Document:

exv10w40

Exhibit 10.40

February 2, 2010

Christos Lagomichos

Eindhoven, Netherlands

Dear Christos,

We are pleased to make this offer of employment to you with Trident Microsystems, Inc. (“Trident”),
as the prospective successor-in-interest of NXP Greece USA, Inc. (“NXP US”), the entity through
which you hold valid L1A status. Effective upon and subject to the acquisition by Trident of the
digital TV and set top box product lines of NXP B.V., which is expected to occur on February 8,
2010, your position with Trident will be that of President, reporting to the Chief Executive
Officer. The details of this offer, including the compensation package, are as follows:

	1.	 	Your base salary will be US$628,000 per year, paid on a semi-monthly basis at a rate of
US$26,166.67.

	2.	 	You will be eligible to participate in Trident’s medical, dental, vision, and life insurance
programs.

	3.	 	You will be entitled to four (4) weeks of paid time off for each of the first three years of
service with Trident according to the company policy.

	4.	 	Upon the approval of the Compensation Committee of Trident’s Board of Directors
(“Compensation Committee”) following the close of the Trident-NXP transaction, you will be
granted the equity incentive awards described in Appendix A, subject to the terms set
forth therein.

	5.	 	You will be eligible to participate in Trident’s Executive Variable Compensation Plan and
your target variable compensation will be 100% of your annual base salary with the possibility
to earn up to 200% of your annual base salary, as described in Appendix B.

	6.	 	You will receive income tax protection on up to 20% of your base salary for the first two
years of employment with Trident.

	7.	 	You will be entitled to the relocation benefits in accordance with Trident’s policy. Trident
will reimburse you all incidental expenses incurred for your relocation up to a maximum of one
month of your base salary. Trident will provide you with company paid housing until six
months after your family relocates to the United States. Trident will also cover the rental
car expenses associated with your relocation until your family moves to the United States.

	8.	 	In the event that your employment with Trident is terminated without Cause, you will be
eligible to receive the applicable severance benefits set forth in Appendix C.

	9.	 	As a Section 16 Officer, in the event that your employment is terminated following a “Change
in Control” of Trident, you will be eligible to receive the applicable benefits set forth in
Trident’s Executive Change in Control Severance Plan, as amended from time to time, subject to
confirmation by Trident’s Compensation Committee.

 

 

February 2, 2010

Christos Lagomichos

Page 2 of 6

	10.	 	Trident undertakes to assist you in amending your current L1A status to reflect the transfer
of your employment from NXP US to Trident, subject to approval by the US immigration
authorities, to enable you to carry out your Trident duties in the United States. Trident
will also file the appropriate visa applications to enable your wife and son to obtain
dependent L2 status, subject to approval by the US immigration authorities. These filings
will be made at Trident’s expense.

Within three (3) days of the start of your employment, you will be required to complete the
following:

	•	 	You must provide acceptable documentation of proof of your eligibility to work in the
United States as required by the Immigration and Naturalization Act (I-9).

	•	 	Your employment with Trident is “at will”; it is for no specified term, and may be
terminated by you or Trident at any time, with or without cause or advance notice. As a
condition of your employment, you will be required to sign Trident’s standard form of
Employment, Proprietary Information and Invention Assignment Agreement.

Trident is a dynamic, fast growing company whose success depends upon the contributions of talented
individuals such as you. You can accept this offer by signing below, indicating your anticipated
start date, and returning this copy to me. Should you have any questions or if you need additional
information, please feel free to contact me at (408) 764-8844.

This offer of employment is contingent upon your ability to comply with the employment
authorization provisions of the Immigration & Naturalization Act. In addition, this offer is
conditioned upon your acceptance, in writing, by February 1, 2010.

Sincerely,

/s/ Sylvia
Summers Couder
 
Sylvia Summers Couder

Chief Executive Officer and President

 

 

February 2, 2010

Christos Lagomichos

Page 3 of 6

ACKNOWLEDGMENTS & ACCEPTANCE

I accept this employment offer with the understanding that it is not a contract for a fixed term or
specified period of time. I understand that my employment is voluntary, “at will” and can be
terminated either by me or by Trident at any time, with or without notice and with or without
cause, subject to the terms of this letter. The provisions stated in this offer letter supersede
all prior representations or agreements, whether written or oral. This offer letter may not be
modified or amended except by a written agreement, signed by an authorized officer of Trident and
me.

