Document:

Exhibit 10.1

 

 

 

CONFIDENTIAL

 

September
9, 2015

 

Jeffrey
P. Lucas, CPA, CFA

25 Fairmont Street

Belmont MA 02478

 

BY
EMAIL: Jeffrey.lucas@verizon.net

 

Dear
Jeff,

 

On
behalf of eMagin Corporation ("eMagin" or the "Company"), I am pleased to offer you the position of Chief
Financial Officer and Treasurer, reporting to Andrew Sculley, CEO and President with an anticipated start date of September 15,
2015. This position requires a very hands-on approach and will require interaction with other departments such as Product Development,
Engineering, R&D, Sales, Quality, Business Development and Manufacturing.

 

The
terms of your new position with the Company are as set forth below: 

 

Compensation

 

Your
starting base salary for this position will be at a rate of $13,269.23 bi-weekly ($345,000 annualized) in accordance with eMagin's
payroll practices. The annual base salary will be reviewed each year by the Compensation Committee to determine if such base salary
should be increased due to inflation or in recognition of your services to the Company.

 

You
will be eligible for an annual target bonus of 20% tied to the results of the company: Cash Flow, Revenue and Earnings as agreed
to by the Board of Directors. For 2016 your bonus will be prorated for year ending 2015.

 

Equity-Related
Instruments

 

In
addition, the Board of Directors have agreed to grant you a stock option to purchase 75,000 shares of eMagin common stock vesting
over three years with a 5-year term at an exercise price equal to the fair market value of the stock on the date of the grant.
These options vest 1/3 per year annually over a three (3) year period. (The exercise price of the stock option will be set
at the fair market value of the stock on the date of the grant (this would be the date you start work) . You may accrue your options
without being required to exercise and buy the options for five (5) years, although a major status change to the company, such
as a sale, may force the early exercising of options. The stock options are subject to any lock-up provisions imposed company-wide.
Should you leave the company in the future for any reason, you will be required to exercise any vested options upon exit from
the company to avoid expiration of your options within 90 calendar days).

 

eMagin
Corporation   ●   2070 Route 52   ●   Hopewell Junction, NY 12533   ●   845-838-7900

  

     

     

    

 

Should
there be a Change of Control of the Company, immediately prior to the consummation of such Change of Control, all of your unvested
options to purchase shares of the Company's stock will become fully vested and exercisable. Change of Control means the sale of
all or substantially all the assets of the Company; any merger, consolidation or acquisition of the Company with, by or into another
corporation, entity or person; or any change in the ownership of more than fifty percent (50%) of the voting capital stock of
the Company in one or more related transactions.

 

Vacation

 

You
will be entitled to 20 vacation days per year, accrued and prorated in accordance with Company policy. 

 

Relocation

 

Reimbursement
for the movement of your household goods and cars will apply as long as they are shipped not later than one year from your start
date As part of this offer, the Company will provide the following relocation package:

 

		●	Household
                                         Goods. The Company will reimburse you for actual, out of pocket costs incurred in
                                         the movement (including packing, shipping and unpacking) of household goods from your
                                         current residence to your new residence in the Hopewell Junction, NY area. Reimbursement
                                         for the packing, shipping and unpacking assumes typical household goods only. Three quotes
                                         from established moving companies must be submitted to Company management for approval
                                         prior to incurring any such expense.

 

		●	Temporary
                                         Housing. Temporary living at a local hotel will be arranged and paid for directly
                                         by eMagin for a maximum of 30 days.

 

		●	Storage.
                                         Storage of moved goods will be provided for a period not to exceed 2 months. Payment
                                         will be made by eMagin directly to the storage company, after review of quotations (2
                                         minimum) of such established businesses by eMagin. Expenses attributable to storage beyond
                                         this time period will be your responsibility.

 

		●	Relocation
                                         Allowance. The Company will provide a relocation allowance of $13,000 to be paid
                                         within the first 30 days following employment start date at eMagin ("Start Date
                                         ").

 

The
relocation package described in this paragraph is contingent upon your long term employment and must be reimbursed to eMagin if
you voluntarily separate from eMagin prior to the second anniversary of your Start Date for any reason. Before incurring any expenses,
you will be required to sign a Repayment Agreement reflecting the foregoing repayment obligations. You will be responsible for
any taxes associated with the relocation allocation. Expenses associated with relocation may be tax deductible; you should consult
your tax advisor.

