Document:

Sublease Agreement

EXHIBIT 10.2

SUBLEASE 

This sublease is entered into between PDQ AUCTIONS, LLC, a Florida limited liability whose business address is c/o Mark Lechter, 2100 NE 19th Avenue, Wilton Manners, FL 33305, Sublessor, and HLM PAYMEON, INC., a Florida corporation whose business address is 5961 NE 18th Terrace, Fort Lauderdale, Florida 33308Sublessee.  This sublease shall not be effective until it has been consented to in writing by landlord as defined in the Lease attached hereto (hereinafter the “Landlord”)

Section I

Demise and Use

Sublessor leases to Sublessee and Sublessee leases from Sublessor, the business premises described as 2599 North Federal Highway, Fort Lauderdale, FL 33305 (hereinafter the “Premises”).  This Sublease shall be governed by the terms of the attached lease (hereinafter the “Lease”), which is incorporated herein.  In the event of any conflict between the terms of the Lease and the terms of this Sublease, the Sublease shall control. 

Section II

Quiet Enjoyment

If Sublessee performs the terms of this sublease, Sublessor warrants that Sublessee will have quiet enjoyment and peaceful possession of the space leased, and that it will defend Sublessee in such quiet enjoyment and peaceful possession during the term of this sublease without interruption by Sublessor or Landlord, or of any person rightfully claiming under either of them.

Section III

Sublessee To Pay Lease Rent

Sublessee shall  pay the rent recited in the Lease directly to Landlord, at the address provided for in the Lease, and shall provide Sublessor with copies of all payments as they are remitted to Landlord.  Sublessee shall further perform and observe the lessee's covenants and stipulations contained in the Lease.   

Section IV

Term of Sublease

The term of this sublease shall begin on October 22, 2015, and shall continue until the expiration of the Lease, including all renewal options, or default as provided herein below.   

Section V

Sublease Rent

Sublessee agrees to pay to Landlord, as rent for the Premises, the sum of $5,617.50, which includes applicable sales tax, each month on the first day of each month.  Rent for the month of October 2015 shall be paid by Sublessor to Landlord, and shall be prorated at closing of the transaction between Sublessor and Sublessee (hereinafter referred to as the “Closing”). Beginning with the rent due for the month of June 2020, and continuing through the end of the renewal option period, Sublessee shall pay a monthly rental amount, including applicable sales taxes of $5,899.00.  At the Closing, Sublessee shall, in addition to all other amounts, pay the sum of $5000 to Sublessor as a security deposit pursuant to paragraph 2.1 of the Lease, and pay to Sublessor the sum of $5,899.00 as last month’s rent.  As additional consideration for this Sublease, Sublessee’s parent company, PAYMEON, INC, a Nevada corporation, shall issue a convertible promissory note to Mark Lechter and Scott Balson which shall be delivered at the time of execution of this Sublease.

Section VI

Holdover

Any holdover at the expiration of this sublease with Sublessor's consent shall be on a month-to-month basis, which tenancy may then be terminated as provided by the laws of the State of Florida. During the holdover tenancy, Sublessee agrees to pay monthly to Landlord the same rate of rental as in effect at the time of the termination and agrees to be bound by the terms of this sublease insofar as they are applicable.

Section VII

Sublessee To Comply with Lease Terms; Indemnity to Lessor

Sublessee agrees to perform and observe the covenants, conditions, and terms of the Lease on the part of the tenant as defined in the Lease (hereinafter the “Tenant”) to be performed and observed, and to indemnify Sublessor against all claims, damages, and expenses arising out of nonperformance or nonobservance of such covenants, conditions, and terms.  Further, Sublessee hereby agrees to fully indemnify and hold Sublessor harmless for costs of compliance with, and any costs, fees, fines, or penalties in any way related to the American’s with Disabilities Act (ADA).

Section VIII

Services and Utilities

Sublessee shall pay all utilities and services incurred by it at the Premises for the term of this sublease, and on the day of Closing shall establish accounts in its name for all utilities, refuse collection, electric service, and phone and internet service.

Section IX

Use for Business Purposes

The Premises shall be used for general office use and retail sales, and shall be otherwise subject to the terms of Paragraph 7 of the Lease.  

Section X

No Waste, Nuisance, or Illegal Use

Sublessee shall not commit waste on the Premises, nor maintain, commit, or permit a nuisance on the Premises, or use the Premises for an unlawful purpose. Sublessee shall conform to all applicable laws and ordinances respecting the use and occupancy of the Premises here relating to matters not covered elsewhere in this sublease. 

Section XI

Alterations, Additions, and Improvements

Sublessee shall not make alterations, additions, or improvements on the Premises without first obtaining the written consent of Sublessor. All alterations, additions, and improvements that shall be made shall be at Sublessee's expense, shall become Sublessor's property, and shall remain on and be surrendered with the Premises as a part of the Premises at the termination of this sublease without disturbance, molestation, or injury. Nothing contained in this paragraph shall prevent Sublessee from removing all office machines and equipment and trade fixtures customarily used in its business and which were transferred to Sublessee by Sublessor at Closing.

Section XII

Liens

Sublessee shall keep the leased premises free and clear of liens arising out of any work performed, materials furnished, or obligations incurred by Sublessee, including mechanics' liens.

Section XII

Signs

Sublessee covenants and agrees that no signs or symbols shall be placed in the windows or doors of the premises, or on any exterior part of the building without the Sublessor's prior written approval. Any sign or symbol placed on the exterior of the building or in the windows or doors of the building so as to be visible from the street, that is not in accordance with the Lease, shall be removed immediately on demand by Sublessor and if not so removed within 24 hours will constitute a breach of this sublease.

Section XIII

Access for Inspection and Repairs

Sublessee shall allow Landlord and his agents, free access at all reasonable times to the Premises for the purpose of inspecting or of making repairs, additions, or alterations to the Premises or any property owned by or under the control of lessor or Sublessor.