	 	 	 	 	 
	 
	/s/ Christos Lagomichos

	 	February 5, 2010
	 	February 8, 2010
	 

	 	 
	 	 
	Christos Lagomichos

	 	Date
	 	Anticipated Start Date

 

 

February 2, 2010

Christos Lagomichos

Page 4 of 6

Appendix A

Equity Incentive Award

Initial Hire-On Option Grant

Upon the approval of Trident’s Compensation Committee, following your employment start date with
Trident at the close of the Trident-NXP transaction, you will be granted a non-qualified stock
option to purchase 109,000 shares of Trident’s common stock at an exercise price per share equal to
the closing price of a share of Trident’s common stock on the Nasdaq Global Market on the effective
date of grant. The options will vest over a four-year period at the rate of one-fourth upon each
of the first four anniversaries of the grant date. Subject to your continued performance of
services with Trident through each respective vesting date, the shares subject to this stock option
will vest and become exercisable according to a vesting schedule determined by Trident’s
Compensation Committee. Your stock option will be granted under and subject to the terms and
conditions of Trident’s standard form of stock option agreement, which you will be required to sign
as a condition to receiving this option.

Performance-Based Restricted Stock Award

Upon the approval of Trident’s Compensation Committee, following your employment start date with
Trident at the close of the Trident-NXP transaction, you will be granted a performance-based
restricted stock award consisting of 187,500 shares of Trident’s common stock. The performance
metrics and correspondent vesting provisions of the performance shares will be determined prior to
the date of grant by Trident’s Compensation Committee. Your restricted stock award will be granted
under and subject to the terms and conditions of Trident’s standard form of restricted stock
agreement, as modified by this letter, which you will be required to sign as a condition to
receiving the award.

	 	 	 
	 
	/s/ Christos Lagomichos
 

Christos Lagomichos

	 	 

 

 

February 2, 2010

Christos Lagomichos

Page 5 of 6

Appendix B

Executive Variable Compensation Plan

You will be eligible to participate in Trident’s Executive Variable Compensation Plan at a target
rate of 100% of your annual base salary. Maximum potential payout is 200% of your annual base
salary.

The actual bonus, if any, you earn under the Executive Variable Compensation Plan will be based
upon Trident’s achievement of annual performance goals determined by the Board of Directors and/or
Compensation Committee of Trident. In addition, you must be an active employee on the date of the
bonus payment to be entitled to receive a bonus under the Executive Variable Compensation Plan.
The detailed terms and conditions of the Executive Variable Compensation Plan are defined yearly by
Trident’s Board of Directors and/or Compensation Committee and are subject to change at the Board
of Directors’ and/or Compensation Committee’s discretion from year to year.

The CY 2010 variable compensation plan (“CY 2010 Variable Plan”) is expected to fund at 50% of
target until Trident reaches profitability. The goals and metrics for the CY 2010 Variable Plan
are to be determined by the Board and will be shared in the future.

	 	 	 
	 
	/s/ Christos Lagomichos
 

Christos Lagomichos

	 	 

 

 

February 2, 2010

Christos Lagomichos

Page 6 of 6

Appendix C

Severance Benefits

Termination of Employment without Cause. Trident may terminate your employment at any time without
“Cause” (as defined in Trident’s policy). If Trident terminates your employment without Cause,
Trident will provide you with the payments and benefits described in this paragraph provided that
you have executed a general release of known and unknown claims in a form approved by Trident’s
legal counsel and the period for revocation of such release has lapsed without the release having
been revoked:

     (a) Payment in a lump-sum following such termination of employment in an amount equal to the
sum of (i) twenty-four (24) months of your base salary and (ii) an annual bonus earned through the
termination date of your employment in accordance with Appendix B. Your base salary and target
bonus rates for this purpose will be the amounts in effect immediately prior to your termination of
employment, disregarding any reduction in such rates which constitutes a condition with respect to
which you have resigned for Good Reason.

     (b) Trident will reimburse you for insurance premiums for up to twelve (12) months of COBRA
coverage. Such insurance premium reimbursement will be provided until the earlier of (i) twelve
(12) months following your employment termination date, or (ii) the date on which you first become
eligible to obtain other group health insurance coverage provided to you by a third party.