 

eMagin
Corporation   ●   2070 Route 52   ●   Hopewell Junction, NY 12533   ●   845-838-7900

 

    	 	2	 

     

    

 

Employee
Agreements; Medical Plan

 

Upon
reporting to work, as a condition of employment, staff members are required to sign agreements that include provisions of patent
assignment, non-competition, confidentiality, and code of business conduct requirements. An EPO type medical plan is currently
offered to our employees (see attached Summary of Benefits).

 

At-Will

 

This
employment offer is by no means construed as a contract of employment for a fixed duration. Your employment is on an "at-will"
basis and may be terminated by you or eMagin at any time for any reason. No one at eMagin is authorized to enter into any employment
agreement, except if in writing and signed by the President. This letter contains all benefits and entitlements of the position
you're being offered; it specifies your entire compensation.

 

Severance

 

Should
the Company terminate your employment for any reason other than for unsatisfactory performance or gross misconduct, the Company
will provide you with six month's severance pay, paid at your current salary at the time of termination, provided you sign a separation
and release agreement, in form and substance acceptable to the Company, at the time of termination.

 

*
* *

 

This
offer is subject to final Board of Directors' approval and is contingent on a positive background check, please fill out the attached
authorization form and return to our HR Representative — Lucille Mavrokefalos - Imavrokefalos@emagin.com.

 

I
am delighted to be able to make this offer to you, Jeff. Your anticipated contributions in this position are considered to be
a key component to help the Company grow. High performance in this position, coupled with success in our display development and
manufacturing efforts, should provide you the opportunity for professional and financial growth in the years to come.

 

If
this offer is acceptable to you, please sign and return the enclosed copy of this letter. I look forward to a favorable reply.

 

Sincerely,

 

	/s/
    Andrew Sculley	 
	Andrew
    Sculley	 
	President
    and CEO	 

 

	Understood
    and accepted: 	/s/ Jeffrey
    Lucas	 	September 10, 2015	 
	 	Jeffrey
    Lucas	 	Date	 

  

eMagin
Corporation   ●   2070 Route 52   ●   Hopewell Junction, NY 12533   ●   845-838-7900

 

 

3Exhibit 10.2

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

1. This Separation Agreement and General
Release (“Agreement”) is between Paul C. Campbell (“Employee”) and eMagin Corporation (“Company”)
to resolve any and all outstanding issues between the parties and to set forth all of the obligations between the parties.

 

2. Employee’s employment with the
Company terminated effective September 14, 2015 (“Release Date”).  Employee acknowledges that he has
been paid his regular rate of pay in equal biweekly installments, less applicable deductions through the Release Date.  Employee
also acknowledges that he has been paid seventy thousand eight hundred sixty-five dollars and thirty-eight cents ($70,865.38),
which represents fifty-five (55) days of Employee’s accrued, but unused, vacation, less applicable deductions, through the
Release Date.

 

3. In exchange for Employee’s execution
and non-revocation of this Agreement and in exchange for the other obligations that Employee owes to the Company under this Agreement,
the Company agrees to pay to Employee the total amount of one hundred and three thousand seventy six dollars and ninety two cents
($103,076.92), less applicable deductions.  Such amount represents sixteen (16) weeks of Employee’s base salary,
less applicable deductions.  The amount recited in this Section 3 will be paid to Employee in the same manner as Employee
has been receiving his biweekly salary (that is, by direct deposit or check, as applicable) and as 8 equal payments on the Company’s
regular payday beginning with the next payday after the end of the Revocation Period. In addition, the Company agrees to pay to
Employee the additional compensation in the amount and on the date specified on Annex A to this Agreement.

 

4. Employee acknowledges that he has been
advised that he may be able to continue his health benefits pursuant to COBRA and that Employee will receive additional information
regarding COBRA under separate cover.

 

5. Employee agrees that he is not entitled
to and will not seek any further consideration, including but not limited to, any wages, vacation pay, sick pay, disability pay,
bonus, compensation, profit sharing contributions, restricted stock, stock options, other equity-related instruments, payment or
benefit from Releasees (as defined in Section 6) other than that to which he is entitled pursuant to this Agreement.  The
Company will not oppose Employee’s claim for unemployment insurance, except that the Company will respond truthfully to any
requests from the Employment Security Department.

