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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549</B></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>______________</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT<BR>
PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):
<B>March 30, 2012</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>CYALUME TECHNOLOGIES HOLDINGS, INC.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
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    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>Delaware</B></P></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>000-52247</B></P></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>20-3200738</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.15in; padding-left: 6pt; font-size: 10pt; text-align: center">(State or Other Jurisdiction of Incorporation)</TD>
    <TD STYLE="padding-right: 0.15in; padding-left: 6pt; font-size: 10pt; text-align: center">(Commission File&nbsp;Number)</TD>
    <TD STYLE="padding-right: 0.15in; padding-left: 6pt; font-size: 10pt; text-align: center">(IRS Employer Identification&nbsp;No.)</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>96
        Windsor Street, West Springfield MA</B></P></TD>
    <TD STYLE="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>01089</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 18.6pt; padding-left: 24pt; font-size: 10pt; text-align: center">(Address of Principal Executive Offices)</TD>
    <TD STYLE="padding-right: 18.6pt; padding-left: 12.7pt; font-size: 10pt; text-align: center">(Zip Code)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>(413) 858-2500</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant&rsquo;s telephone number, including
area code</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>Not Applicable</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former Name or Former Address, if Changed
Since Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-size: 10pt; color: black"> Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-size: 10pt"> Soliciting material pursuant
to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-size: 10pt"> Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<FONT STYLE="color: black"> </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-size: 10pt; color: black"> Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01 Entry into a Material Definitive Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The disclosure set forth under Item 5.02 of this Current Report
on Form 8-K is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 3.02 Unregistered Sales of Equity Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The disclosure set forth under Item 5.02 of this Current Report
on Form 8-K is incorporated herein by reference. The award of the Option was exempt from the registration requirements of the Securities
Act of 1933, as amended (the &ldquo;Act&rdquo;) pursuant to Section 4(2) of the Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 5.02 Departure of Directors of Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Appointment of Zivi Nedivi</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">On
March 30, 2012, Derek Dunaway resigned from his position as President, Chief Executive Officer and a member of the board of directors
of Cyalume Technologies Holdings, Inc. (the &ldquo;Company&rdquo;), which resignation was effective on April 2, 2012. On April
2, 2012, Mr. Zivi Nedivi was appointed as the Company&rsquo;s President and Chief Executive Officer. Pursuant to the services agreement
with </FONT>East Shore Ventures, LLC (&ldquo;Consultant&rdquo;) <FONT STYLE="color: black">described below, the Company&rsquo;s
board will appoint Mr. Nedivi as a member of the board of directors within a reasonable time to fill the vacancy left by Mr. Dunaway.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Nedivi has no family relationship with any of the executive
officers or directors of the Company.&nbsp;&nbsp;There have been no transactions in the past two years to which the Company or
any of its subsidiaries was or is to be a party, in which Mr. Nedivi had, or will have, a direct or indirect material interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Biography of Mr. Nedivi</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">From March 2009 through September 2011, Mr. Nedivi served as
senior advisor and acting chief executive officer of Axiom Investment Advisors, LLC, a New York-based $1.6 billion hedge fund.
