Document:

ex_115810.htm

Exhibit 10.1

 

 

 

 

May 27, 2018

 

Elias N Nader

2295 Leigh Avenue

San Jose, CA 95124

 

 

Terms of Continued Employment

 

Dear Elias:

 

This letter agreement will confirm certain terms and conditions of your continued at-will employment with Sigma Designs, Inc. (the “Company”) in connection with the voluntary dissolution and liquidation of the Company pursuant to a Plan of Liquidation (the “Plan of Liquidation”).

 

	 	
			1.

				
			Positions. Effective January 26, 2018, you were appointed Interim President and Chief Executive Officer (“CEO”), in addition to your current role as Senior Vice President and Chief Financial Officer of the Company. On February 25, 2018, you were also elected as a member of the Company’s Board of Directors (the “Board”).

			

 

	 	
			2.

				
			Base Compensation. Effective January 26, 2018, your annual base salary will be increased to $394,200, paid in accordance with the Company’s standard payroll process, but with a catch-up payment promptly following approval and execution of this letter (“Effective Date”) for the amount of the increase allocable to the period from January 26, 2018 through the Effective Date.

			

 

	 	
			3.

				
			Performance Retention Incentives. To encourage your continued employment and achievement of strategic goals related to the Asset Sale (as defined below) and thereafter through the implementation of the Plan of Liquidation, you will be eligible to earn the following bonus amounts upon achievement of the specified transaction milestones, subject to your continued employment through the date that the Board certifies such achievement:

			

 

 

 

 

 

 

 

 

	
			Bonus

			 

				
			Strategic Transaction Milestone

			
	
			$100,000

				
			Closing of the sale to Silicon Laboratories Inc. of all of the assets which relate to our Z-Wave business (the “Asset Sale”) pursuant to the agreement with Silicon Laboratories dated December 7, 2017 (the “Sale Agreement”) [Payment will be made promptly following the Effective Date in light of the prior completion of the transaction].

			 

			
	
			$75,000

				
			Closing of sale of G.hn Business [Payment will be made promptly following the Effective Date in light of the prior completion of the transaction.]

			 

			
	
			$75,000

				
			Complete wind down or closing of sale of the TV/STB Business [Payment will be made promptly following the Effective Date in light of the prior completion of the transaction]. 

			 

			
	
			$50,000

				
			Complete wind down or closing of sale of the Mobile IOT Business.

			 

			
	
			$250,000

				
			Complete wind down/liquidation of the Company known as “Sigma Designs, Inc.” (“Wind Down Bonus”).

			 

			

 

 

For purposes hereof, the determination of the completion of the wind down and/or liquidation of the Company’s businesses will be made at the reasonable discretion of the Board. Payment of earned bonuses will be subject to applicable withholding taxes and will be made as soon as administratively practicable following the Board’s determination but in no event later than 30 days following the end of the calendar year in which earned.

 

	 	
			4.

				
			Termination of Employment. The Company acknowledges that your voluntary resignation of employment on or within 18 months following the Asset Sale pursuant to the Sale Agreement could constitute an Involuntary Termination in connection with a Change in Control as such terms are defined in the Executive Severance Agreement between you and the Company dated September 30, 2017 (the “Severance Agreement”), subject to your compliance with the terms and conditions thereof. To encourage your continued employment following the Asset Sale and through the implementation of the Plan of Liquidation, the Company will provide you with the severance benefits to which you would have been entitled had you terminated your employment on the closing of the Asset Sale pursuant to the Sale Agreement, provided that:

			

 

 

 

 

 

 

 

 

	 	
			(a)

				
			You must continue in employment with the Company through (and separate from service upon) the earliest of:

			

 

	 	
			-

				
			completion of the dissolution and liquidation of the Company pursuant to the Plan of Liquidation as determined by the Board;

			

 

	 	
			-

				
			such date that the Board releases you (other than for Cause, as defined in the Severance Agreement) or you are otherwise subject to an Involuntary Termination as defined in Section 1(c) of the Severance Agreement; provided, however, that (1) for purposes of subsection (i) thereof, your authority, duties or responsibilities will not be deemed to be materially reduced as a result of any changes resulting from the Asset Sale or the wind down and/or liquidation of the Company’s businesses, and (2) subsection (v) thereof shall not apply;

			

 

	 	
			-

				
			your death or disability (within the meaning of the Company’s long-term disability plan);

			

 

	 	
			-

				
			nine (9) months following the closing of the Asset Sale pursuant to the Sale Agreement; or

			

 

