Lantronix Inc DEFA14A, filed Nov 6, 2023
Lantronix Inc (LTRX)
DEFA14A
2023-11-06
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Added on
October 22, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant ☒
Filed by a Party other than the Registrant ☐
Check the appropriate box:
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material under §240.14a-12
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LANTRONIX, INC.
(Name of Registrant as Specified in its Charter)
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
Payment of Filing Fee (Check all boxes that apply):
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No fee required.
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Fee paid previously with preliminary materials.
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Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.
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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): October 31, 2023
Lantronix, Inc.
(Exact Name of Registrant as Specified in Charter)
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Delaware
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1-16027
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33-0362767
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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48 Discovery, Suite 250
Irvine, California 92618
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(Address of Principal Executive Offices, including zip code)
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Registrant’s telephone number, including area code: (949) 453-3990
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 the registrant under any of the following
provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each Class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock, $0.0001 par value
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LTRX
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The Nasdaq Stock Market LLC
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the
Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of Exchange Act. ☐
| Item 5.02. |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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Appointment of Chief Executive Officer
On November 6, 2023, Lantronix, Inc. (the “Company”) announced that its Board of Directors (the “Board”) has appointed Saleel Awsare to serve
as the Company’s President and Chief Executive Officer effective as of November 20, 2023 (the “Employment Commencement Date”).
Mr. Awsare, age 59, has served as Senior Vice President and General Manager of the Enterprise and Mobile Division of Synaptics Incorporated, a
developer of human interface hardware and software, since September 2023. Prior to that, Mr. Awsare served as Senior Vice President and General Manager of the PC and Peripherals Unit of Synaptics from August 2020 to September 2023; Senior
Vice President and General Manager of Synaptics’s IoT Division from April 2019 to July 2020; and Senior Vice President of Corporate Marketing & Investor Relations at Synaptics from October 2018 until April 2019. Prior to joining
Synaptics as Corporate Vice President and General Manager of Audio & Imaging Products in August 2017, Mr. Awsare was President of Conexant Systems, LLC, a software developer and fabless semiconductor company, from March 2016 until
Conexant’s acquisition by Synaptics in August 2017, and Conexant’s Senior Vice President & General Manager of Audio & Imaging from April 2012 to March 2016. Prior to joining Conexant, Mr. Awsare served as President of U.S.
Operations and General Manager of Audio & Voice Solutions of Nuvoton Technology Corporation, a Taiwan-based semiconductor company, from December 2008 to March 2012. Prior to joining Nuvoton, Mr. Awsare was the Executive Vice President
and General Manager of mixed signal products for Winbond Electronics Corporation, a Taiwan-based semiconductor company. Prior to joining Winbond, Mr. Awsare was a director of engineering for Information Storage Devices. Mr. Awsare is a
member of the Board of Trustees of Stevens Institute of Technology.
There are no arrangements or understandings between Mr. Awsare and any other persons pursuant to which he was selected as an officer of the
Company. There are also no family relationships between Mr. Awsare and any director or executive officer of the Company, and Mr. Awsare does not have any direct or indirect material interest in any transaction required to be disclosed
pursuant to Item 404(a) of Regulation S-K.
On October 31, 2023, the Company and Mr. Awsare entered into an Employment Agreement (the “Employment Agreement”) that provides for Mr.
Awsare’s employment with the Company as its President and Chief Executive Officer, beginning on the Employment Commencement Date. The Employment Agreement includes the following compensation and benefits for Mr. Awsare while he serves the
Company in that position:
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Mr. Awsare will be entitled to an annual base salary of $500,000.
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Mr. Awsare will be entitled to an annual incentive bonus opportunity based on the achievement of performance criteria to be established by the Board (or a committee thereof). Mr. Awsare’s
annual target and maximum bonus opportunities will be 100% and 200%, respectively, of his base salary for the corresponding fiscal year. Mr. Awsare will be entitled to participate in the Company’s annual bonus program already in
place for fiscal 2024 on a prorated basis with a maximum incentive bonus amount of seven-twelfths of the amount Mr. Awsare would be entitled to under the annual bonus program had he been employed with the Company through the last
day of the fiscal year.
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Mr. Awsare will be entitled to a one-time sign-on bonus of $136,000, which will be payable in three equal installments as follows, subject to Mr. Awsare’s continued service on such dates:
one-third will be paid with the Company’s first payroll period following the Employment Commencement Date; one-third will be paid with the Company’s first payroll period following six months after the Employment Commencement Date;
and one-third will be paid at the time the incentive bonus for fiscal 2024 is paid to the Company’s executive management team or, if no incentive bonus for fiscal 2024 is awarded, then with the next pay period after the Board (or a
committee thereof) makes such determination.
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The Company will grant Mr. Awsare a stock unit award covering a number of shares of Company common stock equal to $4,150,000 divided by the average of the closing prices for a share of the
Company’s common stock (in regular trading) on The Nasdaq Stock Market over the thirty consecutive trading days ending with the last trading day for which such closing price is known prior to the Employment Commencement Date.
$2,100,000 in value of the total number of stock units awarded will be time-based vesting stock units (“RSUs”) scheduled to vest, subject to Mr. Awsare’s continued service, over a three-year period, with one-third of the RSUs
vesting on each of November 1, 2024, November 1, 2025, and November 1, 2026. $2,050,000 in value of the total number of stock units awarded will be the “target” number of performance-based vesting stock units, with $1,050,000 of the
“target” number of performance-based vesting stock units subject to vesting based on the attainment of certain financial measures (“Financial Measure PSUs”) and the other $1,000,000 of the “target” number of performance-based
vesting stock units subject to vesting based on the Company’s relative total shareholder return (“Relative TSR PSUs”). Between 0% and 200% of the “target” number of stock units subject to the performance-based awards may become
eligible to vest based on actual performance during the applicable performance periods. The RSUs, Financial Measure PSUs and Relative TSR PSUs will be effective on the Employment Commencement Date. All such awards will be structured
to satisfy the “inducement grant” exception under applicable listing rules and, accordingly, they will not be granted under the Company’s 2020 Performance Incentive Plan.
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Additional equity awards for Mr. Awsare, commencing with awards for fiscal year 2025, will be in the sole discretion of the Board (or a committee thereof).
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Mr. Awsare will also be entitled to certain employee benefits, such as participation in the Company’s retirement and welfare benefit plans and programs, and fringe benefit plans and
programs, made available to the Company’s executive officers employed in the United States.
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To the extent Mr. Awsare decides to relocate to Orange County, California, he is authorized to incur up to $100,000 of expenses related to moving his residence, including temporary
apartment rental in Orange County. If his employment is terminated or he resigns pursuant to the terms of the Employment Agreement (other than a termination by the Company without Cause or by Mr. Awsare with Good Reason, as defined
below) within two years of the Employment Commencement Date, then Mr. Awsare shall pay to the Company promptly following his severance date 100% of the relocation expenses paid or reimbursed by the Company pursuant to the Employment
Agreement.
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The Employment Agreement generally provides that if Mr. Awsare’s employment with the Company is terminated by the Company without Cause (as
defined in the Employment Agreement) or by Mr. Awsare for Good Reason (as defined in the Employment Agreement), Mr. Awsare will be entitled to receive the following separation benefits: (1) one times his annual base salary paid out in
installments over the year following his separation date (or, in the event such termination of employment occurs during a Change in Control Window, Mr. Awsare will instead be entitled to payment of two times his annual base salary paid out
in installments over the two years following his separation date); (2) payment of any incentive bonus due for a fiscal year that ended prior to his separation date plus 100% of the target amount of the incentive bonus (200% if such
termination of employment occurs during a Change in Control Window) for the fiscal year in which the separation date occurs; (3) payment or reimbursement of Mr. Awsare’s premiums to continue healthcare coverage under COBRA for up to 12
months (24 months if such termination of employment occurs during a Change in Control Window); (4) as to each then-outstanding equity-based award granted by the Company to Mr. Awsare that vests based solely on continued service with the
Company and unless otherwise expressly provided in the applicable award agreement, accelerated vesting of any portion of the award that was scheduled to vest within one year after Mr. Awsare’s separation date (accelerated vesting of the
entire outstanding and unvested portion of the award if such termination of employment occurs during a Change in Control Window); and (5) as to each outstanding equity-based award granted by the Company to Mr. Awsare that is subject to
performance-based vesting requirements and unless otherwise expressly provided in the applicable award agreement, Mr. Awsare’s employment with the Company will be deemed to have continued for one year after his separation date (except that,
if such termination of employment occurs during a Change in Control Window, any service-based vesting requirement under the award will be deemed satisfied in full but the performance-based vesting measurement will still apply and will be
treated as provided in the applicable award agreement). Mr. Awsare’s receipt of the separation benefits described above is conditioned on Mr. Awsare delivering a release of claims in favor of the Company. For purposes of the Employment
Agreement, “Change in Control Window” generally means the period of time in connection with a change in control of the Company that begins on the date 60 days prior to the consummation of the change in control transaction (or, if earlier,
on the date a definitive agreement is entered into to effect the change in control transaction) and ends on the second anniversary of the consummation of the change in control transaction.