	 	 	 
	 
	/s/ Christos Lagomichos
 

Christos Lagomichosexv10w1

Exhibit 10.1

July 31, 2009

Stephen Ambler

	 	Re: 	 	Terms of Resignation

Dear Stephen:

     This letter confirms the agreement between you and Immersion Corporation (“the Company”)
concerning the terms of your resignation and offers you the separation compensation we discussed in
exchange for a general release of claims, a covenant not to sue and other promises, as described
more fully below.

     1. Resignation Date: July 31, 2009 is your last day of employment with the Company
(the “Resignation Date”).

     2. Acknowledgment of Payment of Wages: By your signature below, you acknowledge that
on July 31, 2009, we provided you a final paycheck in the amount
of $14,318.11 which represents on a gross basis $8062.84 in wages and
$13,245 in accraed vacation and which final paycheck represents all
wages, salary, bonuses, commissions, accrued vacation and any similar
payments due you from the Company as of the Resignation Date, net of
taxes and deductions for medical, dental and vision insurance
premiums and contributions to your 401(k) and flexible savings
account. In addition, the Company agrees to reimburse you for all
reimbursable expenses no later than August 14, 2009 for which you
present usual and customary evidence by August 7, 2009. By signing
below, you acknowledge that the Company does not owe you any other
amounts.

     3. Separation Compensation: In exchange for your agreement to the general release and
waiver of claims and covenant not to sue set forth in paragraphs 6 and 7 below, the agreement to
cooperate set forth in paragraph 9 below and your other promises herein, the Company agrees to
provide you with the following:

          a. Severance: The Company agrees to pay you, within ten (10) business days following
the Effective Date (as defined in paragraph 18 below) of this agreement, a total of $104,816.92,
less applicable state and federal payroll deductions, which constitutes six (6) months of your base
salary.

          b. COBRA: Upon your timely election to continue your existing health benefits under
COBRA, and consistent with the terms of COBRA and the Company’s health insurance plan, the Company
will pay the insurance premiums to continue your existing health benefits for six (6) months
following the Resignation Date. You will remain responsible for, and must continue to pay, the
portion of premiums, co-payments, etc. that you would have paid had your employment continued.

 

 

Stephen Ambler

July 31, 2009

Page 2

          c. Post Termination Exercise Period: On the Resignation Date, you held the stock
options to purchase the Company’s Common Stock listed on Exhibit A hereto (the “Stock Options”),
and the shares subject to the Stock Options were vested and exercisable on the Resignation Date to
the extent set forth on Exhibit A (the “Vested Shares”). Per your stock option agreements with the
Company and the Company’s 2007 Equity Incentive Plan, you have 90 days after the Resignation Date
to exercise the Vested Shares. However, the Company will agree to extend your post-termination
exercise period, such that the Vested Shares shall be exercisable by you for 90 days following the
date on which the Company’s trading window reopens such that you are able to
exercise the options pursuant to a valid registration statement on Form S-8 and publicly trade the Vested Shares.

     By signing below, you acknowledge that you are receiving the separation compensation outlined
in this paragraph in consideration for waiving your rights to claims referred to in this agreement
and that you would not otherwise be entitled to the separation compensation.

     4. Return of Company Property: You hereby
agree that you will return to the Company all property or data of the Company of any type whatsoever that has been in
your possession or control by August 7, 2009. The Company agrees that it will return all of your property within its possession or control
by courier to your residence no later than August 7, 2009.

     5. Confidential Information: You hereby acknowledge that you are bound by the
attached Employee Inventions and Proprietary Rights Assignment dated March 8, 2005 (Exhibit B), and
that as a result of your employment with the Company you have had access to the Company’s
Proprietary Information (as defined in Exhibit B), that you will hold all Proprietary Information
in strictest confidence and that you will not make use of such Proprietary Information on behalf of
anyone. You further confirm that you have delivered to the Company all documents and data of any
nature containing or pertaining to such Proprietary Information and that you have not taken with
you any such documents or data or any reproduction thereof.

