Document:

Exhibit

Exhibit 10.2
XILINX, INC.

CHANGE OF CONTROL AGREEMENT

THIS CHANGE OF CONTROL AGREEMENT (this “Agreement”), is made by and between Xilinx, Inc. (hereinafter the “Company”), and _____________________ (hereinafter “Executive”) and shall be effective as of January 19, 2016 (the “Effective Date”).

WHEREAS, the Company and Executive desire to enter into an agreement governing a constructive or actual termination connected with a change of control of the Company. 

NOW, THEREFORE, the Company and Executive, in consideration of the mutual promises set forth herein, hereby agree as follows:

1.Term.  The term of this Agreement will commence on the Effective Date and will continue in effect until, and terminate on January 19, 2021 (the “Term”).  This Agreement may be renewed by mutual agreement of the Company and Executive, pursuant to the terms agreed to between the Company and Executive at the time of such renewal. 

2.Termination Without Cause or Constructive Termination in Connection With a Change of Control.  If the Company terminates Executive’s employment without Cause or Executive resigns under circumstances that constitute a Constructive Termination, and (i) a Change of Control is consummated within the 90 day period commencing on such termination or (ii) a Change of Control has occurred anytime in the two (2) year period on or prior to such termination, then, provided that Executive executes a waiver and release of all claims in a form substantially similar to Exhibit A (the “Release”) and such Release becomes effective and enforceable in accordance with its terms following the expiration of any applicable revocation period under federal or state law no later than 50 days following the Executive’s Separation from Service, the following will occur:

(i) Subject to Executive’s continued compliance with the requirements set forth in Sections 2(ii) and 2(iii), Executive shall receive (in each case less applicable withholding):

(A)a cash payment equal to 150% of Executive’s then-current annual Base Salary, payable as a lump sum payment on the 60th day following the date of Executive’s Separation from Service; 

(B)a cash payment equal to 150% of the amount of Executive’s Annual Bonus for the fiscal year in which Executive’s Separation from Service occurs (the “Severance Bonus Payment”), payable as a lump sum payment on the 60th day following the date of Executive’s Separation from Service;

(C)if Executive elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), then, at the Company’s election, the Company will (i) for a period of 12 months from Executive’s Separation from Service, reimburse Executive for coverage premiums applicable under COBRA (at the coverage levels in effect immediately prior to Executive’s Separation from Service) or (ii) pay Executive a 

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lump sum payment on the 60th day following the date of Executive’s Separation from Service equal to the cost of 12 months of such COBRA coverage (at the coverage levels in effect immediately prior to Executive’s Separation from Service);

(D)100% acceleration of the vesting of all Executive’s equity awards (including, without limitation, stock options and restricted stock units) that are unvested and outstanding as of the Separation from Service and which would otherwise become vested based solely on the passage of time and performance of services (and not in whole or in part on the future attainment of performance targets); and

(E)any restricted stock unit awards held by Executive at the time of Executive’s Separation from Service the earning or vesting of which is dependent in whole or in part on the attainment of performance targets shall become vested with respect to 100% of the target number of such restricted stock units which have not yet otherwise been earned at the time of Executive’s Separation from Service. 

(ii)     Until one year after Executive’s Separation from Service, Executive will not directly or indirectly induce, encourage, solicit, influence or attempt to influence any employee, contractor or other service provider of the Company or its subsidiaries to cease providing services for the Company or its subsidiaries for any reason, or to employ, interview or arrange to have business opportunities offered to any such individual.

(iii)     If a court determines that any provision of this section exceeds the maximum scope, time period, or geographic area that the court deems enforceable, the scope, time period, or geographic area shall be deemed the maximum that the court considers reasonable.

(iv)     For the avoidance of doubt, in the event Executive breaches any of the agreements in this Section 2, any rights or entitlements Executive may have to the payments and benefits set forth in this Agreement shall terminate immediately upon such breach and no further payments will be made, and no further benefits will be provided, to Executive pursuant to this Agreement.  

3.Exclusive Remedy.  This Agreement specifies all of Executive’s compensation and benefits resulting from an actual termination or Constructive Termination in connection with a Change of Control.  Executive shall not be entitled to any other compensation and benefits from the Company except to the extent provided under any written Company benefit plan, stock option or other equity agreement or indemnification agreement, or as may be required under applicable law. 

		
	4.
	Definitions.

(i)“Annual Bonus” means (A) Executive’s target incentive cash compensation under the annual bonus program then in effect for the current fiscal year in which a Separation from Service occurs or (B) Executive’s target incentive cash compensation under the annual bonus program at the time the Change of Control occurred, whichever is greater, factoring any performance targets at 100% achievement.

