Document:

Employment Offer Letter

 Exhibit 10.28 

 

 

 6290 Sequence Drive Ÿ San Diego, CA 92121 
 858/768-3600 main Ÿ 858/546-2411 fax 

April 13, 2010 
 Revised
April 23, 2010 
 Mr. Michael Farese 
 9 Barrymeade Drive 
 Lexington, MA 02421 
 Dear Mike: 
 Entropic Communications, Inc. (the “Company”) is pleased to offer you
employment on the terms set forth below. 
  

	 	1.	Position. You will serve in a full-time capacity Senior Vice President, Engineering and Operations working from the Company’s headquarters in San Diego,
California. You will report to Patrick Henry, Chief Executive Officer. 

  

	 	2.	Salary. You will be paid at a semi-monthly rate of $11,250.00 (or $270,000 annualized) payable in accordance with the Company’s standard
payroll practices. 

  

	 	3.	Bonus.* You will be eligible for an annual bonus of up to fifty (50%) of your eligible earnings based on achievement of certain performance objectives and
in accordance with the Company’s Management Bonus Plan. Your eligibility during the 2010 Performance Period which is January 1, 2010 through December 31, 2010, will begin on your date of hire and your eligible earnings
will be prorated accordingly. All bonus payments are made at the discretion of the Company. 

  

	 	4.	Stock Options. In connection with the commencement of your employment, the Company will recommend that the Board of Directors grant you an option to purchase
350,000 (three hundred fifty thousand) shares of the Company’s Common Stock or 270,000 (two hundred seventy thousand) shares of the Company’s Common Stock and a grant of a restricted stock unit covering 30,000 (thirty
thousand) shares of common stock of the Company (the “Restricted Stock Unit”). Both the stock options and Restricted Stock Unit grants are subject to the terms of the Company’s 2007 Equity Incentive Plan (the “Plan”), the
form of stock option and restricted stock unit agreements and approval by the Company’s Compensation Committee. The stock options will vest over a four-year period with a 25% one-year cliff, in accordance with the standard option plan approved
by the Board of Directors. The Restricted Stock Unit shall vest in 25% per year on the first business day following the anniversary date of the date of grant, or the first business day of the next open Window Period if the anniversary
date falls during a closed Window Period, so long as you remain in “Continuous Service” in accordance with and as defined in the Plan during the period beginning with your date of hire and ending on such vesting date. Window Period shall
be as defined in the Company’s Window Period Policy. 

  
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	 	5.	Relocation Assistance. In this position you are required to perform the duties of your position from the Company’s headquarters in San Diego, CA. As such,
the Company is prepared to assist you with the expenses relating to relocation of your principal place of residence in the Boston, MA area to the San Diego, CA area (“Relocation Expenses”) and the expenses relating to commuting from your
principal place of residence to the San Diego, CA area (“Commuting Expenses”). The total of Relocation Expenses and Commuting Expenses shall be referred to as Relocation Assistance. The Company will provide Relocation Assistance of up to
$110,000 (one hundred ten thousand dollars) according to the terms and conditions detailed in the Relocation Agreement and Relocation Expense Guidelines, attached as EXHIBIT C. 

 

	 	6.	Employee Benefits. As a regular full-time employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits in accordance
with the terms of the Company’s benefit plans. In addition, you will be entitled to paid time off in accordance with the Company’s policy. The Company reserves the right to change or eliminate these benefits on a prospective basis at any
time. 

  

	 	7.	Legal Proof of Identity & Authorization to Work. As required by law, your employment with the Company is contingent upon your providing legal proof of
your identify and authorization to work in the United States within three (3) days of the beginning of your employment. 

  

	 	8.	Reference and Background Checks. This offer and your employment are contingent upon reference and background checks and the satisfactory completion of both. The
reference checks have been completed to the Company’s satisfaction; the background check shall be completed following offer acceptance and upon receipt of the requisite personal information and a signed release form. 

 

	 	9.	Confidential Information and Invention Assignment Agreement. Like all Company employees, you will be required, as a condition of your employment with the
Company, to sign the Company’s standard Employee Innovations and Proprietary Rights Assignment Agreement in the form attached hereto as EXHIBIT A. 

  

	 	10.	Change of Control Agreement. The Company will enter into a Change of Control Agreement with you substantially in the form attached hereto as EXHIBIT B.