Section XIV

Repairs and Maintenance

Subject to the Landlord’s obligations under the Lease, Sublessee, unless specified to the contrary in this sublease, shall maintain the Premises subleased in good repair and tenantable condition during the continuance of this sublease. 

Section XV

Public Liability Insurance

Sublessee agrees to carry liability insurance insuring  Sublessee, Sublessor, and Landlord against all claims for personal injury or property damage caused by conditions or activities on the Premises in amounts to be approved by Sublessor, and that the insurance policy shall be so written as to insure both the Sublessor and the Sublessee, and to provide for coverage of Landlord as additional insured as required by paragraph 25 of the Lease. However, the limit of the policy must be no less than the limits set forth under the initial Lease as of the date hereof. 

Section XVI

Damage or Destruction by Fire, War, or Acts of God

In the event that the Premises are rendered untenantable in whole or in substantial part as result of destruction or damage by fire, acts of war, or acts of God this sublease shall be governed by the provisions of paragraph 10 of the Lease.  Sublessee shall be required to obtain and maintain the insurance policies required by paragraph 25 of the Lease, naming Sublessor and Landlord as additional insured.  In addition to all other requirements of the Lease, Sublessee shall be required to obtain and maintain business interruption insurance in an amount sufficient to pay the rent due hereunder, and to pay Sublessee’s obligation to Sublessor’s principals and the related entity’s principals. 

Section XVII

Waiver of One Breach Not Waiver of Others

Waiver of one breach of a term, condition, or covenant of this sublease by either party to this sublease shall be limited to the particular instance and shall not be construed as a waiver of past or future breaches of this sublease or other terms, conditions, or covenants.

Section XVIII

Default by Sublessee

If Sublessee fails and neglects to fully perform any of the covenants contained herein, or contained in the Lease, then it shall be in default.  Sublessee specifically agrees that its default, as defined herein, shall also constitute a default of the promissory note and require immediate payment in full of the outstanding balance and all accrued interest.  However, the foregoing shall not be applicable if, at the time of the event of default as defined herein, the promissory note had already been converted to stock.  In addition to the foregoing, the provisions of paragraph 12 of the Lease shall be incorporated herein with the exception that Sublessee must cure any default within five (5) calendar days of receiving notice from Sublessor.

Section XIX

Default by Sublessor

If Sublessor defaults under the Lease and/or gives the Landlord the right to terminate the Lease, the parties agree to provide Sublessee with a 30 day period materially satisfy the terms and conditions of the Lease and the parties shall assign the Lease from Sublessor to Sublessee without additional consideration.  

Section XX

Termination

If Sublessee abandons or vacates the leased premises or is dispossessed for cause by Sublessor before the termination of this sublease, or any renewal of this sublease, Sublessor may, on giving five (5) days' written notice to Sublessee, declare this lease forfeited and may then make reasonable efforts to relet the premises. Sublessee shall be liable to Sublessor for all damages suffered by reason of such forfeiture. Such damages shall include, but shall not be limited to, the following: (1) all actual damages suffered by Sublessor until the property is relet, including reasonable expenses incurred in attempting to relet; (2) the difference between the rent received when the property is relet and the rent reserved under this lease.

Until the premises have been relet, Sublessee agrees to pay to Sublessor, on the same days as the rental payments are due under this lease, the actual damages suffered by Sublessor since the last payment, either rent or damages, was made. After the premises have been relet, Sublessee agrees to pay to Sublessor, on the last day of each rental period, the difference between the rent received for the period from reletting and the rent reserved under this lease for that period.

Sublessee may terminate this sublease upon one hundred eighty (180) days written notice to Sublessor.  However, exercising this option shall also cause the promissory note to become due and payable no later than thirty (30) days from the date that notice is given pursuant to this paragraph. 

This sublease will terminate naturally upon termination of the Lease.  

Section XIX

Applicable Law

Florida law shall be used in interpreting this lease and in determining the rights of the parties under it.

Section XXII

Surrender of Premises and Keys at Termination

Sublessee agrees that at the expiration of this sublease, it will quit and surrender the subleased premises without notice, and will deliver to Sublessor all keys belonging to the premises.

Section XXIII

Disposition of Fixtures and Personal

Property at Termination of Lease

All alterations, additions, and improvements made by Sublessee in accordance with Section XI of this sublease, affixed to the Premises, shall become Sublessor's property as provided in that section, and shall be surrendered with the Premises as a part of the Premises as provided in that section. Provided that Sublessee has satisfied its obligations under the promissory note, Sublessee may remove all personal property, trade fixtures, and office equipment, whether attached to the Premises or not, provided that it may be removed without serious damage to the Premises. Otherwise, in the event of default under the promissory note, Sublessor shall have a lien against all inventory, personal property, trade fixtures, and office equipment of Sublessee until the obligations contained in the promissory note and this Sublease have been fully satisfied.

Section XXIV

Notices

Except where otherwise required by statute, all notices given pursuant to the provisions of this sublease shall be in writing, addressed to the party to whom the notice is given, and sent by registered or certified mail as follows:  

If to Sublessee:

HLM PayMeOn, Inc.

5961 NE 18th Terrace

Fort Lauderdale, Florida 33308

Attention:  Edward Cespedes, President and CEO

If to Sublessor:

PDQ Auctions, LLC

c/o Mark Lechter

2100 NE 19th Ave.

Wilton Manors, FL 33305

 

Section XXV

Binding Effect on Heirs, Successors, and Assigns

The terms, conditions, and covenants of this sublease shall inure to and be binding on the heirs, successors, administrators, executors, and assigns of the parties to this sublease, except as otherwise provided in the sublease.

