SEC Contract Filing

Filing Date: 2023-07-19

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>isig_ex101.htm
<DESCRIPTION>LETTER AGREEMENT
<TEXT>
<html><head><title>isig_ex101.htm</title><!--Document created using EDGARMaster--></head><body style="TEXT-ALIGN: justify; FONT: 10pt times new roman"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp; </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:right;"><strong>EXHIBIT 10.1</strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:right;">&nbsp;</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">[***] Portions of this exhibit have been redated in compliance with Regulation S-K Item 601(a)(6).</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"><img src="isig_ex101img1.jpg"></p> <p style="font-size:10pt;font-family:times new roman;margin:0px">July 14, 2023</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"><strong><u>BY PERSONAL DELIVERY AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED</u></strong></p> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">Kristine Glancy</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">[***]</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p> <table style="border-spacing:0;font-size:10pt;text-align:left;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p></td> <td style="width:4%;"> <p style="font-size:10pt;font-family:times new roman;margin:0px">Re: </p></td> <td> <p style="font-size:10pt;font-family:times new roman;margin:0px">Notice of Termination of Employment and Amendment to CIC Agreement</p></td></tr></table> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">Dear Kristine:</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In accordance with Section 7(d), Section 8, and Section 16(e) of the Employment Agreement entered into by and between you and Insignia Systems, Inc. (&#8220;Insignia&#8221;) as of April 8, 2016 and effective as of May 9, 2016 (the &#8220;Employment Agreement&#8221;), Insignia hereby notifies you of the termination of the Employment Term (as defined in the Employment Agreement) and your employment with Insignia without Cause (as defined in the Employment Agreement) effective as of August 31, 2023 (the &#8220;Termination Date&#8221;). This letter constitutes a &#8220;Notice of Termination&#8221; as contemplated by Section 8 of the Employment Agreement. In addition, if a Change in Control (as defined in the Change in Control Agreement entered into by and between you and Insignia as of April 8, 2016 and effective as of May 9, 2016, as amended (the &#8220;CIC Agreement&#8221;)) occurs prior to the Termination Date, then this letter also constitutes a &#8220;Notice of Termination&#8221; of your employment with Insignia without Cause (as defined in the CIC Agreement) effective as of the Termination Date, as contemplated by, and in accordance with, Section 4, Section 7 and Section 10 of the CIC Agreement, and the Termination Date shall be the &#8220;Date of Termination&#8221; for purposes of the CIC Agreement.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Any benefits provided under the Employment Agreement will be deducted from benefits provided under this Notice of Termination or the CIC Agreement, and where payments are due in two installments, the offset will be deducted equally from both installments.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As previously approved by the Company&#8217;s Board of Directors, if a Closing (as defined in the Asset Purchase Agreement between the Company and TIMIBO LLC dated May 24, 2023) occurs on or prior to the Termination Date, then in place of any other incentive bonus-related payment provided for in the Employment Agreement, the CIC Agreement, or any Insignia annual incentive plan, you will receive a cash payment of $78,650.00 (which equals fifty percent (50%) of your target incentive bonus for 2023), less applicable withholdings, payable within fifteen (15) calendar days after the Closing. The foregoing payment would be in addition to any amount payable under Section 4.1(B) of the CIC Agreement, as modified below.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In accordance with Section 11 of the CIC Agreement, and subject to your termination of employment effective as of the Termination Date constituting a Qualifying Termination or Pre-Change in Control Termination (as such terms are defined in the CIC Agreement), you and Insignia agree that Sections 4.1(A)-(D), Section 4.3(A), and the last sentence of Section 15(E) of the CIC Agreement shall be superseded and replaced in their entirety as follows:</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: time