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(ii)“Base Salary” means Executive’s then-current cash compensation paid on the Company’s standard salary payment schedule.

(iii)“Cause” means (A) gross dereliction of duties which continues after at least two notices, each 30 days apart, from the Company, specifying in reasonable detail the tasks which must be accomplished and a timeline for their accomplishment to avoid termination for Cause, (B) willful and gross misconduct which injures the Company, (C) willful and material violations of laws applicable to the Company, or (D) embezzlement or theft of Company property.

(iv)“Change of Control” means the occurrence of any of the following events:

(A)Any “person” or “group” as such terms are defined under Sections 13 and 14 of the Securities Exchange Act of 1934 (“Exchange Act”) (other than the Company, a subsidiary of the Company, or a Company employee benefit plan) is or becomes the “beneficial owner” (as defined in Exchange Act Rule 13d-3), directly or indirectly, of Company securities representing 50% or more of the combined voting power of the Company’s then outstanding securities.

(B)The closing of:  (1) the sale of all or substantially all of the assets of the Company if the holders of Company securities representing all voting power for the election of directors before the transaction hold less than a majority of the total voting power for the election of directors of all entities which acquire such assets, or (2) the merger of the Company with or into another corporation if the holders of Company securities representing all voting power for the election of directors before the transaction hold less than a majority of the total voting power for the election of directors of the surviving entity.

(C)The issuance of securities, which would give a person or group beneficial ownership of Company securities representing 50% or more of all voting power for the election of directors.

(D)A change in the board of directors over a period of twenty-four (24) months such that the incumbent directors as of the beginning of any such twenty-four (24) month period and nominees of the incumbent directors are no longer a majority of the total number of directors.

Notwithstanding the foregoing, and only to the extent necessary to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), a “Change of Control” will have occurred only if, in addition to the requirements set above, the event constitutes a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of guidance issued by the Secretary of the Treasury under Section 409A of the Code.

(v)“Constructive Termination” means Executive’s resignation following the occurrence of any of the following events, without Executive’s approval:  (A) a material reduction in Executive’s Base Salary, target bonus or benefits, other than a reduction that is implemented across-the-board to all employees at Executive’s level; (B) a material reduction in Executive’s title, authority or responsibilities; or (C) the requirement that Executive relocate to a place of employment more than 50 miles from the Executive’s primary work location as in effect 

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immediately prior to the Change of Control; provided, however, the Executive must provide written notice to the Company of the existence of a condition described in clause (A), (B) or (C) within ninety (90) days of the initial occurrence of the condition, and if within thirty (30) days of the Company’s receipt of such notice (or, if later, Executive’s actual termination of employment) the Company remedies such condition, a Constructive Termination will not be deemed to have occurred.

(vi)“Separation from Service” means the cessation of Executive’s status as an employee of the Company and shall be deemed to occur at such time as the level of the bona fide services Executive is to perform as an employee (or as a consultant or other independent contractor) permanently decreases to a level that is not more than 20% of the average level of services Executive rendered as an employee during the immediately preceding 36 months (or such shorter period for which the Executive may have rendered such service).  Any such determination as to Separation from Service, however, shall be made in accordance with the applicable standards of the Treasury Regulations issued under Section 409A of the Code.

5.Golden Parachute Excise Tax.  If the benefits provided for in this Agreement or otherwise payable to Executive constitute “parachute payments” within the meaning of Section 280G of the Code and will be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then Executive’s severance benefits under Section 2 shall be (i) delivered in full, or (ii) delivered as to such lesser extent which would result in no portion of such severance benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 5 shall be made in writing in good faith by the accounting firm serving as the Company’s independent public accountants immediately prior to the Change of Control (the “Accountants”).  For purposes of making the calculations required by this Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  If the Accountants determine that reduction of Executive’s severance benefits is required by this Section 5 such that no portion of Executive’s severance benefits will be subject to the Excise Tax, the severance benefits shall be reduced in the following order:  (i) cash severance pay that is exempt from Section 409A, (ii) any other cash severance pay, (iii) any other cash payable that is a severance benefit other than stock appreciation rights, (iv) any stock appreciation rights, (v) any restricted stock and/or restricted stock units, and (vi) stock options.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 5.  

6.Section 409A.  

