Document:

exv10w2

Exhibit 10.2

MEMORANDUM OF UNDERSTANDING

          The Parties to the putative class action lawsuit currently pending in the Circuit Court of
Cook County, Illinois County Department – Chancery Division (the “Court”), styled Ardito v. Reimer,
et al., Case No. 2010CH02544 (the “Ardito Action”), by and through their respective attorneys, have
reached an agreement in principle providing for the settlement of the Ardito Action (the
“Settlement”) on the terms and subject to the conditions set forth in this Memorandum of
Understanding (“Memorandum”):

          WHEREAS, on December 30, 2009, Quixote Corporation (“Quixote”) and Trinity Industries, Inc.
and THP Merger Co. (collectively “Trinity”) announced a proposed tender offer and merger (the
“Proposed Transaction”) in which Trinity is making a tender offer to acquire all outstanding shares
of Quixote at a price of $6.38 per share in cash and a subsequent merger;

          WHEREAS, on January 7, 2010, Quixote filed with the Securities and Exchange Commission (“SEC”)
a Form 14D-9 Recommendation Statement (the “Recommendation Statement”) soliciting
Quixote’s shareholders to tender their shares in favor of the Proposed Transaction before the
Tender Offer will expire on February 4, 2010, and recommending that the Company’s shareholders
tender their shares in the Tender Offer.

          WHEREAS, on January 20, 2010, the Ardito Action was filed as putative class action on behalf
of Quixote stockholders challenging the Proposed Transaction and disclosures in the Recommendation
Statement and naming as defendants Quixote, Bruce Reimer, Leslie Jezuit, Daniel Gorey, Lawrence
McQuade, Clifford Nastas, Robert D. van Roijen, Jr., Duane M. Tyler, and Trinity (collectively
“Defendants”);

 

 

          WHEREAS, on January 22, 2010, the Ardito Action filed a motion for a temporary restraining
order and expedited proceedings;

          WHEREAS, on January 24, 2010, Defendants produced certain non-public materials in the Ardito
Action, including board minutes and banker’s books pertaining to the Proposed Transaction;

          WHEREAS, on January 25, 2010, the Ardito Action was transferred to Judge Sofia Hall before
whom an earlier similar filed action challenging the Proposed Transaction was pending, styled
Superior Partners v. Reimer, 10CH01613 (the “SP Action”);

          WHEREAS, counsel for Defendants and Plaintiff’s Counsel in the SP Action have engaged in
extensive arms’-length negotiations and on January 26, 2010, agreed to settle the SP Action;

          WHEREAS, counsel for Defendants and Plaintiffs’ Counsel in the Ardito Action have engaged in
extensive arms’-length negotiations concerning a possible settlement of the Ardito Action, which
will be mooted in light of the settlement in the SP Action;

          WHEREAS, the Parties have reached an agreement in principle to settle the Ardito Action
because Quixote will make certain additional or amended disclosures pursuant to the anticipated
settlement in the SP Action;

          WHEREAS, Plaintiff’s Counsel in the Ardito Action have determined that a settlement of the
Ardito Action on the terms reflected in this Memorandum is fair, reasonable, adequate, and in the
best interests of Quixote’s stockholders;

          WHEREAS, on January 27, 2010, Trinity had not been served and Plaintiff in the Ardito Action
filed a stipulation to dismiss without prejudice his claims against Trinity;

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          WHEREAS, the Defendants, to avoid the costs, disruption, and distraction of further
litigation, and without admitting the validity of any allegations made in the Ardito Action, or any
liability with respect thereto, have concluded that it is desirable that the claims against them be
settled on the terms reflected in this Memorandum;

          WHEREAS, the Quixote Defendants maintain that they have committed no disclosure violations or
any other breach of duty whatsoever in connection with the Proposed Transaction or the Schedule
14D-9;

          WHEREAS, Plaintiff’s entry into this Memorandum in the Ardito Action is not an admission as to
the lack of any merit of any of the claims asserted in the Ardito Action;

          NOW, THEREFORE, as a result of the foregoing and the negotiations among counsel for the
Parties, the Parties have agreed as follows:

          1. The Parties agree to negotiate and sign a Stipulation of Settlement (“Settlement”), if
necessary, reflecting the terms set forth in this Memorandum, including but not limited to a
release of all Defendants, Trinity Industries, Inc., and THP Merger Co.

          2. Pursuant to the settlement of the SP Action, Quixote will provide amended and supplemental
disclosures, exclusively in an Amended Schedule 14D-9 to be filed on or before January 29, 2010 or
as reasonably practicable thereafter (the “Supplemental Disclosures”).

          3. Defendants acknowledge that the Supplemental Disclosures moot Plaintiff’s disclosure claims
giving rise, under Delaware law, to a petition for attorneys’ fees in the Ardito Action (the “Fee
Claim”), and as part of this Settlement Defendants agree to pay Plaintiff’s Counsel in the Ardito
Action $169,000 and Plaintiff agrees to dismiss the Ardito Action with prejudice against all
Defendants.

