# EDGAR Filing Document

**Accession Number:** 0001397016
**File Stem:** 0001493152-25-026630
**Filing Date:** 2025-12
**Character Count:** 69535
**Document Hash:** b647785f8a3ecba7d2966c5121fc3b8f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-026630.hdr.sgml**: 20251208

**ACCESSION NUMBER**: 0001493152-25-026630

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20251204

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251208

**DATE AS OF CHANGE**: 20251208

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Optex Systems Holdings Inc
- **CENTRAL INDEX KEY:** 0001397016
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPTICAL INSTRUMENTS & LENSES [3827]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0928

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41644
- **FILM NUMBER:** 251556128

**BUSINESS ADDRESS:**
- **STREET 1:** 1420 PRESIDENTIAL DRIVE
- **CITY:** RICHARDSON
- **STATE:** TX
- **ZIP:** 75081
- **BUSINESS PHONE:** 972-764-5700

**MAIL ADDRESS:**
- **STREET 1:** 1420 PRESIDENTIAL DRIVE
- **CITY:** RICHARDSON
- **STATE:** TX
- **ZIP:** 75081

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Sustut Exploration Inc
- **DATE OF NAME CHANGE:** 20070419

?xml version='1.0' encoding='ASCII'?

**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): December 4, 2025

**<u>OPTEX SYSTEMS HOLDINGS, INC.</u>**

(Exact Name of Registrant as Specified in Charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-41644** | **90-0609531** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

<u>1420 Presidential Drive, Richardson, TX</u> <u>75081-2439</u> <br> (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (972) 644-0722

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:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 DFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:.

<u>Title of each class</u> <u>Trading Symbol</u> <u>Name of each exchange on which registered</u> <br> Common Stock OPXS NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company <br>☐ 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 the Exchange Act.

**Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

*Resignation of Chief Executive Officer*

On December 4, 2025, Danny Schoening notified Optex Systems Holdings, Inc. (the "Company") that he intends to resign, effective as of December 20, 2025 (the "Effective Date"), from the position of Chief Executive Officer of the Company. Mr. Schoening will remain on the Board of Directors of the Company (the "Board"), will continue to serve in the position of Chairman of the Board, and will continue to serve as the Company's facilities security officer.

In connection with his resignation, the Board on December 5, 2025 approved the following annual director compensation for Mr. Schoening effective January 1, 2026: (a) $44,000 in cash and (b) $66,000 in restricted stock granted as of December 5, 2025 under the Company's 2023 Equity Incentive Plan, with 100% vesting on January 1, 2027, the share price calculated on the basis of the 10-day (immediately preceding and including the date of grant) VWAP, and the number of shares rounded up to the nearest 100 shares.

*Appointment of Chief Executive Officer*

On December 5, 2025, the Board appointed Chad George, the Company's President, to assume the additional role of Chief Executive Officer to fill the vacancy left by Mr. Schoening, effective as of the Effective Date.

Mr. George, 48, has served as President of the Company since August 11, 2025. Previously, he spent 20 years in senior operations and supply chain roles in the defense sector. Between January 2022 and August 2025, he served as Vice President of Operations and Supply Chain at Leonardo DRS, where he played a key role in streamlining production processes and enhancing strategic sourcing capabilities. He also worked as Factory Manager and Operations Leader at Raytheon from April 2009 through March 2021. He holds a Bachelor's Degree in Industrial Engineering from Oklahoma State University and a Master of Business Administration from the University of Texas at Dallas.

In connection with the appointment, the Company entered into a new employment agreement with Mr. George as of the Effective Date (the "New Employment Agreement"). Pursuant to the agreement, Mr. George will serve as the Company's President and Chief Executive Officer through December 31, 2028. Thereafter, the term of the agreement will automatically extend for successive additional 12-month periods unless Mr. George or the Company provides written notice of termination at least 90 days prior to the end of the term then in effect.

