Document:

ENTR 2014.12.31 EX10.43 T Tewksbury Change of Control Agreement

EXHIBIT 10.43

AMENDED AND RESTATED CHANGE OF CONTROL AGREEMENT
THIS AMENDED AND RESTATED CHANGE OF CONTROL AGREEMENT (the “Agreement”) is made effective as of December 17, 2014 (the “Effective Date”) between ENTROPIC COMMUNICATIONS, INC. (“Entropic”), and Theodore L. Tewksbury III (“Employee”) and as of the Effective Date amends, restates and supersedes in its entirety the Change of Control Agreement previously entered into between Entropic and Employee dated November 10, 2014 (the “Prior Agreement”).
RECITALS
A.    Employee is presently employed as the Chief Executive Officer and President, Interim.
B.    Employee and Entropic desire to memorialize in writing their understanding regarding severance payments and vesting acceleration of stock options and/or other equity arrangements, including shares of restricted stock subject to repurchase options or other restrictions, in the event of a Change of Control.
C.    Employee and Entropic acknowledge that this Agreement constitutes the entire agreement between the parties relating to severance benefits upon change of control and supersedes any and all other agreements, either oral or in writing, between Employee and Entropic and all other subsidiaries or affiliates of Entropic with respect to the matters discussed herein.
AGREEMENT
In consideration of the promises and of the mutual covenants contained herein, and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties do hereby agree as follows:
1.EFFECT OF CERTAIN TERMINATIONS AFTER CHANGE OF CONTROL.
1.1    Severance Package.  If within one (1) year after a Change of Control (as that term is defined below) Employee’s employment is terminated without “Cause,” or Employee resigns for “Good Reason” (each a “Qualifying Termination”), then Entropic will provide Employee with the following “Severance Package,” provided Employee complies with the conditions set forth in section 1.2 below: (i) Employee will receive a severance payment equal to twelve (12) months of Employee’s Base Salary (as defined below), payable in a single lump sum within ten (10) days following the effective date of the release of claims required by Section 1.2 below, subject to applicable tax withholdings; (ii) Entropic will continue to provide Employee with health, dental and vision benefits by reimbursing the Employee for payment of Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) premiums for twelve (12) months following the date of Employee’s Qualifying Termination (the “COBRA Payment Period”), provided that Employee elects to continue and remain eligible for these benefits under COBRA and timely remits the applicable COBRA premium payments and proof of such payments to the Company; or if Employee is not eligible for company-paid healthcare benefits,  cash in lieu thereof, and (iii) immediate and full accelerated vesting of all stock awards (options, stock units and other equity arrangements) that are subject to time-based vesting, and release of any repurchase options in favor of Entropic on shares of restricted stock to the extent permissible by law.  For purposes of determining the number of shares that will vest pursuant to the foregoing provision with respect to any performance based vesting equity award that has multiple vesting levels depending upon the level of performance, where the applicable level of performance has not otherwise been determined by the Company’s Board of Directors on or prior to the date of the Qualifying Termination, vesting acceleration shall occur with respect to the number of shares subject to the equity award as if the applicable performance criteria had been attained at 100% of the targeted level.  Moreover, the acceleration of vesting provision set forth in this section 1.1 is notwithstanding 

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and in addition to any existing vesting provisions set forth in Entropic’s equity incentive plans or any agreements or grant notices thereunder. 
 “Base Salary” shall mean Employee’s monthly base salary in effect immediately prior to the Employee’s date of termination (including without limitation any compensation that is deferred by Employee into an Entropic-sponsored retirement or deferred compensation plan, exclusive of any employee matching contributions by Entropic associated with any such retirement or deferred compensation plan and exclusive of any other Entropic contributions) and excludes all bonuses, commissions, expatriate premiums, fringe benefits (including without limitation car allowances), option grants, equity awards, employee benefits and other similar items of compensation.  For purposes of the Severance Package, Base Salary shall be computed without regard to any reduction in Base Salary that would provide Employee the right to resign for Good Reason pursuant to Section 1.6(c). 
Notwithstanding anything to the contrary set forth herein, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA premium benefits without potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay Employee taxable cash amount, which payment shall be made regardless of whether the Employee elects COBRA continuation coverage (the “Health Care Benefit Payment”).  The Health Care Benefit Payment shall be paid in monthly or bi-weekly installments to Employee on the same schedule that the COBRA premiums would otherwise have been required to be paid by Employee to continue coverage.  The Health Care Benefit Payment shall be equal to the amount that the Company otherwise would have reimbursed Employee for payment of COBRA insurance premiums (which amount shall be calculated based on the applicable premium for the first month of coverage), and shall be paid until the expiration of the COBRA Payment Period.
1.2    Conditions to Receive Severance Package.  The Severance Package described above will be paid provided Employee meets the following conditions: (a) Employee complies with all surviving provisions of any confidentiality or proprietary rights agreement signed by Employee; and (b) promptly following the Employee’s date of termination (but not more than forty-five (45) days after the Employee’s employment is terminated), Employee executes a full general release, in a form acceptable to Entropic, releasing all claims, known or unknown, that Employee may have against Entropic, and any subsidiary or related entity, their officers, directors, employees and agents, arising out of or any way related to Employee’s employment or termination of employment with Entropic, and permits such release to become effective in accordance with its terms. 
1.3    280G.  Notwithstanding section 1.1 above, if it is determined that the amounts payable to Employee under this Agreement, when considered together with any other amounts payable to Employee as a result of a Change of Control (collectively, the “Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount.  The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Employee’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise  Tax.  If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order:  reduction of cash payments; reduction of accelerated vesting of stock options; reduction of employee benefits.  In the event that acceleration of vesting of stock option 

