Document:

Document

Amendment No. 2 to 
EMPLOYMENT Agreement
    This Amendment No. 2 to the Employment Agreement (this “Amendment No. 2”), effective as of June 25, 2020 (the “Effective Date”), is entered into by and between Immersion Corporation, a Delaware corporation (the “Company”), and Ramzi Haidamus, an individual (“Executive”).  This Amendment No. 2 amends that certain Employment Agreement, dated as of December 21, 2018 (the “Employment Agreement”), by and between the Company and Executive, as amended by that certain Amendment No. 1 to the Employment Agreement, effective as of February 27, 2020 (the “Amendment No. 1”). Each capitalized term used, but not defined, in this Amendment No. 2, shall have the same meaning ascribed to it in the Employment Agreement.

WHEREAS, the COVID-19 global pandemic and related events have caused a significant deterioration in the global economy, which has negatively impacted the Company’s performance;
WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) desires to cancel Executive’s 2020 Executive Incentive Plan, executed on April 23, 2020 (the “2020 EIP”), such that Executive would not be entitled to any bonus under the 2020 EIP (the “Bonus Termination”);
WHEREAS, pursuant to that certain Waiver, effective as of June 25, 2020 (the “Waiver”), by and between the Company and Executive, and as a condition of the effectiveness of this Amendment No. 2, Executive has waived any entitlement that Executive might have otherwise have under the Employment Agreement to resign for Good Reason as a result of the Bonus Termination (the “Waiver”); and 
WHEREAS, the Company and Executive wish to amend the Employment Agreement such that Executive will retain, and the Company will continue to provide, Executive’s entitlements to certain payments and benefits payable to Executive in the event Executive is terminated without Cause or resigns for Good Reason.
NOW, THEREFORE, in accordance with Section 19(h) of the Employment Agreement, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby amend the Employment Agreement as follows:
1.Target Bonus.  The parties hereby amend the Employment Agreement by replacing Sections 9(b)(iii) and 9(c)(iii) with the following:

“a lump sum payment equal to 100% of your Target Bonus assuming target achievement level for the then-current fiscal year (provided, however, that this payment shall be equal to 100% of your then-current Base Salary for the 2020 fiscal year);”

2.Miscellaneous:  This Amendment No. 2, when executed by the parties, shall be effective as of the date stated above.  This Amendment No. 2 fully and completely expresses the agreement of the parties with respect to the subject matter hereof and shall not be modified or amended except by written agreement executed by each of the parties hereto.  This Amendment No. 2 may be executed in any number of counterparts (including via PDF, facsimile, DocuSign or any other electronic method), each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.  Except as amended and/or modified by this Amendment No. 2, the Agreement shall remain in full force and effect. 

[SIGNATURE PAGE FOLLOWS]

    IN WITNESS WHEREOF, the Parties have agreed to and accepted the foregoing terms and have caused this Amendment No. 2 to be signed by their duly authorized representatives.

IMMERSION CORPORATION    EXECUTIVE

By: /s/ Aaron Akerman        By: /s/ Ramzi Haidamus    

Name: Aaron Akerman        Name: Ramzi Haidamus      

Title: Chief Financial Officer        

Date: June 30, 2020        Date: June 30, 2020    

[Signature page to Amendment No. 2 to Employment Agreement]Document

Schedule to Exhibit 10.3 to Form 10-Q

Instruction 2 to Item 601 of Regulation S-K provides that “in any case where two or more indentures, contracts, franchises, or other documents required to be filed as exhibits are substantially identical in all material respects except as to the parties thereto, the dates of execution, or other details, the registrant need file a copy of only one of such documents, with a schedule identifying the other documents omitted.”  

The Company has entered into Amendment No. 1 to Retention and Ownership Change Event Agreement with each of its executive officers, other than Ramzi Haidamus.  Each Amendment No. 1 to Retention and Ownership Change Event Agreement is substantially identical in all material respects to the Form of Amendment No. 1 to Retention and Ownership Change Event Agreement filed as Exhibit 10.3 to the Company’s Form 10-Q for the quarterly period ended September 30, 2020.