Mr. George's initial annual base salary under the new agreement is $300,000, which may be increased by the Compensation Committee and/or by the Board in their sole discretion but may not be decreased without Mr. George's consent. Mr. George's base salary will increase at 3.5% annually in accordance with the then-current Company policy. Mr. George will be eligible for a performance bonus based upon a one-year operating plan adopted by the Company's Board. The bonus will be based on financial and/or operating metrics decided annually by the Board or the Compensation Committee and tied to such one-year plan. The target bonus will equate to 30% of Mr. George's base salary. The Board will have discretion in good faith to alter the performance bonus upward or downward by 20%. Mr. George is entitled to 200 hours paid vacation and paid time off (PTO) each year and all other benefits accorded to our other senior executives.

The employment agreement may be terminated by either party upon written notice. Other events of termination consist of: (i) death or permanent disability of Mr. George; (ii) termination by the Company for cause (including in connection with the conviction of a felony, commission of fraudulent, illegal or dishonest acts, certain willful misconduct or gross negligence, continued failure to perform material duties or cure material breach after written notice, violation of securities laws and material breach of the employment agreement), (iii) termination by the Company without cause and (iv) termination by Mr. George for good reason (including continued breach by the Company of its material obligations under the agreement after written notice, the requirement for Mr. George to move more than 100 miles away for his employment without consent, and merger or consolidation that results in more than 66% of the combined voting power of the Company's then outstanding securities or those of its successor changing ownership or the sale of all or substantially all of its assets, without the surviving entity assuming the obligations under the agreement). For a termination by the Company for cause or upon death or permanent disability of Mr. George, Mr. George will be paid accrued and unpaid salary and any bonus earned through the date of termination. For a termination by the Company without cause or by Mr. George with good reason, Mr. George will also be paid six months' base salary in effect.

The foregoing description of the employment agreement is only a summary, does not purport to be complete, and is qualified in its entirety by the terms of the agreement, which is filed as Exhibit 10.1 hereto and incorporated by reference herein.

*Increase in Board Size and Election of New Director*

Concurrently with Mr. George's appointment as Chief Executive Officer, the Board elected Mr. George to serve as a director of the Board, effective as of the Effective Date, until the Company's 2026 annual meeting of shareholders and until his successor has been elected and qualified. In connection with Mr. George's election as a director of the Board, the Board increased the total number of Board seats from four to five.

The New Employment Agreement requires Mr. George to fulfill his duties as a director without additional compensation.

On December 8, 2025, the Company issued a press release announcing the foregoing matters. A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated by reference herein.

**Item 9.01 Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| (d) | Exhibits: |
| **Exhibit Number** | **Description** |
| 10.1 | [Employment Agreement of Chad George, effective December 20, 2025](ex10-1.htm) |
| 99.1 | [Press Release, dated December 8, 2025](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**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.

---

| | |
|:---|:---|
| Optex Systems Holdings, Inc. | Optex Systems Holdings, Inc. |
| (Registrant) | (Registrant) |
| By: | */s/ Karen Hawkins* |
|  | Karen Hawkins |
| Title: | Chief Financial Officer |

---

Date: December 8, 2025

## Exhibit 10.1

**Exhibit 10.1**

**EMPLOYMENT AGREEMENT**

This Employment Agreement (this "***Agreement***"), by and between **Optex Systems Holdings, Inc.**, a Delaware corporation (the "***Company***"), and **Chad George**, an individual ("***Executive***"), is dated as of December 20, 2025 (the "***Effective Date***").

**RECITALS**

**WHEREAS**, the Company is currently employing Executive as President pursuant to the terms of the Employment Agreement, dated August 11, 2025 (the "***Original Employment Agreement***");

**WHEREAS**, the Company desires to retain Executive as its President and Chief Executive Officer and to replace the Original Employment Agreement with this Agreement; and

**WHEREAS**, in connection therewith, the Company and Executive desire to enter into this Agreement.

**PART ONE – DEFINITIONS**

**Definitions**. For purposes of this Agreement, the following definitions will be in effect:

"***Affiliates***" means all persons and entities directly or indirectly controlling, controlled by or under common control with the person or entity specified, where control may be by management authority, contract or equity interest.

"***Board***" means the Board of Directors of the Company or the Compensation Committee thereof (or any other committee subsequently granted authority by the Board), subject to Section 17 below.

"***Code***" means the Internal Revenue Code of 1986, as amended from time to time, and the Treasury regulations and administrative guidance promulgated thereunder.

"***Company***" means, unless the context otherwise requires, Optex Systems Holdings, Inc., a Delaware corporation, and all of its subsidiaries.

