Common use of Claw-Back Clause in Contracts

Claw-Back. If Talent retires or resigns from his employment as a Professional Athlete in the League at any time prior to the second anniversary of the Closing for any reason other than Good Reason, Fantex may elect, in its sole discretion, to terminate this Agreement upon written notice to Participant (the date of such notice is hereinafter referred to as the “Termination Date”). In the event of such termination, Participant shall pay to Fantex, not later than thirty (30) days following the Termination Date, an amount equal to (a) the Purchase Price plus an amount equal to the Underwriting Amount, minus (b) all Brand Amounts previously paid to Fantex, including the Pre-Closing Brand Amount. In addition, Participant shall concurrently pay to Fantex interest on the Purchase Price at the rate of five percent (5%) per annum, measured from the date the Purchase Price was paid to Participant. For the avoidance of doubt, the Parties acknowledge and agree that Talent’s involuntary release from Participant’s Team or the fact that Talent is not under contract with, or on the roster of, any League franchise at any time prior to the second anniversary of the Closing shall not, in and of itself, trigger any rights of Fantex or obligations of Participant under this Section 11.1.

Claw-Back. If Talent voluntarily retires or resigns from his employment as a Professional Athlete in the League at any time prior to the second anniversary of the Closing for any reason other than Good Reason, Fantex may elect, in its sole discretion, to terminate this Agreement upon written notice to Participant (the date of such notice is hereinafter referred to as the “Termination Date”). In the event of such termination, Participant shall pay to Fantex, not later than thirty (30) days following the Termination Date, an amount equal to (a) the Purchase Price plus an amount equal to the Underwriting Amount, minus (b) all Brand Amounts previously paid to Fantex, including the Pre-Closing Brand Amount. In addition, Participant shall concurrently pay to Fantex interest on the Purchase Price at the rate of five percent (5%) per annum, measured from the date the Purchase Price was paid to Participant. For the avoidance of doubt, the Parties acknowledge and agree that Talent’s involuntary release from Participant’s Team or the fact that Talent is not under contract with, or on the roster of, any League franchise club, any League-affiliated club, or any independent professional baseball club at any time prior to the second anniversary of the Closing shall not, in and of itself, trigger any rights of Fantex or obligations of Participant under this Section 11.1.