10224307.1

IMMERSION CORPORATION

AMENDMENT NO. 1 TO 
RETENTION AND OWNERSHIP CHANGE EVENT AGREEMENT
This Amendment No. 1 (the “Amendment”) to the Retention and Ownership Change Event Agreement by and between Immersion Corporation (the “Company”) and [l] (the “Executive”) is effective as of [l] (the “Effective Date”).
1.  Clause (3) of Section 1(d) of the Agreement is amended in its entirety to read as follows:
(3) Executive’s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of the Company (including, without limitation, Executive’s improper use or disclosure of the Company’s confidential or proprietary information, but excluding immaterial or inadvertent acts by Executive taken in good faith that a professional in Executive’s position with substantially the same skill and experience as Executive reasonably could have taken in good faith, and promptly cured after discovery or notice);  
2.  Clause (4) of Section 1(d) of the Agreement is amended in its entirety to read as follows:
(4) any intentional act by the Executive that has a material detrimental effect on the Company’s reputation or business (but excluding any act that is taken by the Executive during the execution of the Executive’s duties or responsibilities, which act the Executive believed in good faith was in the interests of the Company and/or its stockholders and which a reasonable professional in Executive’s position with substantially the same skill and experience as Executive reasonably could have taken and believed in good faith was in the interests of the Company and/or its stockholders);  
3.  Clause (5) of Section 1(d) of the Agreement is amended in its entirety to read as follows:
(5) Executive’s repeated failure or inability to perform any reasonable assigned duties after written notice from the Company of, and a reasonable opportunity to cure, such failure or inability (but excluding any failure or inability due to the Executive’s death or disability);  

*  *  *
Except as expressly modified by this Amendment, the Agreement will remain in full force and effect in accordance with its terms.  This Amendment will be governed by the laws of the State of California (with the exception of its conflict of law provisions). 

10224307.1

The Company and the Executive have executed this Amendment, in the case of the Company by its duly authorized officer, as of the Effective Date.
IMMERSION CORPORATION            EXECUTIVE
    
                        
Ramzi Haidamus                [Name]
President and CEO

10224307.1    3Exhibit 10.1

 

NEITHER THE ISSUANCE NOR SALE OF THE SECURITIES
REPRESENTED BY THIS NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM,
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

	Principal Amount: $100,001.00	Issue Date: November 2nd, 2020

 

 

 

 

	
         

        PROMISSORY NOTE

         

 

 

FOR VALUE RECEIVED,
VPR Brands, LP, a Delaware limited partnership (the “Company”), hereby promises to pay to the order of Kevin Frija
and Dan Hoff or registered assigns (the “Holder”) on November 2nd, 2021 (the “Maturity Date”), the principal
amount set forth above (the “Principal Amount”), and to pay interest on the outstanding Principal Amount at the rate
of Twenty Four percent (24%) per annum (the “Note”). Interest shall commence accruing on the date hereof (the “Issue
Date”), computed on the basis of a 365-day year and the actual number of days elapsed, provided that any payment otherwise
due on a Saturday, Sunday or legal Bank holiday may be paid on the following business day. All payments due hereunder, shall be
made in lawful money of the United States of America.

 

1.       Transfers
of Note to Comply with the 1933 Act. The Holder agrees that this Note may not be
sold, transferred, pledged, hypothecated or otherwise disposed of except as follows:  (a) to a person whom the Note may
legally be transferred without registration and without delivery of a current prospectus under the 1933 Act with respect thereto
and then only against receipt of an agreement of such person to comply with the provisions of this Section 1 with respect to any
resale or other disposition of the Note; or (b) to any person upon delivery of a prospectus then meeting the requirements of the
1933 Act relating to such securities and the offering thereof for such sale or disposition, and thereafter to all successive assignees.

 

2.       Right
of Prepayment. The Company may repay any amount of the Note at any time. On each
business day, the Holder may deduct one (1) ACH payment from the bank account of the Borrower (as specified on Exhibit “A”
of this Note) in the amount of $500.00 per business day until such time as the Borrower has paid an amount equal to the principal
and accrued interest as set forth in the Note. Each such payment shall be applied first to accrued and unpaid interest and the
balance shall be applied towards the reduction of the principal amount due under this Note.