	 	
			-

				
			such date that a court of competent jurisdiction assumes supervision of the Company’s voluntary winding up, or the Company becomes subject to a receivership or other involuntary proceeding for the winding up and dissolution of the Company;

			

 

and not be terminated for Cause;

 

	 	
			(b)

				
			If requested by a majority of the Board, you must resign from the Board upon your termination of employment;

			

 

 

 

 

 

 

 

 

	 	
			(c)

				
			Your cash severance benefits pursuant to Section 3(a) of the Severance Agreement (including, if applicable, the COBRA payment) will be provided following your actual Termination Date, as defined in the Severance Agreement, subject to your delivery of a release in accordance with the requirements of the Severance Agreement;

			

 

	 	
			(d)

				
			Your equity acceleration benefits pursuant to Section 3(b) of the Severance Agreement will be provided upon the closing of the Asset Sale pursuant to the Sale Agreement, which has been completed; provided you agree to sign and not revoke a standard release of claims with the Company in a form reasonably acceptable to the Company which becomes effective and irrevocable within 60 days of the Effective Date; and

			

 

	 	
			(e)

				
			The total amount of your severance benefit under Section 3(a)(i) of the Severance Agreement will be equal to (1) 150% of your annual base salary as increased hereunder (and for this purpose your annual base salary shall not be deemed to include any bonus of any kind), plus (2) if your Termination Date as defined in the Severance Agreement is prior to the date of the Board’s determination that the wind down and/or liquidation of the Company’s businesses has been completed, the amount of the Wind Down Bonus that you would have earned under Section 3 above had your employment continued through such determination date.

			

 

For the avoidance of doubt, you will not be entitled to any severance benefit under the Severance Agreement (other than the equity acceleration benefit pursuant to Section 3(b) thereof) or otherwise if you do not satisfy the conditions in Sections 4(a) and (b) above, and if you do satisfy the conditions in Sections 4(a) and (b) above, you will not be entitled to any severance benefits other than as set forth herein.

 

	 	
			5.

				
			Miscellaneous.

			

 

Nothing contained herein alters the at-will nature of your employment, or interferes in any way with the right of either party to terminate such employment at any time. 

 

 

 

 

 

 

 

 

This letter agreement embodies the entire agreement and understanding of the parties in respect of the subject matter contained herein and supersedes all prior agreements and understandings between the parties with respect to the subject matter hereof, including the Severance Agreement. This letter agreement may be amended or modified only by written agreement signed by each of the parties. In the event that one or more of the provisions, or portions thereof, of this letter agreement are determined to be invalid or unenforceable for any reason, the remainder of this letter agreement shall be unaffected and shall remain in full force and effect to the fullest extent permitted by law. This agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws principles.

 

Please acknowledge your agreement with the foregoing by signing and dating this letter agreement where indicated below.

 

 

 

	 	Sigma Designs, Inc.
	 	 
	 	/s/ J. Michael Dodson
	 	
			By: J. Michael Dodson

			Title: Lead Director

			Date: May 27, 2018

			

   

 

Agreed to and Acknowledged:

 

 

 

	/s/ Elias Nader	 
	By:	Elias Nader	 
	Title:  	Interim President & CEO; CFO	 
	Date:	May 27, 2018Exhibit 10.1

  

 

AMENDMENT
NO. 1 TO INVESTMENT MANAGEMENT TRUST AGREEMENT

 

THIS AMENDMENT NO. 1 TO THE INVESTMENT MANAGEMENT
TRUST AGREEMENT (this “Amendment”) is made as of May 31, 2018, by and between Landcadia Holdings, Inc.,
a Delaware corporation (the “Company”), and Continental Stock Transfer & Trust Company, a New York
corporation (the “Trustee”). Capitalized terms contained in this Amendment, but not specifically defined
in this Amendment, shall have the meanings ascribed to such terms in the Original Agreement (as defined below).

 

WHEREAS, on June 1, 2016, the Company consummated
an initial public offering (the “Offering”) of units of the Company’s equity securities, each such
unit comprised of one share of the Company’s Class A common stock, par value $0.0001 per share (“Common Stock”),
and one warrant, each warrant entitling the holder thereof to purchase one-half of one share of Class A Common Stock;

 

WHEREAS, the Company entered into an Underwriting
Agreement with Deutsche Bank Securities Inc. and Jefferies LLC as representatives of the several underwriters named therein (the
“Underwriting Agreement”);

 