If Mr. Awsare’s employment terminates due to his death or disability, he would be entitled to payment of any bonus due for a fiscal year that
ended prior to his separation date plus 100% of the target amount of the incentive bonus (200% if such termination of employment occurs during a Change in Control Window) for the fiscal year in which his employment ends.
The foregoing description of the Employment Agreement is a summary, does not purport to be complete and is qualified in its entirety by
reference to the Employment Agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
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Regulation FD Disclosure.
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On November 6, 2023, the Company issued a press release announcing the appointment of Mr. Awsare as President and Chief Executive Officer
effective on the Employment Commencement Date. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference.
The information contained in Item 7.01 of this Current Report on Form 8-K (including Exhibit 99.1 hereto) shall not be deemed “filed” for the
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be, or be deemed, incorporated by reference in any filings under the
Securities Act of 1933, as amended (the “Securities Act”), unless the Company specifically states that the information is to be considered “filed” under the Exchange Act or incorporates it by reference into a filing under the Securities Act
or the Exchange Act.
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Financial Statements and Exhibits.
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(d) Exhibits.
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Exhibit
No.
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Description
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Employment Agreement, dated October 31, 2023, between Saleel Awsare and Lantronix, Inc.
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Press Release of Lantronix, Inc. issued on November 6, 2023.
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document).
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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.
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LANTRONIX, INC.
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By:
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/s/ Jeremy Whitaker
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Jeremy Whitaker
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Interim Chief Executive Officer and Chief Financial Officer
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Date: November 6, 2023
Exhibit 10.1
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this
“Agreement”) is made and entered into this 31st day of October 2023 (the “Signing Date”), by and between Lantronix, Inc., a
Delaware corporation (the “Company”), and Saleel Awsare (the “Executive”).
RECITALS
THE PARTIES ENTER THIS AGREEMENT
based on the following facts, understandings and intentions:
A. The Company desires
to employ the Executive, and the Executive desires to accept such employment, on the terms and conditions set forth in this Agreement.
B. This Agreement
shall be effective as set forth herein and shall govern the employment relationship between the Executive and the Company from and after the Signing Date, and, as of the Signing Date, supersedes and negates all previous agreements and
understandings with respect to such relationship.
AGREEMENT
NOW, THEREFORE, in
consideration of the above recitals incorporated herein and the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree as
follows:
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Retention and Duties.
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Retention. The Company does hereby hire, engage and
employ the Executive for the Period of Employment (as such term is defined in Section 2) on the terms and conditions expressly set forth in this Agreement. The Executive does hereby accept and agree to such hiring, engagement and
employment, on the terms and conditions expressly set forth in this Agreement. Certain capitalized terms used herein are defined in Section 5.5 of this Agreement.
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Duties. During the Period of Employment, the
Executive shall serve the Company as its President and Chief Executive Officer and shall have the powers, authorities, duties and obligations of management usually vested in such positions with a company of a similar size and similar
nature as the Company, and such other powers, authorities, duties and obligations commensurate with such positions as the Company’s Board of Directors (the “Board”) may assign
from time to time, all subject to the directives of the Board and the corporate policies of the Company as they are in effect from time to time throughout the Period of Employment (including, without limitation, the Company’s business
conduct and ethics policies, as they may change from time to time). Promptly after the Employment Commencement Date, Executive will be presented to the Board for appointment thereon. During the Period of Employment, the Executive shall
report to the Board.
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No Other Employment; Minimum Time Commitment. During
the Period of Employment, the Executive shall (i) devote substantially all of the Executive’s business time, energy and skill to the performance of the Executive’s duties for the Company, (ii) perform such duties in a faithful, effective
and efficient manner to the best of the Executive’s abilities, and (iii) hold no other employment. The Executive’s service on the boards of directors (or similar body) of other business entities (for purposes of this sentence, not
including civic and charitable boards and similar bodies) is subject to the prior written approval of the Board. The Company shall have the right to require the Executive to resign from any board or similar body (including, without
limitation, any association, corporate, civic or charitable board or similar body) which the Executive may then serve if the Board reasonably determines that the Executive’s service on such board or body interferes with the effective
discharge of the Executive’s duties and responsibilities to the Company or that any business related to such service is then in direct or indirect competition with any business of the Company or any of its Affiliates, successors or
assigns.
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No Breach of Contract. The Executive hereby
represents to the Company and agrees that: (i) the execution and delivery of this Agreement by the Executive and the Company and the performance by the Executive of the Executive’s duties hereunder do not and shall not constitute a breach
of, conflict with, or otherwise contravene or cause a default under, the terms of any other agreement or policy to which the Executive is a party or otherwise bound or any judgment, order or decree to which the Executive is subject; (ii)
the Executive will not enter into any new agreement that would or reasonably could contravene or cause a default by the Executive under this Agreement; (iii) the Executive has no information (including, without limitation, confidential
information and trade secrets) relating to any other Person which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his duties hereunder; (iv) the Executive is not bound by any consulting,
non-compete, non-solicitation, confidentiality, trade secret or similar agreement (other than this Agreement and the Confidentiality Agreement (as defined below)) with any other Person (other than (x) ongoing, customary confidentiality
obligations as to confidential information obtained from prior employers in the course of the Executive’s prior employment with them and (y) under agreements with prior employers, copies of which Executive represents and warrants he has
provided to the Board); (v) to the extent the Executive has any confidential or similar information that the Executive is not free to disclose to the Company, the Executive will not disclose or bring to the Company, including without
limitation, its premises, computer networks, communications or systems, computers or any other devices or accounts, any such information to the extent such disclosure or transmission would violate applicable law or any other agreement or
policy to which the Executive is a party or by which the Executive is otherwise bound; and (vi) the Executive understands the Company will rely
upon the accuracy and truth of the representations and warranties of the Executive set forth herein and the Executive consents to such reliance.
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Travel. The Executive acknowledges that the
Executive will be required to travel from time to time in the course of performing his duties for the Company.
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Period of Employment. The period of time that the
Executive is employed with the Company (the “Period of Employment”) shall be from November 21, 2023, or such other date as mutually agreed to by the parties (the “Employment Commencement Date”) and shall be without a specific term. The Company or the Executive may terminate the Executive’s employment, and the Period of Employment, pursuant to
Section 5 of this Agreement.
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Compensation.
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Base Salary. During the Period of Employment, the
Company shall pay the Executive a base salary (the “Base Salary”), which shall be paid in accordance with the Company’s regular payroll practices in effect from time to time but
not less frequently than in monthly installments. The Executive’s Base Salary shall be at an annualized rate of Five Hundred Thousand Dollars ($500,000).
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Incentive Bonus. The Executive shall be eligible to
receive an incentive bonus for each fiscal year of the Company that occurs during the Period of Employment (“Incentive Bonus”) subject to the terms and conditions of the
Company’s Annual Bonus Program. Notwithstanding the foregoing and except as otherwise expressly provided in this Agreement, the Executive must be employed by the Company at the time the Company pays incentive bonuses to employees
generally with respect to a particular fiscal year in order to earn and be eligible for an Incentive Bonus for that year (and, if the Executive is not so employed at such time, in no event shall the Executive have been considered to have
“earned” any Incentive Bonus with respect to the fiscal year). The Executive’s target Incentive Bonus amount for a particular fiscal year of the Company shall equal One Hundred Percent (100%) of the Executive’s Base Salary paid by the
Company to the Executive for that fiscal year (“Target Amount”); provided that the Executive’s actual Incentive Bonus amount for a particular fiscal year may range from zero to
Two Hundred Percent (200%) of the Target Amount as may be determined by the Board (or a committee thereof) in its sole discretion, based on performance objectives (which may include corporate, business unit or division, financial,
strategic, individual or other objectives) established with respect to that particular fiscal year by the Board (or a committee thereof). The Board (or a committee thereof) shall use good faith efforts to establish objectives for the
applicable year prior to the commencement of the first fiscal quarter of such year, but need not establish such objectives prior to the commencement of the applicable fiscal year; provided that Company management has timely provided its
draft business plan and objectives to the Board in good faith prior to the fourth quarter of the prior fiscal year, to allow the Board a reasonable opportunity to review and deliberate regarding such proposal before the commencement of
such first quarter. The Executive shall participate in the Company’s Annual Bonus Program already in place for the fiscal 2024 on a
prorated basis and the maximum Incentive Bonus amount the Executive shall be eligible to receive is seven-twelfths (7/12) of the amount the Executive would be entitled to under the Annual Bonus Program had he been employed with the
Company through the last day of the fiscal year. A copy of the Annual Bonus Program for fiscal 2024 has been provided to the Executive by the Company.