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          4. Defendants agree that Quixote (or any successor entity) will make payment of attorneys’
fees and expenses in the Ardito Action within ten (10) calendar days after entry of the last order
of dismissal, with prejudice, in the Ardito Action, which will be filed by Ardito no earlier than
the date on which final settlement of the SP action is approved. Further, at the time the
attorneys’ fees are paid they shall be paid via wire transfer to an account controlled by LEVI &
KORSINSKY, LLP.

          5. This Memorandum and Settlement shall be null and void and of no force and effect, unless
otherwise agreed to by the Parties pursuant to the terms hereof, if the settlement in the SP Action
does not obtain final court approval. In the event any Party withdraws from the Settlement
anticipated by this Memorandum, then this Memorandum shall not be deemed to prejudice in any way
the respective positions of the Parties with respect to the Ardito Action, and neither the
existence of this Memorandum, nor its contents, nor the negotiations leading to it, shall be
admissible in evidence or shall be referred to for any purpose in the Ardito Action or in any other
litigation or proceeding.

          6. If any action is filed in any court asserting claims that are related to the subject matter
of the Ardito Action prior to dismissal of the Ardito Action, the Parties agree to take all
necessary action to prevent, stay, or seek dismissal of, or oppose entry of any interim or final
relief in favor of any member of the Class in any other litigation against any of the parties to
this Memorandum which challenges the Settlement, the Proposed Transaction, or otherwise involves a
Settled Claim.

          7. This Memorandum shall be governed by and construed in accordance with the substantive laws
of the State of Delaware and the procedural laws of Illinois.

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          8. This Memorandum may be modified or amended only by a writing, signed by all of the
signatories hereto, that refers specifically to this Memorandum.

          9. The provisions contained in this Memorandum shall not be deemed a presumption, concession
or admission by any Defendant of any fault, liability or wrongdoing as to any facts or claims that
have been or might be alleged or asserted in the Ardito Action, or any other action or proceeding
that has been, will be, or could be brought, and shall not be interpreted, construed, deemed,
invoked, offered, or received in evidence or otherwise used by
any person in the Ardito Action, or in any other action or proceeding, whether civil, criminal
or administrative, for any purpose other than as provided for expressly herein.

          10. This Memorandum shall be binding upon and inure to the benefit of the Parties and their
respective agents, executors, heirs, successors and assigns.

          11. Notice of the proposed Settlement, if necessary, shall be provided by Quixote (or any
successor entity) at its expense.

          12. This Memorandum may be executed in any number of actual or telecopied counterparts and by
each of the different Parties on several counterparts, each of which when so executed and delivered
will be an original. The executed signature page(s) from each actual or telecopied counterpart may
be joined together and attached and will constitute one and the same instrument.

          IN WITNESS WHEREOF, the Parties have executed this Memorandum effective as of the date set
forth below.

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	DATED:  January 28, 2010       	LEVI & KORSINSKY, LLP

 	 
	 	                                    /s/ Juan E. Monteverde
 	 
	 	Juan E. Monteverde 	 
	 	30 Broad Street -15th Floor

New York, NY 10006

Attorneys for Plaintiffs 	 
	 

	 	 	 	 	 
	DATED: January 28, 2010        	KATTEN MUCHIN ROSENMAN LLP

 	 
	 	                                    /s/ Pamela Smith
 	 
	 	David H. Kistenbroker 	 
	 	Pamela Smith

525 West Monroe Street

Chicago, IL 60661-3693	 
	 
	 	Attorneys for Defendants Quixote Corporation and
Individual Defendants 	 
	 

- 6 -exv10w22

Exhibit 10.22

Amendment to Employment Agreement, dated December 21, 2009,
between Gui Karyo and Majesco Entertainment Company.

     WHEREAS, Majesco Entertainment Company (the “Company”), a Delaware corporation and Gui Karyo
(“Executive”) entered into an employment agreement as of January 31, 2007 (the “Agreement”);

     Whereas, the Company and Executive desire to amend the Agreement to comply with Internal
Revenue Code Section 409A; and

     Whereas, all capitalized terms not otherwise defined herein shall have the meaning ascribed to
them in the Agreement.

     NOW THEREFORE, the Agreement is amended as follows effective January 1, 2008 unless a
different effective date is specified.

     1. Section 2.2 is amended by adding the following sentence after the first sentence thereto:

          “Such annual cash bonus shall be paid within 90 days after the end of the fiscal year in which
it is earned by the Executive.”

     2. Section 4.2 is amended in its entirety to read as follows:

“In the event that Executive’s employment is terminated without Cause, or due to
Executive’s disability, or Executive’s resignation for Good Reason, within 60 days
after the date of such termination, the Company shall continue to pay to Executive
the annual Base Salary then in effect for 12 months following the date of
termination on a regular payroll basis (the “Severance Payment”). In addition, the
Company shall, within 60 days of Executive’s termination, pay Executive in a single
lump sum payment for accrued but untaken vacation days. In addition, the Company
shall continue its contributions toward Executive’s health care, dental, disability
and life insurance benefits on the same basis as immediately prior to the date of
termination, except as provided below, for twelve months following the date of
termination. Notwithstanding the foregoing, the Company shall not be required to
provide any health care, dental, disability or life insurance benefit otherwise
receivable by Executive if Executive is actually covered or becomes covered by an
equivalent benefit (at the same cost to Executive, if any) from another source.
Any such benefit made available to Executive shall be reported to the Company.