Prior to that role, Mr. Nedivi served as Axiom&rsquo;s chief executive officer from March 2008 to March 2009. From December 2006
to March 2008, Mr. Nedivi served as the chief operating officer of Lumenis Ltd., a global leader in medical and aesthetic lasers
and light based technology. Prior to that, from July 2002 to February 2005, Mr. Nedivi served as president and chief executive
officer of Kellstrom Aerospace LLC, an industry leader in the airborne equipment segments of the international aviation services
aftermarket, and its predecessor company. In September 1990 Mr. Nedivi founded Kellstrom Industries, Inc., the predecessor of Kellstrom
Aerospace, where he served as president and chief executive officer until July 2002. He continues to serve as an observer on Kellstrom
Aerospace's board of directors. Mr. Nedivi is a graduate of the Israel Air Force Academy and served in the Israel Air force as
an F-15 fighter pilot, where he attained the rank of Major. He also holds a Bachelor's degree in business administration from California
Coast University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Services Agreement with East Shore Ventures, LLC</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company, Cyalume Technolgies, Inc. (&ldquo;CTI&rdquo;),
the Company&rsquo;s wholly owned subsidiary, and the Consultant, a limited liability company owned by Mr. Nedivi for which he also
works as an employee, entered into a services agreement, effective April 2, 2012, which provides that Mr. Nedivi will serve as
the Company&rsquo;s Chief Executive Officer and member of the Company&rsquo;s board of directors. The agreement has an initial
term of three years and continues for successive one-year periods unless terminated by either party upon 60 days written notice
prior to its anniversary/expiration date or if terminated pursuant to certain events or for cause.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the term of the agreement, the Consultant will earn an
annual cash fee of $450,000 (the &ldquo;Cash Fee&rdquo;), subject to annual increases at the discretion of the Company&rsquo;s
board. The Consultant is also eligible for bonus consideration based on certain predetermined annual performance targets (&ldquo;Annual
Performance Targets&rdquo;). If the Company&rsquo;s performance meets, but does not exceed, the Annual Performance Targets for
a given fiscal year, the amount of the bonus for such fiscal year shall equal 140% of the annualized rate of the Cash Fee in effect
as of the end of such fiscal year. If the Company&rsquo;s performance exceeds the Annualized Performance Targets for a given fiscal
year, the amount of the bonus for such fiscal year shall equal 140% of the annualized rate of the Cash Fee in effect as of the
end of such fiscal year, plus an additional 1% of such annualized rate for each 1% by which the Company&rsquo;s performance exceeds
the Annualized Performance Targets for such fiscal year. If the Company&rsquo;s performance fails to meet the Annualized Performance
Targets for a given fiscal year, the amount of the bonus for such fiscal year shall equal 140% of the annualized rate of the Cash
Fee in effect as of the end of such fiscal year, less 2% of such annualized rate for each 1% by which the Company&rsquo;s performance
failed to meet the Annualized Performance Targets for such fiscal year, provided, however, that Consultant shall not be eligible
for any bonus for a given fiscal year in which the Company&rsquo;s performance was less than or equal to 70% of the Annualized
Performance Targets for such fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Consultant also received an option to purchase up to 1,111,963
shares of the Company&rsquo;s common stock at an exercise price per share of $3.60 (the &ldquo;Option&rdquo;). The Option becomes
exercisable annually in five equal installments on each of the first five anniversaries of the approval of the issuance of the
Option. The Option (i) will not become exercisable as to 141,333 of the Shares unless a proportional number of shares underlying
the warrants issued to Granite Creek FlexCap I, L.P. and/or Patriot Capital II, LP are exercised; (ii) provides that, in the event
that, prior to the date that the Option is fully exercisable, (A) there is a Change of Control (as defined in the services agreement)
or (B) Consultant&rsquo;s engagement under the services agreement is terminated by the Company without Cause or by Consultant for
Good Reason (each as defined in the services agreement), the Option shall become fully exercisable as of the date of such Change
of Control or termination, provided, however, that, if such termination of Consultant&rsquo;s engagement occurs within the first
eighteen (18) months after the date of the agreement, then only two-fifths (2/5) of the Option shall become fully exercisable as
of the date of such termination; (iii) for piggyback registration rights; and (iv) that Consultant will receive a cash payment
equal to the Tax Payment (as defined in the services agreement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the event Consultant&rsquo;s engagement is terminated by
the Company without Cause or by non-renewal, or by Consultant pursuant for Good Reason, in addition to the amounts accrued to him,
Consultant is entitled to receive an amount equal to the Cash Fee in effect immediately prior to the Termination Date for a six-month
period, subject to Consultant and Mr. Nedivi each signing a release of claims in favor the Company and its affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the term of the services agreement and for a period of
two years thereafter (subject to certain adjustments set forth in the services agreement) Consultant and Mr. Nedivi are subject
to confidentiality, non-solicitation and non-competition, non-interference and non-disparagement provisions. Pursuant to the services
agreement, Mr. Nedivi will devote all of his business time (subject to certain limited exceptions) to providing services to the
Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the services agreement, subject to limitations imposed
by law, the Company and CTI shall indemnify and hold harmless Consultant and Mr. Nedivi to the fullest extent permitted by law
from and against any and all claims, damages, expenses (including attorneys&rsquo; fees), judgments, penalties, fines, settlements,
and all other liabilities incurred or paid by him in connection with the investigation, defense, prosecution, settlement or appeal
of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative and
to which Consultant and/or Mr. Nedivi was or is a party or is threatened to be made a party by reason of the fact that Consultant
and/or Mr. Nedivi is or was an officer, employee or agent of a member of the Company or any Company subsidiary, or by reason of
anything done or not done by Consultant and/or Mr. Nedivi in any such capacity or capacities, provided that Consultant and/or Mr.