"***Compensation Committee***" means the Compensation Committee of the Board.

"***Good Reason***" means Executive terminates employment after (i) the Company has breached any of its material obligations hereunder and fails to cure such breach within 30 business days following receipt of written notice of such breach from Executive by Company, (ii) the Company requires the Executive, without his consent, to be based in any office or location more than 100 miles from the Company's current location, or (iii) there is a merger or consolidation that results in more than 66% of the combined voting power of the then outstanding voting securities of the Company or its successor changing ownership or the sale of all or substantially all of the Company's assets, and the obligations under this Agreement are not assumed by the surviving entity.

"***Termination for Cause***" means termination because of Executive's (i) conviction of, guilty plea to or confession of guilt of a felony, (ii) commission of fraudulent, illegal or dishonest acts, (iii) willful misconduct or gross negligence which reasonably could be expected to be materially injurious to the business, operations or reputation of the Company (monetarily or otherwise), either individually or in the aggregate, (iv) after a written warning and a reasonable opportunity to cure non-performance, failure to perform Executive's material duties as assigned to Executive pursuant to the terms of this Agreement from time to time or failure to cure any other material breach of this Agreement, (v) any violation of any securities laws or regulations or laws or regulations of similar import with regard to the disclosure of information to the Company or discharge of duties with respect to the Company, or (vi) material breach of the Executive's obligations hereunder.

**PART TWO - TERMS AND CONDITIONS OF EMPLOYMENT**

The following terms and conditions will govern Executive's employment with the Company throughout the Employment Period and will also, to the extent expressly indicated below, remain in effect following Executive's cessation of employment with the Company.

**1.** **Employment and Duties.** During the Employment Period, Executive will serve as the President and Chief
 Executive Officer of Company and will report to the Board. Executive will have such duties
 and responsibilities as are commensurate with such position and such other duties and responsibilities
 commensurate with such position (including with the Company's subsidiaries) as are
 from time to time assigned to Executive by the Board (or a committee thereof). During the
 Employment Period, Executive will devote his full business time, energy and skill to the
 performance of his duties and responsibilities hereunder, provided the foregoing will not
 prevent Executive from (a) serving as a non-executive director on the board of directors
 of non-profit organizations and other companies, (b) participating in charitable, civic,
 educational, professional, community or industry affairs, (c) managing his and his family's
 personal investments, including in an advisory capacity related to current or potential investments
 or (d) such other activities approved by the Board from time to time; provided, that such
 activities individually or in the aggregate do not interfere or conflict with Executive's
 duties and responsibilities hereunder, violate applicable law, or create a potential business
 or fiduciary conflict.

**2.** **Service as Director**. As of the Effective Date, Executive is serving as a member of the Company's
 Board of Directors. For as long as Executive shall continue to serve as Chief Executive Officer,
 he shall make himself available to stand for re-election to such position at each annual
 meeting of the Company's stockholders. Executive's failure to be re-elected to
 the Board, in and of itself, shall not constitute a termination of this Agreement (and shall
 not constitute a Termination for Cause or a resignation by Executive for Good Reason, each
 as defined in this Agreement), nor shall it entitle Executive to any severance benefits.
 Pursuant to the Company's policies and practices, for the duration of this Agreement,
 Executive will fulfill his duties as a director without additional compensation. This Agreement
 shall not in any way be construed or interpreted so as to affect adversely or otherwise impair
 the right of the Company or the stockholders to remove the Executive from the Board at any
 time in accordance with the provisions of applicable law.

**3.** **Term.** The term of this Agreement shall run from the Effective Date through December 31, 2028
 (such period, the "  ***Initial Term*** "), and may be terminated earlier
 as contemplated by Section 9.A. After the Initial Term, the term of this Agreement shall
 be automatically extended for successive and additional 12-month periods (each, an "  ***Additional Term*** "), unless the Company shall provide a written notice of termination at
 least ninety (90) days, or the Executive shall provide a written notice of termination at
 least ninety (90) days, prior to the end of the Initial Term or any Additional Term, as applicable.
 Termination of this Agreement due to the Company or the Executive providing such written
 notice shall not constitute a Termination for Cause or a resignation by Executive for Good
 Reason. The Initial Term and any Additional Term(s) are herein referred to as the "  ***Term*** ."