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compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of Employee’s stock options (i.e., earliest granted stock option cancelled last).
The accounting firm engaged by Entropic for general audit purposes as of the day prior to the effective date of the Change of Control shall perform the foregoing calculations.  If the accounting firm so engaged by Entropic is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, Entropic shall appoint a nationally recognized accounting firm to make the determinations required hereunder.  Entropic shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder.
The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to Employee and Entropic within fifteen (15) calendar days after the date on which Employee’s right to a Payment is triggered (if requested at that time by Employee or Entropic) or such other time as requested by Employee or Entropic.  If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish Employee and Entropic with an opinion reasonably acceptable to Employee that no Excise Tax will be imposed with respect to such Payment.  Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon Employee and Entropic, except as set forth below.
If, notwithstanding any reduction described in this Section 1.3, the IRS determines that Employee is liable for the Excise Tax as a result of the receipt of the payment of benefits as described above, then Employee shall be obligated to pay back to Entropic, within thirty (30) days after a final IRS determination or in the event that Employee challenges the final IRS determination, a final judicial determination, a portion of the payment equal to the “Repayment Amount.”  The Repayment Amount with respect to the payment of benefits shall be the smallest such amount, if any, as shall be required to be paid to Entropic so that Employee’s net after-tax proceeds with respect to any payment of benefits (after taking into account the payment of the Excise Tax and all other applicable taxes imposed on such payment) shall be maximized.  The Repayment Amount with respect to the payment of benefits shall be zero if a Repayment Amount of more than zero would not result in Employee’s net after-tax proceeds with respect to the payment of such benefits being maximized.  If the Excise Tax is not eliminated pursuant to this paragraph, Employee shall pay the Excise Tax.
Notwithstanding any either provision of this Section 1.3, if (i) there is a reduction in the payment of benefits as described in this section, (ii) the IRS later determines that Employee is liable for the Excise Tax, the payment of which would result in the maximization of Employee’s net after-tax proceeds (calculated as if Employee’s benefits had not previously been reduced), and (iii) Employee pays the Excise Tax, then Entropic shall pay to Employee those benefits which were reduced pursuant to this section contemporaneously or as soon as administratively possible after Employee pays the Excise Tax so that Employee’s net after-tax proceeds with respect to the payment of benefits is maximized.
1.4    Change of Control.  A “Change of Control” means: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of Entropic of more than fifty percent (50%) of the voting stock of Entropic; (ii) a merger or consolidation in which Entropic is a party after which the stockholders of Entropic immediately prior to such transaction hold less than fifty percent (50%) of the voting securities of the surviving entity; (iii) the sale, exchange, or transfer of all or substantially all of the assets of Entropic after which the stockholders of Entropic immediately prior to such transaction hold less than fifty percent (50%) of the voting securities of the corporation or other business entity to which the assets of Entropic were transferred; or (iv) a liquidation or dissolution of Entropic.
1.5    Termination for “Cause.”  For purposes of this Agreement, a termination for “Cause” occurs if Employee is terminated for any of the following reasons: (i) conviction of, or plea of nolo contendere 

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to, a felony; (ii) theft or embezzlement, or attempted theft or embezzlement, of money or property or assets of Entropic; (iii) termination consistent with the provisions and procedures of Entropic’s drug policy; (iv) continued neglect of Employee’s duties in connection with Employee’s employment by Entropic (not due to a physical or mental illness), which continues for at least ten (10) days after written notice of demand for compliance is delivered to Employee by Entropic, which demand identifies the manner in which Entropic believes that Employee has not performed such duties and the steps required to cure such failure to perform; or (v) intentional and willful engagement in misconduct which is materially injurious to Entropic.
Notwithstanding the foregoing clause (iv), Employee may not be terminated for Cause as a result of his failure or inability to perform assigned duties which are substantially inconsistent with his duties and responsibilities in effect during the year preceding the Change of Control (or such shorter period of time as Employee was employed by Entropic).
Notwithstanding the foregoing clauses, Employee’s employment shall not be deemed to be terminated for Cause, and no other action shall be taken by Entropic which is adverse to Employee hereunder unless and 