 

 

Nothing
shall be payable under this provision (other than accrued wages) unless and until
after the effective date of a release that Executive executes in favor of the
Company that is satisfactory to Executive and the Company and which must be
executed within 45 days of the Executive’s termination of employment. In the event
of a termination pursuant to Section 4.2, except for a termination for disability,
all restrictions on the Restricted Stock shall lapse as of the date of termination.
In the event of a termination for disability, no further restrictions shall lapse
as to the Restricted Stock”

     3. Section 4.3 is amended by adding the following phrase at the end thereof:

“, which release shall be executed within forty-five (45) days of Executive’s
termination of employment.”

     4. Section 4.4 is deleted in its entirety.

     5. Section 4.7 is amended in its entirety to read as follows:

“4.7 Section 409A of the Code. In any case, a Change of Control must also
at least meet the requirements of a change in ownership or effective control of the
Company in accordance with Section 409A(a)(2)(A)(v) of the Code and the applicable
provisions of Treasury Regulations § 1.409A-3(i)(5).”

     6. Section 4.8(d) is amended by adding the term “material” in subsection (d) before the term
“reduction.”

     7. Section 4.8 is amended by adding the following subsection at the end thereof:

“4.8(g) For purposes of this Agreement, Good Reason must also meet the requirements
for a good reason termination in accordance with Treasury Regulation
§1.409A-1(n)(2), and any successor statute, regulation and guidance thereto.”

     8. Section 4.9(b) is amended by adding the following sentence at the end thereof:

“Any Gross-Up Payment shall be paid to Executive, or for his benefit, within 30
days of the determination that the Excise Tax is applicable and, in any case,
within the period prescribed under and in accordance with Treasury Regulation §
1.409A-3(i)(1)(v).”

     9. The following new Section 12 shall be added to the Employment
Agreement:

 

 

“Section 12 Compliance with Section 409A of the Code

     12.1 Any applicable reimbursement or direct payment of Executive’s expenses
subject to Section 409A of the Code, including, without limitation, under Section
2.5 herein, shall be made no later than the end of the calendar year following the
calendar year in which such expense is incurred by the Executive. Any reimbursement
or right to direct payment of Executive’s expense in one calendar year shall not
affect the amount that may be reimbursed or paid for in any other calendar year and
a reimbursement or payment of Executive’s expense (or right thereto) may not be
exchanged or liquidated for another benefit or payment.

     12.2 Notwithstanding any other provision of this Agreement to the contrary, if
any amount (including imputed income) to be paid to Executive pursuant to this
Agreement as a result of Executive’s termination of employment is “deferred
compensation” subject to Section 409A of the Code, and if the Executive is a
“Specified Employee” (as defined under Section 409A of the Code) as of the date of
Executive’s termination of employment hereunder, then, to the extent necessary to
avoid the imposition of excise taxes or other penalties under Section 409A of the
Code, the payment of benefits, if any, scheduled to be paid by the Employer to
Executive hereunder during the first six (6) month period following the date of a
termination of employment hereunder shall not be paid until the date which is the
first business day after six (6) months have elapsed since the Executive’s
termination of employment for any reason other than death. Any deferred
compensation payments delayed in accordance with the terms of this Section 12.2
shall be paid in a lump sum when paid and any other payments not otherwise delayed
hereunder will be paid in accordance with the applicable regular schedule.

     12.3 Notwithstanding any other provision of this Agreement, if any of the
benefits set forth in this Agreement are deferred compensation under Section 409A
of the Code, any termination of employment or disability triggering payment of such
benefits must constitute a “separation from service” or “disability”, respectively,
under Section 409A of the Code before, subject to Section 12.2 of this Agreement,
distribution of such benefits can commence. For purposes of clarification, this
paragraph shall not cause any forfeiture of benefits on the part of the Executive,
but shall only act as a delay until such time as a “separation from service” or
“disability” occurs.

     12.4 Notwithstanding any other provision of this Agreement to the contrary,
the Agreement shall be interpreted and at all times
administered in a manner that avoids the inclusion of compensation in income under
Section 409A(a)(1) of the Code.”

 

 

     10. The Agreement, in all other respects, is hereby ratified and reaffirmed.

     IN WITNESS WHEREOF, each of the parties has caused this First Amendment to be executed as of
the date first written above.

	 	 	 
	Executive:

	 	Employer:
	 
	/s/ Gui Karyo
	 	/s/ Jesse Sutton
	 

	 	 
	Gui Karyo

	 	Majesco Entertainment Company

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