**4.** **Compensation; Additional Incentives.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Base Salary</u>. Executive's base salary (the "  ***Base Salary***") will
 be paid at the rate of $25,000 monthly ($300,000 annualized) during the Term. Executive's
 Base Salary may be increased by the Compensation Committee and/or Board in their sole discretion
 but shall not be decreased without Executive's consent. Executive's Base Salary
 will be paid at periodic intervals in accordance with the Company's normal payroll
 practices for salaried employees. The Base Salary will increase at 3.5% annually in accordance
 with the then current Company policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Performance Bonus Opportunities</u>. Executive will be eligible for a performance bonus (the "  ***Performance Bonus*** "), which is based upon a one-year operating plan adopted by the Board.
 The bonus will be based on financial and/or operating metrics decided annually by the Board
 (so long as the Executive is not present at voting or deliberations on any such metrics)
 or the Compensation Committee and tied to such one-year plan. The target bonus will equate
 to 30% of Executive's Base Salary. The Board will have discretion to alter the Performance
 Bonus upward or downward by 20% based on its good faith discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The
 Company may deduct and withhold, from the compensation payable and benefits provided to Executive
 hereunder, any and all applicable federal, state, local and other taxes and any other amounts
 required to be deducted or withheld by the Company under applicable statute or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. To
 the extent that any compensation paid or payable pursuant to this Agreement is considered
 "incentive-based compensation" within the meaning and subject to the requirements
 of Section 10D of the Exchange Act, such compensation shall be subject to potential forfeiture
 or recovery by the Company in accordance with any compensation recovery policy adopted by
 the Board or any committee thereof in response to the requirements of Section 10D of the
 Exchange Act, Rule 10D-1 thereunder and any implementing rules and regulations thereunder
 adopted by any national securities exchange (if any) on which the Company's common
 stock is then listed. This Agreement may be unilaterally amended by the Company to comply
 with any such compensation recovery policy, and the Board or the Compensation Committee retains
 complete discretion on awarding a Performance Bonus.

**5. Other Benefits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Executive
 will be entitled to reimbursement from the Company for customary, ordinary and necessary
 business expenses incurred by Executive in the performance of Executive's duties hereunder,
 provided that Executive's entitlement to such reimbursements shall be conditioned upon
 Executive's provision to the Company of vouchers, receipts and other substantiation
 of such expenses in accordance with Company policies and practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Company
 will pay for dues and fees required for any professional licenses maintained by Executive,
 membership in professional or industry associations, continuing education requirements associated
 with any professional license and conferences and seminars commonly attended by executives
 in similar companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. During
 the Term, Executive will be eligible to participate in any group life insurance plan, group
 medical and/or dental insurance plan, accidental death and dismemberment plan, short-term
 disability program and other employee benefit plans, including profit sharing plans, cafeteria
 benefit programs and stock purchase and option plans, which are made available to executives
 of the Company and for which Executive qualifies under the terms of such plan or plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Executive
 shall be entitled to 200 hours paid vacation each year and paid time off (PTO) in accordance
 with the Company's policies and practices as in effect from time to time.

**6.** **Confidential Information and Non-Solicitation of Employees**. The Executive understands and acknowledges
 that the Executive will have access to and learn about confidential information, and agrees
 to comply with the terms and conditions of the Non-Disclosure Agreement between the Executive
 and the Company, as it may be amended from time to time in accordance with its terms, which
 also contains non-solicitation provisions (the "  ***NDA*** ").

**7.** **Executive Covenants.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Acknowledgement</u>.
 The Executive understands that the nature of the Executive's position gives the Executive
 access to and knowledge of Confidential Information and places the Executive in a position
 of trust and confidence with the Company. The Executive understands and acknowledges that
 the intellectual services the Executive provides to the Company are unique, special, or extraordinary.
 The Executive further understands and acknowledges that the Company's ability to reserve
 these for the exclusive knowledge and use of the Company is of great competitive importance
 and commercial value to the Company, and that improper use or disclosure by the Executive
 is likely to result in unfair or unlawful competitive activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Non-Competition</u>.
 Because of the Company's legitimate business interest as described herein and the good
 and valuable consideration offered to the Executive, during the Term and for 5 years, to
 run consecutively, beginning on the last day of the Executive's employment with the
 Company, regardless of the reason for the termination and whether employment is terminated
 at the option of the Executive or the Company, the Executive agrees and covenants not to
 engage in Prohibited Activity.