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Sign-On Bonus. The Executive shall receive a
one-time sign-on bonus of One Hundred Thirty-Six Thousand Dollars ($136,000) (“Sign-On Bonus”), which shall be subject to standard deductions and withholdings as required by law and payable in three (3) equal installments based on the
following schedule: (i) one-third (1/3) will be paid with the Company’s first payroll period following the Employment Commencement Date, (ii) one-third (1/3) will be paid with the Company’s first payroll period following six (6) months
after the Employment Commencement Date, and (iii) one-third (1/3) will be paid at the time the Incentive Bonus for fiscal 2024 is paid to the Company’s executive management team or, if no Incentive Bonus for fiscal 2024 is awarded, then
with the next pay period after the Board (or a committee thereof) makes such determination. Notwithstanding the foregoing and except as otherwise expressly provided in this Agreement, the Executive must be employed by the Company at the
time the Company pays each installment of the Sign-On Bonus in order to earn and be eligible for such installment of the Sign-On Bonus (and, if the Executive is not so employed at such time, in no event shall the Executive have been
considered to have “earned” any Sign-On Bonus with respect to that installment).
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| 3.4 |
Initial Equity Awards. The Company will grant the
Executive an award of Company stock units, with the total number of stock units awarded equal to Four Million One Hundred and Fifty Thousand Dollars ($4,150,000) divided by the average of the closing price for a share of the Company’s
common stock (in regular trading) on The Nasdaq Stock Market over the thirty consecutive trading days ending with the last trading day for which such closing price is known prior to the Employment Commencement Date (the “Award”).
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Two Million One Hundred Thousand Dollars ($2,100,000) in value of the Award (as converted to a number of stock units pursuant to the first paragraph of
this Section 3.4) shall be in the form of time-based vesting stock units (“RSUs”) and shall be evidenced by, and subject to the terms and conditions of, the form of Restricted Stock Unit
Award document the Company has provided to the Executive (the “RSU Award Agreement”) and shall vest based on the following schedule: (i) one-third (1/3) of the RSUs shall vest on November
1, 2024, (ii) one-third (1/3) of the RSUs shall vest on November 1, 2025, and (iii) one-third (1/3) of the RSUs shall vest on November 1, 2026; provided that vesting is subject in each case to the Executive’s continued employment with the Company
through the respective vesting date. If any such date is not a trading date, the RSUs scheduled to vest on such date shall vest on the first trading date thereafter. The RSUs will be awarded to the Executive not later than the first business day
of the month following the Employment Commencement Date. All other terms set forth in the RSU Award Agreement shall apply to the RSUs.
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One Million Fifty Thousand Dollars ($1,050,000) in value of the Award (as converted to a number of stock units pursuant to the first paragraph of this
Section 3.4, hereinafter the “First PSU Grant”) will be the target number of performance-based stock units (“PSUs”) and cover
the Company’s performance in fiscal 2024 through fiscal 2026 under the Company’s FY24 PSU Plan, subject to the terms and conditions of the Company’s form of Performance-Based Stock Unit Award document the Company has provided to the Executive (the
“PSU Award Agreement”). The First PSU Grant will be awarded to the Executive not later than the first business day of the month following the Employment Commencement Date. All other
terms set forth in the PSU Award Agreement shall apply to the PSUs.
One Million Dollars ($1,000,000) in value of the Award (as converted to a number of stock units pursuant to the first paragraph of this Section 3.4,
hereinafter the “Second PSU Grant”) will be the target number of performance-based stock units (“Relative TSR PSUs”) vesting
based on the Company’s relative total stockholder return over a three-year period beginning on the Employment Commencement Date, subject to the terms and conditions of the Company’s form of TSR Performance-Based Stock Unit Award document the
Company has provided to the Executive (the “Relative TSR PSU Award Agreement”). The Second PSU Grant will be awarded to the Executive not later than the first business day of the month
following the Employment Commencement Date. All other terms set forth in the Relative TSR PSU Award Agreement shall apply to the Relative TSR PSUs.
| 3.5 |
Annual Equity Awards. Additional equity awards for
the Executive during the Period of Employment, commencing with awards for fiscal year 2025, will be in the sole discretion of the Board (or a committee thereof).
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| 4. |
Benefits.
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| 4.1 |
Retirement, Welfare and Fringe Benefits. During the
Period of Employment, the Executive shall be entitled to participate in all employee retirement and welfare benefit plans and programs, and fringe benefit plans and programs, made available by the Company to the Company’s executive
officers employed in the United States generally, in accordance with the eligibility and participation provisions of such plans and as such plans or programs may be in effect from time to time. During the Period of Employment, the
Executive shall also be entitled to reimbursement of an amount not to exceed Two-Thousand Five Hundred dollars ($2,500) for an annual physical.
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| 4.2 |
Reimbursement of Business Expenses. The Executive
is authorized to incur reasonable expenses in carrying out the Executive’s duties for the Company under this Agreement and shall be entitled to reimbursement for all reasonable business expenses the Executive incurs during the Period of
Employment in connection with carrying out the Executive’s duties for the Company, subject to the Company’s expense reimbursement policies and any pre-approval policies in effect from time to time. The Executive agrees to promptly submit
and document any reimbursable expenses in accordance with the Company’s expense reimbursement policies to facilitate the timely reimbursement of such expenses. The Company’s policy for business travel is “coach class” for domestic travel
and “business class” for international travel.
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| 4.3 |
Relocation Expenses. To the extent the Executive
decides to relocate to Orange County, California, the Executive is authorized to incur up to One Hundred Thousand Dollars ($100,000) of expenses related to moving his residence to Orange County, California, including temporary apartment
rental in Orange County. If the employment is terminated or the Executive resigns pursuant to the terms of this Agreement (other than a terminated described in Section 5.3(b)) within two (2) years of the Employment Commencement Date, then
the Executive shall pay to the Company (promptly following Executive’s Severance Date (as defined below) one hundred percent (100%) of the relocation expenses paid or reimbursed by the Company pursuant to this Section 4.3. The Executive
must incur all claims for reimbursement of relocation expenses during 2024, and promptly submit to the Company customary documentation of such expenses so that they can be pair or reimbursed by the Company not later than December 31,
2024. The Executive agrees to reasonably cooperate with the Company regarding such expenses, including in connection with vendor selection.
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| 4.4 |
Holidays and Leave. The Executive shall be entitled
to holiday and leave in accordance with Company applicable policies.
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| 5. |
Termination.
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| 5.1 |
Termination by the Company or the Executive. During
the Period of Employment, the Executive shall be an employee “at-will,” meaning that the Executive or the Company may terminate the employment relationship at any time, with or without Cause, and with or without advance notice and for any
reason or no particular reason.
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| 5.2 |
Reserved.
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| 5.3 |
Benefits upon Termination. If the Executive’s
employment by the Company is terminated for any reason by the Company or by the Executive (the date that the Executive’s employment by the Company terminates is referred to as the “Severance
Date”), the Company shall have no further obligation to make or provide to the Executive, and the Executive shall have no further right to receive or obtain from the Company, any payments or benefits except as follows:
|
(a) The Company shall pay the Executive
(or, in the event of his death, the Executive’s estate) any Accrued Obligations.