     6. General Release and Waiver of Claims:

          a. The payments and promises set forth in this agreement are in full satisfaction of all
accrued salary, vacation pay, bonus and commission pay, profit-sharing, stock options, termination
benefits or other compensation to which you may be entitled by virtue of your employment with the
Company or your separation from the Company. To the fullest extent permitted by law, you hereby
release and waive any other claims you may have against the Company and its owners, agents,
officers, shareholders, employees, directors, attorneys, subscribers, subsidiaries, affiliates,
successors and assigns (collectively “Releasees”), whether known or not known, including, without
limitation, claims under any employment laws, including, but not limited to, claims of unlawful
discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud,
violation of public policy, defamation, physical injury, emotional distress, claims for additional
compensation or benefits arising out of your employment or your separation of employment, including
claims arising out of your Amended and Restated Retention and Ownership Change Event Agreement,
claims under Title VII of the 1964 Civil Rights Act, as amended, the California Fair Employment and
Housing Act and any other laws and/or regulations relating to employment or employment
discrimination, including,

 

 

Stephen Ambler

July 31, 2009

Page 3

without limitation, claims based on age or under the Age Discrimination in Employment Act or
Older Workers Benefit Protection Act, and/or claims based on disability or under the Americans with
Disabilities Act.

          b. By signing below, you expressly waive any benefits of Section 1542 of the Civil Code of the
State of California, which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR.”

          c. You and the Company do not intend to release claims: (i) that you may not release as a
matter of law, including but not limited to claims for indemnity under California Labor Code
Indemnity Agreement and/or pursuant to the Company’s bylaws. To the fullest extent permitted by
law, any dispute regarding the scope of this general release shall be determined by an arbitrator
under the procedures set forth in the arbitration clause below.

     7. Covenant Not to Sue:

          a. To the fullest extent permitted by law, at no time subsequent to the execution of this
agreement will you pursue, or cause or knowingly permit the prosecution, in any state, federal or
foreign court, or before any local, state, federal or foreign administrative agency, or any other
tribunal, any charge, claim or action of any kind, nature and character whatsoever, known or
unknown, which you may now have, have ever had, or may in the future have against Releasees, which
is based in whole or in part on any matter covered by this agreement.

          b. Nothing in this section shall prohibit you from filing a charge or complaint with a
government agency such as but not limited to the Equal Employment Opportunity Commission, the
National Labor Relations Board, the Department of Labor, the California Department of Fair
Employment and Housing, or other applicable state agency. However, you understand and agree that,
by entering into this agreement, you are releasing any and all individual claims for relief, and
that any and all subsequent disputes between you and the Company shall be resolved through
arbitration as provided below.

          c. Nothing in this section shall prohibit or impair you or the Company from complying with all
applicable laws, nor shall this agreement be construed to obligate either party to commit (or aid
or abet in the commission of) any unlawful act.

     8. Resignation From Board and Officer Positions: You agree to resign from any board
or officer positions you hold with any of the Company’s subsidiaries and affiliated entities no
later than the Resignation Date, by executing and submitting to the Company’s Chief Executive
Officer the Notice of Resignation attached hereto as Exhibit C, and such other

 

 

Stephen Ambler

July 31, 2009

Page 4

documentation provided by the Company, if any, required to verify your resignation from such
positions.

     9. Agreement to Cooperate: You agree that upon reasonable request by the Company or
its Board of Directors you will cooperate with the Company, including its subsidiaries and
affiliated entities, in responding to or in connection with: (i) any investigation by the Audit
Committee of the Company’s Board of Directors; (ii) any pending or future dispute, litigation,
arbitration, regulatory investigation, or regulatory proceeding (“Dispute”) or (iii) any regulatory
request or filing involving the Company or one of its subsidiaries or affiliated entities; provided
that such Dispute or regulatory request or filing relates to finance or accounting issues during
your tenure at the Company or a matter about which you had knowledge or for which you were
responsible prior to the Resignation Date.

     10. Nondisparagement: You agree that you will not disparage Releasees or their
products, services, agents, representatives, directors, officers, stockholders, attorneys,
employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or
in concert with any of them, with any written or oral statement. Nothing in this paragraph shall
prohibit you from providing truthful information in response to a subpoena or other legal process.