Nedivi, as applicable, acted in good faith, in a manner that was not grossly negligent or constituted willful misconduct and in
a manner it or he reasonably believed to be in or not opposed to the best interests of the Company or any Company subsidiary, and,
with respect to any criminal action or proceeding, had no reasonable cause to believe it or his conduct was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A copy of the services agreement with Consultant is included
as Exhibit 10.1 of this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Inducement Agreement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On April 2, 2012, the Consultant and Mr. Nedivi executed an
inducement agreement with material terms substantially similar to those contained in the services agreement described above. A
copy of the inducement agreement with Mr. Nedivi is included as Exhibit 10.2 of this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Separation Agreement and General Release with Derek Dunaway</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March 30, 2012, CTI and Derek Dunaway entered into a separation
agreement and general release, pursuant to which Mr. Dunaway&rsquo;s employment by CTI will terminate effective May 14, 2012 (the
&ldquo;Termination Date&rdquo;), provided that Mr. Dunaway shall cease to have any authority or responsibility for the conduct
of the affairs of CTI as of April 2, 2012 (&ldquo;Cessation Date&rdquo;). CTI will pay Mr. Dunaway the following, less applicable
withholdings and deductions: (a) Mr. Dunaway&rsquo;s regular base salary at the annual rate of $297,500 to and through the Termination
Date; (b) accrued, unused vacation days as of the Cessation Date; and (c) a $100,000 bonus which has been owed to Mr. Dunaway since
2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In consideration for, and contingent upon, Mr. Dunaway executing
the severance agreement and general release, Mr. Dunaway shall receive the following payments and benefits: (i) severance pay,
less applicable withholdings and deductions, of $350,000 and (ii) any unvested option awards issued to Mr. Dunaway shall become
vested in full upon May 14, 2012. Certain unvested equity awards for 29,998 shares of the Company&rsquo;s common stock will vest
on the Cessation Date. In order to permit Mr. Dunaway to satisfy Mr. Dunaway&rsquo;s tax obligations related to the vesting of
the equity awards, the Company shall permit Mr. Dunaway to sell to the Company one-third (&#8531;) of said equity securities on
the same terms and conditions in effect at the time of vesting, as the Company permits its other employees to sell equity securities
to it. All options to purchase the Company&rsquo;s common stock shall terminate on the termination date specified in such option
agreement as if Mr. Dunaway had continued to be employed by the Company until such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A copy of the separation agreement and general release with
Mr. Dunaway is included as Exhibit 10.3 of this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 8.01 Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On April 2, 2012, the Company issued a press release announcing
the appointment of Mr. Nedivi as the Company&rsquo;s President and Chief Executive Officer, and Mr. Dunaway&rsquo;s resignation.