 

3.       Representations
and Warranties.  The Company represents and warrants to the Holder that:

 

	 	(a)	such party is duly organized, validly existing and in good standing (if applicable) under the laws of the jurisdiction of its organization;

 

	 	(b)	such party has authority to own its property and assets and to carry on its business as now conducted, except, in each case, where the failure to do so, or so possess, individually or in the aggregate would not reasonably be expected to result in a material adverse effect;

 

	 	(c)	such party has all requisite organizational power and authority to execute and deliver and perform all its obligations under this Note;

 

	 	(d)	such party is qualified to do business in, and is in good standing (where such concept exists) in, every jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary, except where the failure to be so qualified or in good standing individually or in the aggregate would not reasonably be expected to result in a material adverse effect;

 

	 	(e)	the transactions contemplated hereby is within such party’s organizational powers and have been duly authorized by all necessary corporate or limited liability company action;

    

    

    

 

	 	(f)	this Note has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms; and

 

	 	(g)	the transactions to be entered into and contemplated by this Note (a) do not require any consent or approval of, registration or filing with, or any other action by, any governmental authority except for the Company’s disclosure obligations under federal securities laws, (b) will not (i) violate any applicable law or (ii) the organizational documents, bylaws, charter, operating agreement, certificate of formation or certificate of incorporation of such party, (c) will not violate or result in a default under any indenture or any other agreement, instrument or other evidence of indebtedness, and (d) will not result in the creation or imposition of any lien on any asset of such party.

 

4.       Remedies
Upon Default.  In the event that the Company defaults on its payment obligations under this Note, the Holder may
proceed to protect and enforce its rights and remedies under this Note by suit in equity, action at law or other appropriate proceeding,
whether for the specific performance of any covenant or agreement contained in this Note and proceed to enforce the payment thereof
or any other legal or equitable right of the Holder.

 

5.     Cancellation
of Note. Upon the repayment by the Company of all of its obligations hereunder to the Holder, including, without limitation,
the principal amount of this Note, plus accrued but unpaid interest, the indebtedness evidenced hereby shall be deemed canceled
and paid in full.  Payments received by the Holder hereunder shall be applied first against interest accrued on this
Note, and next in reduction of the outstanding principal balance of this Note.

 

6.      Severability.  If
any provision of this Note is, for any reason, invalid or unenforceable, the remaining provisions of this Note will nevertheless
be valid and enforceable and will remain in full force and effect.  Any provision of this Note that is held invalid or
unenforceable by a court of competent jurisdiction will be deemed modified to the extent necessary to make it valid and enforceable
and as so modified will remain in full force and effect.

 

7.       Amendment
and Waiver.  This Note, or any provision of this Note, may only be amended or waived if set forth in a writing executed
by the Company and Holder.  The waiver by Holder of a breach of any provision of this Note shall not operate or be construed
as a waiver of any other breach.

 

8.    Successors.  Except
as otherwise provided herein, this Note shall bind and inure to the benefit of and be enforceable by the Holder and its permitted
successors and assigns.

 

9.       Assignment.  This
Note shall not be directly or indirectly assignable or delegable by the Company or the Holder, except as provided in a writing
executed by the Company and Holder.

 

10.  
 Further Assurances.  The Holder will execute all documents and take such other actions as the Company may reasonably
request in order to consummate the transactions provided for herein and to accomplish the purposes of this Note.

 

11.   Notices,
Consents, etc.  Any notices, consents, waivers or other communications required or permitted to be given under the
terms hereof must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered personally;
(ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) business day after deposit with a nationally recognized overnight delivery
service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such
communications shall be:

 

	If to Company:	
        VPR BRANDS, LP

        3001 Griffin Road

        Fort Lauderdale, FL 33312

	 	
        Attention: Kevin Frija

        Telephone: 954.715.7001

        Facsimile: Kevin.Frija@vprbrands.com

	 	 
	With a Copy to (which shall not constitute notice):	

        Anthony LG, PLLC

        Attention: Laura E. Anthony, Esq.