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until there shall have been delivered to Employee a copy of a statement of the basis for Cause, signed and approved by an officer of Entropic.
1.6    Voluntary Resignation for “Good Reason.”  After a Change of Control, Employee may resign for “Good Reason” upon the occurrence of any of the following conditions without the Employee’s consent; provided however, that any resignation by the Employee due to any of the following conditions shall only be deemed for Good Reason if: (i) the Employee gives the Company written notice of the intent to resign for Good Reason within ninety (90) days following the first occurrence of the condition(s) that the Employee believes constitutes Good Reason, which notice shall describe such condition(s); (ii) the Company fails to remedy, if remediable, such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”) of such condition(s) from the Employee; and (iii) Employee actually resigns employment within the first ninety (90) days after expiration of the Cure Period:  
(a)    the assignment to Employee of any duties, or any limitation of Employee’s authority or responsibilities, substantially inconsistent with Employee’s positions, duties, responsibilities and status with Entropic immediately prior to the date of the Change of Control, which includes, but is not limited to a change in position such that Employee is not the Chief Executive Officer or the equivalent thereof of the surviving entity in such Change of Control or the parent corporation of such surviving entity in the event the surviving entity is a wholly owned subsidiary of a parent corporation that is the operating entity; provided, however, that in each case such condition shall only constitute Good Reason where such condition also constitutes a material reduction of Employee’s authority, duties or responsibilities as in effect immediately prior to the Change of Control, 
(b)    the relocation of the principal place of Employee’s service with Entropic to a location that is more than fifty (50) miles from Employee’s principal place of service with Entropic immediately prior to the date of the Change of Control that requires a one-way increase in Employee’s driving distance of at least thirty (30) miles, 
(c)    any material reduction by Entropic of Employee’s base salary in effect immediately prior to the date of the Change of Control (unless reductions comparable in amount and duration are concurrently made for all other employees of Entropic with responsibilities, organizational level and title comparable to Employee), or 
(d)    any failure by Entropic to continue to provide Employee with the opportunity to participate in any material benefit or compensation plans and programs in which Employee was participating immediately prior to the date of the Change of Control, or their equivalent, which failure constitutes a material reduction in Employee’s base compensation.
1.7    Payment Upon Death or Disability.  Neither death nor disability shall affect Entropic’s obligations hereunder, provided however that neither death nor disability shall be deemed to be Cause for termination.  If within one (1) year following a Change of Control the Employee’s employment with Entropic terminates due to the Employee’s death or “Complete Disability,” as defined below, Employee (or Employee’s beneficiaries or estate, as applicable) shall be eligible to receive the Severance Package in Section 1.1, subject to satisfaction of the conditions in Section 1.2 by Employee or Employee’s beneficiaries or estate, as applicable.  For purposes of eligibility to receive the Severance Package, “Complete Disability” means Employee is prevented from performing Employee’s duties of employment with the Company by reason of any physical or mental incapacity that results in Employee’s satisfaction of all requirements necessary to receive benefits under the Company’s long-term disability plan due to a total disability.