 

6. In consideration of the payments and
benefits to Employee provided herein, Employee agrees to and hereby does release and discharge the Company, its parents, subsidiaries,
affiliates and their successors or assigns, directors, officers, consultants, attorneys, representatives and employees (collectively
“Releasees”) from any and all claims, causes of action, arbitrations and demands, whether known or unknown, which he
has or ever has had, which are based on acts or omissions occurring up to and including the date this Agreement is fully executed,
except as to the enforcement of this Agreement and any rights which cannot be waived as a matter of law.  In this release,
Employee further releases the Company and its parents, subsidiaries and affiliated entities from any and all compensation owed
to him, including vacation pay and any attorneys’ fees, damages and costs Employee could recover under any statute or common
law theory.  Included within this release, without limiting its scope, are claims arising out of Employee’s employment
or the termination of his employment based on Title VII of the Civil Rights Acts of 1964 as amended, the Civil Rights Act
of 1870, the Americans with Disabilities Act of 1990 as amended, the Americans with Disabilities Act Amendments Act of 2008, the
Age Discrimination in Employment Act, as amended, the Older Workers Benefit Protection Act, the Fair Labor Standards Act of 1938
as amended by the Equal Pay Act of 1963, the Family and Medical Leave Act, the Employee Retirement Income Security Act of 1974,
the Civil Rights Act of 1991, the Genetic Information Nondiscrimination Act of 2008, the Lilly Ledbetter Fair Pay Act of 2009,
the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law, the New York Wage Theft Prevention
Act, the U.S. Patriot Act, the Sarbanes-Oxley Act of 2002, the Dodd–Frank Wall Street Reform and Consumer Protection Act,
and any other federal, state or local civil rights, disability, discrimination, retaliation or labor law, or any theory of contract,
criminal, arbitral or tort law.

 

7. Rights Not Waived. Regardless
of any term stated in any other section of this agreement:

 

a.            This agreement does not waive employee’s rights, if any, to receive ERISA-covered benefits (e.g., pension or
medical benefits) that are vested pursuant to a formally-adopted and properly-authorized written benefit plan.

 

b.            This agreement does not waive unemployment compensation benefits, workers’ compensation benefits or any other rights
that may not lawfully be released by a private agreement.

 

c.            Nothing in this agreement prevents employee from filing a charge or complaint with, or from participating in an investigation
or proceeding conducted by, the EEOC, SEC, NLRB, DOL, or any other governmental agency; but as to all of the claims that employee
has released as provided in this agreement, employee is waiving his right to receive any individual relief in any such investigation
or proceeding.

 

d.            Nothing
in this agreement prevents employee from (a) providing truthful testimony in any legal proceeding to which he is a party, (b)
providing truthful testimony or information if he is legally compelled or required to do so, (c) providing truthful information
in any charge or complaint with the EEOC, SEC, NLRB, DOL or other governmental agency, or (d) providing truthful information in
the course of participating in an investigation or proceeding conducted by the EEOC, SEC, NLRB, DOL, or any other governmental
agency. 

 

    	 		 

     

    

 

e.            Nothing in this agreement prevents employee from taking any action to challenge the knowing and voluntary nature of this
agreement under the Older Workers Benefit Protection Act (OWBPA). This includes, without limitation, that this agreement does not
prevent employee from filing or pursuing a charge of discrimination, lawsuit or arbitration to the extent it is brought under the
federal Age Discrimination in Employment Act of 1967 (ADEA) and challenges the knowing and voluntary nature of this agreement under
the OWBPA. Further, nothing in this agreement shall cause employee to be liable for damages, attorneys’ fees, costs or disbursements
in connection with any such charge of discrimination, lawsuit or arbitration to the extent it is so brought. However, if this agreement
is found to be knowing and voluntary under the OWBPA, employee’s release and waiver of claims under the ADEA, as provided
in this agreement, shall be fully effective.

 

8. Employee agrees to abide by Sections
4, 5, 6.2 and 6.3 of the Amended and Restated Employment Agreement into which he entered with the Company on January 1, 2014
(the “Employment Agreement”), in addition to any other sections of the Employment Agreement which expressly survive
the termination of Employee’s employment with the Company, subject to Section 7 above (Rights Not Waived).

 

9. Cooperation Regarding Other Claims.
If any claim is asserted by or against the Company as to which Employee has relevant knowledge, Employee will reasonably cooperate
with the Company in the prosecution or defense of that claim, including by providing truthful information and testimony as reasonably
requested by the Company, subject to Section 7 above (Rights Not Waived).

 

10. This Agreement is not an admission
by the Company of any liability.  The Company specifically denies and disclaims any discrimination or injury to any person.

 

11. The parties agree that this Agreement
may not be introduced in any proceeding, except to establish the settlement and release, the breach of this Agreement, or as may
be required by law or judicial directive.

 

12. Employee agrees not to directly or
indirectly take, support, encourage or participate in any activity or attempted activity which in any way would disparage the Company,
its parents, subsidiaries and affiliated entities subject to Section 7 above (Rights Not Waived).  Employee
agrees not to write or speak about the Company, its parents, subsidiaries and affiliated entities in negative terms
subject to Section 7 above (Rights Not Waived).