A copy of the press release is included as Exhibit 99.1 to this Current Report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01. Financial Statements and Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; font-weight: bold; text-align: center"><B>Exhibit No.</B></TD>
    <TD STYLE="width: 86%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; font-weight: bold; text-align: center"><B>Description</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">10.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">Services Agreement by and among the Company, Cyalume Technologies, Inc. and East Shore Ventures, LLC dated as of April 2, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">10.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">Inducement Agreement by and between East Shore Ventures, LLC and Zivi Nedivi</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">10.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">Separation Agreement and General Release by and between Cyalume Technologies, Inc. and Derek Dunaway effective as of April 2, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">99.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">Press Release dated April 2, 2011</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top">Dated: April 5, 2012&nbsp;</TD>
    <TD COLSPAN="2"><B>CYALUME TECHNOLOGIES HOLDINGS, INC.</B></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%">By:&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 46%">/s/ Michael Bielonko</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-top: #000000 1px solid">Michael Bielonko, Chief Financial Officer<BR></TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Exhibit Index</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><B>Exhibit No.</B></TD>
    <TD STYLE="width: 86%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><B>Description</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">10.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Services Agreement by and among the Company, Cyalume Technologies, Inc. and East Shore Ventures, LLC dated as of April 2, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">10.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Inducement Agreement by and between East Shore Ventures, LLC and Zivi Nedivi</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">10.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Separation Agreement and General Release by and between Cyalume Technologies, Inc. and Derek Dunaway effective as of April 2, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">99.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Press Release dated April 2, 2011</TD></TR>
</TABLE>

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[{"type": "8-K", "sequence": "1", "filename": "v308564_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 33629}]
{"company-data": {"conformed-name": "Cyalume Technologies Holdings, Inc.", "cik": "0001335293", "assigned-sic": "3640", "irs-number": "203200738", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-52247", "film-number": "12743932"}, "business-address": {"street1": "96 WINDSOR STREET,", "city": "WEST SPRINGFIELD", "state": "MA", "zip": "01089", "phone": "(413) 858-2500"}, "mail-address": {"street1": "96 WINDSOR STREET,", "city": "WEST SPRINGFIELD", "state": "MA", "zip": "01089"}, "former-company": {"former-conformed-name": "Vector Intersect Security Acquisition Corp.", "date-changed": "20050804"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
March 30, 2012
CYALUME TECHNOLOGIES HOLDINGS, INC.
(Exact Name of Registrant as Specified in
Charter)
Delaware
000-52247
20-3200738
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
96
        Windsor Street, West Springfield MA
01089
(Address of Principal Executive Offices)
(Zip Code)
(413) 858-2500
Registrant's telephone number, including
area code
Not Applicable
(Former Name or Former Address, if Changed
Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of registrant under any of the following provisions:
¨
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant
to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
¨
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement
The disclosure set forth under Item 5.02 of this Current Report
on Form 8-K is incorporated herein by reference.
Item 3.02 Unregistered Sales of Equity Securities
The disclosure set forth under Item 5.02 of this Current Report
on Form 8-K is incorporated herein by reference. The award of the Option was exempt from the registration requirements of the Securities
Act of 1933, as amended (the "Act") pursuant to Section 4(2) of the Act.
Item 5.02 Departure of Directors of Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of Zivi Nedivi
On
March 30, 2012, Derek Dunaway resigned from his position as President, Chief Executive Officer and a member of the board of directors
of Cyalume Technologies Holdings, Inc. (the "Company"), which resignation was effective on April 2, 2012. On April
2, 2012, Mr. Zivi Nedivi was appointed as the Company's President and Chief Executive Officer. Pursuant to the services agreement
with
East Shore Ventures, LLC ("Consultant")
described below, the Company's
board will appoint Mr. Nedivi as a member of the board of directors within a reasonable time to fill the vacancy left by Mr. Dunaway.
Mr. Nedivi has no family relationship with any of the executive
officers or directors of the Company.  There have been no transactions in the past two years to which the Company or
any of its subsidiaries was or is to be a party, in which Mr. Nedivi had, or will have, a direct or indirect material interest.
Biography of Mr. Nedivi
From March 2009 through September 2011, Mr. Nedivi served as
senior advisor and acting chief executive officer of Axiom Investment Advisors, LLC, a New York-based $1.6 billion hedge fund.
Prior to that role, Mr. Nedivi served as Axiom's chief executive officer from March 2008 to March 2009. From December 2006
to March 2008, Mr. Nedivi served as the chief operating officer of Lumenis Ltd., a global leader in medical and aesthetic lasers
and light based technology. Prior to that, from July 2002 to February 2005, Mr. Nedivi served as president and chief executive
officer of Kellstrom Aerospace LLC, an industry leader in the airborne equipment segments of the international aviation services
aftermarket, and its predecessor company. In September 1990 Mr. Nedivi founded Kellstrom Industries, Inc., the predecessor of Kellstrom
Aerospace, where he served as president and chief executive officer until July 2002. He continues to serve as an observer on Kellstrom
Aerospace's board of directors. Mr. Nedivi is a graduate of the Israel Air Force Academy and served in the Israel Air force as
an F-15 fighter pilot, where he attained the rank of Major. He also holds a Bachelor's degree in business administration from California
Coast University.