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1.8    Application of Code Section 409A. Notwithstanding anything to the contrary herein, the following provisions apply to the extent severance benefits provided herein are subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”).  Severance benefits shall not commence until Employee has a “separation from service” for purposes of Section 409A.   The severance benefits are intended to satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4) and 1.409A-1(b)(5).  However, if such exemptions are not available and Employee is, upon separation from service, a “specified employee” for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed until the earlier of (i) six (6) months and one day after Employee’s separation from service, or (ii) Employee’s death.
2.    AT-WILL EMPLOYMENT.  Employee acknowledges that Employee continues as an at-will employee and agrees that nothing in this Agreement is intended to or should be construed to contradict, modify or alter Employee’s at-will employment relationship with Entropic.
3.    NO OTHER SEVERANCE BENEFITS.  Employee acknowledges and agrees that the Severance Package provided pursuant to this Agreement is in lieu of any other severance benefits to which Employee may be eligible under any other agreement and/or Entropic severance plan or practice.  Employee and Entropic further acknowledge that this Agreement constitutes the entire agreement between the parties relating to severance benefits upon change of control and supersedes any and all other agreements, either oral or in writing, between Employee and Entropic and all other subsidiaries or affiliates of Entropic with respect to the matters discussed herein, including but not limited to the Prior Agreement.  Notwithstanding the foregoing, this Agreement shall not supersede the vesting acceleration provisions included in Entropic’s equity incentive plans or any other provisions of Employee’s equity award agreements or the Company’s equity incentive plans that are more beneficial to Employee than this Agreement.
4.    CERTAIN REDUCTIONS.  To the extent that any federal, state or local laws, including, without limitation the Worker Adjustment Retraining Notification Act, or any similar state statute, require Entropic to give advance notice or make a payment of any kind to Employee because of Employee’s involuntary termination due to a layoff, reduction in force, plant or facility closing, sale of business, change of control, or any other similar event or reason, the benefits payable under this Agreement shall either be reduced or eliminated by such required payments or notice.  The benefits provided under this Agreement are intended to satisfy any and all statutory obligations that may arise out of Employee’s involuntary termination of employment for the foregoing reasons.
5.    GENERAL PROVISIONS.
5.1    Severability.  If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
5.2    Successors and Assigns.  The rights and obligations of Entropic under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Entropic.  Employee shall not be entitled to assign any of his rights or obligations under this Agreement, other than to his or her estate as provided in section 1.7.
5.3    Applicable Law.  This Agreement shall be interpreted, construed, governed and enforced in accordance with the laws of the United States of America and the State of California.  Each of the parties 

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irrevocably consents to the exclusive jurisdiction of the federal and state courts located in San Diego, California, as applicable, for any matter arising out of or relating to this Agreement.
5.4    Amendments.  No amendment or modification of the terms or conditions of this Agreement shall be valid unless in subsequent writing and signed by the parties thereto.
5.5    Headings.  Section headings are for convenience only and shall be given no effect in the construction or interpretation of this Agreement.
5.6    Notice.  All notices made pursuant to this Agreement, shall be given in writing, delivered by a generally recognized overnight express delivery service, and shall be made to the principal place of business of Entropic or to Employee’s residence, as applicable.
5.7    Entry Into This Agreement.  This Agreement may be entered into by facsimile and in counterparts, all of which taken together shall be one agreement.
IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the Effective Date.
	
					
	EMPLOYEE:
	 
	 
	ENTROPIC COMMUNICATIONS, INC.

	   /S/ Theodore Tewksbury
	 
	By:
	   /S/ Suzanne C. Zoumaras

	Name:  Theodore L. Tewksbury III
	 
	 
	Title:  SVP, Global Human Resources

	Address:_____________________________
	 
	 
	Address: 
	6350 Sequence Drive

	              ___________________________
	 
	 
	 
	San Diego, California 92121

	 
	 
	 
	 
	 

7.ENTR 2014.12.31 EX10.44 M Farese Independent Contractor Agreement

	
		
	
	EXHIBIT 10.44

INDEPENDENT CONTRACTOR AGREEMENT

This Independent Contractor Agreement (“Agreement”) is made and entered into as of December 22, 2014 by and between Entropic Communications, Inc. (“Entropic” or “Company”), having a principal place of business at 6350 Sequence Drive, San Diego, CA 92121, and Michael Farese (“Contractor” or “Consultant”).
1.Engagement of Services.  Entropic hereby engages Contractor, and Contractor agrees to perform such services as are set forth on Exhibit A (the “Services”).  The Services shall be performed at the direction of Ted Tewksbury, Interim CEO, or other executive as designated.  All Services shall be performed in a professional manner and in accordance with any mutually agreed upon specifications or descriptions of Services.
2.Compensation.
2.1Fees.  In consideration for Services rendered hereunder, Entropic will pay Contractor the fees set forth on Exhibit A.  Contractor will invoice Entropic for Services rendered in accordance with the payment schedule set forth in Exhibit A and Entropic shall pay such amounts no later than thirty (30) days after Entropic’s receipt of such invoice.
2.2Expenses.  Company shall reimburse Contractor for reasonable expenses incurred in connection with Contractor’s performance of services under this Agreement, provided that the expenses are approved in advance by a Vice President of the Company and       Contractor promptly provides documentation satisfactory to Company to support Contractor’s request for reimbursement.
3.Independent Contractor Relationship. Contractor’s relationship with Company will be that of an independent contractor, and nothing in this Agreement is intended to, or should be construed to, create a partnership, agency, joint venture or employment relationship. Contractor will not be entitled to any of the benefits that Company may make available to its employees, including, but not limited to, group health, life insurance, profit-sharing or retirement benefits, paid vacation, holidays or sick leave.  Contractor will not be authorized to make any representation, contract or commitment on behalf of Company unless specifically requested or authorized in writing to do so by the CEO of the Company. Contractor will be solely responsible for obtaining any business or similar licenses required by any federal, state or local authority.  In addition, Contractor will be solely responsible for, and will file on a timely basis, all tax returns and payments required to be filed with, or made to, any federal, state or local tax authority with respect to the performance of services and receipt of fees under this Agreement.  No part of Contractor’s compensation will be subject to withholding by Entropic for the payment of any social security, federal, state or any other employee payroll taxes.  Entropic will regularly report amounts paid to Contractor by filing Form 1099-MISC with the Internal Revenue Service as required by law.
3.1Legal Right to Work in the United States.  In accordance with immigration laws, Consultant warrants that he/she has the legal right to work in the United States for any company without the requirement for visa or other immigration sponsorship by the Company.
3.2Method of Performing Services; Results. In accordance with Company’s objectives, Contractor will determine the method, details and means of performing the services required by this Agreement.  Company shall have no right to, and shall not, control the manner or determine the 