  

	 	11.	At Will Employment. Employment with the Company is for no specific period of time. Your employment with the Company will be “at will,” meaning that
either you or the Company will be entitled to terminate your employment at any time and for any reason, with or without Cause. Any contrary representations, which may have been made to you, are superseded by this offer. This is the full and complete
agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures may change from time to time, the “at will” nature of your
employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company with Board of Directors’ approval. 

  
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	 	12.	Outside Activities. During your employment with the Company, you must not engage in any work, paid or unpaid, that creates an actual conflict of interest with
the Company. Such work shall include, but is not limited to, directly or indirectly competing with the Company in any way, or acting as an officer, director, employee, consultant, stockholder (holding more than 1% of an entity’s outstanding
shares), volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the business in which the Company is now engaged or in which the Company becomes engaged during your employment with the
Company, as may be determined by the Company in its sole discretion. If the Company believes such a conflict exists, the Company may ask you to choose to discontinue the other work or resign employment with the Company. While you render services to
the Company, you also will not assist any person or organization in competing with the Company, in preparing to compete with the Company, or in hiring any employees from the Company. 

 

	 	13.	Withholding Taxes. All forms of compensation referred to in this letter are subject to reduction to reflect applicable withholding and payroll taxes.

  

	 	14.	Entire Agreement. This letter and the Exhibits attached hereto contain all of the terms of your employment with the Company and supersede any prior
understandings or agreements, whether oral or written, between you and the Company. 

  

	 	15.	Amendment and Governing Law. This letter agreement may not be amended or modified except by an express written agreement signed by you and a duly authorized
officer of the Company. The terms of this letter agreement and the resolution of any disputes will be governed by California law. 

  

	 	16.	Expense Reimbursement. The Company shall promptly reimburse you for all actual and reasonable business expenses incurred by you in connection with your
employment, including, without limitation, expenditures for entertainment, travel, or other expenses, providing that (i) the expenditures are of a nature qualifying them as legitimate business expenses, and (ii) you furnish to the Company
adequate records and other documentary evidence reasonably required by the Company to substantiate the expenditures. 

  

	 	17.	Dispute Resolution. In the event of any dispute or claim relating to or arising out of the employment relationship between you and the Company, you and
the Company agree that all such disputes shall be fully and finally resolved by binding arbitration, paid for by the Company, before JAMS under its then-existing rules for the resolution of employment disputes. The exclusive venue for the
arbitration shall be San Diego, California. Any arbitration award may be entered in any court having competent jurisdiction. The prevailing party in any arbitration shall be entitled to an award of his or its reasonable attorney’s fees and
expert witness costs in addition to any other relief awarded by the trier of fact. 

  

	 	18.	 Severability. If any provision of this letter agreement shall be invalid or unenforceable, in whole or in part, the provision shall be
deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this letter agreement, as the case may require, and this letter agreement shall be construed and
enforced to the maximum extent permitted by law as if such provision had been originally incorporated in this letter agreement as so modified or 

  
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restricted, or as if the provision had not been originally incorporated in this letter agreement, as the case may be. 

 

	 	19.	Headings. Section headings in this letter agreement are for convenience only and shall be given no effect in the construction or interpretation of this
letter agreement. 

  

	 	20.	Notice. All notices made pursuant to this letter 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 the Company if you are giving notice to the Company and to your residence if the Company is giving you notice. 

 

	 	21.	Mitigation. You shall not have a duty to mitigate any breach by the Company of this Agreement. 

Mike, we hope that you find the foregoing terms acceptable and we look forward to your acceptance of our offer and to the commencement of your employment
with the Company. This offer will remain valid until the close of business on April 28, 2010 with an expected start date on or before June 1, 2010. If the terms are agreeable, please sign, date and return a copy
of this letter indicating your acceptance. By signing this letter agreement, you represent and warrant to the Company that you are under no contractual commitments inconsistent with your obligations to the Company and in the event you are unable to
start by June 1, 2010 the Company has the right to terminate this offer. 
 If you have questions or wish to discuss things
further, please don’t hesitate to contact me at 858.768.3838. 
 Sincerely, 
 /s/ Suzanne C. Zoumaras 
 Suzanne Zoumaras 

Vice President, Worldwide Human Resources 
 I
have read and accept this employment offer: 
  

													
	By:	 	     /s/ Michael Farese
	 		 		 	             4/27/10
	 	
		 	                Michael Farese	 		 		 	            Dated	 	

  

							
	Anticipated Start Date:	 	    June 1, 2010 or
earlier                    

  
 Page 4Relocation Agreement

 Exhibit 10.29 

 

 

 RELOCATION AGREEMENT 
 Date: April 14, 2010 
 Whereas Entropic Communications, Incorporated (“Entropic” or
“Company”) wishes to offer employment to Mr. Michael Farese (“Candidate”), and such employment may involve a relocation of Candidate to the San Diego, CA area, and will involve Candidate commuting to Candidate’s
place of work, the Company’s headquarters in San Diego, CA, Entropic and Candidate have entered into the following Relocation Agreement (“Agreement”). 
  