(i) Notwithstanding any provision to the contrary in this Agreement (other than Section 6(ii) below), no payments or benefits to which the Executive becomes entitled under Section 2 of this Agreement shall be made or paid to the Executive prior to the earlier of (A) the expiration of the 6-month period measured from the date of his Separation from Service or (B) the date of the Executive’s death, if the Executive is deemed at the time of such Separation from Service a “key employee” within the meaning of that term under Code Section 416(i) and such 

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delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2).  Upon the expiration of the applicable Code Section 409A(a)(2) deferral period, all payments deferred pursuant to this Section 6 shall be paid in a lump sum to the Executive, and any remaining payments due under this Agreement shall be paid in accordance with the normal payment dates specified for them herein.   

(ii) The six month holdback set forth in Section 6(i) above shall not be applicable to (A) any severance payments under Section 2 that qualify as Short-Term Deferral Payments in the discretion of the Company and (B) any remaining portion of the severance payments due Executive under Section 2 to the extent the Company determines in its discretion that such payments are not subject to Section 409A of the Code pursuant to Treasury Regulations Section 1.409A-1(b)(9)(iii). 

(iii)  No reimbursement payable to the Executive pursuant to any provision of this Agreement or pursuant to any plan or arrangement of the Company shall be paid later than the last day of the calendar year following the calendar year in which the related expense was incurred, and no such reimbursement during any calendar year shall affect the amounts eligible for reimbursement in any other calendar year, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A of the Code. 

7.Assignment.  This Agreement shall bind and benefit (i) Executive’s heirs, executors and legal representatives upon Executive’s death to the extent the benefit is due and payable at the time of Executive’s death and (ii) any successor of the Company.  Any such successor of the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes.  “Successor” shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.  Executive has no other right to assign this Agreement and any such attempted assignment is void.

8.Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed given if:  (i) delivered personally, (ii) one day after being sent by FedEx or a similar commercial overnight service, or (iii) three days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to Company at its principal office, attention:  General Counsel, or to Executive at Executive’s last principal residence known to the Company, or at such other addresses as the parties may designate by written notice.

9.Severability.  In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

10.Entire Agreement.  This Agreement represents the entire agreement and understanding between the Company and Executive concerning payments to Executive in the event of a Change of Control and supersedes any and all prior change of control or similar agreements between the Company and Executive but does not supersede any other agreements between Company and Executive, including but not limited to, any confidentiality or similar agreement, any indemnification agreement, and any restricted stock purchase agreement, restricted stock unit agreement, stock option agreement or other equity award agreement entered 

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into pursuant to the Company’s stock plans, except as expressly provided herein.  In case of conflict between any of the terms and conditions of this Agreement and the documents herein referred to, the terms and conditions of this Agreement shall control.

11.Arbitration and Equitable Relief.

(i)         Any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof shall be settled by arbitration to be held in the State of California in accordance with the Employment Arbitration Rules of the American Arbitration Association (the “Rules”) then in effect, and not by court or jury trial, to be held (unless the parties agree in writing otherwise) within 45 miles of where Executive is or was last employed by the Company.  The Rules may be found at www.adr.org or by searching for “AAA Employment Arbitration Rules” using a service such as www.Google.com or www.Bing.com or by asking the Company’s Legal Department for a copy of the Rules.  If for any reason the American Arbitration Association will not administer the arbitration, either party may apply to a court of competent jurisdiction with authority over the location where the arbitration will be conducted for appointment of a neutral arbitrator.  The arbitrator may grant injunctions or other relief in such dispute or controversy.  The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration.  Judgment may be entered on the arbitrator’s decision in any court having jurisdiction.  This arbitration agreement shall survive after the employment relationship terminates.
(ii)        The arbitrator shall apply California law to the merits of any dispute or claim, without reference to rules of conflict of law.  The arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law.
(iii)       The Company shall pay the costs and expenses of such arbitration.  Each party shall separately pay its counsel fees and expenses; provided, however, that the arbitrator shall have the authority to award reasonable attorneys’ fees and costs to a party who prevails on a claim under a statute that provides for such fees and costs to the prevailing party.
(iv)    Executive understands that to the extent Executive is employed in the United States, nothing in this Agreement modifies Executive’s at-will employment status.  Either the Company or Executive can terminate the parties’ employment relationship at any time, with or without cause.
12.No Oral Modification, Cancellation or Discharge.  This Agreement may be amended, canceled or discharged only in writing signed by Executive and a duly authorized officer of the Company.

[remainder of page intentionally left blank]

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13.Withholding.  The Company shall be entitled to withhold, or cause to be withheld, from payment any amount of withholding taxes required by law with respect to payments made to Executive in connection with his employment hereunder.

14.Governing Law.  This Agreement shall be governed by the laws of the State of California (with the exception of its conflict of laws provisions).