Services Agreement with East Shore Ventures, LLC
The Company, Cyalume Technolgies, Inc. ("CTI"),
the Company's wholly owned subsidiary, and the Consultant, a limited liability company owned by Mr. Nedivi for which he also
works as an employee, entered into a services agreement, effective April 2, 2012, which provides that Mr. Nedivi will serve as
the Company's Chief Executive Officer and member of the Company's board of directors. The agreement has an initial
term of three years and continues for successive one-year periods unless terminated by either party upon 60 days written notice
prior to its anniversary/expiration date or if terminated pursuant to certain events or for cause.
During the term of the agreement, the Consultant will earn an
annual cash fee of $450,000 (the "Cash Fee"), subject to annual increases at the discretion of the Company's
board. The Consultant is also eligible for bonus consideration based on certain predetermined annual performance targets ("Annual
Performance Targets"). If the Company's performance meets, but does not exceed, the Annual Performance Targets for
a given fiscal year, the amount of the bonus for such fiscal year shall equal 140% of the annualized rate of the Cash Fee in effect
as of the end of such fiscal year. If the Company's performance exceeds the Annualized Performance Targets for a given fiscal
year, the amount of the bonus for such fiscal year shall equal 140% of the annualized rate of the Cash Fee in effect as of the
end of such fiscal year, plus an additional 1% of such annualized rate for each 1% by which the Company's performance exceeds
the Annualized Performance Targets for such fiscal year. If the Company's performance fails to meet the Annualized Performance
Targets for a given fiscal year, the amount of the bonus for such fiscal year shall equal 140% of the annualized rate of the Cash
Fee in effect as of the end of such fiscal year, less 2% of such annualized rate for each 1% by which the Company's performance
failed to meet the Annualized Performance Targets for such fiscal year, provided, however, that Consultant shall not be eligible
for any bonus for a given fiscal year in which the Company's performance was less than or equal to 70% of the Annualized
Performance Targets for such fiscal year.
Consultant also received an option to purchase up to 1,111,963
shares of the Company's common stock at an exercise price per share of $3.60 (the "Option"). The Option becomes
exercisable annually in five equal installments on each of the first five anniversaries of the approval of the issuance of the
Option. The Option (i) will not become exercisable as to 141,333 of the Shares unless a proportional number of shares underlying
the warrants issued to Granite Creek FlexCap I, L.P. and/or Patriot Capital II, LP are exercised; (ii) provides that, in the event
that, prior to the date that the Option is fully exercisable, (A) there is a Change of Control (as defined in the services agreement)
or (B) Consultant's engagement under the services agreement is terminated by the Company without Cause or by Consultant for
Good Reason (each as defined in the services agreement), the Option shall become fully exercisable as of the date of such Change
of Control or termination, provided, however, that, if such termination of Consultant's engagement occurs within the first
eighteen (18) months after the date of the agreement, then only two-fifths (2/5) of the Option shall become fully exercisable as
of the date of such termination; (iii) for piggyback registration rights; and (iv) that Consultant will receive a cash payment
equal to the Tax Payment (as defined in the services agreement).
In the event Consultant's engagement is terminated by
the Company without Cause or by non-renewal, or by Consultant pursuant for Good Reason, in addition to the amounts accrued to him,
Consultant is entitled to receive an amount equal to the Cash Fee in effect immediately prior to the Termination Date for a six-month
period, subject to Consultant and Mr. Nedivi each signing a release of claims in favor the Company and its affiliates.
During the term of the services agreement and for a period of
two years thereafter (subject to certain adjustments set forth in the services agreement) Consultant and Mr. Nedivi are subject
to confidentiality, non-solicitation and non-competition, non-interference and non-disparagement provisions. Pursuant to the services
agreement, Mr. Nedivi will devote all of his business time (subject to certain limited exceptions) to providing services to the
Company.