        
	 	 

    

    

    

 

	If to the Holder:	
        Kevin Frija

        Attention:

        Telephone:

        Facsimile: ______________________

	 	 

or at such other address and/or
facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each
other party three (3) trading days prior to the effectiveness of such change.  Written confirmation of receipt (A) given
by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's
facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or
(C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

 

12.   Governing
Law.  Except in the case of the Jurisdiction provisions of Section 13 below,
this Note shall be delivered and accepted in and shall be deemed to be contracts made under and governed by the internal laws of
the State of Delaware, and for all purposes all questions concerning the construction, validity and interpretation of this Note
and any and all disputes or controversies arising out of the subject matter hereof (whether by contract, tort or otherwise) shall
be governed by and construed in accordance with the domestic laws of the State of Delaware, without giving effect to any choice
of law or conflict of law provision (whether of the State of Delaware or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Florida.

 

13. Jurisdiction.  EACH
PARTY HERETO AGREES THAT JURISDICTION AND VENUE IN ANY ACTION BROUGHT BY THE HOLDER PURSUANT TO THIS NOTE SHALL PROPERLY (BUT NOT
EXCLUSIVELY) LIE IN ANY FEDERAL OR STATE COURT LOCATED IN BROWARD COUNTY, FLORIDA.  BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH PARTY HERETO IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY WITH
RESPECT TO SUCH ACTION.  EACH PARTY HERETO IRREVOCABLY AGREES THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVES
ANY OBJECTION THAT SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION.  EACH PARTY HERETO
FURTHER AGREES THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH
COURT SHALL CONSTITUTE VALID AND LAWFUL SERVICE OF PROCESS AGAINST THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED
BY STATUTE OR RULE OF COURT.

 

14.    No
Inconsistent Agreements.  No party hereto will hereafter enter into any agreement,
which is inconsistent with the rights granted to the Holder in this Note.

 

15.   Third
Parties.  Nothing herein expressed or implied is intended or shall be construed
to confer upon or give to any person or entity, other than the Holder and its permitted successor and assigns, any rights or remedies
under or by reason of this Note.

 

16.   Waiver
of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS NOTE. EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT
(A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE HOLDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE HOLDER WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY HERETO UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS
OF THIS WAIVER, (C) EACH PARTY HERETO MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HERETO HAS BEEN INDUCED TO ENTER INTO THIS
NOTE BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

17.   Usury
Savings Clause. Notwithstanding any provision in this Note to the contrary, the
total liability for payments of interest and payments in the nature of interest, including, without limitation, all charges, fees,
exactions, or other sums which may at any time be deemed to be interest, shall not exceed the limit imposed by the usury laws of
the jurisdiction governing this Note or any other applicable law. In the event the total liability of payments of interest and
payments in 

    

    

    

the nature of interest, including,
without limitation, all charges, fees, exactions or other sums which may at any time be deemed to be interest, shall, for any reason
whatsoever, result in an effective rate of interest, which for any month or other interest payment period exceeds the limit imposed
by the usury laws of the jurisdiction governing this Note, all sums in excess of those lawfully collectible as interest for the
period in question shall, without further agreement or notice by, between, or to any party hereto, be applied to the reduction
of the outstanding principal balance due hereunder immediately upon receipt of such sums by the Holder hereof, with the same force
and effect as though the Company had specifically designated such excess sums to be so applied to the reduction of the principal
balance then outstanding, and the Holder hereof had agreed to accept such sums as a penalty-free payment of principal; provided,
however, that the Holder may, at any time and from time to time, elect, by notice in writing to the Company, to waive, reduce,
or limit the collection of any sums in excess of those lawfully collectible as interest, rather than accept such sums as a prepayment
of the principal balance then outstanding. It is the intention of the parties that the Company does not intend or expect to pay,
nor does the Holder intend or expect to charge or collect any interest under this Note greater than the highest non-usurious rate
of interest which may be charged under applicable law.

 

18.  Entire
Agreement.  This Note (including any recitals hereto) set forth the entire understanding
of the parties with respect to the subject matter hereof, and shall not be modified or affected by any offer, proposal, statement
or representation, oral or written, made by or for any party in connection with the negotiation of the terms hereof, and may be
modified only by instruments signed by all of the parties hereto.

 

 

[Signature page to follow]

    

    

    

 

 

IN WITNESS WHEREOF,
this Note is executed by the undersigned as of the date hereof.

 

  

	VPR BRANDS, LP
	By: 	
        Soleil Capital Management LLC,

        its General Partner

	 
	 
	By: /s/ Kevin Frija                                       

	Name:	Kevin Frija
	Title:	Manager and Chief Executive Officer

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