15.Representations.  Executive represents that he has had the opportunity to discuss this matter with and obtain advice from his own legal counsel, has had sufficient time to, and has carefully read and fully understands all the provisions of this agreement, and is knowingly and voluntarily entering into this Agreement.

XILINX, INC.:

    
                        
___________________________                
Moshe N. Gavrielov
President and Chief Executive Officer

EXECUTIVE:

    
                        
___________________________                
Signature 

___________________________                
Print Name 
                
                    

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EXHIBIT A

FORM OF GENERAL RELEASE OF ALL CLAIMS
On behalf of myself, my heirs, executors, administrators and assigns, I hereby make the following agreements and acknowledgements in exchange for benefits to be received by me under my Change of Control Agreement (the “Agreement”):

1.I agree that I fully and forever release and discharge the Company and all of its parents, divisions, subsidiaries, affiliates, related entities, and their predecessors, successors, and past and present officers, directors, shareholders, employees, agents, partners, attorneys, benefit plans, insurers, and representatives, (hereinafter “Releasees”) from any and all claims of whatever nature, except as noted below, whether known or unknown, which exist or may exist on my behalf against Releasees as of the date of this Agreement, including but not limited to any and all tort claims, contract claims, equitable claims, breach of fiduciary duty claims, ERISA claims, wrongful termination claims, public policy claims, retaliation claims, statutory claims, personal injury claims, emotional distress claims, invasion of privacy claims, defamation claims, fraud claims, quantum meruit claims, and any and all claims arising under any federal, state or other governmental statute, law, regulation or ordinance covering discrimination in employment, including but not limited to Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, the Age Discrimination in Employment Act, and the California Fair Employment and Housing Act, including any claims based on race, color, religious creed, national origin, ancestry, physical or mental disability, medical condition, marital status, sex, age, harassment, or retaliation.  Notwithstanding any provisions and covenants in this paragraph, I am not waiving any claim I may have against Releasees to:  (a) unemployment benefits; (b) state disability and/or workers’ compensation insurance benefits; (c) my vested rights upon termination in certain of the Company’s group benefit plans pursuant to the federal law known as COBRA and the terms of the Company’s benefit plans; (d) any right to indemnification I may have under the Company’s Bylaws or under the Indemnification Agreement between the Company and me, if applicable; and (e) any claim that may not legally be waived.  I also understand that this General Release shall not prevent me from filing a charge with the Equal Employment Opportunity Commission (or similar state or local agency) or participating in any investigation conducted by the Equal Employment Opportunity Commission (or similar state or local agency); provided, however, I acknowledge and agree that any claims for personal relief in connection with such a charge or investigation (such as reinstatement or monetary damages) would be and hereby are barred.
2.    I agree that I fully and forever waive any and all rights and benefits conferred upon me by the provisions of Section 1542 of the Civil Code of the State of California and any similar statute or regulation in any other applicable jurisdiction, which states as follows (parentheticals added):
A general release does not extend to claims which the creditor [i.e, me] 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 settlement with the debtor [i.e., the Company].

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I understand and agree that this means that if, hereafter, I discover facts different from or in addition to those which I now know or believe to be true, that the waivers and releases of this General Release shall be and remain effective in all respects subject to the exceptions in Section 1, notwithstanding such different or additional facts or the discovery of such fact.

3.    I agree that neither the fact nor any aspect of this General Release is intended, or should be construed at any time, to be an admission of liability or wrongdoing by either myself or by the Company.
4.    I agree that if any provision, or portion of a provision, of this General Release is, for any reason, held to be unenforceable, that such unenforceability will not affect any other provision, or portion of a provision, and this General Release shall be construed as if such unenforceable provision or portion had never been contained herein.
5.    I understand that I may have [twenty-one (21)/forty-five (45)] days after receipt of this General Release within which I may review and consider it, and I have been advised in this writing that I should discuss it with an attorney of my own choosing, and decide whether or not to sign this General Release.  I also understand that, for the period of seven (7) days after I sign this General Release, I may revoke it by delivering a written notification of my revocation, no later than the seventh day, to:
Xilinx, Inc.
c/o General Counsel
2100 Logic Drive
San Jose, CA 95124

I further understand that the Effective Date of this General Release will be the eighth day after I have signed it, provided that I have delivered it to the Company and have not revoked it during the seven days after I signed it.  I further understand and agree that the severance benefits provided pursuant to Section 2 of the Agreement constitutes consideration beyond which I am otherwise entitled to receive and is offered in exchange for my release and waiver of all claims and other covenants as set forth herein and in the Agreement.