Pursuant to the services agreement, subject to limitations imposed
by law, the Company and CTI shall indemnify and hold harmless Consultant and Mr. Nedivi to the fullest extent permitted by law
from and against any and all claims, damages, expenses (including attorneys' fees), judgments, penalties, fines, settlements,
and all other liabilities incurred or paid by him in connection with the investigation, defense, prosecution, settlement or appeal
of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative and
to which Consultant and/or Mr. Nedivi was or is a party or is threatened to be made a party by reason of the fact that Consultant
and/or Mr. Nedivi is or was an officer, employee or agent of a member of the Company or any Company subsidiary, or by reason of
anything done or not done by Consultant and/or Mr. Nedivi in any such capacity or capacities, provided that Consultant and/or Mr.
Nedivi, as applicable, acted in good faith, in a manner that was not grossly negligent or constituted willful misconduct and in
a manner it or he reasonably believed to be in or not opposed to the best interests of the Company or any Company subsidiary, and,
with respect to any criminal action or proceeding, had no reasonable cause to believe it or his conduct was unlawful.
A copy of the services agreement with Consultant is included
as Exhibit 10.1 of this Current Report on Form 8-K.
Inducement Agreement
On April 2, 2012, the Consultant and Mr. Nedivi executed an
inducement agreement with material terms substantially similar to those contained in the services agreement described above. A
copy of the inducement agreement with Mr. Nedivi is included as Exhibit 10.2 of this Current Report on Form 8-K.
Separation Agreement and General Release with Derek Dunaway
On March 30, 2012, CTI and Derek Dunaway entered into a separation
agreement and general release, pursuant to which Mr. Dunaway's employment by CTI will terminate effective May 14, 2012 (the
"Termination Date"), provided that Mr. Dunaway shall cease to have any authority or responsibility for the conduct
of the affairs of CTI as of April 2, 2012 ("Cessation Date"). CTI will pay Mr. Dunaway the following, less applicable
withholdings and deductions: (a) Mr. Dunaway's regular base salary at the annual rate of $297,500 to and through the Termination
Date; (b) accrued, unused vacation days as of the Cessation Date; and (c) a $100,000 bonus which has been owed to Mr. Dunaway since
2008.
In consideration for, and contingent upon, Mr. Dunaway executing
the severance agreement and general release, Mr. Dunaway shall receive the following payments and benefits: (i) severance pay,
less applicable withholdings and deductions, of $350,000 and (ii) any unvested option awards issued to Mr. Dunaway shall become
vested in full upon May 14, 2012. Certain unvested equity awards for 29,998 shares of the Company's common stock will vest
on the Cessation Date. In order to permit Mr. Dunaway to satisfy Mr. Dunaway's tax obligations related to the vesting of
the equity awards, the Company shall permit Mr. Dunaway to sell to the Company one-third (⅓) of said equity securities on
the same terms and conditions in effect at the time of vesting, as the Company permits its other employees to sell equity securities
to it. All options to purchase the Company's common stock shall terminate on the termination date specified in such option
agreement as if Mr. Dunaway had continued to be employed by the Company until such date.
A copy of the separation agreement and general release with
Mr. Dunaway is included as Exhibit 10.3 of this Current Report on Form 8-K.
Item 8.01 Other Events.
On April 2, 2012, the Company issued a press release announcing
the appointment of Mr. Nedivi as the Company's President and Chief Executive Officer, and Mr. Dunaway's resignation.
A copy of the press release is included as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No.
Description
10.1
Services Agreement by and among the Company, Cyalume Technologies, Inc. and East Shore Ventures, LLC dated as of April 2, 2012
10.2
Inducement Agreement by and between East Shore Ventures, LLC and Zivi Nedivi
10.3
Separation Agreement and General Release by and between Cyalume Technologies, Inc. and Derek Dunaway effective as of April 2, 2012
99.1
Press Release dated April 2, 2011
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 5, 2012
CYALUME TECHNOLOGIES HOLDINGS, INC.
By:
/s/ Michael Bielonko
Michael Bielonko, Chief Financial Officer
Exhibit Index
Exhibit No.
Description
10.1
Services Agreement by and among the Company, Cyalume Technologies, Inc. and East Shore Ventures, LLC dated as of April 2, 2012
10.2
Inducement Agreement by and between East Shore Ventures, LLC and Zivi Nedivi
10.3
Separation Agreement and General Release by and between Cyalume Technologies, Inc. and Derek Dunaway effective as of April 2, 2012
99.1
Press Release dated April 2, 2011