	1.	Entropic has offered Candidate Relocation Assistance described in the Offer Letter dated April 13, 2010 and in detail in the Relocation Expense Guidelines,
subject to Candidate’s agreement to Candidate’s obligations under this Agreement. 

  

	2.	The Company and Candidate agree that (i) the total value of the Relocation Expense benefit available to Candidate is $110,000, (ii) to be eligible for the
benefits available to Candidate to relocate Candidate’s principal place of residence (“Household”) to the San Diego, CA area, Candidate must relocate Candidate’s Household on or before August 30, 2011 and expenses must be
used incurred on or before September 15, 2011, (iii) the amount available to Candidate for Commuting Expenses may not exceed $5,000/month. 

  

	3.	Early Departure Liability. 

  

	 	3.1.	If Candidate (i) voluntarily terminates active, continuous, full-time employment (“Continuous Service” as defined below) with the Company without the
express prior written consent of the Company’s Chief Executive Officer or (ii) Company terminates Candidate’s employment with the Company for Cause (as defined below) prior to one (1) year of Continuous Service to the
Company (the “Initial Repayment Period”), Candidate shall have an obligation to repay 100% of the Relocation and Commuting Expenses paid for on behalf of or reimbursed to the Candidate. If Candidate’s Continuous Service terminates for
either reason (i) or (ii) after one (1) year of Continuous Service (or the equivalent) with the Company but prior to the end of the Candidate’s third (3rd) year of Continuous Service with the Company (the “Entire
Repayment Period”), Candidate shall have no obligation to repay Commuting Expenses, however, Candidate shall be obligated to repay Company, on a pro-rated basis, for Relocation Expenses paid for on behalf of or reimbursed to the Candidate.
Specifically, the amount of the repayment Candidate is obligated to pay the Company shall be 1/36th of the total Relocation Expenses paid for on behalf of or reimbursed to the Candidate for each full month of Continuous Service that is less than
thirty-six (36). Candidate will earn 100% of the Relocation Expenses after thirty-six (36) months of Continuous Service. 

  

	 	3.2.	 Candidate promises to pay the amounts due as an “Early Departure Liability” to the order of the Company and deliver payment to the Company
headquarters on or before the date on which Candidate’s active employment with the Company terminates. In addition to the above promise to pay, Candidate hereby authorizes the Company to deduct, to the extent permitted by the law, the Early
Departure Liability or a portion thereof from any wages or other monies that might be owed to Candidate (e.g., vacation day, ESPP reimbursement, etc.) at the time of termination of Candidate’s employment. In the event that the amount so
deducted from 

  
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Candidate’s wages is insufficient to pay the entire balance of the Liability, Candidate hereby promises to pay that amount of the Early Departure Liability remaining after such deduction has
been made in lawful money of the United States in one payment on or before the date on which Candidate’s employment with the Company terminates. Candidate further agrees that the failure of the Company to deduct the Early Departure Liability,
or any portion thereof, from all or a portion of the wages due and owing to Candidate at the date of Candidate’s termination shall not constitute a waiver of the Company’s right to enforce the terms of this Agreement at law or in equity.

  

	4.	General Provisions. 

  

	 	4.1.	Modification/No Waiver. No modification, amendment or discharge of this Agreement shall be valid unless the same is in writing and signed by all parties hereto.
Failure of any party at any time to enforce any provisions of this Agreement or any rights or to exercise any election shall in no way be considered to be a waiver of such provisions, rights or elections and shall in no way effect the validity of
this Agreement. The exercise by any party of any of its rights or any of its elections under this Agreement shall not preclude or prejudice such party from exercising the same or any other right it may have under this Agreement irrespective of any
previous action taken. 

