Document:

AMENDMENT TO EMPLOYMENT AGREEMENT

EXHIBIT 10.3

AMENDMENT TO EMPLOYMENT AGREEMENT

THIS AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made among EDWARD A. CESPEDES (the “Executive”) and PAYMEON, INC., a Nevada corporation (the “Company”).

BACKGROUND

WHEREAS, the Executive and the Company are parties to that certain Employment Agreement dated as of August 15, 2011 (the “Agreement”); and

WHEREAS, The Executive and the Company desire to amend the Agreement, effective July 18, 2014;

AMENDMENT

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, and intending to be legally bound hereby, the parties hereto agree as follows:

1.

Compensation and Related Matters.  Section 5(a) is hereby amended and restated in its entirety as follows:

(a)

Base Salary and Guaranteed Bonus.  During the Employment Period, the Company shall pay Executive a base salary at the rate of not less than $175,000 per year ("Base Salary"). Executive's Base Salary shall be paid in approximately equal installments in accordance with the Company’s customary payroll practices. The Compensation Committee (the "Committee") of the Board  of Directors of the Company (the "Board") shall review Executive's Base Salary for increase (but not decrease) no less frequently than annually and consistent with the compensation practices and guidelines of the Company. If Executive's Base Salary is increased by the Company, such increased Base Salary shall then constitute the Base Salary for all purposes of this Agreement. In addition to Base Salary, Executive shall be eligible for, but not guaranteed, a discretionary annual bonus (the “Discretionary Bonus") on each December 31 of the Employment Period (pro-rated for partial years). 

2.

Compensation Upon Termination or During Disability.  Section 8(a) and Section 8(d) is hereby amended and restated in their entirety as follows:   

(a)

Termination By Company without Cause or By Executive for Good Reason. If Executive’s employment is terminated by the Company without Cause or by Executive for Good Reason:

(i)

within five (5) days following such termination, the Company shall pay to Executive (A) his Base Salary through the Date of Termination and an amount equal to the product of (x) the higher of (i) the Executive's average annual incentive paid or payable under the Company's annual incentive plan (or any comparable predecessor plan) for the last three full fiscal years, including any portion thereof which has been earned but deferred and (ii) the annual incentive paid or payable under the Company's annual incentive plan for the most recently completed fiscal year, including any portion thereof which has been earned but deferred (and annualized if such fiscal year consists of less than twelve full months or if during which the Employee was employed for less than twelve full months), (such higher amount being referred to as the “Highest Annual Incentive”), provided that for purposes of determining the Highest Annual Incentive for all purposes of this Agreement, the term “annual incentive” 

shall include any Bonus to the extent paid or payable and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365;(B) any accrued vacation pay (clauses (A) and (B) of this Section 8(a)(i) collectively referred to as the “Accrued Benefits”); and (C) a lump-sum cash payment equal to one (1) time the sum of Executive's Base Salary and Highest Annual Incentive; and

(ii)

the Company shall maintain in full force and effect, for the continued benefit of Executive, his spouse and his dependents for a period of one and one half (1-1/2) years following the Date of Termination the medical, hospitalization,  dental,  and life insurance programs in which Executive, his spouse and his dependents were participating immediately prior to the Date of Termination at the level in effect and upon substantially the same terms and conditions (including  without limitation contributions required by Executive for such benefits) as existed immediately prior to the Date of Termination; provided, that, if Executive,  his spouse or his dependents cannot continue to participate in the Company programs providing such benefits, or the Company was unable to provide such benefits during Executive’s employment, the Company shall arrange to provide Executive, his spouse and his dependents with the economic equivalent of such benefits which they otherwise would have been entitled to receive under such plans and programs (“Continued Benefits”),  provided,  that, such Continued Benefits shall terminate on the date or dates Executive receives equivalent  coverage and  benefits, without waiting period or pre-existing condition limitations, under the plans and programs of a subsequent employer (such coverage and benefits to be determined on a coverage-by-coverage or benefit-by-benefit, basis); and