     11. Arbitration: Except for any claim for injunctive relief arising out of a breach
of a party’s obligations to protect the other’s proprietary information, the parties agree to
arbitrate, in Santa Clara County, California through JAMS, any and all disputes or claims arising
out of or related to the validity, enforceability, interpretation, performance or breach of this
agreement, whether sounding in tort, contract, statutory violation or otherwise, or involving the
construction or application or any of the terms, provisions, or conditions of this agreement. Any
arbitration may be initiated by a written demand to the other party. The arbitrator’s decision
shall be final, binding, and conclusive. The parties further agree that this agreement is intended
to be strictly construed to provide for arbitration as the sole and exclusive means for resolution
of all disputes hereunder to the fullest extent permitted by law. The parties expressly waive any
entitlement to have such controversies decided by a court or a jury.

     12. Attorneys’ Fees: If any action is brought to enforce the terms of this agreement,
the prevailing party will be entitled to recover its reasonable attorneys’ fees, costs and expenses
from the other party, in addition to any other relief to which the prevailing party may be
entitled.

     13. No Admission of Liability: This agreement is not and shall not be construed or
contended by you to be an admission or evidence of any wrongdoing or liability on the part of
Releasees, their representatives, heirs, executors, attorneys, agents, partners, officers,
shareholders, directors, employees, subsidiaries, affiliates, divisions, successors or assigns.
This agreement shall be afforded the maximum protection allowable under California Evidence Code
Section 1152 and/or any other state or federal provisions of similar effect.

 

 

Stephen Ambler

July 31, 2009

Page 5

     14. Entire Agreement: This agreement, together with Exhibits A, B and C hereto,
constitutes the entire agreement between you and Releasees with respect to the subject matter
hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to
such subject matter. You acknowledge that neither Releasees nor their agents or attorneys have
made any promise, representation or warranty whatsoever, either express or implied, written or
oral, which is not contained in this agreement for the purpose of inducing you to execute the
agreement, and you acknowledge that you have executed this agreement in reliance only upon such
promises, representations and warranties as are contained herein.

     15. Severability: The provisions of this agreement are severable, and if any part of
it is found to be invalid or unenforceable, the other parts shall remain fully valid and
enforceable. Specifically, should a court, arbitrator, or government agency conclude that a
particular claim may not be released as a matter of law, it is the intention of the parties that
the general release, the waiver of unknown claims and the covenant not to sue above shall otherwise
remain effective to release any and all other claims.

     16. Modification; Counterparts; Facsimile Signatures: It is expressly agreed that
this agreement may not be altered, amended, modified, or otherwise changed in any respect except by
another written agreement that specifically refers to this agreement, executed by authorized
representatives of each of the parties to this agreement. This agreement may be executed in any
number of counterparts, each of which shall constitute an original and all of which together shall
constitute one and the same instrument. Execution of a facsimile copy shall have the same force
and effect as execution of an original.

     17. Review of Separation Agreement: You understand that you may take up to twenty-one
(21) days to consider this agreement and, by signing below, affirm that you were advised to consult
with an attorney prior to signing this agreement. You also understand you may revoke this
agreement within seven (7) days of signing this document and that the compensation to be paid to
you pursuant to Paragraph 3 will be paid only at the end of that seven (7) day revocation period.

     18. Effective Date: This agreement is effective on the eighth (8th) day after you
sign it and without revocation by you.

     19. Governing Law: This agreement shall be governed by and construed in accordance
with the laws of the State of California.

 

 

Stephen Ambler

July 31, 2009

Page 6

     If you agree to abide by the terms outlined in this letter, please sign this letter below and
also sign the attached copy and return it to me. I wish you the best in your future endeavors.

	 	 	 	 	 
	 	Sincerely,

Immersion Corporation

 	 
	 	By:  	/s/ Clent Richardson
 	 
	 	 	Clent Richardson, President and
Chief Executive Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	READ, UNDERSTOOD AND AGREED

 	 	 
	/s/ Stephen Ambler
 	Date: July 31, 2009 	 
	Stephen Ambler 	 	 
	 	 	 

 

 

	 	 	 	 	 

Stephen Ambler

July 31, 2009

Page 7

EXHIBIT A

STOCK OPTION CLOSING STATEMENT

 

 

Stephen Ambler

July 31, 2009

Page 8

EXHIBIT B

EMPLOYEE INVENTIONS AND PROPRIETARY RIGHTS ASSIGNMENT AGREEMENT

 

 

Stephen Ambler

July 31, 2009

Page 9

EXHIBIT C

RESIGNATION LETTER

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