For purposes of this Section 7, "**Prohibited Activity**" is activity in which the Executive contributes the Executive's knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, employee, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity to an entity engaged in the same or similar business as the Company, including those engaged in the business of Optical Assemblies or Laser Filters. Prohibited Activity also includes activity that may require or inevitably requires disclosure of trade secrets, proprietary information, or Confidential Information.

Nothing herein shall prohibit the Executive from purchasing or owning less than five percent (5%) of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that the Executive is not a controlling person of, or a member of a group that controls, such corporation.

This Section 7 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. The Executive shall promptly provide written notice of any such order to the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Non-Solicitation of Customers</u>.
 The Executive understands and acknowledges that because of the Executive's experience
 with and relationship to the Company, the Executive will have access to and learn about much
 or all of the Company's customer information. "**Customer Information** "
 includes, but is not limited to, names, phone numbers, addresses, email addresses, order
 history, order preferences, chain of command, decisionmakers, pricing information, and other
 information identifying facts and circumstances specific to the customer and relevant to
 sales.

The Executive understands and acknowledges that loss of this customer relationship and/or goodwill will cause significant and irreparable harm.

The Executive agrees and covenants, during the 5 years, to run consecutively, beginning on the last day of the Executive's employment with the Company, not to directly or indirectly solicit, contact (including but not limited to email, regular mail, express mail, telephone, fax, instant message, or social media), attempt to contact, or meet with the Company's current, former or prospective customers for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company.

This restriction shall only apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Customers
 or prospective customers the Executive contacted in any way during the Term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Customers
 about whom the Executive has trade secret or confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Customers
 who became customers during the Executive's employment with the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Customers
 about whom the Executive has information that is not available publicly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Transition and Other Assistance</u>. During the 30 days following the termination of the Term, Executive
 will take all actions the Company may reasonably request to maintain the Company's
 business, goodwill and business relationships and to assist with transition matters, all
 at Company expense. In addition, upon the receipt of notice from the Company (including outside
 counsel), during the Term and thereafter, Executive will respond and provide information
 with regard to matters in which he has knowledge as a result of his employment with the Company,
 and will provide assistance to the Company and its representatives in the defense or prosecution
 of any claims that may be made by or against the Company, to the extent that such claims
 may relate to the period of Executive's employment with the Company, all at Company
 expense. During the Term and thereafter, Executive shall promptly inform the Company if he
 becomes aware of any lawsuits involving such claims that may be filed or threatened against
 the Company. During the Term and thereafter, Executive shall also promptly inform the Company
 (to the extent he is legally permitted to do so) if he is asked to assist in any investigation
 of the Company (or its actions), regardless of whether a lawsuit or other proceeding has
 then been filed against the Company with respect to such investigation, and will not do so
 unless legally required. The Company will pay Executive at a rate of $250 per hour, plus
 reasonable expenses, in connection with any actions requested by the Company under this paragraph
 following any termination of Executive's employment, with such amounts being paid to
 Executive at periodic intervals in accordance with the Company's normal payroll practices
 for salaried employees. Executive's obligations under this paragraph shall be subject
 to the Company's reasonable cooperation in scheduling in light of Executive's
 other obligations.

**8.** **Non-Disparagement**.
 The Executive agrees and covenants that the Executive will not at any time make, publish,
 or communicate to any person or entity or in any public forum any defamatory or disparaging
 remarks, comments, or statements concerning the Company or its businesses, or any of its
 employees, officers, and existing and prospective customers, suppliers, investors and other
 associated third parties.

This Section 8 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. The Executive shall promptly provide written notice of any such order to the Board.