 

13. Employee agrees that Employee will
not disclose the existence or terms of this Agreement except to his immediate family, tax advisor and attorney, federal or state
taxing authorities, or as compelled by court process and subject to Section 7 above (Rights Not Waived).

 

14. This Agreement contains the complete
understanding of the parties.  No other promises or agreements shall be binding or shall modify this Agreement unless
reduced to writing and signed by the parties hereto or counsel for the parties.

 

15. This Agreement shall be governed by
New York law without regard to conflicts of laws principles, and any action to enforce this Agreement must be brought and heard
in a court within the State of New York.  The parties to this Agreement consent to personal jurisdiction in New York
in any action commenced to enforce its terms.

 

16. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT
FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY
HERETO EXPRESSLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING
TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

 

17. Employee shall not institute nor be
represented as a party in any lawsuit, claim, complaint or other proceeding against or involving the Company, its parents, subsidiaries
or affiliated entities based on Employee’s employment with the Company or upon any act or omission occurring up to and including
the date this Agreement is fully executed, whether as an individual or class action, under any federal, state or local laws, rules,
regulations or any other basis.  Further, Employee shall not seek or accept any award or settlement from any such source
or proceeding (not including unemployment insurance proceedings).  In the event that Employee institutes, is a knowing
participant, or is a willing member of a class that institutes any such action, Employee’s claims shall be dismissed or class
membership terminated with prejudice immediately upon presentation of this Agreement.  This Agreement does not affect
Employee’s right to file a charge with the Equal Employment Opportunity Commission (“EEOC”), SEC, NLRB, DOL or
other similar Federal, state or local agency, or to participate in any investigation conducted by the EEOC, SEC, NLRB, DOL or other
similar Federal, state or local agency, but Employee acknowledges that he is not entitled to any other monies other than those
payments described in this Agreement except where such a
waiver of individual relief is prohibited.

 

18. This Agreement is intended to comply
with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“409A”).  Employer
shall undertake to administer, interpret and construe the provisions of the Agreement in a manner that does not result in the imposition
of any additional tax, penalty or interest under 409A.

 

    	 	2	 

     

    

 

19. Employee warrants that he is fully
competent to enter into this Agreement and Employee acknowledges that he has been afforded the opportunity to review this Agreement
with his attorney for at least twenty-one (21) days, that Employee is advised and has been advised to consult with an attorney
of his choice before signing this Agreement, that Employee has consulted with his attorney prior to executing this Agreement, that
Employee has read and understands this Agreement and that Employee has signed this Agreement freely and voluntarily.  Further,
Employee understands that he has the opportunity to revoke such Agreement within seven (7) days of signing it (“Revocation
Period”).  Employee understands that if he does revoke this Agreement, Employee must notify the Company in writing within
seven (7) days of signing this Agreement and must return any amount he has received hereunder in such event.

 

20. No Reliance. Employee acknowledges that
he has had the opportunity to conduct an investigation into the facts and evidence relevant to his decision to sign this agreement.
Employee acknowledges that, in deciding to enter into this agreement, he has not relied on any promise, representation, or other
information not contained in this agreement, and also has not relied on any expectation that the Company has disclosed all material
facts to him. By entering into this agreement, he is assuming all risks that he may be mistaken as to the true facts, that he
may have been led to an incorrect understanding of the true facts, and/or that facts material to his decision to sign this agreement
may have been withheld from him. He will have no claim to rescind this agreement on the basis of any alleged mistake, misrepresentation,
or failure to disclose any fact. None of the foregoing, however, will affect employee’s right to challenge the validity
of this agreement under the Older Worker Benefit Protection Act (OWBPA). 

 

PLEASE READ CAREFULLY.  THIS
AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.   To signify the parties’ agreement to the terms
of this Agreement, the parties have executed this Agreement on the date set forth opposite their signatures which appear below. 

 

	PAUL C. CAMPBELL 	 	EMAGIN CORPORATION
	 	 	 	 
	/s/ Paul C. Campbell	 	By: 	/s/ Andrew
G. Sculley
	 	 	Title: 	Andrew G. Sculley, President and CEO
	 	 	 	 
	Date: September 16, 2015	 	Date: September 16, 2015

  

    	 	3	 

     

    

 

ANNEX A

 

Additional Compensation

 

(Pursuant to Section 3 of the Separation Agreement
and General Release to which this Annex is a part)

 

	The Company agrees to pay the Employee the following amount:	 	$167,500.00,
minus normal withholdings and deductions
	 	 	 
	The Company agrees to pay the
above amount as follows:	 	June 30, 2016.

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