Separation Agreement Between
Three Angels Broadcasting Network, Inc.
and
Linda Shelton
Three Angels Broadcasting Network, Inc. ("Three Angels") and
Linda Shelton ("Mrs. Shelton"), hereby agree to the following
terms and conditions:
1. Three Angels agrees to pay Linda Shelton, within seven
days of the signing of this document by both parties, the sum
of $45,000. Three Angels agrees to transfer to Linda the rights,
including the masters, to the five musical CD projects that she
has had a primary role in (two solo projects and three duet projects
with Danny and Linda) and the eight musical songs on video from
the I Think About Grace album.
2. Three Angels agrees to pay Linda Shelton, within seven
days of the signing of this agreement by both parties, a further
sum of $45,000.
3. Three Angels also agrees to pay Linda Shelton $75,000 for
each of the years 2005 and 2006. This money will be paid out
in 24 equal installments ($6,250.00) beginning the first Monday
of January, 2005, and continuing to be paid on the first Monday
of each month for the next 23 months, ending with the payment
on the first Monday of December 2006. These payments shall continue
to be made only insofar as Mrs. Shelton complies with the conditions
specified below.
4. All the above payment amounts represent gross severance
pay and settlement figures, and the actual amount given to Mrs.
Shelton will be reduced by the amount that employers are required
to withhold by law for state and federal income taxes and other
mandatory withholdings.
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5. Linda Shelton agrees that, in consideration for the $90,000
which she will receive in seven days from the time that both
parties sign this agreement, she will not bring any lawsuit,
legal action, or other claim against Three Angels Broadcasting
Network, any of its officers or directors, or any of its employees,
in any court, forum, tribunal or proceeding for damages, whether
compensatory or punitive, compensation, or other relief.
6. Linda Shelton agrees that, in consideration for the $90,000
and for the monthly payments that will commence in January 2005,
that she will not make public statements critical of Three Angels,
the board of directors, or any of its officers or employees.
Public statements include those made on the air, whether via
radio or television, in print, whether in newspapers, magazines,
books or other printed sources, or circulated on the internet
in the form of e-mail or web-postings, or made at churches or
other public meeting sites. She also agrees that she will not
make statements in private for her friends, agents, or third
parties to attribute to her in a public manner as described above.
If her friends, agents or other third parties make public statements
critical of Three Angels, Mrs. Shelton shall immediately, upon
notification by Three Angels, cooperate with Three Angels and
request in writing and by telephone, if reasonably possible,
that public statements made by third parties discontinue. If
she does not so cooperate, any such public statements by third
parties will be considered to be those of Mrs. Shelton, will
be viewed as violation of this section, and will result in the
termination of the payments to her described in Section 3.
7. Any dispute that arises out of this contract or the relationship
between Mrs. Shelton and Three Angels or any of its officers
and directors, whether during the period of payment to Mrs. Shelton
or afterwards, concerning its terms, application, or whether
its standards have been met by the parties, shall be reso1ved
through Christian arbitration, and shall not be taken up in
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any court system, whether judicial or administrative. Both
parties hereby waive any legal recourse and agree that they will
submit to binding arbitration, with no appeal, by a panel of
three Seventh-day Adventist Christians. This panel will be chosen
in the following manner: Each side shall choose one Adventist
Elder or Pastor in the North American Division. Those two persons
shall then choose one other person that they can mutually agree
on to chair the panel to arbitrate the dispute. The panel will
hear testimony from both sides, consider any necessary evidence,
and render a written decision that will be binding on the parties,
with no further appeal allowed.
8. Nothing in the above shall prevent Mrs. Shelton from seeking
a fair and equitable split of her marital property, which shall
not include any property owned by Three Angels Broadcasting Network,
in or out of court, in any separation or divorce proceeding.
Any moneys received by Mrs. Shelton under this agreement shall
be considered her separate and personal property, and not marital
property.
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