**9.** **Termination of Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>General</u>.
 Subject to Section 9.D., Executive's employment with the Company is "at-will"
 and may be terminated at any time by either Executive or the Company for any reason (or no
 reason) in accordance with this Agreement, which will also result in the Term ending, by
 the party seeking to terminate Executive's employment providing 30-days written notice
 of such termination to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Death and Permanent Disability</u>. Upon termination of Executive's employment with the Company
 due to death or permanent disability during the Term, the employment relationship created
 pursuant to this Agreement will immediately terminate, the Term will end and amounts will
 only be payable under this Agreement as specified in this Section 9.B. Should Executive's
 employment with the Company terminate by reason of Executive's death or permanent disability
 during the Term, Executive, or Executive's estate, shall be entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the
 unpaid Base Salary earned by Executive pursuant to Section 4.A for services rendered through
 the date of Executive's death or permanent disability, as applicable, payable in accordance
 with the Company's normal payroll practices for terminated salaried employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. reimbursement
 of all expenses for which Executive is entitled to be reimbursed pursuant to Section 5, payable
 in accordance with the Company's normal reimbursement practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the
 right to continue health care benefits under the Consolidated Omnibus Budget Reconciliation
 Act of 1986, as amended, COBRA or Executive subsidized, to the extent required and available
 by law and subject to the Company continuing to maintain a group health plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the
 limited death, disability, and/or income continuation benefits provided under Section 5.C,
 if any, will be payable in accordance with the terms of the plans pursuant to which such
 limited death or disability benefits are provided.

Compensation and benefits provided pursuant to Section 9.B.a. through d. are collectively referred to as the "***Accrued Obligations***."

If Executive's death occurs before payment of any earned Performance Bonus, the applicable payments will be made to the Executive's estate. For purposes of this Agreement, Executive will be deemed "permanently disabled" if Executive is so characterized pursuant to the terms of the Company's disability policies or programs applicable to Executive from time to time, or if no such policy or program is applicable, if the Compensation Committee determines, in its sole discretion, that Executive is unable to perform the essential functions of Executive's duties for physical or mental reasons for ninety (90) days in any twelve-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Termination for Cause; Resignation without Good Reason</u>. The Company may at any time during the Term,
 upon written notice summarizing with reasonable specificity the basis for the Termination
 for Cause, terminate Executive's employment hereunder for any act qualifying as a Termination
 for Cause. Such termination will be effective immediately upon such notice. Upon any Termination
 for Cause (or employee's resignation other than for Good Reason), Executive shall be
 solely entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the
 unpaid Base Salary and Bonuses earned by Executive pursuant to Section 4 for services rendered
 through the date of termination, payable in accordance with the Company's normal payroll
 practices for terminated salaried employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. reimbursement
 of all expenses for which Executive is entitled to be reimbursed pursuant to Section 5, payable
 in accordance with the Company's normal reimbursement practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the
 right to continue health care benefits under the Consolidated Omnibus Budget Reconciliation
 Act of 1986, as amended, COBRA or Executive subsidized, to the extent required and available
 by law and subject to the Company continuing to maintain a group health plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Involuntary Termination Without Cause by the Company; Resignation by Executive for Good Reason</u>. The
 Company shall be entitled to terminate Executive with no notice, other than a Termination
 for Cause, and Executive shall be entitled to resign with or without Good Reason with 90
 days' prior notice, in each case at any time; provided, however, that if Executive
 (1) is terminated by the Company other than in circumstances constituting a Termination for
 Cause, or (2) resigns for Good Reason, then Executive shall be solely entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
 Accrued Obligations through the date of termination, payable in accordance with the Company's
 payroll practices for terminated salaried employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Six
 months of Base Salary, payable in accordance with the Company's payroll practices for
 terminated salaried employees until this sum is satisfied;

For purposes of clarity, a termination of Executive's employment due to Executive's death or to Executive's permanent disability shall not be considered either a termination by the Company without cause or a resignation by Executive for Good Reason, and such termination shall not entitle Executive (or his heirs or representatives) to any compensation or benefits pursuant to this Section 9.D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Termination by Non-Renewal</u>. In the event the Company fails to renew Executive's employment
 before the expiration of this Agreement ("  ***Non-Renewal*** "), Executive
 shall be entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
 Accrued Obligations through the date of termination, payable in accordance with the Company's
 normal payroll practices for terminated salaried employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Release</u>.
 Notwithstanding anything contained herein, Executive's right to receive (or retain)
 the payments and benefits set forth in Section 9.D. or 9.E., as applicable, other than the
 Accrued Obligations through the date of termination, is conditioned on and subject to Executive's
 execution within twenty-one (21) days (or, to the extent required by applicable law, forty-five
 (45) days) following the termination date and non-revocation within seven (7) days thereafter
 of a general release of claims in a form provided by the Company.