Section XXVI

No Assignment or Second Sublease Without Consent

Sublessee shall not sell or assign this sublease or any part of this lease, or any interest in it, or re-sublet the subleased premises in whole or in part without first obtaining the written consent of Sublessor and Landlord. This sublease shall not be assigned by operation of law. If Sublessor and lessor once give consent to assignment of this sublease or of any interest in it, they shall not be barred from afterwards refusing to consent to any further assignment. Any attempt to sell, assign, or re-sublease without written consent of Sublessor and lessor shall be deemed sufficient grounds for dispossession and shall entitle Sublessor to proceed pursuant to the default provisions of this lease if it so elects.

Executed on October 22, 2015

SUBLESSOR:

PDQ Auctions, LLC, a Florida limited liability company  

		
	/s/ Mark Lechter

	 

	By:  Mark Lechter, its Manager

	 

SUBLESSEE

HLM PAYMEON, INC., a Florida corporation

		
	/s/ Edward A. Cespedes

	 

	By:  Edward A. Cespedes, President

	 

LANDLORD

		
	/s/ Michael Rauf

	 

	By:  Michael RaufExhibit 10.1

 

TRANSITION AGREEMENT

 

This Transition Agreement (“Agreement”) is between Kurt Hoff (“Employee”) and Silicon Laboratories Inc. (the “Company”), and is entered into as of August 24, 2015.  The Company and the Employee are sometimes referred to herein as the “Parties”.

 

WHEREAS, Employee and the Company entered into that certain New-Hire Proprietary Information, Inventions, Non-Competition and Non-Solicitation Agreements dated as of January 3, 2005 (the “Confidentiality Agreement”) that, among other things, contains restrictions on Employee’s actions following the termination of his employment with the Company and requires that he maintain as confidential all of the Company’s intellectual property rights, trade secrets, confidential knowledge, data or proprietary information;

 

WHEREAS, Employee and the Company are parties to Notice of Grant of Restricted Stock Units and Restricted Stock Units Agreements (the “RSU Agreements”) which grant Employee the right to receive shares of the Company’s Common Stock subject to the vesting schedules and other restrictions set forth in the RSU Agreements and the Silicon Laboratories Inc. 2009 Stock Incentive Plan (the “2009 Stock Plan”);

 

WHEREAS, Employee and the Company are parties to Market Stock Units Grant Notice and Global Market Stock Units Award Agreements (the “MSU Agreements”) which grant Employee the right to receive shares of the Company’s Common Stock subject to the vesting schedules and other restrictions set forth in the MSU Agreements and the 2009 Stock Plan;

 

WHEREAS, Employee and the Company are parties to a Notice of Grant of Stock Option and Stock Option Agreement (the “Option Agreement” and together with the RSU Agreements and the MSU Agreement, the “Stock Agreements”) which grants Employee the right to purchase shares of the Company’s Common Stock subject to the vesting schedules and other restrictions on exercise as set forth in the Option Agreements and the Silicon Laboratories Inc. 2000 Stock Incentive Plan (the “2000 Stock Plan”);

 

WHEREAS, Employee and the Company are parties to the Indemnification Agreement dated as of July 2, 2007 (the “Indemnification Agreement”); and

 

WHEREAS, the Parties desire to settle fully and finally, in the manner set forth herein, any and all differences between them which have arisen, or which may arise, prior to, or at the time of, the execution of the Release (as defined herein), including, but in no way limited to, any and all claims and controversies arising out of the employment relationship between Employee and the Company, and the termination thereof.

 

NOW, THEREFORE, in consideration of these recitals and the promises and agreements set forth in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

1.                                      Interim Period:  From the date of this Agreement until the earlier of (a) the date the Company delivers notice of termination of Employee’s employment or (b) February 15, 2016 (the earlier of (a) or (b) shall be referred to as the “Separation Date” and the period from the date of this Agreement through the Separation Date is referred to as the “Interim Period”), Employee shall continue to serve as an employee of the Company as either (at the Company’s discretion) (i) an executive officer as the Senior Vice President of World-Wide Sales or (ii) a non-executive employee with the title Consultant providing  services related to the orderly transition of his former duties and responsibilities with the Company.  

 

 

It is currently contemplated that Employee’s service as Senior Vice President of World-Wide Sales will continue until November 1, 2015, but such service may be lengthened (not beyond the Separation Date) or shortened at the discretion of the Company.  During the Interim Period, Employee shall (a) report to the Company’s Chief Executive Officer or his designee, (b) continue to be paid a bi-weekly salary $13,461.54, (c) be eligible to receive a bonus approved by the Company’s Compensation Committee with respect to the Company’s third and fourth fiscal quarters of 2015 (provided Employee remains employed through the Separation Date), but shall not be eligible to receive any other bonus (for example, Employee shall not be entitled to a bonus with respect to the first fiscal quarter of 2016), (d) continue to be reimbursed for expenses in accordance with the Company’s policies, and (e) continue to be eligible to receive fringe benefits such as medical coverage.  Further, the Indemnification Agreement shall remain in full force and effect during the Interim Period and thereafter in accordance with its terms.  In the event that Employee’s employment with the Company terminates prior to the Separation Date by reason of his death, his estate and/or beneficiaries shall be entitled to receipt of the Severance Package described in Section 2 below, subject to the terms and conditions set forth therein.

 

2.                                      Severance Package:  Employee’s receipt of the Severance Package is contingent upon satisfaction of the following conditions: (i) Employee must sign the Separation Agreement in exactly the form attached hereto as Exhibit A (the “Release”) on or within 21 days following his Separation Date; (ii) Employee must not revoke the Release; and (iii) the Release must become effective and enforceable on the eighth day after Employee signs the Release (such eighth day, the “Effective Date”); and (iv) Employee shall not have elected to terminate his employment with the Company prior to the Separation Date.  Employee acknowledges and agrees that the Company’s promises herein constitute adequate legal consideration for the promises and representations made by Employee in this Agreement and in the Release.  Provided that the foregoing conditions are met, Company shall provide Employee with the following payments and benefits on or after the Effective Date (“Severance Package”):

 

2.1                               Cash Severance.  On the Effective Date (or as soon as practicable thereafter, but in no event later than March 15, 2016) (the “Severance Payment Date”), the Company shall pay to Employee in a single lump sum the amount of $437,500, less applicable tax withholding.