WHEREAS, $250,000,000 of the gross proceeds
of the Offering and sale of the Sponsor Warrants (as defined in the Underwriting Agreement) were delivered to the Trustee to be
deposited and held in a segregated trust account located in the United States (the “Trust Account”) for
the benefit of the Company and the holders of the Company’s Common Stock included in the Units issued in the Offering pursuant
to the investment management trust agreement made effective as of May 25, 2016, by and between the Company and the Trustee (the
“Original Agreement”);

 

WHEREAS, the Company has sought the approval
of its Public Stockholders at a meeting of its stockholders to: (i) extend the date before which the Company must complete a business
combination from June 1, 2018 to December 14, 2018 (the “Extension Amendment”) and (ii) extend the date
on which the Trustee must liquidate the Trust Account if the Company has not completed a business combination from June 1, 2018
to December 14, 2018 (the “Trust Amendment”);

 

WHEREAS, holders of at least sixty-five
percent (65%) of the Company’s outstanding shares of common stock approved the Extension Amendment and the Trust Amendment;
and

 

WHEREAS, the parties desire to amend and
restate the Original Agreement to, among other things, reflect amendments to the Original Agreement contemplated by the Trust Amendment.

 

NOW, THEREFORE, in consideration of the
mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound hereby, the parties hereto agree as follows:

 

1. Amendment of Trust Agreement.
Section 1(i) of the Original Agreement is hereby amended and restated in its entirety as follows:

 

“Commence liquidation of the Trust Account
only after and promptly after (x) receipt of, and only in accordance with, the terms of a letter from the Company (“Termination
Letter”) in a form substantially similar to that attached hereto as either Exhibit A or Exhibit B signed
on behalf of the Company by its Chief Executive Officer, President, Chief Financial Officer or a Co-Chairman of the board of directors
(the “Board”) or other authorized officer of the Company, and complete the liquidation of the Trust Account
and distribute the Property in the Trust Account, including interest (which interest shall be net of any taxes payable and less
up to $50,000 of interest that may be released to the Company to pay dissolution expenses), only as directed in the Termination
Letter and the other documents referred to therein, or (y) December 14, 2018, if a Termination Letter has not been received
by the Trustee prior to such date, in which case the Trust Account shall be liquidated in accordance with the procedures set forth
in the Termination Letter attached as Exhibit B and the Property in the Trust Account (less taxes payable and up to $50,000
of interest that may be released to the Company to pay dissolution expenses) shall be distributed to the Public Stockholders of
record as of such date; provided, however, that in the event the Trustee receives a Termination Letter in a form
substantially similar to Exhibit B hereto, or if the Trustee begins to liquidate the Property because it has received no
such Termination Letter by December 14, 2018, the Trustee shall keep the Trust Account open until twelve (12) months following
the date the Property has been distributed to the Public Stockholders;” 

 

     

     

    

 

2. Miscellaneous Provisions.

 

2.1. Successors.  All the
covenants and provisions of this Amendment by or for the benefit of the Company or the Trustee shall bind and inure to the benefit
of their permitted respective successors and assigns.

 

2.2. Severability.  This
Amendment shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
validity or enforceability of this Amendment or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Amendment a provision
as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

2.3. Applicable Law.  The
validity, interpretation and performance of this Amendment shall be governed in all respects by the laws of the State of New York,
without giving effect to conflict of laws.

 

2.4. Counterparts.  This
Amendment may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

2.5. Effect of Headings.  The
section headings herein are for convenience only and are not part of this Amendment and shall not affect the interpretation thereof.

 

2.6. Entire Agreement.  The
Original Agreement, as modified by this Amendment, constitutes the entire understanding of the parties and supersedes all prior
agreements, understandings, arrangements, promises and commitments, whether written or oral, express or implied, relating to the
subject matter hereof, and all such prior agreements, understandings, arrangements, promises and commitments are hereby canceled
and terminated.

 

[Signature page follows]

 

    2 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed as of the date first above written.

 

	 	Continental Stock Transfer & Trust Company, as Trustee 
	 	 	 
	 	 	 
	 	By: 	/s/ Francis E. Wolf, Jr
	 	 	Name: Francis E. Wolf, Jr.
	 	 	Title:   Vice President

 

 

 

[Signature Page to Amendment No. 1 to
Investment Management Trust Agreement]

     

     

    

 

	 	Landcadia Holdings, Inc.
	 	 	 
	 	 	 
	 	By: 	/s/ Steven L. Scheinthal
	 	 	Name: Steven L. Scheinthal
	 	 	Title:   Vice President

 

 

 

[Signature Page to Amendment No. 1 to
Investment Management Trust Agreement]

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