6.    This General Release, in all respects, shall be interpreted, enforced and governed by and under the laws of the State of California. 
7.    This General Release contains the entire agreement between the Company and me with respect to any matters referred to herein.
I HAVE READ THIS GENERAL RELEASE; I UNDERSTAND IT AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS; I AM AWARE OF MY RIGHT TO CONSULT WITH AN ATTORNEY OF MY OWN CHOOSING BEFORE SIGNING IT AND I HAVE BEEN ENCOURAGED TO CONSULT WITH SUCH AN ATTORNEY; AND I SIGN IT VOLUNTARILY:
Signed:  ________________, 20__.        Employee’s Signature: 
                    
Print Name:                            

9ex10-1.htm

Exhibit 10.1

 

 

STOCKHOLDERS'  AGREEMENT

 

STOCKHOLDERS ' AGREEMENT (this "Agreement"), dated as of January 14, 2016 between 6D Global Technologies, Inc., a Delaware corporation (the "Company"), and NYGG (Asia) Ltd., a company organized under the laws of the British Virgin Islands, for itself and on behalf of its affiliates (collectively, "Stockholders").

 

WHEREAS, the Company 's common stock, par value $0.00001 ("Common Stock"), is listed for trading on The NASDAQ Stock Market ("NASDAQ");

 

WHEREAS, NASDAQ has halted trading in the Common Stock; and WHEREAS, in connection with the NASDAQ trade halt, Company has requested Stockholders, and Stockholders have agreed, to enter into this Agreement with respect to all shares of Common Stock that Stockholders beneficially own (the "Shares").

 

NOW, THEREFORE, in consideration ofthe mutual premises and promises herein contained, the parties, intending to be legally bound , agree as follows:

 

ARTICLE 1

GRANT OF PROXY

 

Section 1.01.  Irrevocable Proxy. Stockholders hereby revoke any and all previous proxies or powers of attorney granted with respect to the Shares. By entering into this Agreement, Stockholders hereby grant a proxy, in the form attached hereto as Exhibit A, and appoint Mr. Tejune Kang, the Chairman and Chief Executive Officer of the Company ("CEO") and any successor to or designee of the CEO, as Stockholders' attorney -in fact and proxy, with full power of substitution, for and in Stockholders ' names, to vote the Shares at any annual or special meeting of stockholders , or in connection with any action taken by written consent (if action by written consent is permitted under the Company's certificate of incorporation and/or bylaws) in same manner and in the same proportion as shares of Common Stock that are not held by the Stockholders are voted or consents are given.  The proxy granted by Stockholders pursuant to this Article 1 is coupled with an interest and irrevocable; provided that, the proxy granted by Stockholders shall be revoked upon termination of this Agreement in accordance with its terms and, provided further, the proxy granted by the Stockholders shall be revoked with respect to Shares sold by Stockholders to one or more unaffiliated third parties pursuant to Section 2.02 below at the time of such sale or disposition.

 

ARTICLE 2

COVENANTS NOT TO ACQUIRE, TRANSFER OR ENCUMBER

 

Section 2.01.  No Acquiring of Securities. Stockholders shall not acquire (or propose or agree to acquire), of record or beneficially, by purchase or otherwise, any equity securities, loans, debt securities, or assets of the Company or any of its subsidiaries, or rights or options to acquire interests in any of the Company's loans, debt securities, equity securities or assets during the term of this Agreement without the prior written consent of the Company, which the Company may withhold  in its sole discretion.  In the event that Stockholders acquire any additional shares of Company Common Stock (including through a stock dividend or stock split) or any options, warrants or other rights to acquire shares of Company Common Stock after the date of this Agreement (whether acquired with the Company's prior written consent or otherwise), the Stockholders acknowledge and agree that such additional acquired shares and any such additional shares acquired upon the exercise of any options, warrants or other rights to acquire shares, shall be deemed to be Shares for purposes of this Agreement and subject to all of the terms and conditions of this Agreement.

 

  

  

  

Section 2.02.  No Transfer of Securities.  Except for sales of Shares to unaffiliated third parties as provided  in the second paragraph of this Section 2.02, Stockholders shall not directly or indirectly, sell, assign, transfer, encumber or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to the direct or indirect sale, assignment, transfer, encumbrance or other disposition of including any Shares or other securities of the Company during the term of this Agreement without the prior written consent of the Company, which the Company may withhold in its sole discretion.  The Company, in its sole discretion, may condition any sale or other transfer of the Shares upon the agreement of the purchaser or other transferee to be bound by this Agreement.