 

2.2                               Benefits. During the continuation coverage period specified in section 4980B of the Internal Revenue Code of 1986, as amended (“Code”), and Part 6 of Title 1 of the Employee Retirement Income Security Act of 1986, as amended, Employee may elect to continue to participate in any medical, prescription drug, dental, vision, health care spending account and any other “group health plan” (as such term is used in section 4980B of the Code) for the continued benefit of Employee (and Employee’s spouse and dependents) in which such person(s) were participating immediately prior to the Separation Date or, if such arrangements are altered by the Company, which is provided to similarly situated beneficiaries under the plans with respect to which a qualifying event has not occurred (“COBRA Coverage”).  In the event that Employee elects COBRA Coverage, the Company will pay to the Company’s third party COBRA administrator on the Employee’s behalf the premiums the Employee will be required to pay to maintain such COBRA Coverage for Employee and Employee’s spouse and dependents for the twelve-month period following the Separation Date (or until Employee becomes eligible for health care benefits from a new employer, if earlier), in either case the “COBRA Coverage Period”); provided, however, that if the Company determines, in its sole discretion, that its payment of the Employee’s COBRA premiums would result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Code  or any statute or regulation of similar effect (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying the Employee’s COBRA premiums, the Company shall instead pay to Employee on the first day of each month of the COBRA Coverage Period, a fully taxable cash payment equal to the Employee’s COBRA premiums for that month, subject to applicable tax withholdings (such amount, the “Special Severance Payment”), for the remainder of the COBRA Coverage Period.  The Employee may, but is not obligated to, use such Special Severance Payment toward the cost of COBRA premiums.

 

 

2.3                               RSU Vesting.  Except as explicitly set forth in this Section, Employee shall not vest any further with respect to any of the RSU Agreements following the Separation Date.  Without regard to Section 3.1 of each RSU Agreement, Employee’s vesting shall be accelerated on the Effective Date such that with respect to:

 

·                  RSU Agreement 601962, the 12,125 restricted stock units originally scheduled to vest on February 15, 2016 shall be fully vested;

 

·                  RSU Agreement 602159, the 5,052 restricted stock units originally scheduled to vest on February 15, 2016 and the 5,052 restricted stock units originally scheduled to vest on February 15, 2017 shall be fully vested;

 

·                  RSU Agreement 602774, the 5,143 restricted stock units originally scheduled to vest on February 15, 2016 and the 5,143 restricted stock units originally scheduled to vest on February 15, 2017 shall be fully vested.

 

In each case, the underlying shares of Common Stock shall be issued to Employee no later than the 15th day of the calendar month following the calendar month in which the Effective Date occurs (except that the Company shall withhold the applicable number of shares of Common Stock issuable with respect thereto in satisfaction of all Tax-Related Items, as defined by the RSU Agreement); and

 

2.4                               MSU Vesting.  Except as explicitly set forth in this Section, Employee shall not vest any further with respect to any MSU Agreements following the Separation Date.

 

·                  With respect to MSU Agreement 300021, (a) the Performance Period is hereby amended to mean “The period beginning December 30, 2012, and ending on the Separation Date (as defined in the Transition Agreement between the Company and Participant), subject to Section 9.1 of the Award Agreement”, (b) without regard to Section 5.1 of the MSU Agreement, the Employee’s vesting shall be accelerated on the Separation Date such that 12,125 of the Target Number of Units multiplied by the Relative Return Factor shall be fully vested and the applicable underlying shares of Common Stock shall be issued to Employee (and the Company shall withhold the applicable number of shares of Common Stock issuable with respect thereto in satisfaction of all Tax-Related Items, as defined by the MSU Agreement), and (c) the Settlement Date shall be no later than the 15th day of the calendar month following calendar month in which the Effective Date occurs.

 

 

·                  With respect to MSU Agreement 300030, such MSU Agreement is hereby amended to provide that (a) the Performance Period is amended to mean “The period beginning December 29, 2013, and ending on the Separation Date (as defined in the Transition Agreement between the Company and Participant), subject to Section 9.1 of the Award Agreement.”, (b) the Third Measurement Period is amended to mean “The period beginning December 29, 2013, and ending on the Separation Date (as defined in the Transition Agreement between the Company and Participant), subject to Section 9.1 of the Award Agreement.”, (c) the Target Number of Units shall remain 9,563 and Maximum Number of Units shall remain 19,126, (d) without regard to Section 5.1 of the MSU Agreement, the total number of Earned Units for the Performance Period, if any (not to exceed the Maximum Number of Units), shall equal the sum of (i) the First Measurement Period Earned Units (but only if the First Measurement Period ended prior to the last day of the Performance Period) plus (ii) the Second Measurement Period Earned Units (but only if the Second Measurement Period ended prior to the last day of the Performance Period) plus (iii) the excess, if any, of the Third Measurement Period Earned Units over the sum of the First Measurement Period Units (if applicable) and the Second Measurement Period Units (if applicable), and (e) Employee’s vesting shall be accelerated on the Separation Date such that the Earned Units shall be fully vested and the applicable underlying shares of Common Stock shall be issued to Employee (and the Company shall withhold the applicable number of shares of Common Stock issuable with respect thereto in satisfaction of all Tax-Related Items, as defined by the MSU Agreement), and (f) the Settlement Date shall be no later than the 15th day of the calendar month following calendar month in which the Effective Date occurs.