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method of performing Contractor’s services. Contractor shall provide the services for which Contractor is engaged to the reasonable satisfaction of Company.
3.3Workplace, Hours and Instrumentalities.  Contractor may perform the services required by this Agreement at any place or location and at such times as Contractor shall determine. Contractor agrees to provide all tools and instrumentalities, if any, required to perform the services under this Agreement; however, Company will/may at its convenience make available to Contractor suitable office space, computer equipment, and the like, to facilitate the efficient rendering of Contractor’s services to Company. Such facilities shall be used by Contractor, if at all, at Contractor’s discretion, unless otherwise stipulated in Exhibit A.
4.Intellectual Property Rights.
4.1Disclosure and Assignment of Innovations.
(a)Innovations; Company Innovations.  “Innovations” includes processes, machines, compositions of matter, improvements, inventions (whether or not protectable under patent laws), works of authorship, information fixed in any tangible medium of expression (whether or not protectable under copyright laws), moral rights, mask works, trademarks, trade names, trade dress, trade secrets, know-how, ideas (whether or not protectable under trade secret laws), and all other subject matter protectable under patent, copyright, moral right, mask work, trademark, trade secret or other laws, and includes without limitation all new or useful art, combinations, discoveries, formulae, manufacturing techniques, technical developments, discoveries, artwork, software, and designs.  “Company Innovations” are Innovations that Contractor, solely or jointly with others, conceives, reduces to practice, creates, derives, develops or makes within the scope of Contractor’s work for Company under this Agreement.
(b)Disclosure and Ownership of Company Innovations.  Contractor agrees to make and maintain adequate and current records of all Company Innovations, which records shall be and remain the property of Company.  Contractor agrees to promptly disclose to Company every Company Innovation. Contractor hereby does and will assign to Company, or Company’s designee, Contractor’s entire worldwide right, title and interest in and to all Company Innovations and all associated records and intellectual property rights.
(c)Assistance.  Contractor agrees to execute upon Company’s request a signed transfer of Company Innovations to Company in the form included with this Agreement for each of the Company Innovations, including, but not limited to, computer programs, notes, sketches, drawings and reports.  Contractor agrees to assist Company in any reasonable manner to obtain, perfect and enforce, for Company’s benefit, Company’s rights, title and interest in any and all countries, in and to all patents, copyrights, moral rights, mask works, trade secrets, and other property rights in each of the Company Innovations.  Contractor agrees to execute, when requested, for each of the Company Innovations (including derivative works, improvements, renewals, extensions, continuations, divisionals, continuations in part, or continuing patent applications thereof), (i) patent, copyright, mask work or similar applications related to such Company Innovation, (ii) documentation (including without limitation assignments) to permit Company to obtain, perfect and enforce Company’s right, title and  interest in and to such Company Innovation, and (iii) any other lawful documents deemed necessary by Company to carry out the purpose of this Agreement.  If called upon to render assistance under this paragraph, Contractor will be entitled to a fair and reasonable fee in addition to reimbursement of authorized expenses incurred at the prior written request of Company. In the event that Company is unable for any reason to secure Contractor’s signature to any document Contractor is required to execute under this Paragraph 4.1(c) (“Assistance”), Contractor hereby irrevocably designates and appoints Company and Company’s duly authorized officers and agents as Contractor’s agents and attorneys-in-fact to act for and in Contractor’s behalf and instead of Contractor, to execute such document with the same legal force and effect as if executed by Contractor.
(d)Out-of-Scope Innovations.  If Contractor incorporates any Innovations 

