"So, if the agreement states what is reported, then the company could have some various serious exposure, as it was complicit in his conduct," said Richard Roth , an NYC-based entertainment attorney who specializes in employment issues. "The preliminary issue is whether the employer knew of the harassment. Here, it appears not only that the company knew, but that it did nothing to protect its employees from the harasser. Worse yet, by placing that language in the agreement, it actually condoned the conduct, stating that it's ok if he does it so long as he pays for it. That provision can cause the company serious exposure, especially when it is claiming it knew nothing of his misconduct."