 

Notwithstanding the provisions of the first paragraph of this Section 2.02, if the CEO sells to one or more unaffiliated third parties an aggregate of five percent (5%) or more of the Company's outstanding Common Stock, the Stockholders shall have the right to sell  to one or more unaffiliated third parties an aggregate amount of Shares equal to the same proportionate amount of Shares with respect to their total holdings of Shares as the shares of Common Stock sold by the CEO relate to the total number of shares of Common Stock owned by or attributed to the CEO.  The Company agrees that it shall not withhold its consent to such sales by the Stockholders. For the purpose of this provision, the following shares of Common Stock are deemed to be owned by or attributed to the CEO and shall be aggregated for purposes of this paragraph (i) shares of Common Stock held directly by the CEO, (ii) shares of Common Stock not held directly by the CEO but beneficially owned by the CEO (as determined under Rule 13d- 3 under the Securities Exchange Act of 1934, as amended), and (iii) shares of Common Stock held by certain family trusts (the "Trusts") with respect to which the CEO disclaims beneficial ownership and voting power.  For the avoidance of doubt, as of the day hereof, under (i) and (ii) as set forth above, the CEO currently directly or beneficially owns 23,296,474 shares of Common Stock and under (iii), as set forth above, the Trusts hold  13,710,869 shares of Common Stock. All such shares shall ·be included in the calculations for purposes of this paragraph. The Company shall give Stockholders notice of sale of Company shares by the CEO or the Trusts in an amount equal to five percent (5%) or more of the Company's outstanding Common Stock within 3 business days after any such sale takes place. As of the date of this Agreement, the CEO or the Trusts have not sold any shares of Company Common Stock.

 

Section 2.03.  No Proxies for Shares.  Stockholders shall not directly or indirectly grant any proxies or powers of attorney or enter into any voting agreement, voting trust or other agreement or arrangement with respect to the voting of any Shares during the term of this Agreement without the prior written consent of the Company, which the Company may withhold in its sole discretion.

 

 

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Section 2.04.  Notation of Restrictions.  Stockholders agree that the Company may inform the transfer agent of the Company's Common Stock of the terms of this Agreement and may request that the transfer agent place appropriate "stop transfer" notations in the Company's stock transfer records of the restrictions and limitations imposed hereunder. If the Company issues certificates representing ownership of shares of its Common Stock, Stockholders agree to the placement of one or more legends on any certificates representing ownership of Shares noting the restrictions and limitations imposed hereunder, and Stockholders further agree, upon the request of the Company, to surrender any and all certificates representing ownership of Shares and to the issuance of replacement certificates that include such legends.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF STOCKHOLDERS

 

Stockholders represent and warrant to the Company that:

 

Section 3.01.  Authorization.  Stockholders have duly executed and delivered this Agreement and the execution, delivery and performance by Stockholders of this Agreement and the consummation by Stockholders of the transactions contemplated  hereby are within the powers and legal capacities of Stockholders and have been duly authorized by all necessary action.  This Agreement is a valid and binding agreement of Stockholders.  If this Agreement is being executed in a representative or fiduciary capacity, the Person signing this Agreement has full power and authority to enter into and perform this Agreement.

 

Section 3.02.  Non-Contravention.  To the best of Stockholders' knowledge, the execution, delivery and performance by Stockholders of this Agreement and the consummation  of the transactions contemplated hereby do not (i) violate any applicable law, rule, regulation, judgment, injunction, order or decree, or (ii) require any consent or other action by any person or entity under, constitute a default under, or give rise to any right of termination, cancellation or acceleration or to a loss of any benefit to which Stockholders are entitled under any provision of any agreement or other instrument binding on Stockholders.

 

Section 3.03.  Ownership of Shares.  Stockholders are the record and beneficial owners of the Shares, free and clear of any lien and any other limitation or restriction (including any restriction on the right to vote or otherwise dispose of the Shares), other than any limitation or restriction imposed by applicable securities laws or under the terms of this Agreement. Stockholders have sole voting power and the sole power of disposition with respect to all of the Shares, with no limitations, qualifications or restrictions on such rights, other than any limitation or restriction on disposition imposed by applicable securities laws and the limitations, qualifications and restrictions on voting and disposition under the terms of this Agreement. None of the Shares is subject to any voting trust or other agreement or arrangement with respect to the voting of such Shares. The revocation by the Stockholders of any and all previously-granted proxies in connection with the Stockholders' entry into this Agreement is valid and effective, and is enforceable by the Stockholders against any such prior proxy holder.