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relating in any way to Company’s business or demonstrably anticipated research or development or business which were conceived, reduced to practice, created, derived, developed or made by Contractor either outside of the scope of Contractor’s work for Company under this Agreement or prior to the Effective Date set forth below (collectively, the “Out-of-Scope Innovations”) into any of the Company Innovations, Contractor hereby grants to Company or Company’s designees a royalty-free, irrevocable, worldwide, fully paid-up license (with rights to sublicense through multiple tiers of sublicensees) to practice all applicable patent, copyright, moral right, mask work, trade secret and other intellectual property rights relating to any Out-of- Scope Innovations which Contractor incorporates, or permits to be incorporated, in any Company Innovations.  Contractor agrees that Contractor will not incorporate, or permit to be incorporated, any Innovations conceived, reduced to practice, created, derived, developed or made by others or any Out-of-Scope Innovations into any of the Company Innovations without Company’s prior written consent.
4.2Confidential Information.
(a)Definition of Confidential Information.  “Confidential Information” as used in this Agreement shall mean any and all technical and non-technical information including patent, copyright, trade secret, and proprietary information, techniques, sketches, drawings, models, inventions, know-how, processes, apparatus, equipment, algorithms, software programs, software source documents, and formulae related to the current, future and proposed products and services of Company, Company’s suppliers and customers, and includes, without limitation, Company Innovations, Company Property (defined below), and Company’s information concerning research, experimental work, development, design details and specifications, engineering, financial information, procurement requirements, purchasing manufacturing, customer lists, business forecasts, sales and merchandising and marketing plans and information.
(b)Nondisclosure and Nonuse Obligations.  Except as permitted in this paragraph, Contractor shall neither use nor disclose the Confidential Information. Contractor may use the Confidential Information solely to perform services for the benefit of Company.  Contractor agrees that Contractor shall treat all Confidential Information of Company with the same degree of care as Contractor accords to Contractor’s own Confidential Information, but in no case less than reasonable care.  If Contractor is not an individual, Contractor agrees that Contractor shall disclose Confidential Information only to those of Contractor’s employees who need to know such information, and Contractor certifies that such employees have previously agreed, either as a condition of employment or in order to obtain the Confidential Information, to be bound by terms and conditions substantially similar to those terms and conditions applicable to Contractor under this Agreement.  Contractor agrees not to communicate any information to Company in violation of the proprietary rights of any third party. Contractor will immediately give notice to Company of any unauthorized use or disclosure of the Confidential Information and agrees to assist Company in remedying any such unauthorized use or disclosure of the Confidential Information.
(c)Exclusions from Nondisclosure and Nonuse Obligations. Contractor’s obligations under Paragraph 4.2(b) (“Nondisclosure and Nonuse Obligations”) with respect to any portion of the Confidential Information shall not apply to any such portion which Contractor can demonstrate:  (a) was in the public domain at or subsequent to the time such portion was communicated to Contractor by Company through no fault of Contractor; or (b) was rightfully in Contractor’s possession free of any obligation of confidence at or subsequent to the time such portion was communicated to Contractor by Company.  A disclosure of Confidential Information by Contractor, either:  (a) in response to a valid order by a court or other governmental body; (b) otherwise required by law; or (c) necessary to establish the rights of either party under this Agreement, shall not be considered to be a breach of this Agreement or a waiver of confidentiality for other purposes; provided, however, that Contractor shall provide prompt prior written notice thereof to Company to enable Company to seek a protective order or otherwise prevent such disclosure.
4.3Ownership and Return of Company Property.  All materials (including, without 

