On May 17, 2020, A10 Networks, Inc., a Delaware corporation (the “Company”) entered into a Common Stock Repurchase and Option Exchange Agreement (the “Agreement”) with Lee Chen, the Company’s founder and its former President and Chief Executive Officer. to the Agreement, the Company purchased 2,200,000 shares of the Company’s common stock from Mr. Chen at $6.00 per share, or an aggregate purchase price of $13,200,000.00 (the “Repurchase”) and cancelled Mr. Chen’s outstanding option to purchase 282,500 shares of the Company’s common stock at $5.52 per share under the 2014 Equity Incentive Plan in exchange for a cash payment of $135,600.00, subject to applicable tax withholding. The amount of the option cancellation payment was calculated using a per share price of $6.00. The closing price of the Company’s Common Stock on the last trading day before entering into the Agreement was $6.55 per share. The Agreement also provides that Mr. Chen will not sell or transfer any of the Company’s securities for a period of 90 days, and will vote his shares in a manner consistent with the recommendations of the Company’s Board of Directors for a period of 180 days, with certain limitations on matters in which members of the Board may have an interest. Following the Repurchase, Mr. Chen holds approximately 9.9% of the outstanding common stock of the Company.

The foregoing description of the Agreement is qualified in its entirety by reference to the full text of the Agreement which is attached hereto and filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

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A10 Networks, Inc. Exhibit
EX-10.1 2 a5182020exhibit101.htm EXHIBIT 10.1 Exhibit EXHIBIT 10.1COMMON STOCK REPURCHASE AND OPTION EXCHANGE AGREEMENTTHIS COMMON STOCK REPURCHASE AND OPTION EXCHANGE AGREEMENT (the “Agreement”) is entered into as of May 17,…
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About A10 NETWORKS, INC. (NYSE:ATEN)

A10 Networks, Inc. is a provider of application networking and network security technologies. The Company’s solutions enable enterprises, service providers, Web companies and government organizations to secure and optimize the performance of their data center applications, and secure their users, applications and infrastructure from Internet, Web and network threats at scale. The Company’s products are built on its Advanced Core Operating System (ACOS). The Company offers approximately four software-based solutions that are built on top of its software-based ACOS cloud-ready application networking platform and are delivered primarily on its optimized hardware appliances, including Application Delivery Controller (ADC), Carrier Grade Networking (CGN), Threat Protection System (TPS) and Convergent Firewall (CFW). Its support services include installation, phone support, repair and replacement, software updates, online tools, consulting and training services.