 

·                  With respect to MSU Agreement 300037, such MSU Agreement is hereby amended to provide that (a) the Performance Period is amended to mean “The period beginning January 4, 2015, and ending on the Separation Date (as defined in the Transition Agreement between the Company and Participant), subject to Section 9.1 of the Award Agreement.”, (b) the Third Measurement Period is amended to mean “The period beginning January 4, 2015, and ending on the Separation Date (as defined in the Transition Agreement between the Company and Participant), subject to Section 9.1 of the Award Agreement.”, (c) the Target Number of Units shall be reduced to 6,864 and Maximum Number of Units shall be reduced to 13,728, (d) without regard to Section 5.1 of the MSU Agreement, the total number of Earned Units for the Performance Period, if any (not to exceed the Maximum Number of Units), shall equal the sum of (i) the First Measurement Period Earned Units (but only if the First Measurement Period ended prior to the last day of the Performance Period) plus (ii) the Second Measurement Period Earned Units (but only if the Second Measurement Period ended prior to the last day of the Performance Period) plus (iii) the excess, if any, of the Third Measurement Period Earned Units over the sum of the First Measurement Period Units (if applicable) and the Second Measurement Period Units (if applicable), and (e) Employee’s vesting shall be accelerated on the Separation Date such that the Earned Units shall be fully vested and the applicable underlying shares of  Common Stock shall be issued to Employee (and the Company shall withhold the applicable number of shares of Common Stock issuable with respect thereto in satisfaction of all Tax-Related Items, as defined by the MSU Agreement), and (f) the Settlement Date shall be no later than the 15th day of the calendar month following calendar month in which the Effective Date occurs.

 

 

2.5                               Stock Option Exercisability.  With respect to the Option Agreement Grant Number 2002052 and Option Agreement Grant Number 2002038, Section 5(i) of such Option Agreement shall be amended and restated to read as follows:  “(i) Should Optionee cease to remain in Service for any reason (other than death, Permanent Disability or Misconduct) while this option is outstanding, then this option shall remain exercisable until the earlier of (i) the expiration of the 12-month period measured from the date of such cessation of Service or (ii) the Expiration Date.”

 

3.                                      Acknowledgement.  Employee acknowledges and agrees that: (A) except as provided by this Agreement, no additional consideration, including salary, wages, bonuses, stock or stock options, is to be paid to him by the Company; (B) except as provided by this Agreement, he is not contractually entitled to all of the benefits in the Severance Package described herein; and (C) payments and benefits pursuant to this Agreement shall terminate immediately if Employee materially breaches any of the provisions of this Agreement or the Confidentiality Agreement.

 

4.                                      Stock Agreements:  Except as expressly provided for in Section 2 of this Agreement, the terms and conditions of the Stock Agreements shall remain in full force and effect.

 

5.                                      Confidentiality:  Until this Agreement is publicly filed by the Company, Employee agrees not to directly or indirectly disclose the terms, amount or fact of this Agreement to anyone other than by Employee to his immediate family, counsel, accountant or tax advisor, except as such disclosure may be required for accounting or tax reporting purposes or as otherwise may be required by law.

 

6.                                      Acknowledgement of Restrictions; Non-Competition; Confidential Information:  Employee acknowledges and agrees that he has continuing obligations, including without limitation, non-competition, non-solicitation and non-disclosure obligations pursuant to the Confidentiality Agreement.  Employee acknowledges and agrees that the provisions (including without limitation, the non-competition, non-solicitation and non-disclosure provisions) of the Confidentiality Agreement are valid, binding and enforceable, and Employee reaffirms his obligation to continue to abide fully and completely with all provisions of the Confidentiality Agreement, including without limitation the non-competition, non-solicitation and non-disclosure provisions, and agrees that nothing in this Agreement shall operate to excuse or otherwise relieve Employee of such obligation.

 

 

7.                                      Return of Company Property.  Employee confirms that Employee shall, on or before the Separation Date, return all of the Company’s property to the Company, including but not limited to, Company files, drawings, records, business plans and forecasts, financial information, specifications, computer-recorded information, tangible property, including computers, keys, access cards, identification badges, credit cards, cell phones and PDAs issued to Employee, and any proprietary or confidential information of the Company (and all reproductions thereof).

 

8.                                      Nondisparagement:  Each Party agrees that it will not make (and the Company agrees to prevent any executive officer or member of the board of directors of the Company or the Company’s current and former parent, subsidiary, affiliated, and related corporations, firms, associations, partnerships, limited liability companies and entities from making) any statements, written or verbal, or cause or encourage  others to make any statements, written or verbal, that defame or disparage the personal or business reputation, practices, prospects or conduct of the other including, in the case of the Company, its employees, directors, stockholders, and other related parties; provided that both Employee and the Company will respond accurately to any question, inquiry or request for information to the extent required by law.

 

9.                                      Cooperation:  Employee agrees that from time to time following the Separation Date he will, at the Company’s written request, voluntarily assist the Company with respect to on-going or contemplated litigation, audits by government agencies or any other similar matters.  The Company will reimburse Employee for reasonable out-of-pocket expenses incurred with respect to any such requested matters; provided that such expenses shall not exceed $500 without the Company’s written approval.  Employee acknowledges and agrees that his activities under this Section shall be performed as an independent contractor and not as an employee of the Company.  The Company agrees to provide Employee with as much advance notice of its requests as may be reasonable under the circumstances.  If such cooperation shall take more than two hours in any calendar week, the Employee shall be compensated for such cooperation at the rate of $169 per hour (reflecting his base compensation at Separation Date).

 

10.                               Severability:  If any provision of this Agreement is held to be illegal, invalid, or unenforceable, such provision shall be fully severable and/or construed in remaining part to the full extent allowed by law, with the remaining provisions of this Agreement continuing in full force and effect.