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limitation, documents, drawings, models, apparatus, sketches, designs, lists, all other tangible media of expression), equipment, documents, data, and other property furnished to Contractor by Company, whether delivered to Contractor by Company or made by Contractor in the performance of services under this Agreement (collectively, the “Company Property”) are the sole and exclusive property of Company or Company’s suppliers or customers, and Contractor hereby does and will assign to Company all rights, title and interest Contractor may have or acquire in the Company Property. Contractor agrees to keep all Company Property at Contractor’s premises unless otherwise permitted in writing by Company.  At the end of this Agreement, or at Company’s request, and no later than five (5) days after the end of this Agreement or Company’s request, Contractor shall destroy or deliver to Company, at Company’s option:  (a) all Company Property; (b) all tangible media of expression in Contractor’s possession or control which incorporate or in which are fixed any Confidential Information; and written certification of Contractor’s compliance with Contractor’s obligations under this subparagraph.
4.4Observance of Company Rules.  At all times while on Company’s premises or representing the Company, Contractor will observe Company’s rules and regulations with respect to conduct, health and safety and protection of persons and property.
5.No Conflict of Interest.  During the term of this Agreement, Contractor will not accept work, enter into a contract, or accept an obligation, inconsistent or incompatible with Contractor’s obligations, or the scope of services rendered for Company, under this Agreement. Contractor warrants that, to the best of Contractor’s knowledge, there is no other contract or duty on the part of Contractor that conflicts with or is inconsistent with this Agreement.  This paragraph 5 does not prevent Contractor from performing services for clients other than Company so long as such services do not directly or indirectly conflict with Contractor’s obligations under this Agreement. During the term of this Agreement, Contractor will not accept work, enter into a contract, accept an obligation, recommend, or assist any company or entity other than Company with home networking or communication on coaxial cabling.
6.Term and Termination.
6.1Term.  This Agreement is effective as of January 1, 2015 (“Effective Date”), and will end on June 15, 2015 unless sooner terminated in accordance with subparagraphs 6.2 or 6.3 below. There is a maximum of 576 hours allowable under this Agreement and there is no minimum number of hours committed to the Contractor under this Agreement. This Agreement is renewable upon the mutual consent of both parties.  The terms of such renewal must be in writing and signed by both Company and Contractor.
6.2Termination by Company. Company may terminate this Agreement immediately upon Contractor’s breach of Paragraph 4 (“Intellectual Property Rights”), 5 (“No Conflict of Interest”) or 7 (“Noninterference with Business”). For any other material breach of this Agreement by Contractor, Company may terminate this Agreement if Contractor has not cured the breach within ten (10) days of receiving written notice from Company. Company may terminate this Agreement at any time, with termination effective fifteen (15) days after Company’s delivery to Contractor of written notice of termination.
6.3Termination by Contractor. Contractor may terminate this Agreement at any time, with termination effective fifteen (15) days after Contractor’s delivery to Company of written notice of termination
6.4Duties Upon Termination. Upon termination of this Agreement for any reason, Contractor agrees to cease all work on behalf of Company and promptly deliver the results to Company. Company shall promptly pay Contractor all fees and approved expenses incurred by Contractor to the date of termination within thirty (30) days after receiving Contractor’s final invoice.
7.Noninterference With Business.  During this Agreement, and for a period equal to the duration of the contractor Term immediately following this Agreement’s termination or expiration, Contractor agrees not to interfere with the business of Company in any manner.  By way of example and 

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not limitation, Contractor agrees not to:  (1) solicit or induce any employee or independent contractor to terminate or breach an employment, contractual or other relationship with Company; or (2) interfere with, impair, disrupt or damage Company’s relationship with any of its current or prospective customers by soliciting or encouraging others to solicit any of them for the purpose of diverting or taking away business from Company.
8.General Provisions.
8.1Successors and Assigns.  The rights and obligations of Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Company.  Contractor may not assign its rights, subcontract or otherwise delegate its obligations under this Agreement without Company’s prior written consent.
8.2Agreement to Arbitrate.  Contractor and Company agree to arbitrate any controversy, claim or dispute between them arising out of or in any way related to this Agreement, the independent contractor relationship between Contractor and Company, and any disputes upon termination of the independent contractor relationship, including claims for violation of any local, state or federal law, statute, regulation or ordinance or common law.  The arbitration will be conducted in San Diego, California, by a single neutral arbitrator and in accordance with the American Arbitration Association’s (“AAA”) then current rules for resolution of commercial disputes. The arbitrator shall have the power to enter any award that could be entered by a judge of the trial court of the State of California, and only such power, and shall follow the law.  In the event the arbitrator does not follow the law, the arbitrator will have exceeded the scope of his or her authority and the parties may, at their option, file a motion to vacate the award in court. The parties agree to abide by and perform any award rendered by the arbitrator. Judgment on the award may be entered in any court having jurisdiction thereof.
8.3Survival.  The definitions contained in this Agreement and the rights and obligations contained in Paragraphs 4 (“Intellectual Property Rights”), 7 (“Noninterference with Business”) and 8 (“General Provisions”) will survive any termination or expiration of this Agreement.
8.4Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows, with notice deemed given as indicated:  (a) by personal delivery, when delivered personally; (b) by overnight courier, upon written verification of receipt; (c) by telecopy or facsimile transmission, upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.  Notice shall be sent to the addresses set forth above or to such other address as either party may specify in writing.
8.5Governing Law. This Agreement shall be governed in all respects by the laws of the United States of America and by the laws of the State of California, as such laws are applied to agreements entered into and to be performed entirely within California between California residents.  Each of the parties irrevocably consents to the exclusive personal jurisdiction of the federal and state courts located in California, as applicable, for any matter arising out of or relating to this Agreement, except that in actions seeking to enforce any order or any judgment of such federal or state courts located in California, such personal jurisdiction shall be nonexclusive.
8.6Severability.  If any provision of this Agreement is held by a court of law to be illegal, invalid or unenforceable, (i) that provision shall be deemed amended to achieve as nearly as possible the same economic effect as the original provision, and (ii) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby.
8.7Waiver; Amendment; Modification.  No term or provision hereof will be considered waived by Company, and no breach excused by Company, unless such waiver or consent is in writing signed by Company. The waiver by Company of, or consent by Company to, a breach of any provision of this Agreement by Contractor, shall not operate or be construed as a waiver of, consent to, or excuse of any other or subsequent breach by Contractor.  This Agreement may be amended or modified only by mutual agreement of authorized representatives of the parties in writing.

