paid time off accruals, severance benefits, 40l(k) matching
contributions, insurance benefits or any other employee benefits. As consideration for your agreement to relinquish all such past and future benefits, Pendrell shall pay you, at the next regularly scheduled payroll date following the Effective Date,
a lump sum payment of $455,000. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Either you or Pendrell may terminate the consulting relationship at any time upon no less than 30 days
advance written notice; provided, however, that before Pendrell may terminate the relationship for Cause (defined below ), Pendrell must provide you with the opportunity to cure the Cause within the 30-day notice period. If Pendrell terminates the
consulting relationship without Cause (defined below) or if you terminate the consulting relationship for Good Reason (defined below), Pendrell shall pay to you in lump sum upon termination a termination fee of $455,000 and
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you shall retain and continue to vest in any existing equity awards through the first anniversary of the termination date, subject to the terms and conditions of Pendrell&#146;s Stock Incentive
Plan and your individual plan agreements. If you terminate the consulting relationship for other than Good Reason or if Pendrell terminates the consulting relationship for Cause, no further payments are due, and vesting will cease on your existing
equity awards on the termination date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For purposes of this letter, &#147;Cause&#148; means continued willful material misconduct or
intentional failure to discharge duties, conviction or confession of a crime punishable by law (except minor violations), personally engaging in activities directly in competition with Pendrell&#146;s existing business, or the performance of an
illegal act while purporting to act on Pendrell&#146;s behalf, s