6
(b) If the Executive’s employment with the
Company terminates as a result of a termination by the Company without Cause (other than due to the Executive’s death or Disability) or a resignation by the Executive for Good Reason, the Executive shall be entitled to the following benefits:
(i) The Company shall pay the Executive
(in addition to the Accrued Obligations), subject to tax withholding and other authorized deductions, an amount equal to one (1) times the Executive’s Base Salary (or, if the Severance Date occurs within a Change in Control Window, two (2)
times the Executive’s Base Salary) at the annualized rate in effect on the Severance Date. Such amount is referred to hereinafter as the “Severance Benefit.” Subject to Section
22(b), the Company shall pay the Severance Benefit to the Executive in equal monthly installments (rounded down to the nearest whole cent) over a period of twelve (12) consecutive months (or, if the Severance Date occurs during a Change in
Control Window, a period of twenty-four (24) consecutive months), with the first installment payable on (or within ten (10) days following) the sixtieth (60th) day following the Executive’s Separation from Service and to include each
such installment that was otherwise (but for such 60-day delay) scheduled to be paid following the Executive’s Separation from Service and prior to the date of such payment.
(ii) The Company will pay or reimburse
the Executive for his premiums charged to continue medical coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), at the same or reasonably equivalent
medical coverage for the Executive (and, if applicable, the Executive’s eligible dependents) as in effect immediately prior to the Severance Date, to the extent that the Executive elects such continued coverage; provided that the Company’s
obligation to make any payment or reimbursement pursuant to this clause (ii) shall, subject to Section 22(b), commence with continuation coverage for the month following the month in which the Executive’s Separation from Service occurs and
shall cease with continuation coverage for the twelfth (12th) month (or, if the Severance Date occurs during a Change in Control Window, the twenty-fourth (24th) month) following the month in which the Executive’s
Separation from Service occurs (or, if earlier, shall cease upon the first to occur of the Executive’s death, the date the Executive becomes eligible for coverage under the health plan of a future employer, or the date the Company ceases to
offer group medical coverage to its active executive employees or the Company is otherwise under no obligation to offer COBRA continuation coverage to the Executive). To the extent the Executive elects COBRA coverage, the Executive shall
notify the Company in writing of such election prior to such coverage taking effect and complete any other continuation coverage enrollment procedures the Company may then have in place. The Company’s obligations pursuant to this Section
5.3(b)(ii) are subject to the Company’s ability to comply with applicable law and provide such benefit without resulting in adverse tax consequences (such as, without limitation, rendering participation in a Company health and welfare plan
taxable to participants or resulting in unintended tax penalties for the Company).
7
(iii) The Company shall promptly pay to the
Executive any Incentive Bonus that would otherwise be paid to the Executive had his employment with the Company not terminated with respect to any fiscal year that ended before the Severance Date, to the extent not theretofore paid.
(iv) The Company shall pay, on (or within
ten (10) days following) the sixtieth (60th) day following the Executive’s Separation from Service, an amount in cash equal to one hundred percent (100%) of the Target Amount of the Incentive Bonus for the fiscal year in which the
Severance Date occurs (or, if the Severance Date occurs within a Change in Control Window, two hundred percent (200%) of the Target Amount of the Incentive Bonus for the fiscal year in which the Severance Date occurs).
(v) (A) As to each then-outstanding
equity-based award granted by the Company to the Executive that vests based solely on the Executive’s continued service with the Company and unless otherwise expressly provided in the applicable award agreement, the Executive shall vest as of
the Severance Date in any portion of such award in which the Executive would have vested thereunder if the Executive’s employment with the Company had continued for twelve (12) months after the Severance Date (and any portion of such award that
is not vested after giving effect to this acceleration provision shall terminate on the Severance Date). (B) Each outstanding equity-based award granted by the Company to the Executive that is subject to performance-based vesting requirements
(whether financial performance, based on absolute or relative total stockholder return, or otherwise) shall be treated as provided in the applicable award agreement. (C) Notwithstanding the foregoing, if the Severance Date occurs within a
Change in Control Window and in each case unless otherwise expressly provided in the applicable award agreement, (i) each equity-based award granted by the Company to the Executive that vests based solely on the Executive’s continued service
with the Company, to the extent then outstanding and unvested, shall be fully vested as of the Severance Date, and (ii) any service-based vesting requirement under each outstanding stock option or other equity-based award granted by the Company
to the Executive that is subject to performance-based vesting requirements shall be deemed satisfied in full as of the Severance Date (for clarity, the performance-based vesting measurement shall still apply and shall be treated as provided in
the applicable award agreement).
8
If the Executive is entitled to benefits provided for in this Section 5.3(b), the Severance Date occurs prior to a Change in Control Event, and a
Change in Control Event occurs such that the Severance Date occurred within the applicable Change in Control Window, any additional amount due to the Executive pursuant to this Section 5.3(b) by virtue of the Severance Date occurring within a
Change in Control Window that would have otherwise (as provided above) been required to have been paid prior to the Change in Control Event shall be paid on or within ten (10) days following the Change in Control Event. For purposes of clarity, if
the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason, and any stock option or other equity-based award granted to the Executive by the Company, to the extent such award is outstanding and
unvested on the Severance Date and otherwise purports to terminate on the Severance Date, such termination of the award shall not be effective (subject, in all events, to the original maximum term of the award) until the later of (a) the end of the
60-day period following the Severance Date and (b) if a definitive agreement with respect to a Change in Control Event transaction was entered into prior to the Severance Date, one year following the execution of such agreement, and, if a Change in
Control Event occurs within such period of time, such termination of the award shall (subject to the original maximum term of the award) not be effective and such award shall be subject to the accelerated vesting rules set forth above in this
Section 5.3(b), and, in the case of stock options or similar awards, the Executive shall be given a reasonable opportunity to exercise such accelerated portion of the option or other award before it terminates.
(c) If the Executive’s employment with the
Company terminates during the Period of Employment as a result of the Executive’s death or Disability, the Company shall pay the Executive the amounts contemplated by Section 5.3(b)(iii) and (iv) (in addition to the Accrued Obligations).
(d) Notwithstanding the foregoing provisions
of this Section 5.3, if the Executive materially breaches his ongoing obligations under the Confidentiality Agreement or under this Agreement at any time, from and after the date of such breach and not in any way in limitation of any right or
remedy otherwise available to the Company, the Executive will no longer be entitled to, and the Company will no longer be obligated to pay, any remaining unpaid portion of the Severance Benefit or any remaining unpaid amount contemplated by
Section 5.3(b)(iii) or 5.3(b)(iv), or to any continued Company-paid or reimbursed coverage pursuant to Section 5.3(b)(ii); provided that, if the Executive provides the Release contemplated by Section 5.4, in no event shall the Executive be
entitled to benefits pursuant to Section 5.3(b) of less than $5,000 (or the amount of such benefits, if less than $5,000), which amount the parties agree is good and adequate consideration, in and of itself, for the Executive’s Release
contemplated by Section 5.4.
(e) The foregoing provisions of this Section
5.3 shall not affect: (i) the Executive’s receipt of benefits otherwise due to terminated employees under group insurance coverage consistent with the terms of the applicable Company welfare benefit plan; (ii) the Executive’s rights under COBRA
to continue health coverage; or (iii) the Executive’s receipt of benefits otherwise due in accordance with the terms of the Company’s 401(k) plan (if any).
9
| 5.4 |
Release; Resignations; No Other Severance; Leave.
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(a) This Section 5.4 shall apply
notwithstanding anything else contained in this Agreement or any stock option or other equity-based award agreement to the contrary. As a condition precedent to any Company obligation to the Executive pursuant to Section 5.3(b) or any other
obligation to accelerate vesting of any equity-based award in connection with the termination of the Executive’s employment, the Executive shall provide the Company with a valid, executed general release agreement in substantially the form
attached hereto as Exhibit A (with such changes thereto as the Company may make, consistent with the intent of such release, to address changes in the law or to otherwise help ensure
the validity and enforceability of the agreement) provided by the Company (the “Release”), and such Release shall have not been revoked by the Executive pursuant to any revocation
rights afforded by applicable law. The Company shall provide the form of Release to the Executive not later than seven (7) days following the Severance Date, and the Executive shall be required to execute and return the Release to the Company
within twenty-one (21) days (or forty-five (45) days if such longer period of time is required to make the Release maximally enforceable under applicable law) after the Company provides the form of Release to the Executive.