(iii)

the Company shall reimburse Executive pursuant to Section 5 for reasonable expenses incurred, but not paid prior to such termination of employment; and

(iv)

Executive  shall be entitled to any other rights, compensation and/or benefits as may be due to Executive in accordance with the terms and provisions of any agreements, plans or programs of the Company; and

(v)

with respect to equity awards granted or made to the Executive, whether before, on or after the Commencement Date, then notwithstanding the terms or conditions of any stock option, stock appreciation right, restricted stock or similar agreements between the Company and Executive to the contrary, and for purposes thereof, such agreements shall be deemed to be amended in accordance with this Section 8(a)(v) if need be as of the Date of Termination and neither the Company, the Board nor the Committee shall take or assert any position contrary to the foregoing, such that Executive shall vest, as of the Date of Termination, in all rights under such agreements (e.g., stock options that would otherwise vest after the Date of Termination) and in the case of stock options, stock appreciation rights or similar awards, thereafter shall be permitted to exercise any and all such rights until the earlier of (i) the third anniversary of the Date of Termination and (ii) the end of the term of such awards (regardless of any termination of employment restrictions therein contained) and restricted stock held by Executive shall become immediately vested as of the Date of Termination.

(d)

Death. If Executive's employment is terminated by his death:

(v)

the Company shall pay in a lump sum to Executive's beneficiary, legal representatives or estate, as the case may be, Executive's Accrued Salary and Benefits and shall provide Executive's spouse and dependents with Continued Benefits for one and one-half (1-1/2) years; and

2

(vi)

the Company shall reimburse Executive's beneficiary, legal representatives, or estate, as the case may be, pursuant to Section 5 for reasonable expenses incurred, but not paid prior to such termination of employment; and

(vii)

Executive's  beneficiary, legal representatives or estate, as the case may be, shall be entitled to any other rights, compensation and benefits as may be due to any such persons or estate in accordance with the terms and provisions of any agreements, plans or programs of the Company.

3.

Defined Terms.  Capitalized terms which are used in this Amendment but are not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement.

4.

Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of Florida, without regard to conflicts of laws provisions thereof.

5.

Ratification of Agreement.  Except as expressly modified or amended by this Amendment, all of the provisions of the Agreement are hereby ratified, confirmed and approved and shall remain in full force and effect.

6.

Further Assurances.  Each party hereto shall, upon the reasonable request of any other party hereto, execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the provisions of and the transactions contemplated by this Amendment.

7.

Counterparts.  This Amendment may be executed and delivered (including, without limitation, by facsimile transmission), in counterparts, each of which shall be deemed an original, but all of which shall constitute the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as dated above.

		
	PAYMEON, INC.

	 

	 

	By:

	 

	 
	Edward A. Cespedes, CEO AND DIRECTOR

	 

	 

	EXECUTIVE

	 

	 

	 

	EDWARD A. CESPEDES

3EX-10.1

 Exhibit 10.1 
  

 
 PRIVATE & CONFIDENTIAL 

Mike Burns 
 Via Email 

July 20, 2014 
 Dear Mike, 

Everyone at Gigamon Inc. (the “Company”) is excited to welcome you as the latest addition to a great company. We strongly believe you
will make an outstanding contribution to the team, living up to the high standards set by your fellow team members. It is with great pleasure that I confirm the Company’s offer of employment to you for the position of Chief Financial
Officer. 
 This offer is contingent upon successful background and reference checks. The terms of the Company’s offer are outlined in this letter
(the “Offer Letter”) and attached documents, if any. 
 1. Start Date. We expect you to start work no later than
July 28, 2014 (the “Start Date”). 
 2. Salary/Responsibilities. You will report directly to Paul
Hooper, CEO. You will receive an initial base salary at an annual rate of $270,000.00 (“Base Salary”), paid in equal twice-monthly installments. In addition to the Base Salary, you will be eligible to participate
in the Company’s 2014 Corporate Bonus Plan for 2014, with a target bonus of 50% of Base Salary. Your actual bonus is subject to Company and individual performance and the terms of the plan. 