  

	 	4.2.	Notice. Any notice to be given to the Entropic under the terms of this Agreement shall be addressed to Entropic, to the attention of the Chief Executive Officer,
at the address of its executive office effective at the time of the notice. Any notice to be given to Candidate shall be addressed to him at the residence address last designated by the Candidate to the Company in writing. Any notice shall be deemed
duly given when personally delivered or five (5) days after deposit in U.S. mail by registered or certified mail, postage prepaid, as provided herein. 

 

	 	4.3.	Severability. Should any one or more of the provisions of this Agreement or of any agreement entered into pursuant to this Agreement be determined to be illegal
or unenforceable, then such illegal or unenforceable provision shall be modified by the proper court or arbitrator to the extent necessary and possible to make such provision enforceable, and such modified provision and all other provisions of this
Agreement and of each other agreement entered into pursuant to this Agreement shall be given effect separately from the provision or portion thereof determined to be illegal or unenforceable and shall not be affected thereby.

  

	 	4.4.	Successors and Assigns. Neither Candidate nor the Company may assign this Agreement without the prior written consent of the other. The rights and obligations of
the Company under this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company, and Candidate’s rights under this Agreement shall inure to the benefit of and be binding upon his heirs and
executors. 

  

	 	4.5.	Entire Agreement. This Agreement and the terms of the Offer Letter (including the Relocation Expense Guidelines) supersede all prior agreements and
understandings between the parties, oral or written. In the event of a conflict between the terms of this Agreement, the Relocation Expense Guideline and the Offer Letter, the terms of this Agreement shall take precedence. No modification,
termination or attempted waiver shall be valid unless in writing, signed by the party against whom such modification, termination or waiver is sought to be enforced. 

 

	 	4.6.	Choice of Law. This Agreement shall be governed by and interpreted and constructed in accordance with the internal laws of the State of California, without
regard to principles of conflict of laws, and shall be binding upon the parties hereto in the United States and worldwide. 

  
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	 	4.7.	Counterparts. This Agreement may be executed simultaneously in one or more counterparts, each of which counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but one and the same instrument. This Agreement may be executed by facsimile with original signatures to follow. 

 

	5.	Definitions. 

  

	 	5.1.	Cause. For the purposes of this Agreement, “Cause” shall mean only (a) Candidate’s theft, dishonesty or falsification of any Company
documents or records; (b) Candidate’s improper use or disclosure of any confidential or proprietary information of the Company; (c) repeated negligence in the performance of Candidate’s duties; (d) Candidate’s breach of
Candidate’s fiduciary duty to the Company by unlawfully competing with the Company in violation of the Outside Activity clause of the Offer Letter; or (e) Candidate’s conviction (or plea of guilty or nolo contendere) for fraud,
misappropriation or embezzlement, or any felony or crime of moral turpitude. Notwithstanding the above, the Company may not terminate Candidate’s employment for Cause unless the Company has first given Candidate written notice of the offending
conduct and a thirty (30)-day opportunity to cure such conduct. Candidate’s resignation at the request of the Chief Executive Officer or the Board of Directors for reasons other than Cause shall be deemed involuntary termination by the
Company without Cause. 

  

	 	5.2.	Continuous Service. For the purposes of this Agreement, “Continuous Service” is defined as active, full-time employment, excluding time off for
holidays and standard paid time off, for a defined period beginning on Candidate’s date of hire. In the event that there is less than Continuous Service, the Repayment Period(s) will be extended to the period of time that would be the
equivalent of the Repayment Period had the Candidate been in Continuous Service. As an example, if Candidate’s employment is not full-time or Candidate is not an active employee during any portion of a Repayment Period, the Repayment Period
will extend by the number of days Candidate was not working full-time or was inactive. 

  

	 	5.3.	Repayment Period(s). For the purposes of this Agreement, “Repayment Period(s)” is defined as a period of time beginning with the date of hire and
assumes Continuous Service, during which the Candidate is obligated to repay the Company for Relocation or Commuting Expenses if the Candidate terminates employment as defined in Section 3 above. 

Entropic Communications, Incorporated: 
  

											
	By:	 	 /s/ Suzanne C. Zoumaras
	 		 		 	Title:	 	Vice President, Human Resources
		 	Suzanne Zoumaras	 		 		 		 	

  

					
	Candidate: Michael Farese	 		 	
			
	 /s/ Michael Farese
	 		 	 7/8/10

	Signature	 		 	Date
			
	 3724 Mykonos Lane, #146
	 		 	 Carmel Valley, CA 92130

	Street Address	 		 	City, State, Zip Code

  
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