Allocation Agreement dated May 31, 2024 between MicroStrategy Incorporated and Michael J. Saylor
Exhibit 10.1
ALLOCATION AGREEMENT
This Allocation Agreement (the “Allocation Agreement”) is entered into as of the 31stday of May, 2024 (the “Effective Date”) by and between MicroStrategy Incorporated (“MicroStrategy,” together with its worldwide subsidiaries, the “Company”) and Michael J. Saylor (“Saylor”) (together, the “Parties”).
WHEREAS, MicroStrategy and Saylor are defendants in the action captioned District of Columbia and Tributum, LLC v. Michael J. Saylor and MicroStrategy, Inc., currently pending in the Superior Court of the District of Columbia (the “Litigation”);
WHEREAS, the amended complaint in the Litigation alleges that Saylor failed to pay income taxes allegedly owed to the District of Columbia. The amended complaint further alleges that MicroStrategy facilitated Saylor’s alleged scheme in violation of the District of Columbia False Claims Act;
WHEREAS, on April 11, 2024, the Board of Directors of MicroStrategy (the “Board”) established a special committee of the Board consisting of Stephen X. Graham and Leslie Rechan (the “Litigation Special Committee”);
WHEREAS, the Board delegated to the Litigation Special Committee all powers, rights, authority, and functions of the Board necessary or appropriate to represent MicroStrategy in the Litigation, and to negotiate and approve any settlement of the Litigation, including any settlement payments;
WHEREAS, the District of Columbia, by and through its Office of the Attorney General (“OAG”), MicroStrategy and Mr. Saylor have reached an agreement in principle to settle the Litigation for a payment in the aggregate amount of $40 million (the “Settlement”);
WHEREAS, OAG, MicroStrategy and Mr. Saylor have negotiated the form of consent order attached hereto as Exhibit A memorializing the Settlement;
WHEREAS, Mr. Saylor and MicroStrategy have reached an agreement whereby Mr. Saylor will pay any attorneys’ fees, costs, and expenses that are agreed to with Tributum, LLC (“Tributum”) and/or its counsel or that are ordered by the Court to be paid to Tributum and/or its counsel in connection with the Litigation (the “Fee Payment”);
WHEREAS, MicroStrategy and Saylor wish to memorialize their respective allocations of the Settlement and Fee Payment.
NOW, THEREFORE, in consideration of the mutual promises set forth herein and for other good and valuable consideration, MicroStrategy and Saylor agree as follows:
IN WITNESS WHEREOF, the Parties have executed this Allocation Agreement effective as of the Effective Date.
MICROSTRATEGY INCORPORATED
on behalf of itself and its worldwide subsidiaries
/s/ Ming Shao |
|
By: Ming Shao |
|
Title: Senior Executive Vice President & General Counsel |
|
/s/ Michael J. Saylor |
|
Michael J. Saylor |
|