Restructuring

The Company and its Chief Executive Officer and President, Fokko Pentinga, agreed on a transition of leadership, pursuant to which Mr. Pentinga stepped down as the Chief Executive Officer, President and a director of the Company effective December 6, 2018 (the “Effective Date”). In connection with his departure, Mr. Pentinga and the Company entered into a Separation Agreement and General Release of all Claims, dated November 28, 2018 (the “Separation Agreement”). Pursuant to the Separation Agreement, Mr. Pentinga will receive the following benefits:


•	a severance payment of $864,000 in gross, less all customary and appropriate income and employment taxes;


•	a payment of $458,500 for all other amounts due him;


•	all of his time-based stock options (the “Options”), became fully vested and immediately exercisable. Mr. Pentinga has the right to exercise Options with an exercise price of $7.01 or less until December 31, 2019. The remaining Options were exercisable during the 90-day period following the Effective Date; and


•	certain other benefits as set forth in the Separation Agreement.

The table below details the activity for the six months ended March 31, 2019 related to the above action as well as additional headcount reductions as we consolidated satellite offices in our Semiconductor segment and the outstanding obligations as of March 31, 2019, in thousands:



	Six Months Ended March 31, 2019
Balance at September 30, 2018	$	—
Severance expense, net of adjustments	1,037
Cash payments	(49		)
Balance at March 31, 2019	$	988