 

11.                               Entire Agreement: This Agreement, the Stock Agreements, the Indemnification Agreement and the Confidentiality Agreement, which are each incorporated herein by reference, constitute the entire agreement between the Employee and the Company, and supersede all prior and contemporaneous negotiations and agreements, oral or written.  This Agreement cannot be changed or terminated except pursuant to a written agreement executed by the Parties.

 

12.                               Section 409A Compliance:

 

12.1                        It is expected that on the Separation Date, Employee will have a “separation from service” (as such term is defined under Treasury Regulations Section 1.409A-1(h), without regard to any alternate definitions thereunder).  It is intended that all of the benefits and payments payable under this Agreement, the Release, or otherwise to Employee satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code, provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this Agreement and all other arrangements with Employee will be construed to the greatest extent possible as consistent with those provisions.  For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii)), Employee’s right to receive any installment payments under this Agreement (whether reimbursements or otherwise) and any other agreement or arrangement with the Company will be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder will at all times be considered a separate and distinct payment.

 

 

12.2                        Notwithstanding anything herein to the contrary, no amount payable pursuant to this Agreement on account of Employee’s termination of employment with the Company which constitutes a “deferral of compensation” within the meaning of Section 409A the Code shall be paid unless and until Employee has incurred a “separation from service” within the meaning of Section 409A of the Code.  Furthermore, if Employee is a “specified employee” within the meaning of Section 409A of the Code as of the date of Employee’s separation from service, no amount  that constitutes a deferral of compensation which is payable on account of Employee’s separation from service shall be paid to Employee before the date (the “Delayed Payment Date”) which is the first business day of the seventh month after the date of Employee’s separation from service or, if earlier, the date of Employee’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid in a lump sum on the Delayed Payment Date.  Thereafter, any payments that remain outstanding as of the day immediately following the Delayed Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement.

 

12.3                        With regard to any provision in this Agreement that provides for reimbursement of expenses or in-kind benefits, except for any expense, reimbursement or in-kind benefit provided pursuant to this Agreement that does not constitute a “deferral of compensation,” within the meaning of Section 409A of the Code, (a) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that the foregoing clause (b) shall not be deemed to be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect, and (c) such payments shall be made on or before the last day of Employee’s taxable year following the taxable year in which the expense occurred.

 

12.4                        The Company intends that income provided to Employee pursuant to this Agreement will not be subject to taxation under Section 409A of the Code.  However, the Company does not guarantee any particular tax effect for income provided to Employee pursuant to this Agreement.  In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Employee, the Company shall not be responsible for the payment of any taxes, penalties, interest, costs, fees, including attorneys fees, or other liability incurred by Employee in connection with compensation paid or provided to Employee pursuant to this Agreement.

 

 

13.                               Governing Law; Venue:  This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, except where preempted by federal law.  The Parties hereby agree that Travis County shall be the exclusive venue for any disputes under this Agreement and irrevocably submit to such jurisdiction.

 

[Signature page follows]

 

 

14.                               Statement of Understanding:  By executing this Agreement, Employee acknowledges that (a) he has been advised by the Company to consult with an attorney regarding the terms of this Agreement; (b) he has consulted with an attorney of his own choosing regarding the terms of this Agreement; (c) he has consulted with his own tax and financial advisors regarding the terms of this Agreement and is not relying on the Company with respect to any matters related to this Agreement; (d) any and all questions regarding the terms of this Agreement have been asked and answered to his complete satisfaction by his advisors; (e) he has read this Agreement and fully understands its terms and their import; (f) except as provided by this Agreement, he is not contractually entitled to the Severance Package described herein; (g) the consideration provided for herein is good and valuable; and (h) he is entering into this Agreement voluntarily, of his own free will, and without any coercion, undue influence, threat, or intimidation of any kind or type whatsoever.

 

EXECUTED in Austin, Texas, this 24th day of August, 2015.

 

	
 
    	
 
    
	
 
    	
EMPLOYEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Kurt Hoff
    
	
 
    	
Kurt Hoff
    

 

EXECUTED in Austin, Texas, this 24th day of August, 2015.

 

	
 
    	
 
    
	
 
    	
Silicon Laboratories Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lynette L. Herr
    
	
 
    	
Name: Lynette L. Herr
    
	
 
    	
Title: Vice President, WW Human Resources
    

 

 

Exhibit A

 

SEPARATION AGREEMENT

 

This Separation Agreement (“Agreement”) is between Kurt Hoff (“Employee”) and Silicon Laboratories Inc. (the “Company”), and is entered into as of                   ,           .  The Company and the Employee are sometimes referred to herein as the “Parties”.

 

WHEREAS, Employee has been employed by the Company pursuant to a Transition Agreement dated as of August 24, 2015 (the “Transition Agreement”) that provides Employee with a Severance Package conditioned upon his execution of an agreement containing a general release of the Company;

 

WHEREAS, Employee’s date of termination of employment and Service (for purposes of the Stock Agreements, as defined in the Transition Agreement) with the Company was                   ,           ,.  which date was the date of Employee’s “separation from service” (as defined under Treasury Regulations Section 1.409A-1(h) without regard to any alternative definitions thereunder).

 

WHEREAS, the Parties desire to execute this Agreement to satisfy the conditions of the Transition Agreement and to resolve fully and finally, in the manner set forth herein, any and all differences between them which have arisen, or which may arise, prior to, or at the time of, the execution of this Agreement, including, but in no way limited to, any and all claims and controversies arising out of the employment relationship between Employee and the Company, and the termination thereof.