 

Section 3.04.  Total Shares.  Except for the Shares set forth on the signature page hereto, the Stockholders do not beneficially own any (i) shares of capital stock or voting securities of the Company, (ii) securities of the Company convertible into or exchangeable for shares of capital stock or voting securities of the Company or (iii) options or other rights to acquire from the Company any capital stock, voting securities or securities convertible into or exchangeable for capital stock or voting securities of the Company.

 

  

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ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants to Stockholders:

 

Section 4.01.  Corporate Authorization.  The execution, delivery and performance by the Company of this Agreement and the consummation  by the Company of the transactions contemplated hereby are within the corporate powers of the Company and have been duly authorized by all necessary corporate action.  This Agreement constitutes a valid and binding agreement  of the Company.

 

ARTICLE 5

COVENANT NOT TO SUE; INDEMNIFICATION

 

Section 5.01.  Covenant Not to Sue.  Stockholders shall not commence or institute any legal actions, including litigation, arbitration or any other legal proceedings of any kind whatsoever, in law or equity, or assert any claim, demand, action or cause of action concerning the voting of the Shares in accordance with the proxy granted hereunder.

 

Section 5.02.  Indemnification.

 

(a)  The Stockholders, jointly and severally, shall indemnify and hold harmless the Company and its officers, directors, employees, agents, affiliates, successors and permitted assigns (collectively, "Company Indemnified Party") against any and all losses, damages, liabilities, claims and  expenses of whatever kind, including reasonable attorneys' fees, that are incurred by Company Indemnified Party, as a result of any breach or non-fulfillment of any representation, warranty or covenant set forth in this Agreement by the Stockholders.

 

(b)  The Company shall indemnify and hold harmless the Stockholders and its officers, directors, employees, agents, affiliates, successors and permitted assigns (collectively, "Stockholders Indemnified Party") against any and all losses, damages, liabilities, claims and  expenses of whatever kind, including reasonable attorneys' fees, that are incurred by Stockholders Indemnified Party, as a result of any breach or non-fulfillment of any representation, warranty or covenant set forth in this Agreement by the Company.

 

  

4

  

 

ARTICLE 6

MISCELLANEOUS

 

Section 6.01.  Further Assurances. The Company and Stockholders will each execute and deliver, or cause to be executed and delivered, all further documents and instruments and use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations, to consummate and make effective the transactions contemplated by this Agreement.

 

Section 6.02.  Amendments.  Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement or in the case of a waiver , by the party against whom the waiver is to be effective.

 

Section 6.03.  Termination. This Agreement shall terminate upon the occurrence of any of the following events:

 

(a) the delisting of the Shares from NASDAQ;

 

(b) the consent of NASDAQ to the termination of this Agreement; or

 

(c) the Company enters into a transaction or series of related transactions as a result of which the Stockholders own less than five percent (5%) of the Company's outstanding Common Stock (or, in the event that the Company is not the surviving corporation in such transaction or series of transactions, less than five percent (5%) of the outstanding voting securities of such surviving corporation).

 

Section 6.04.  Effect of Termination. Upon termination the obligations of the parties under this Agreement shall thereafter immediately terminate, except that each party shall remain liable with respect to breaches of this Agreement occurring prior to such termination.

 

Section 6.05.  Expenses. All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.

 

Section 6.06.  Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of the other parties hereto, except that each party hereto may transfer or assign its rights and obligations to its affiliates.

 

Section 6.07.  Disclosure.  Stockholders hereby agree that the Company may publish and disclose in its filings made with the Securities and Exchange Commission and in any communications with NASDAQ, and in any public statement or regulatory filing which the Company reasonably determines to be necessary or desirable to comply with applicable law or the rules and regulations of NASDAQ, this Agreement, Stockholders' identity and ownership of the Shares and the nature of Stockholders' commitments, arrangements and understandings under this Agreement.

 

  

5

  

 

Section 6.08.  Governing Law; Waiver of Jury Trial; Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of Delaware, without giving effect to any conflicts of law provisions. EACH PARTY HEREBY IRREVOCABLY  WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING IN WHOLE OR IN PART UNDER, RELATED TO, BASED ON, OR IN CONNECTION WITH, THIS AGREEMENT OR THE SUBJECT MATTER  HEREOF, WHETHER NOW EXISTING OR HEREAFTER  ARISING AND WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE.  Each of the parties hereto (i) irrevocably consents to the jurisdiction  and venue of the Delaware Court of Chancery or any court of the United  States located in the State of Delaware in the event any dispute arises out of this Agreement or any of the transactions contemplated hereby, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction  by motion or other request for leave from any such court, (iii) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than the Delaware Court of Chancery or, if under applicable law exclusive jurisdiction  over such matter is vested in the federal courts, any court of the United States located in the State of Delaware and (iv) consents to service being made through the notice procedures set forth in Section 6.12.