(b) The Company and the Executive
acknowledge and agree that there is no duty of the Executive to mitigate damages under this Agreement. All amounts paid to the Executive pursuant to Section 5.3 shall be paid without regard to whether the Executive has taken or takes actions
to mitigate damages. The Executive agrees to resign (and hereby does so resign), effective on the Severance Date, as an officer and director of the Company and any Affiliate of the Company, and as a fiduciary of any benefit plan of the Company
or any Affiliate of the Company. The Executive further agrees to promptly execute and provide to the Company any further documentation, as requested by the Company, to confirm such resignations, and to remove himself as a signatory on any
accounts maintained by the Company or any of its Affiliates (or any of their respective benefit plans).
(c) The Executive shall not be entitled to
severance benefits pursuant to any other severance plan, policy or arrangement of the Company or any of its Affiliates. Without limiting the generality of the foregoing, the Executive shall not participate in the Company’s Executive Change in
Control Retention Plan, or any successor executive severance plan of the Company, as any of them may be amended from time to time.
(d) In the event that the Company provides
the Executive notice of termination of the Executive’s employment with a delayed effective date, the Company will have the option to place the Executive on paid administrative leave during the notice period. In the event that the Executive
provides the Company notice of termination of the Executive’s employment with a delayed effective date, the Company will have the option to place the Executive on paid administrative leave during the notice period or to make the effective date
of such termination immediate.
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| 5.5 |
Certain Defined Terms.
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(a) As used herein, “Accrued Obligations” means:
(i) any Base Salary that had accrued but
had not been paid (including accrued and unpaid vacation time) on or before the Severance Date; and
(ii) any reimbursement due to the
Executive pursuant to Section 4.2 (and, if the termination of employment is a termination described in Section 5.3(b), Section 4.3) for expenses reasonably incurred by the Executive on or before the Severance Date and documented and
pre-approved, to the extent applicable, in accordance with the Company’s expense reimbursement policies in effect at the applicable time.
(b) As used herein, “Affiliate” of the Company means a Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company. As
used in this definition, the term “control,” including the correlative terms “controlling,” “controlled by” and “under common control with,” means the possession, directly or indirectly, of the power to direct or cause the direction of
management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person.
(c) As used herein, “Cause” shall mean that one or more of the following has occurred (as to any termination of employment that occurs outside of a Change in Control Window, as reasonably determined by the
Board (excluding the Executive, if he is then a member of the Board) based on the information then known to it:
(i) the Executive is convicted of, pled
guilty or pled nolo contendere to a felony (other than traffic related offenses not involving serious bodily injury) or any crime involving fraud or dishonesty (in each
case, under the laws of the United States or any relevant state, or a similar crime or offense under the applicable laws of any relevant foreign jurisdiction);
(ii) the Executive has engaged in acts of
fraud, dishonesty or other acts of willful misconduct in the course of his duties hereunder;
(iii) the Executive willfully fails to
perform or uphold his duties under this Agreement and/or willfully fails to comply with reasonable directives of the Board and/or Executive breaches his fiduciary duty to the Company or its stockholders; or
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(iv) a material breach by the Executive of
this Agreement, the Confidentiality Agreement, or any other contract he is a party to with the Company or any of its Affiliates or any written policy of the Company or any of its Affiliates that is applicable to Company executives or employees
generally;
provided, however, that any condition or conditions, as applicable, referenced in clause (iii) or clause (iv) above shall not (if a cure is reasonably
possible in the circumstances) constitute Cause unless both (x) the Company provides written notice to the Executive of such condition(s) claimed to constitute Cause (such notice to be delivered in accordance with Section 18), and (y) the Executive
fails to remedy such condition(s) within thirty (30) days of receiving such written notice thereof. For purposes of the foregoing definition of Cause, no act or failure to act, on the Executive’s part shall be considered “willful” unless done, or
omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company.
(d) As used herein, “Change in Control Event” shall mean any of the following:
| (i) |
The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of either (1) the then-outstanding shares of common stock of the Company
(the “Outstanding Company Common Stock”) or (2) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this paragraph (i), the following acquisitions shall not constitute a Change in
Control Event; (A) any acquisition directly from the Company or an Affiliate, (B) any acquisition by the Company or an Affiliate, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or
any Affiliate of the Company or a successor, or (D) any acquisition by any entity pursuant to a transaction that complies with Sections (iii)(1), (2) and (3) below; further provided that if such an acquisition of 30% or more of the
Outstanding Company Common Stock and/or Outstanding Company Voting Securities was specifically approved in advance by the Board, the reference to “30%” in this clause (i) shall instead be “50%”;
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| (ii) |
A change in the Board or its members such that individuals who, as of the Employment Commencement Date, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Employment Commencement Date whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (including for these purposes, the new members whose election or nomination was so approved, without counting the member and
his predecessor twice) shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;
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| (iii) |
Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any corporation or other entity a majority of whose
outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company (a “Subsidiary”), a sale or other disposition of all or substantially all of
the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its Subsidiaries (each, a “Business Combination”), in each case unless,
following such Business Combination, (1) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all
of the Company’s assets directly or through one or more subsidiaries (a “Parent”)), in substantially the same proportions as their ownership immediately prior to such Business
Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such Business Combination or a Parent or any employee benefit plan (or
related trust) of the Company or such entity resulting from such Business Combination or Parent) beneficially owns, directly or indirectly, thirty percent (30%) or more
of, respectively, the then-outstanding shares of common stock of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such entity, except to the extent that the
ownership in excess of thirty percent (30%) existed prior to the Business Combination, and (3) at least a majority of the members of the board of directors or trustees
of the entity resulting from such Business Combination or a Parent were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or
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13
| (iv) |
Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company other than in the context of a transaction that does not constitute a Change in Control Event
under clause (iii) above;
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provided, however, that a transaction shall not constitute a Change in Control Event unless it is a “change in the ownership or effective control” of
the Company, or a change “in the ownership of a substantial portion of the assets” of the Company within the meaning of Section 409A of the Code. Notwithstanding the foregoing, in no event shall a transaction or other event that occurred prior to
the Employment Commencement Date constitute a Change in Control Event.
(e) As used herein, “Change in Control Window” means the period (i) beginning on the earlier of (a) 60 days prior to a Change in Control transaction or (b) the execution of a definitive agreement to effect a
transaction that, if consummated in accordance with the proposed terms, would constitute a Change in Control transaction, provided that the transaction with the party to the definitive agreement is actually consummated within one year following
the execution of such definitive agreement and such transaction actually constitutes a Change in Control, and (ii) ending on the second anniversary of such Change in Control.
(f) As used herein, “Disability” shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Executive unable to perform the essential functions of his employment with
the Company, even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 120days in any 180-day period, unless a longer period is required by federal or state law, in which case that longer period
would apply. The Executive agrees to reasonably cooperate with the Board in making any such determination as to the existence of Disability.
(g) As used herein, “Good Reason” shall mean the occurrence (without the Executive’s consent) of any one or more of the following conditions:
| (i) |
a material reduction by the Company of the Executive’s duties, title, position or responsibilities relative to the Executive’s duties, title, position or responsibilities in effect immediately
prior to such reduction;
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14
| (ii) |
a reduction by the Company of the Executive’s rate of Base Salary or target level of Incentive Bonus as in effect immediately prior to such reduction, unless such reduction is part of an
across-the-board reduction in the salary level of all other executive officers of the Company employed in the United States by the same percentage amount; or
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(iii)
|
a material breach by the Company of this Agreement;
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provided, however, that any such condition or conditions, as applicable, shall not constitute Good Reason unless both (x) the Executive provides
written notice to the Company of the condition claimed to constitute Good Reason within sixty (60) days of the initial existence of such condition(s) (such notice to be delivered in accordance with Section 18), and (y) the Company fails to remedy
such condition(s) within thirty (30) days of receiving such written notice thereof; and provided, further, that in all events the termination of the Executive’s employment with the Company shall not constitute a termination for Good Reason unless
such termination occurs not more than one hundred and twenty (120) days following the initial existence of the condition claimed to constitute Good Reason.
(h) As used herein, the term “Person” shall be construed broadly and shall include, without limitation, an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a
trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.
(i) As used herein, a “Separation from Service” occurs when the Executive dies, retires, or otherwise has a termination of employment with the Company that constitutes a “separation from service” within the
meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder.
| 5.6. |
Notice of Termination; Employment Following Expiration of Period of Employment. Any termination of the Executive’s employment under this Agreement shall be communicated by written notice of termination from the terminating party to the other party. This notice of termination must be
delivered in accordance with Section 18 and must indicate the specific provision(s) of this Agreement (e.g., with Cause, without Cause, with Good Reason, or without Good Reason) relied upon in effecting the termination.
