SOCKET MOBILE, INC. (NASDAQ:SCKT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into Material Definitive Agreements
Employment Agreements Extension
On May 4, 2017, the Company extended Employment Agreements
(Agreements) with the following officers of the Company: Kevin J.
Mills, President and Chief Executive Officer; David W. Dunlap,
Vice President of Finance and Administration, Chief Financial
Officer and Secretary; James Lopez, Vice President of Sales,
Marketing and Developer Program; Leonard L. Ott, Vice President
of Engineering and Chief Technical Officer; and Lee A. Baillif,
Vice President of Operations (collectively the Executives). The
Agreements replaced employment agreements previously reported in
a Form 8-K dated July 1, 2015 that were scheduled to expire on
June 30, 2018. The employment agreements were extended to expire
on the following dates:
| Name | New Expiration Date |
| Kevin J. Mills | October 1, 2020 |
| David W. Dunlap | June 30, 2019 |
| James Lopez | June 30, 2021 |
| Len L. Ott | December 31, 2021 |
| Lee Baillif | September 30, 2021 |
Under the terms of the Agreements, the Executives employment is
at will and termination of employment of the Executive may occur
at any time. The Agreement defines termination arrangements that
apply if the Executive is terminated for Cause as defined in the
Agreement, is terminated due to death or disability, voluntarily
terminates employment, or is otherwise terminated involuntarily.
Should the Executives employment be terminated other than for
Cause, death, disability or voluntary termination, he is entitled
under the Agreement to (i) receive an involuntary termination
payment consisting of his regular base salary for a period of two
(2) months plus one month for each completed two years of service
up to a maximum of five (5) months following termination, (ii)
receive one additional month of compensation upon signing a
mutual termination agreement; (iii) receive reimbursement for
payment of his COBRA health premiums for the lesser of the amount
of time of the involuntary termination payment or until he is
eligible for the health insurance benefits provided by another
employer; (iv) receive the variable compensation amounts to which
he would otherwise be entitled as prescribed in the Companys
variable incentive compensation plan, and (v) purchase from the
Company at book value certain items that were purchased by the
Company for his use. Stock options granted to the Executive shall
cease vesting immediately upon the date of termination of
employment, and vested stock options will be exercisable after
termination for the lesser of one year or the expiration date of
the grant. In the event of voluntary termination with at least a
60 day notice by an Executive with more than ten years of
consecutive service to the Company, the Executives vested stock
options will be exercisable after termination for the remaining
life of the grants. The Agreements also provide for compensation
in the event of a Change of Control as defined in the Agreement
consisting of an involuntary termination payment as described
above and a payment equal to 1% of the consideration payable in
connection with a Change of Control provided that the price
offered for the Companys common stock is equal to or greater than
$5.00 per share. The new Agreements expire on the dates shown in
the table above unless the Company fails to provide the Executive
with notice of intent to renew or not renew the Agreement of at
least six months prior to expiration, in which case the
expiration date of the Agreement shall be six months following
the date of notice.
General
The foregoing description of the Employment Agreements does not
purport to be complete and is qualified in its entirety by
reference to the full text of the Form of Employment Agreement, a
copy of which is attached hereto as Exhibit 10.1 and are
incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description | |
| 10.1 | Form of Executive Employment Agreement |
About SOCKET MOBILE, INC. (NASDAQ:SCKT)
Socket Mobile, Inc. is a producer of data capture products. The Company’s products are integrated into mobile applications used in mobile point of sale (mPOS), hospitality, asset management, commercial services, healthcare and other mobile business markets. The Company operates through mobile systems solutions for businesses segment. Its cordless barcode scanners connect over Bluetooth and work with applications running on smartphones, mobile computers and tablets using various operating systems. It offers a software developer kit (SDK) to mobile application developers to enable the use of its products with their applications. The Company offers barcode scanning products for both one-dimensional (1D), including imager and laser, and two-dimensional (2D) barcode scanning in standard and durable cases. Its 7 Series barcode scanners are designed for handling as a stand-alone cordless barcode scanner. Its D700 series barcode scanners are used in linear imaging, laser and 2D models. SOCKET MOBILE, INC. (NASDAQ:SCKT) Recent Trading Information
SOCKET MOBILE, INC. (NASDAQ:SCKT) closed its last trading session down -0.02 at 4.14 with 18,038 shares trading hands.