 

Section 6.09.  Counterparts; Effectiveness.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received counterparts hereof signed by the other party hereto.

 

Section 6.10.  Severability.  If any term, provision or covenant of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions and covenants of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

Section 6.11.  Specific Performance.  The parties hereto agree that each party hereto would suffer irreparable damage in the event any provision of this Agreement is not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof in addition to any other remedy to which they are entitled at law or in equity.

 

Section 6.12.  Notices.  All notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be deemed given if delivered personally or sent by overnight courier (providing proof of delivery) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice): (i) if to the Company, to 6D Global Technologies, Inc., 17 State Street, Suite 2550, New York, NY 10004, Attention: CEO, and (ii) if to Stockholders, to the address set forth on the signature page hereto.

[Signature Page Follows}

  

6

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	6D GLOBAL TECHNOLOGIES , INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Tejune Kang	 
	 	 	Name: Tejune Kang, CEO	 
	 	 	Title: CEO	 
	 	 	 	 

 

	 	NYGG (ASIA) LTD.	 
	 	 	 	 
	
 

	
By: 

	/s/ Roger Li	 
	 	 	Name: Roger Li	 
	 	 	Title: Managing Director	 
	 	 	 	 

 

	 	Address for Notices:	 
	 	 	 	 
	
 

	
 

	 	 
	 	 	
 

 

	 
	 	 	
 

 

	 
	 	 	
 

 

	 
	 	 	 	 
	 	
Securities Beneficially Owned by Stockholders:

 

35,629,883 shares of Common Stock

 

  

  

  

 

EXHIBIT  A

to

 

STOCKHOLDERS' AGREEMENT ("Agreement") dated as of January 14, 2016 between 6D Global Technologies, Inc., a Delaware corporation and NYGG (Asia) Ltd., a company organized under the laws of the British Virgin Islands, for itself and on behalf of its affiliates.

 

IRREVOCABLE PROXY

 

NYGG (Asia) Ltd., a company organized under the laws of the British Virgin Islands, for itself and on behalf of its affiliates (collectively, the "Stockholders"), appoints Tejune Kang, or, if he is no longer serving as the Chief Executive Officer of the Company, his successor as Chief Executive Officer, or his appointed designee or designees, with full power of substitution and resubstitution, to vote and consent, to exercise all voting and consent rights, and to exercise all related rights (to the full extent that the undersigned is entitled to do so) with respect to all of the Shares subject to the Agreement, in accordance with the terms of this Irrevocable Proxy. The Shares beneficially owned by Stockholders as of the date of this Irrevocable Proxy are listed on the signature page of this Irrevocable Proxy, along with the number(s) of the stock certificate(s) (if any) representing such Shares. Upon Stockholders' execution of this Irrevocable Proxy, any and all prior proxies or powers of attorney given by the undersigned with respect to any Shares are hereby revoked and terminated, and the Stockholder agrees not to grant any subsequent proxies or powers of attorney during the term of the Agreement.

 

This Proxy is irrevocable (to the fullest extent permitted by law), is coupled with an interest and is granted pursuant to the Agreement,

 

The attorneys and proxies named herein, and each of them, are hereby authorized and empowered by Stockholders, at any time during the term of the Agreement, to act as the Stockholders' attorney and proxy to vote all of the Shares, and to exercise all voting, consent and similar rights of the undersigned with respect to all of the Shares (including, without limitation, the power to execute and deliver written consents) at every annual or special meeting of stockholders of the Company (and at every adjournment or postponement thereof), and in every written consent action taken in lieu of such meeting; provided, however, that the attorneys and proxies shall vote or provide consent with respect to the Shares in same manner and in the same proportion as shares of the Company's common stock that are not held by Stockholders are voted or consents are given.

 

This Irrevocable Proxy shall terminate, and be of no further force and effect, automatically upon the termination of the Agreement.

 

IN WITNESS WHEREOF, Stockholders have caused this Irrevocable Proxy to be duly executed as January 14, 2015.

 

	 	NYGG (ASIA) LTD.	 
	 	 	 	 
	
 

	
By: 

	/s/ Roger Li	 
	 	 	Name: Roger Li	 
	 	 	Title: Managing Director	 
	 	 	 	 

 

Number of Shares:  35,629,883

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