**10.** **Section 409A of the Code.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>General</u>.
 This Agreement shall be interpreted and applied in all circumstances in a manner that is
 consistent with the intent of the parties that, to the extent applicable, amounts earned
 and payable pursuant to this Agreement shall constitute short-term deferrals exempt from
 the application of Section 409A of the Code and, if not exempt, that amounts earned and payable
 pursuant to this Agreement shall not be subject to the premature income recognition or adverse
 tax provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Separation from Service</u>. References in this Agreement to "termination" of Executive's
 employment, "resignation" by Executive from employment and similar terms shall,
 with respect to such events that will result in payments of compensation or benefits, mean
 for such purposes a "separation from service" as defined under Section 409A of
 the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Specified Executive</u>. In the event any one or more amounts payable under this Agreement constitute
 a "deferral of compensation" and become payable on account of the "separation
 from service" (as determined pursuant to Section 409A of the Code) of Executive and
 if as such date Executive is a "specified employee" (as determined pursuant to
 Section 409A of the Code), such amounts shall not be paid to Executive before the earlier
 of (i) the first day of the seventh calendar month beginning after the date of Executive's
 "separation from service" or (ii) the date of Executive's death following
 such "separation from service." Where there is more than one such amount, each
 shall be considered a separate payment and all such amounts that would otherwise be payable
 prior to the date specified in the preceding sentence shall be accumulated (without interest)
 and paid together on the date specified in the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Separate Payments</u>. For purposes of Section 409A of the Code, each payment or amount due under
 this Agreement shall be considered a separate payment, and Executive's entitlement
 to a series of payments under this Agreement is to be treated as an entitlement to a series
 of separate payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Reimbursements</u>.
 Any reimbursement to which Executive is entitled pursuant to this Agreement that would constitute
 nonqualified deferred compensation subject to Section 409A of the Code shall be subject to
 the following additional rules: (i) no reimbursement of any such expense shall affect Executive's
 right to reimbursement of any other such expense in any other taxable year; (ii) reimbursement
 of the expense shall be made, if at all, not later than the end of the calendar year following
 the calendar year in which the expense was incurred; (iii) the right to reimbursement shall
 not be subject to liquidation or exchange for any other benefit; and (iv) the right to reimbursement
 of expenses incurred kind shall terminate one year after the end of the Term.

**11.** **Section 280G of the Code**. Notwithstanding anything to the contrary contained herein (or any other
 agreement entered into by and between Executive and the Company or any incentive arrangement
 or plan offered by the Company), in the event that any amount or benefit paid or distributed
 to Executive pursuant to this Agreement, taken together with any amounts or benefits otherwise
 paid to Executive by the Company (collectively, the "  ***Covered Payments*** "),
 would constitute an "excess parachute payment" as defined in Section 280G of
 the Code, and would thereby subject Executive to an excise tax under Section 4999 of the
 Code (an "  ***Excise Tax*** "), the provisions of this Section 11 shall
 apply. If the aggregate present value (as determined for purposes of Section 280G of the
 Code) of the Covered Payments exceeds the amount which can be paid to Executive without Executive
 incurring an Excise Tax, then the amounts payable to Executive under this Agreement (or any
 other agreement by and between Executive and the Company or pursuant to any incentive arrangement
 or plan offered by the Company) shall be reduced (but not below zero) to the maximum amount
 which may be paid hereunder without Executive becoming subject to the Excise Tax (such reduced
 payments to be referred to as the "  ***Payment Cap*** "). In the event
 Executive receives reduced payments and benefits as a result of application of this Section
 11, Executive shall have the right to designate which of the payments and benefits otherwise
 set forth herein (or any other agreement between the Company and Executive or any incentive
 arrangement or plan offered by the Company) shall be received in connection with the application
 of the Payment Cap, subject to the following sentence. Reduction shall first be made from
 payments and benefits which are determined not to be nonqualified deferred compensation for
 purposes of Section 409A of the Code, and then shall be made (to the extent necessary) out
 of payments and benefits that are subject to Section 409A of the Code and that are due at
 the latest future date.