3. Benefits and Taxes. As a regular, full-time employee, you will be eligible to participate in all Company-sponsored benefit programs in
accordance with existing Company policies. As of today’s date, those benefit programs include a 401(k) plan with employer match, Employee Stock Purchase Plan, (ESPP), health insurance plan, dental plan, vision plan, 10 paid holidays each year,
up to 15 days of Paid Time Off (PTO) per year and unlimited sick time. Further details can be found in the Company’s employee handbook. The Company also provides you, at its own expense, life insurance equal to 2 times your base salary and long
term and short term disability insurance. Any taxable payments made to you (including salary and bonuses) will have applicable taxes withheld. 
 4.
Equity. We will recommend to the Company’s Board of Directors (or a committee that it authorizes) (the “Board”) that you be granted an equity award with a value of $1,300,000 on the date of
grant. Consistent with our compensation philosophy for executives, the value of the grants will be split equally between options to purchase Company stock (“Options”) and restricted stock units
(“RSUs”). To determine the number of Options and RSUs, we use the approximate Black-Scholes value of the options and the closing price of the Company’s common stock on the date of the grant. This award will not be
effective until approved by the Board and will be effective on the date determined by the Board. 
 If the Board approves the grant of Options and RSUs to
you, our practice has been that during the periods of your full employment with the Company, the Options granted will vest over a 4 year period as follows: the first 25% of each grant will vest 12 months after the vesting commencement date

  

			
	Gigamon Inc., 3300 Olcott Street, Santa Clara, CA 95054 U.S.A	  	Tel: (408) 831-4000

 

 
  

 
(currently anticipated to be your Start Date) and the remainder will vest in equal monthly installments for the remaining 36 months. For RSUs, our practice has been that during your employment
with the Company, the RSUs would vest over a 4 year period as follows: 25% of the total RSUs would vest on August 15, 2015; 1/16th of the total RSUs would vest on each of the Company’s successive
quarterly RSU vesting dates thereafter (15th of February, May, August and November of each year). Note, you must start prior to August 14, 2014 to be eligible for the
August 15, 2015 vest date. If your Start Date is on or after August 15, 2014, then the first vesting date will default to the next quarterly vesting date, November 15, 2015. 

The grant of Options and RSUs by the Company is subject to the Board’s approval and this promise to recommend such approval is not a promise of
compensation and is not intended to create any obligation on the part of the Company. Further details on the Plan and any specific Option and RSU grant to you will be provided upon approval of such grants by the Board. 

5. Change in Control/Severance Benefits. We will recommend to the Board that you be eligible for the Company’s standard executive change in
control severance benefits package. A copy of the form of this agreement is included for your information. 
 6. At Will Employment. While we
look forward to a long and profitable relationship, if you accept our offer, you will be an at-will employee of the Company, which means the employment relationship can be terminated by either of us for any reason, at any time, with or without prior
notice and with our without cause. Any statements or representations to the contrary, whether written or oral, are expressly superseded. Further, your participation in any benefit program, including the equity compensation plan, is not to be
regarded an assurance of continued employment for any period of time. Any modification or change to your at-will employment status may only occur via an express written agreement signed by you and the Company’s Chief Executive Officer. The
Company reserves the right to change or otherwise modify, in its sole discretion, the terms and conditions of your employment, including without limitation your Base Salary, bonus opportunities, title, reporting structure and any benefits. 

