Company: CXDO
Filing Date: 2025-10-20
Form Type: DEF 14A
Source: 0001654954-25-011941
Chunk: 41

Company: Crexendo, Inc.
Filing Date: 2025-10-20
Form: DEF 14A
Chunk 41
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 the year of the change in control. An NEO would be subject to a 20% excise tax under Code Section 4999 on any such excess parachute payment and we would be unable to deduct the excess parachute payment.

Recovery of Erroneously Awarded Compensation

We have adopted a clawback policy, effective as of November 30, 2023, that complies with the SEC rules under the Dodd-Frank Act and permits us to seek to recover incentive compensation from executive officers and certain other employees The Company will recover reasonably promptly the amount of erroneously awarded incentive-based compensation in the event that the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws, including any required accounting restatement to correct an error in previously issued financial statements that is material to the previously issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period.

Post-Employment Compensation

Our employment arrangements with Messrs. Korn, Gaylor, Vincent, Brinton, Buch and Wang provided for certain payments and benefits in the event of a qualifying termination of employment, including a termination of employment in connection with a change in control of the Company. We believed that these agreements enabled our named executive officers to maintain their focus and dedication to their responsibilities to help maximize stockholder value by minimizing distractions due to the possibility of an involuntary termination of employment or a termination of employment in connection with a potential change in control of the Company. We also believed that these arrangements furthered our interest in encouraging retention among our named executive officers.

Executive Employment Arrangements

The initial terms and conditions of employment for each of our executive officers (including our named executive officers that remain with us) are set forth in a written employment agreement. Each of these agreements was approved on our behalf by our board of directors or the compensation committee, as applicable.

We develop competitive compensation packages to attract qualified candidates in a highly-competitive labor market. We believe that these arrangements helped the named executive officers maintain continued focus and dedication to their responsibilities to help maximize stockholder value if there is a potential transaction that could involve a change in control of our Company.

We entered into an executive employment letter with Messrs. Korn, Gaylor and Vincent, dated February 5, 2024. The executive employment agreements may be terminated by either side with sixty (60) days’ notice.

If terminated, outside of the Change