 

NOW, THEREFORE, in consideration of these recitals and the promises and agreements set forth in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

1.              General Release:  Employee for himself and on behalf of his attorneys, heirs, assigns, successors, executors, and administrators IRREVOCABLY AND UNCONDITIONALLY RELEASES, ACQUITS AND FOREVER DISCHARGES the Company, the Company’s current and former parent, subsidiary, affiliated, and related corporations, firms, associations, partnerships, limited liability companies and entities, their successors and assigns, and the current and former owners, stockholders, directors, officers, employees, agents, attorneys, representatives, and insurers of the Company and said corporations, firms, associations, partnerships, limited liability companies and entities, and their successors, assigns, heirs, executors, guardians, and administrators (including the Company, “Company Released Parties”), of and from any and all claims, liabilities, obligations, agreements, damages, causes of action, costs, losses, damages, and attorneys’ fees and expenses whatsoever (collectively, “claims”), whether known or unknown or whether connected with Employee’s employment by the Company or not, including, but not limited to, any claims arising under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et seq., the Texas Labor Code (including but not limited to the Texas Civil Rights Act, the Texas Payday Act, and the Texas Minimum Wage Law), the Age Discrimination in Employment Act, 29 U.S.C. § 621, et. seq,, the Americans With Disabilities Act, and any other municipal, local, state, or federal law, common or statutory, which may have arisen, or which may arise, prior to, or at the time of, the execution of this Agreement.  The parties acknowledge that this general release is not intended to bar: (i) any claims that, by statute, may not be waived, such as Employee’s right to file a charge with the National Labor Relations Board or Equal Employment Opportunity Commission and other similar government agencies and claims for any challenge to the validity of Employee’s release of claims under the Age Discrimination in Employment Act of 1967, as amended, as set forth in this Agreement, (ii) any rights set forth in this Agreement or the Stock Agreements (as defined in the Transition Agreement); (iii) any rights to other vested securities that were granted to Employee during the course of his employment with the Company; and (iv) any claims for breach of this Agreement.

 

 

2.                                      Covenant Not to Sue: Employee COVENANTS NOT TO SUE, OR OTHERWISE PARTICIPATE IN ANY ACTION OR CLASS ACTION against, any Company Released Party based upon any of the claims released in this Agreement.  Employee represents that, as of the date of this Agreement, Employee has not filed any lawsuits, charges, complaints, petitions, claims or other accusatory pleadings against the Company or any of the other Company Released Parties in any court or with any governmental agency.

 

3.                                      Severance Package:  On and after the Effective Date, Company shall provide Employee with the Severance Package set forth in Section 2 of the Transition Agreement (the “Severance Package”), incorporated herein by reference, pursuant to the schedule set forth in the Transition Agreement.  Employee acknowledges and agrees that the Severance Package constitutes adequate legal consideration for the promises and representations made by Employee in this Agreement.

 

4.                                      Acknowledgement.  Employee acknowledges and agrees that:  (A) except as provided by this Agreement, no additional consideration, including salary, wages, bonuses, stock or stock options, is to be paid to him by the Company; (B) except as provided by the Transition Agreement and this Agreement, he is not contractually entitled to the Severance Package; and (C) payments and benefits pursuant to the Severance Package shall terminate immediately if Employee materially breaches any of the provisions of this Agreement or the Confidentiality Agreement.

 

5.                                      Stock Agreements:  Except as expressly provided for in the Transition Agreement, the terms and conditions of the Stock Agreements (as defined in the Transition Agreement) shall remain in full force and effect.

 

6.                                      Waiver of Reemployment:  Employee waives and releases forever any right or rights he might have to employment, reemployment, or reinstatement with any Company Released Party at any time in the future.  Employee agrees that he shall not seek or make application for employment with any of the Company Released Parties at any time in the future.

 

7.                                      Confidentiality:  Employee agrees not to directly or indirectly disclose the terms, amount or fact of this Agreement to anyone other than by Employee to his immediate family, counsel, accountant or tax advisor, except as such disclosure may be required for accounting or tax reporting purposes or as otherwise may be required by law.

 

8.                                      Acknowledgement of Restrictions; Non-Competition; Confidential Information:  Employee acknowledges and agrees that he has continuing obligations, including without limitation, non-competition, non-solicitation and non-disclosure obligations pursuant to the Confidentiality Agreement (as defined in the Transition Agreement).  Employee acknowledges and agrees that the provisions (including without limitation non-competition, non-solicitation and non-disclosure provisions) of the Confidentiality Agreement are valid, binding and enforceable, and Employee reaffirms his obligation to continue to abide fully and completely with all provisions of the Confidentiality Agreement, including without limitation the non-competition, non-solicitation and non-disclosure provisions, and agrees that nothing in this Agreement shall operate to excuse or otherwise relieve Employee of such obligation.

 

 

9.                                      Return of Company Property.  Employee confirms that Employee has returned all of the Company’s property to the Company, including but not limited to, Company files, drawings, records, business plans and forecasts, financial information, specifications, computer-recorded information, tangible property, including computers, keys, access cards, identification badges, credit cards, cell phones and PDAs issued to Employee, and any proprietary or confidential information of the Company (and all reproductions thereof).

 

10.                               Nondisparagement:  Each Party agrees that it will not make (and the Company agrees to prevent any executive officer or member of the board of directors of the Company or the Company’s current and former parent, subsidiary, affiliated, and related corporations, firms, associations, partnerships, limited liability companies and entities from making) any statements, written or verbal, or cause or encourage others to make any statements, written or verbal, that defame or disparage the personal or business reputation, practices, prospects or conduct of the other including, in the case of the Company, its employees, directors, stockholders, and other related parties included in the definition of Company Released Parties; provided that both Employee and the Company will respond accurately to any question, inquiry or request for information to the extent required by law.

 

11.                               Cooperation:  Employee agrees that from time to time following the Separation Date he will, at the Company’s written request, voluntarily assist the Company with respect to on-going or contemplated litigation, audits by government agencies or any other similar matters.  The Company will reimburse Employee for reasonable out-of-pocket expenses incurred with respect to any such requested matters; provided that such expenses shall not exceed $500 without the Company’s written approval.  Employee acknowledges and agrees that his activities under this Section shall be performed as an independent contractor and not as an employee of the Company.  The Company agrees to provide Employee with as much advance notice of its requests as may be reasonable under the circumstances.