7. Confidentiality. As an employee of the Company, you will have access to certain confidential information of the Company and you may, during
the course of your employment, develop certain information or inventions that will be the property of the Company. To protect the interests of the Company, you will need to sign the Company’s standard “Employee Agreement Regarding
Proprietary Information and Inventions” as a condition of your employment, if you have not already. We wish to impress upon you that you may not bring with you to the Company any confidential or proprietary material of any former employer or to
violate any other obligations you may have to any former employer or other third party. During the period that you render services to the Company, you agree to not engage in any employment, business or activity that is in any way competitive with
the business or proposed business of the Company. You will disclose to the Company in writing any other gainful employment, business or activity that you are currently associated with or participate in that competes in any way with the Company. You
will not assist any other person or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company. You represent that your signing of this Offer Letter, any agreement about
Company equity, and the Company’s Employee Agreement Regarding Proprietary Information and Inventions, and your commencement of employment with the Company, will not violate any agreement currently in place between yourself and current or past
employers or other third parties. 

  

			
	Gigamon Inc., 3300 Olcott Street, Santa Clara, CA 95054 U.S.A	  	Tel: (408) 831-4000

 

 
  

 8. Authorization to Work. Please note that, because of employer regulations adopted in the
Immigration Reform and Control Act of 1986, as amended, within 3 business days of starting your new position you will need to present documentation demonstrating that you have authorization to work in the United States. If you have questions about
this requirement, which applies to U.S. citizens and non-U.S. citizens alike, you may contact our Human Resources Department. 
 9. Dispute
Resolution. You and the Company shall submit to mandatory and exclusive binding arbitration of any controversy or claim arising out of, or relating to, your employment or this Offer Letter, provided, however, that the parties
retain their right to, and shall not be prohibited, limited or in any other way restricted from, seeking or obtaining equitable relief from a court having jurisdiction over the parties. Such arbitration shall be governed by the Federal Arbitration
Act and conducted through the American Arbitration Association in the State of California, Santa Clara County, before a single neutral arbitrator, in accordance with the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association in effect at that time. Those rules are available via the AAA’s website at: www.adr.org. The Company will pay any fees charged by an arbitrator to hear this matter, as well as any other fees that would not
customarily be borne by you in the event any dispute were litigated in court. Judgment upon the determination or award rendered by the arbitrator may be entered in any court having jurisdiction thereof. By signing this letter, you and the Company
expressly waive your rights to a jury trial. 
 10. Acceptance. This Offer Letter and any attachments hereto expressly supersede and
replace any prior understanding or agreements, whether oral, written, or implied, as to the subject matter set forth herein. This offer will remain open until end of business, Friday, July 25, 2014. If you decide to accept our offer, and
I hope you will, please sign the enclosed copy of this Offer Letter in the space indicated and fax it to Human Resources at (408) 988-8986 or you can email a signed copy to Rich Jacquet at rich.jacquet@gigamon.com. Your signature will
acknowledge that you have read, understood and agreed to the terms and conditions of this Offer Letter and the attached documents, if any. If you have anything else that you wish to discuss, please do not hesitate to call me. 

We look forward to the opportunity to welcome you to the Company. 

Best regards, 
 /s/ Paul A. Hooper 

Paul A. Hooper 
 Chief Executive Officer 

Gigamon Inc. 

  

			
	Gigamon Inc., 3300 Olcott Street, Santa Clara, CA 95054 U.S.A	  	Tel: (408) 831-4000

 

 
  

 I have read and understood this Offer Letter and hereby acknowledge, accept and agree to the terms as set
forth above and further acknowledge that no other commitments were made to me as part of my employment offer except as specifically set forth herein. 
  

							
	 /s/ Mike Burns
	 		 	Date signed:	 	 July 22, 2014

	Mike Burns	 		 		 	
				
	Attachments:	 		 		 	
	Gigamon, Inc. Change in Control Severence Agreement	 		 		 	

  

			
	Gigamon Inc., 3300 Olcott Street, Santa Clara, CA 95054 U.S.A	  	Tel: (408) 831-4000

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