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15
| 5.7 |
Limitation on Benefits.
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(a) Notwithstanding anything contained in
this Agreement to the contrary, to the extent that the payments and benefits provided under this Agreement and benefits provided to, or for the benefit of, the Executive under any other Company plan or agreement (such payments or benefits are
collectively referred to as the “Benefits”) would be subject to the excise tax (the “Excise Tax”) imposed under Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”), the Benefits shall be reduced (but not below zero) if and to the extent that a reduction in the Benefits would result in
the Executive retaining a larger amount, on an after-tax basis (taking into account federal, state and local income taxes and the Excise Tax), than if the Executive received all of the Benefits (such reduced amount is referred to hereinafter as
the “Limited Benefit Amount”). Unless the Executive elects a different order of reduction, any such election to be consistent with the requirements of Section 409A of the Code, to the
extent that a reduction in payments or benefits is required pursuant to this Section 5.7(a), the Company shall reduce or eliminate amounts which are payable first from any cash severance and cash bonuses, then from any payment in respect of an
equity award that is not covered by Treas. Reg. Section 1.280G-1 Q/A-24(b) or (c), then from any payment in respect of an equity award that is covered by Treas. Reg. Section 1.280G-1 Q/A-24(c), in each case in reverse order beginning with
payments or benefits which are to be paid the farthest in time from the Determination (as defined below). Any election given by the Executive pursuant to the preceding sentence shall take precedence over the provisions of any other plan,
arrangement or agreement governing the Executive’s rights and entitlements to any benefits or compensation. Nothing in this Section 5.7(a) shall require the Company or any of its affiliates to be responsible for, or have any liability or
obligation with respect to, Executive’s excise tax liabilities under Section 4999 of the Code so long as this Section 5.7(a) is correctly applied by the Company.
(b) A determination as to whether the
Benefits shall be reduced to the Limited Benefit Amount pursuant to this Agreement and the amount of such Limited Benefit Amount shall be made by the Company’s independent public accountants or another certified public accounting firm or
executive compensation consulting firm of national reputation designated by the Company (the “Firm”) at the Company’s expense. The Firm shall provide its determination (the “Determination”), together with detailed supporting calculations (including the value of any post-termination non-compete and other obligations of the Executive taken into account for
purposes of the Determination) and documentation to the Company and the Executive within ten (10) business days of the date of termination of the Executive’s employment, if applicable, or such other time as reasonably requested by the Company
or the Executive (provided the Executive reasonably believes that any of the Benefits may be subject to the Excise Tax), and if the Firm determines that no Excise Tax is payable by the Executive with respect to any Benefits, it shall furnish
the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to any such Benefits. Unless the Executive provides written notice to the Company within ten (10) business days of the
delivery of the Determination to the Executive that the Executive disputes such Determination, the Determination shall be binding, final and conclusive upon the Company and the Executive.
16
| 6. |
Confidentiality and Indemnification Agreements.
Concurrently herewith, the Executive shall execute and deliver to the Company a Confidential Information, and Invention Assignment Agreement in the form attached hereto as Exhibit B
(the “Confidentiality Agreement”). No later than on the Employment Commencement Date, the Company shall also offer the Executive the opportunity to enter into the Company’s
standard form of Amended and Restated Indemnification Agreement for Directors and Executive Officers (“Indemnification Agreement”).
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| 7. |
Withholding Taxes. Notwithstanding anything else
herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such federal, state and local income, employment, or other
taxes as may be required to be withheld pursuant to any applicable law or regulation. Except for such withholding rights, the Executive is solely responsible for any and all tax liability that may arise with respect to the compensation
provided under or pursuant to this Agreement.
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| 8. |
Successors and Assigns.
(a) This
Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s legal representatives.
(b) This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Without limiting the generality of the preceding sentence, the Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume this Agreement. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor or assignee, as applicable, which assumes and agrees to perform this Agreement by operation of law or otherwise.
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| 9. |
Number and Gender; Examples. Where the context
requires, the singular shall include the plural, the plural shall include the singular, and any gender shall include all other genders. Where specific language is used to clarify by example a general statement contained herein, such
specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.
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| 10. |
Section Headings. The section headings of, and
titles of paragraphs and subparagraphs contained in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.
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| 11. |
Governing Law. This Agreement will be governed by
and construed in accordance with the laws of the state of California, without giving effect to any choice of law or conflicting provision or rule (whether of the state of California or any other jurisdiction) that would cause the laws of
any jurisdiction other than the state of California to be applied. In furtherance of the foregoing, the internal law of the state of California will control the interpretation and construction of this Agreement, even if under such
jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.
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17
| 12. |
Severability. It is the desire and intent of the
parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision
of this Agreement shall be adjudicated by a court of competent jurisdiction or determined by an arbitrator pursuant to Section 16 to be invalid, prohibited or unenforceable under any present or future law, and if the rights and
obligations of any party under this Agreement will not be materially and adversely affected thereby, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or
affecting the validity or enforceability of such provision in any other jurisdiction, and to this end the provisions of this Agreement are declared to be severable; furthermore, in lieu of such invalid or unenforceable provision there
will be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible. Notwithstanding the foregoing, if such provision could
be more narrowly drawn (as to geographic scope, period of duration or otherwise) so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the
remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
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| 13. |
Entire Agreement. This Agreement, the
Confidentiality Agreement and the Indemnification Agreement (together, the “Integrated Agreement”) embody the entire agreement of the parties hereto respecting the matters within
its scope. The Integrated Agreement supersedes all prior and contemporaneous agreements of the parties hereto that directly or indirectly bears upon the subject matter hereof. Any prior negotiations, correspondence, agreements,
proposals or understandings relating to the subject matter hereof shall be deemed to have been merged into the Integrated Agreement, and to the extent inconsistent herewith, such negotiations, correspondence, agreements, proposals, or
understandings shall be deemed to be of no force or effect. There are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject matter hereof, except as expressly set forth
in the Integrated Agreement.
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| 14. |
Modifications. This Agreement may not be amended,
modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.
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| 15. |
Waiver. Neither the failure nor any delay on the
part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect
to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.
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18
| 16. |
Arbitration. Except as provided in Section 17 and
in the Confidentiality Agreement, any non-time barred, legally actionable controversy or claim arising out of or relating to this Agreement, its enforcement, arbitrability or interpretation, or because of an alleged breach, default, or
misrepresentation in connection with any of its provisions, or any other non-time barred, legally actionable controversy or claim arising out of or relating to the Executive’s employment or association with the Company or termination of
the same, including, without limiting the generality of the foregoing, any alleged violation of state or federal statute, common law or constitution, shall be submitted to individual, final and binding arbitration, to be held in Orange County, California, before a single arbitrator selected from Judicial Arbitration and Mediation Services, Inc. (“JAMS”),
in accordance with the then-current JAMS Arbitration Rules and Procedures for employment disputes, as modified by the terms and conditions in this Section (which may be found at www.jamsadr.com under the Rules/Clauses tab). The parties
will select the arbitrator by mutual agreement or, if the parties cannot agree, then by obtaining a list of nine qualified arbitrators supplied by JAMS from their labor and employment law panel, with each party confidentially submitting a
“rank and strike” list that ranks in order of priority six arbitrators and strikes three arbitrators, and the most favored arbitrator based on the cumulative rankings who was not struck by either party shall be appointed arbitrator.
Final resolution of any dispute through arbitration may include any remedy or relief that is provided for through any applicable state or federal statutes, or common law. Statutes of limitations shall be the same as would be applicable
were the action to be brought in court. The arbitrator selected pursuant to this Agreement may order such discovery as is necessary for a full and fair exploration of the issues and dispute, consistent with the expedited nature of
arbitration. At the conclusion of the arbitration, the arbitrator shall issue a written decision that sets forth the essential findings and conclusions upon which the arbitrator’s award or decision is based. Any award or relief granted
by the arbitrator under this Agreement shall be final and binding on the parties to this Agreement and may be enforced by any court of competent jurisdiction. The Company will pay those arbitration costs that are unique to arbitration,
including the arbitrator’s fee (recognizing that each side bears its own deposition, witness, expert and attorneys’ fees and other expenses to the same extent as if the matter were being heard in court). If, however, any party prevails
on a statutory claim, which affords the prevailing party attorneys’ fees and costs, then the arbitrator may (to the extent required by law in order for this arbitration provision to be enforceable) award reasonable fees and costs to the
prevailing party. The arbitrator may not award attorneys’ fees to a party that would not otherwise be entitled to such an award under the applicable statute (for clarity, the arbitrator may not award attorneys’ fees for contractual
claims). The arbitrator shall resolve any dispute as to the reasonableness of any fee or cost. Except as provided in the Confidentiality Agreement, the parties
acknowledge and agree that they are hereby waiving any rights to trial by jury or a court in any action or proceeding brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any
way connected with this Agreement or the Executive’s employment.