 

12.                               Severability:  If any provision of this Agreement is held to be illegal, invalid, or unenforceable, such provision shall be fully severable and/or construed in remaining part to the full extent allowed by law, with the remaining provisions of this Agreement continuing in full force and effect.

 

13.                               Entire Agreement:  This Agreement, the Stock Agreements and the Confidentiality Agreement, which are each incorporated herein by reference, constitute the entire agreement between the Employee and the Company, and supersede all prior and contemporaneous negotiations and agreements, oral or written.  This Agreement cannot be changed or terminated except pursuant to a written agreement executed by the Parties.

 

14.                               Section 409A Compliance:

 

(a)                                 It is intended that all of the benefits and payments payable under this Agreement or otherwise to Employee satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this Agreement and all other arrangements with Employee will be construed to the greatest extent possible as consistent with those provisions.  

 

 

For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii)), Employee’s right to receive any installment payments under this Agreement (whether reimbursements or otherwise) and any other agreement or arrangement with the Company will be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder will at all times be considered a separate and distinct payment.

 

(b)                                 Notwithstanding anything herein to the contrary, no amount payable pursuant to this Agreement on account of Employee’s termination of employment with the Company which constitutes a “deferral of compensation” within the meaning of Section 409A the Code shall be paid unless and until Employee has incurred a “separation from service” within the meaning of Section 409A of the Code.  Furthermore, if Employee is a “specified employee” within the meaning of Section 409A of the Code as of the date of Employee’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of Employee’s separation from service shall be paid to Employee before the date (the “Delayed Payment Date”) which is the first business day of the seventh month after the date of Employee’s separation from service or, if earlier, the date of Employee’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid in a lump sum on the Delayed Payment Date.  Thereafter, any payments that remain outstanding as of the day immediately following the Delayed Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement.

 

(c)                                  With regard to any provision in this Agreement that provides for reimbursement of expenses or in-kind benefits, except for any expense, reimbursement or in-kind benefit provided pursuant to this Agreement that does not constitute a “deferral of compensation,” within the meaning of Section 409A of the Code, (a) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that the foregoing clause (b) shall not be deemed to be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect, and (c) such payments shall be made on or before the last day of Employee’s taxable year following the taxable year in which the expense occurred.

 

(d)                                 The Company intends that income provided to Employee pursuant to this Agreement will not be subject to taxation under Section 409A of the Code.  However, the Company does not guarantee any particular tax effect for income provided to Employee pursuant to this Agreement.  In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Employee, the Company shall not be responsible for the payment of any taxes, penalties, interest, costs, fees, including attorneys fees, or other liability incurred by Employee in connection with compensation paid or provided to Employee pursuant to this Agreement.

 

 

15.                               Older Workers’ Benefit Protection Act.  This Agreement is intended to satisfy the requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. sec. 626(f).  Employee is advised to consult with an attorney before executing this Agreement.

 

15.1. Acknowledgments/Time to Consider.  Employee acknowledges and agrees that (a) Employee has read and understands the terms of this Agreement; (b) Employee has been advised in writing to consult with an attorney before executing this Agreement; (c) Employee has obtained and considered such legal counsel as Employee deems necessary; (d) Employee has been given twenty-one (21) days to consider whether or not to enter into this Agreement (although Employee may elect not to use the full 21 day period at Employee’s option); and (e) by signing this Agreement, Employee acknowledges that Employee does so freely, knowingly, and voluntarily.

 

15.2  Revocation/Effective Date.  This Agreement shall not become effective or enforceable until the eighth day after Employee signs this Agreement.  In other words, Employee may revoke Employee’s acceptance of this Agreement within seven days after the date Employee signs it.  Employee’s revocation must be in writing and received by Lyn Herr by email at lyn.herr@silabs.com by 5:00 p.m. Central Time on the seventh day in order to be effective.  If Employee does not revoke acceptance within the seven day period, Employee’s acceptance of this Separation Agreement shall become binding and enforceable on the eighth day (“Effective Date”).  The Severance Package will become due and payable in accordance with paragraph 3 above on and after the Effective Date, provided Employee does not revoke.  Employee agrees that he will not receive the Severance Package provided by this Agreement if he revokes this Agreement.

 

15.3  Preserved Rights of Employee.  This Agreement does not waive or release any rights or claims that Employee may have under the Age Discrimination in Employment Act that arise after the execution of this Agreement.  In addition, this Agreement does not prohibit Employee from challenging the validity of this Agreement’s waiver and release of claims under the Age Discrimination in Employment Act of 1967, as amended.

 

 

16.                               Statement of Understanding:  By executing this Agreement, Employee acknowledges that (a) he has been advised by the Company to consult with an attorney regarding the terms of this Agreement; (b) he has consulted with an attorney of his own choosing regarding the terms of this Agreement; (c) he has consulted with his own tax and financial advisors regarding the terms of this Agreement and is not relying on the Company with respect to any matters related to this Agreement; (d) any and all questions regarding the terms of this Agreement have been asked and answered to his complete satisfaction by his advisors; (e) he has read this Agreement and fully understands its terms and their import; (f) except as provided by the Transition Agreement and this Agreement, he is not contractually entitled to the Severance Package; (g) the consideration provided for herein is good and valuable; and (h) he is entering into this Agreement voluntarily, of his own free will, and without any coercion, undue influence, threat, or intimidation of any kind or type whatsoever.

 

EXECUTED in Austin, Texas, this        day of                       , 2015.

 

	
 
    	
EMPLOYEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Kurt Hoff
    

 

EXECUTED in Austin, Texas, this        day of                      , 2015.

 

	
 
    	
SILICON LABORATORIES INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name: Lynette L. Herr
    
	
 
    	
Title: VP WW Human Resources

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]