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8.8Entire Agreement.  This Agreement constitutes the entire agreement between the parties relating to this subject matter and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter.  The terms of this Agreement will govern all services undertaken by Contractor for Company.

IN WITNESS WHEREOF, the parties have executed this Agreement on the dates shown below.

	
					
	 
	ENTROPIC COMMUNICATIONS, INC.
	 
	CONTRACTOR/CONSULTANT

	By:
	   /S/ Suzanne C. Zoumaras
	By:
	   /S/ Michael Farese

	 
	Suzanne Zoumaras
	 
	Michael Farese

	 
	 
	 
	 
	 

	Title:
	Senior Vice President, Human Resources
	 
	Title:
	Consultant

	 
	 
	 
	 
	 

	Date:
	December 22, 2014
	 
	Date:
	Dec. 22, 2014

	 
	 
	 
	 
	 

	 
	Social Security Number or FEIN:
	XXX-XX-XXXX

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EXHIBIT A

SERVICES AND FEES

Consultant Name: Michael Farese

Services:
Consultant is hereby retained as an independent contractor to consult with, advise and provide assistance to the Company for such services that may include, but are not limited to:

		
	•
	Support Standards and certification activities

		
	•
	Support of technology evaluation, roadmap development, and technology projects

		
	•
	Support CEO and CFO in business and corporate development activities

		
	•
	Support Legal department with patent evaluations and activities

		
	•
	Provide advice and consulting to Brani Petrovic, Yoav Hebron, Bruce Grove, and other engineering managers such as Dale Hancock and Rick Morris as requested

		
	•
	Meet with the CEO bi-weekly or as requested to synch on technology programs and topics of interest.

		
	•
	Continue as Entropic Communications representative to CommNexus

		
	•
	Other responsibilities as assigned

Consultant warrants that in rendering services pursuant to this Agreement, Consultant will be required to devote his/her best efforts to the performance of its duties and responsibilities under this Agreement.  Consultant will determine the method, details and means of performing the above-described services.

Fees:
As full and complete compensation for the performance of all services and all other obligations undertaken by Consultant hereunder, the Company agrees to pay to Consultant at an hourly rate of $150.00, not to exceed $15,600/month during the Term of this Agreement ("Consulting Fee"). No minimum hours of services are guaranteed under this Agreement. The consultant shall invoice Company on a semi-monthly basis for the services rendered during the prior semi- monthly period.  The invoice shall clearly describe the tasks performed and the hours allocated to those tasks. Invoices should be submitted to: Entropic’s Accounts Payable at entr.acctspayable@entropic.com and the individual indicated in Paragraph 1, Engagement of Services, for approval.

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ASSIGNMENT OF COMPANY INNOVATIONS

For good and valuable consideration which has been received, the undersigned sells, assigns and transfers to Entropic Communications, Inc. (“Company”), and Company’s successors and assigns, and Company accepts such sale, assignment and transfer of, all rights, title and interest of Michael Farese (“Contractor”), vested and contingent, in and to the Company Innovations, and all associated intellectual property rights (including, without limitation, patent, copyright, moral right, mask-work, and trade secret rights), which were conceived, reduced to practice, created, derived, developed or made during the course of the services performed under this Agreement.  Such Company Innovations are more particularly identified in Schedule 1 hereto.

	
					
	ENTROPIC COMMUNICATIONS, INC.
	 
	CONTRACTOR/CONSULTANT

	By:
	 
	 
	By:
	   /S/ Michael Farese

	 
	 
	 
	 
	 

	Printed Name:
	 
	 
	Printed Name:
	Michael Farese

	 
	 
	 
	 
	 

	Date:
	 
	 
	Date:
	Dec. 22, 2014

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SCHEDULE 1
ASSIGNMENT OF COMPANY INNOVATIONS

		
	1.
	Broadband Transceiver design patent for WiFi and other RF applications

		
	2.
	Dynamic Bias Control Patent. Docket E140015USU2

□   Check this box and sign below if none
         I attest this is true and accurate

	
	
	By:                   Michael Farese                
                               Signature

Printed Name:__Michael Farese__________

	 

	Date:  Dec 22, 2014              

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