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| 17. |
Remedies. Each of
the parties to this Agreement and any Person granted rights hereunder whether or not such person or entity is a signatory hereto shall be entitled to enforce its rights under this Agreement specifically to recover damages and costs for
any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this
Agreement and that each party (as well as each other Person granted rights hereunder) may in its sole discretion obtain permanent injunctive or equitable relief in any arbitration filed pursuant to Section 16 and enforce any such relief
awarded by the arbitrator in any court of competent jurisdiction. In addition, each party may also apply to any court of law or equity of competent jurisdiction for provisional injunctive or equitable relief, including a temporary
restraining or preliminary injunction (without any requirement to post any bond or deposit), to ensure that the relief sought in arbitration is not rendered ineffectual by interim harm. Each party shall be responsible for paying its own
attorneys’ fees, costs and other expenses pertaining to any such legal proceeding and enforcement regardless of whether an award or finding or any judgment or verdict thereon is entered against either party.
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| 18. |
Notices. Any notice provided for in this Agreement
must be in writing and must be either personally delivered by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated
or at such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder and received when delivered
personally, when received if transmitted via telecopier, five days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service.
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if to the Company:
Lantronix, Inc.
48 Discovery, Suite 250
Irvine, CA 92618
Attention: Chief Financial Officer
if to the Executive, to the address most recently on file in the payroll records of the Company.
| 19. |
Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one
or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for
any purpose.
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| 20. |
Legal Counsel; Mutual Drafting. Each party
recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice. Each party has cooperated in the drafting, negotiation and preparation of
this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such language. The Executive agrees and acknowledges that he
has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering into this Agreement and has had ample opportunity to do so.
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| 21. |
Clawback Policy. Any amounts awarded or payable
pursuant to this Agreement are subject to the terms of the Company’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain
circumstances require repayment or forfeiture of awards or other compensation (or cash, shares or other property received pursuant to awards, or value received from a disposition or such shares or other property). The Executive agrees to
comply with, and promptly repay to the Company any amounts that are required to be repaid pursuant to, such policy.
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| 22. |
Section 409A.
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(a) It is intended that any amounts
payable under this Agreement shall either be exempt from or comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) (“Code Section
409A”) so as not to subject the Executive to payment of any additional tax, penalty or interest imposed under Code Section 409A. The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any
such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Executive. Any installment payments provided for in this Agreement shall be treated
as a series of separate payments for purposes of Code Section 409A.
(b) If the Executive is a “specified
employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive’s Separation from Service, the Executive shall not be entitled to any payment or benefit pursuant to Section 5.3(b) or (c) until the earlier
of (i) the date which is six (6) months after the Executive’s Separation from Service for any reason other than death, or (ii) the date of the Executive’s death. The provisions of this Section 22(b) shall only apply if, and to the extent,
required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A. Any amounts otherwise payable to the Executive upon or in the six (6) month period following the Executive’s Separation from Service that are not
so paid by reason of this Section 22(b) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Executive’s Separation from Service (or, if earlier, as
soon as practicable, and in all events within thirty (30) days, after the date of the Executive’s death).
(c) To the extent that any benefits
pursuant to Section 5.3(b)(ii) or reimbursements pursuant to Section 4.2 are taxable to the Executive, any reimbursement payment due to the Executive pursuant to any such provision shall be paid to the Executive on or before the last day of the
Executive’s taxable year following the taxable year in which the related expense was incurred. The benefits and reimbursements pursuant to such provisions are not subject to liquidation or exchange for another benefit and the amount of such
benefits and reimbursements that the Executive receives in one taxable year shall not affect the amount of such benefits or reimbursements that the Executive receives in any other taxable year.
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IN WITNESS WHEREOF, the Company
and the Executive have executed this Agreement as of the Signing Date.
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“COMPANY”
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Lantronix, Inc.,
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a Delaware corporation
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By:
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/s/ Jeremy Whitaker
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Name:
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Jeremy Whitaker
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Title:
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Interim Chief Executive Officer and Chief Financial Officer
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“EXECUTIVE”
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/s/ Saleel Awsare
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Saleel Awsare
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EXHIBIT A
FORM OF RELEASE
1. Release. Saleel Awsare (“Executive”), on Executive’s own behalf and on behalf of Executive’s descendants, dependents, heirs, executors, administrators,
assigns and successors, and each of them, hereby acknowledges full and complete satisfaction of and releases and discharges and covenants not to sue Lantronix, Inc. (the “Company”),
its divisions, subsidiaries, parents, or affiliated corporations, past and present, and each of them, as well as its and their assignees, successors, directors, officers, stockholders, partners, representatives, attorneys, agents or employees,
past or present, or any of them (individually and collectively, “Releasees”), from and with respect to any and all claims, agreements, obligations, demands and causes of action, known
or unknown, suspected or unsuspected, arising out of or in any way connected with Executive’s employment or any other relationship with or interest in the Company or the termination thereof, including without limiting the generality of the
foregoing, any claim for severance pay, profit sharing, bonus or similar benefit, pension, retirement, life insurance, health or medical insurance or any other fringe benefit, or disability, or any other claims, agreements, obligations, demands
and causes of action, known or unknown, suspected or unsuspected resulting from any act or omission by or on the part of Releasees committed or omitted prior to the date of this General Release Agreement (this “Agreement”) set forth below, including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Family and Medical Leave
Act, the California Fair Employment and Housing Act, California Labor Code Section 132a, the California Family Rights Act, or any other federal, state or local law, regulation, ordinance, constitution or common law (collectively, the “Claims”); provided, however, that the foregoing release does not apply to any obligation of the Company to Executive pursuant to any of the following: (1) Section 5.3 of the Employment
Agreement dated as of October 31, 2023 by and between the Company and Executive (the “Employment Agreement”); (2) any equity-based awards previously granted by the Company to
Executive, to the extent that such awards continue after the termination of Executive’s employment with the Company in accordance with the applicable terms of such awards; (3) any right to indemnification that Executive may have pursuant to the
Company’s bylaws, its corporate charter or under any written indemnification agreement with the Company (or any corresponding provision of any subsidiary or affiliate of the Company) with respect to any loss, damages or expenses (including but
not limited to attorneys’ fees to the extent otherwise provided) that Executive may in the future incur with respect to Executive’s service as an employee, officer or director of the Company or any of its subsidiaries or affiliates; (4) with
respect to any rights that Executive may have to insurance coverage for such losses, damages or expenses under any Company (or subsidiary or affiliate) directors and officers liability insurance policy; (5) any rights to continued medical and
dental coverage that Executive may have under COBRA; (6) any rights to payment of benefits that Executive may have under a retirement plan sponsored or maintained by the Company that is intended to qualify under Section 401(a) of the Internal
Revenue Code of 1986, as amended; or (7) any deferred compensation that Executive may be entitled to under a nonqualified deferred compensation plan of the Company. In
addition, this release does not cover any Claim that cannot be so released as a matter of applicable law. Notwithstanding anything to the contrary herein, nothing in this Agreement prohibits Executive from filing a charge with or participating
in an investigation conducted by any state or federal government agencies. However, Executive does waive, to the maximum extent permitted by law, the right to receive any monetary or other recovery, should any agency or any other person pursue
any claims on Executive’s behalf arising out of any claim released pursuant to this Agreement. For clarity, and as required by law, such waiver does not prevent Executive from
accepting a whistleblower award from the Securities and Exchange Commission pursuant to Section 21F of the Securities Exchange Act of 1934, as amended. Executive acknowledges and agrees that he has received any and all leave and
other benefits that he has been and is entitled to pursuant to the Family and Medical Leave Act of 1993.
A-1
2. Acknowledgement of Payment of Wages. Executive acknowledges that the Executive has received all amounts owed for his regular and usual salary (including, but not limited to, any bonus, incentive or other wages), and
usual benefits through the date of this Agreement.
3. Waiver of Unknown Claims. This Agreement is intended to be effective as a general release of and bar to each and every Claim hereinabove specified. Accordingly, Executive hereby expressly waives any rights and
benefits conferred by Section 1542 of the California Civil Code and any similar provision of any other applicable state law as to the Claims. Section 1542 of the California Civil Code provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
Executive acknowledges that the Executive later may discover claims, demands, causes of action or facts in addition to or different from those which Executive now knows
or believes to exist with respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this Agreement, may have materially affected its terms. Nevertheless, Executive hereby waives, as to the Claims,
any claims, demands, and causes of action that might arise as a result of such different or additional claims, demands, causes of action or facts.
4. ADEA Waiver. Executive expressly acknowledges and agrees that by entering into this Agreement, Executive is waiving any and all rights or claims that
he may have arising under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), and that this waiver and release is knowing and voluntary. Executive and the Company agree that this waiver and release does not
apply to any rights or claims that may arise under the ADEA after the date Executive signs this Agreement. Executive further expressly acknowledges and agrees that:
(a) In return for this Agreement, Executive will receive consideration beyond that which he was already entitled to receive before executing this Agreement;
(b) Executive is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement;
(c) Executive was given a copy of this Agreement on [_________, 202__], and informed that he had [twenty-one (21)] days within which to consider this Agreement and that if he wished to execute this Agreement prior to the expiration of such [21]-day period he will have done so voluntarily and with full knowledge that Executive is waiving his right to have [twenty-one
(21)] days to consider this Agreement; and that such [twenty-one (21)] day period to consider this Agreement would not and will not be re-started or extended based on any changes, whether material or immaterial, that are or were made to this Agreement in such [twenty-one (21)] day period after Executive received it;
A-2
(d) Executive was informed that he had seven (7) days following the date of execution of this Agreement in which to revoke this Agreement, and this Agreement will become null and void if Executive elects revocation during that time. Any
revocation must be in writing and must be received by the Company during the seven-day revocation period. In the event that Executive exercises this revocation right, neither the Company nor Executive will have any obligation under this
Agreement. Any notice of revocation should be sent by Executive in writing to the Company (attention [_____________]), [Address], so that it is received within the seven-day period following execution of this Agreement by Executive.
(e) Nothing in this
Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically
authorized by federal law.
5. No Transferred Claims. Executive represents and warrants to the Company that Executive has not heretofore assigned or transferred to any person not a party to this Agreement any released matter or any part or portion
thereof.
6. Miscellaneous. The following provisions shall apply for purposes of this Agreement:
(a) Number and Gender. Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender shall
include all other genders.
(b) Section Headings. The section headings of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purpose of
convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.
(c) Governing Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, as well as the legal
relations hereby created between the parties hereto, shall be governed by and construed under, and interpreted and enforced in accordance with, the laws of the State of California, notwithstanding any California or other conflict of law
provision to the contrary.
(d) Severability. If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or
applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.
(e) Modifications. This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement
expressly referring to this Agreement, which agreement is executed by both of the parties hereto.
(f) Waiver. No waiver of any breach of any term or provision of this Agreement shall be construed to be, nor shall be, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and
signed by the party waiving the breach.
(g) Arbitration. Any controversy arising out of or relating to this Agreement shall be submitted to arbitration in accordance with the arbitration
provisions of the Employment Agreement.
(h) Counterparts. This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original.
Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.
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The undersigned have read and understand the consequences of this Agreement and voluntarily sign it. The undersigned declare under penalty of perjury
under the laws of the State of California that the foregoing is true and correct.
EXECUTED this ________ day of ________ 20___, at ______________________ County, __________.
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“EXECUTIVE”
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Saleel Awsare
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EXECUTED this ________ day of ________ 20___, at ______________________ County, __________.
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“COMPANY”
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LANTRONIX, INC.
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By:
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[Name]
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[Title]
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A-4
Exhibit 99.1
Lantronix Appoints Saleel Awsare as President and CEO
Synaptics Senior Vice President and General Manager to Join Lantronix Effective November 20, 2023
IRVINE, Calif., Nov. 6, 2023 — Lantronix Inc. (NASDAQ: LTRX), a global provider of secure turnkey solutions
for the Industrial Internet of Things (IoT) and the Intelligent IT market, today announced that Saleel Awsare will be joining Lantronix as President and CEO of the company, effective Nov. 20, 2023.
Awsare comes to Lantronix from Synaptics Inc., a leading provider of semiconductor products worldwide, where he has most recently served as senior vice president and
general manager of its Enterprise and Mobile Division, its largest division. After joining Synaptics in 2017, Awsare was an integral part of Synaptics’s pivot from Mobile to the IoT and enterprise markets, a move that proved instrumental in driving
its multi-fold increase in market valuation.
Between 2012 and 2017, prior to his tenure at Synaptics, Awsare served in several senior roles including president of Conexant Systems, LLC. There, he successfully
positioned Conexant as a market leader in audio and voice technologies, resulting in its successful acquisition in 2017 by Synaptics. From 2008 to 2012, Awsare was president of Nuvoton Technology Corporation America, where he was responsible for
U.S.-based operations.
Awsare said, “Like many in the industry, I have watched the transformation of Lantronix over the last four years. I am honored and excited to join the team and to help
drive the execution of the company’s growth strategy that will continue to leverage key customer engagements with industry-leading technologies, complemented with accretive acquisitions.”
Jason Cohenour, interim chairman of Lantronix’s board of directors, stated, “After an extensive search, the Board selected Saleel Awsare because of his comprehensive
knowledge of the enterprise, mobile and IoT markets as well as his incredible track record in leading growth and profitability. I am confident that Saleel will lead Lantronix to its next level of growth and value creation and look forward to
working with him.”
About Lantronix
Lantronix Inc. is a global Industrial and Enterprise Internet of Things (IoT) provider of solutions that target high-growth applications in specific vertical markets,
including Smart Grid, Intelligent Transportation, Smart Cities and AI Data Centers. Lantronix’s history in networking and video processing as well as its leading-edge applications include Intelligent Substations infrastructure, Infotainment systems
and Video Surveillance, supplemented with comprehensive Out of Band Management (OOB) solutions for Cloud and Edge Computing.
Lantronix’s solutions empower companies to achieve success in the growing IoT and OOB markets by delivering customizable solutions that address each layer of the IoT
Stack, including Collect, Connect, Compute, Control and Comprehend. For more information, visit the Lantronix website.
Learn more at the Lantronix blog, which features industry discussion and updates. Follow Lantronix on Twitter, view its YouTube video library or connect on LinkedIn.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth in this news release that are not entirely historical and
factual in nature, including without limitation statements related to our solutions, technologies and products and expectations regarding our management and our future growth and profitability. These forward-looking statements are based on our
current expectations and are subject to substantial risks and uncertainties that could cause our actual results, future business, financial condition, or performance to differ materially from our historical results or those expressed or implied in
any forward-looking statement contained in this news release. The potential risks and uncertainties include, but are not limited to, such factors as the effects of negative or worsening regional and worldwide economic conditions or market
instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to the COVID-19 pandemic or other outbreaks, wars and recent
tensions in Europe, Asia and the Middle East, or other factors; future responses to and effects of public health crises; cybersecurity risks; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to
successfully implement our acquisitions strategy or integrate acquired companies; difficulties and costs of protecting patents and other proprietary rights; the level of our indebtedness, our ability to service our indebtedness and the restrictions
in our debt agreements; and any additional factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 12, 2023, including in the section
entitled “Risk Factors” in Item 1A of Part I of such report, as well as in our other public filings with the SEC. Additional risk factors may be identified from time to time in our future filings. The forward-looking statements included in this
release speak only as of the date hereof, and we do not undertake any obligation to update these forward-looking statements to reflect subsequent events or circumstances.
© 2023 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.
# # #
Lantronix Media Contact:
Gail Kathryn Miller
Corporate Marketing &
Communications Manager
media@lantronix.com
949-212-0960
Lantronix Analyst and Investor Contact:
Jeremy Whitaker
Chief Financial Officer
investors@lantronix.com
949-450-7241
Lantronix Sales:
sales@lantronix.com
Americas +1 (800) 422-7055 (US and Canada) or +1 949-453-3990
Europe, Middle East and Africa +31 (0)76 52 36 744
Asia Pacific + 852 3428-2338
China + 86 21-6237-8868
Japan +81 (0) 50-1354-6201