**12.** **No Guarantee of Tax Consequences**. The Board, the Compensation Committee, the Company and
 its Affiliates, officers and employees make no commitment or guarantee to Executive that
 any federal, state, local or other tax treatment will apply or be available to Executive
 or any other person eligible for compensation or benefits under this Agreement and assume
 no liability whatsoever for the tax consequences to Executive or to any other person eligible
 for compensation or benefits under this Agreement.

**13.** **Proprietary Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Work Product</u>. The Executive acknowledges and agrees that all right, title, and interest in
 and to all writings, works of authorship, technology, inventions, discoveries, processes,
 techniques, methods, ideas, concepts, research, proposals, materials, and all other work
 product of any nature whatsoever, that are created, prepared, produced, authored, edited,
 amended, conceived, or reduced to practice by the Executive individually or jointly with
 others during the Term and relate in any way to the business or contemplated business, products,
 activities, research, or development of the Company or result from any work performed by
 the Executive for the Company (in each case, regardless of when or where prepared or whose
 equipment or other resources is used in preparing the same), all rights and claims related
 to the foregoing, and all printed, physical and electronic copies, and other tangible embodiments
 thereof (collectively, "  ***Work Product*** "), as well as any and all
 rights in and to U.S. and foreign (a) patents, patent disclosures and inventions (whether
 patentable or not), (b) trademarks, service marks, trade dress, trade names, logos, corporate
 names, and domain names, and other similar designations of source or origin, together with
 the goodwill symbolized by any of the foregoing, (c) copyrights and copyrightable works (including
 computer programs), mask works, and rights in data and databases, (d) trade secrets, know-how,
 and other confidential information, and (e) all other intellectual property rights, in each
 case whether registered or unregistered and including all registrations and applications
 for, and renewals and extensions of, such rights, all improvements thereto and all similar
 or equivalent rights or forms of protection in any part of the world (collectively, "  ***Intellectual Property Rights*** "), shall be the sole and exclusive property of the Company.

For purposes of this Agreement, Work Product includes, but is not limited to, Company information, including plans, publications, research, strategies, techniques, agreements, documents, contracts, terms of agreements, negotiations, know-how, computer programs, computer applications, software design, web design, work in process, databases, manuals, results, developments, reports, graphics, drawings, sketches, market studies, formulae, notes, communications, algorithms, product plans, product designs, styles, models, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications, customer information, client information, customer lists, client lists, manufacturing information, marketing information, advertising information, and sales information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Work Made for Hire; Assignment</u>. The Executive acknowledges that, by reason of being employed
 by the Company at the relevant times, to the extent permitted by law, all of the Work Product
 consisting of copyrightable subject matter is "work made for hire" as defined
 in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent
 that the foregoing does not apply, the Executive hereby irrevocably assigns to the Company,
 for no additional consideration, the Executive's entire right, title, and interest
 in and to all Work Product and Intellectual Property Rights therein, including the right
 to sue, counterclaim, and recover for all past, present, and future infringement, misappropriation,
 or dilution thereof, and all rights corresponding thereto throughout the world. Nothing contained
 in this Agreement shall be construed to reduce or limit the Company's rights, title,
 or interest in any Work Product or Intellectual Property Rights so as to be less in any respect
 than that the Company would have had in the absence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Further Assurances; Power of Attorney</u>. During and after the Term, the Executive agrees to reasonably
 cooperate with the Company to (a) apply for, obtain, perfect, and transfer to the Company
 the Work Product as well as any and all Intellectual Property Rights in the Work Product
 in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including,
 without limitation, giving testimony and executing and delivering to the Company any and
 all applications, oaths, declarations, affidavits, waivers, assignments, and other documents
 and instruments as shall be requested by the Company. The Executive hereby irrevocably grants
 the Company power of attorney to execute and deliver any such documents on the Executive's
 behalf in the Executive's name and to do all other lawfully permitted acts to transfer
 the Work Product to the Company and further the transfer, prosecution, issuance, and maintenance
 of all Intellectual Property Rights therein, to the full extent permitted by law, if the
 Executive does not promptly cooperate with the Company's request (without limiting
 the rights the Company shall have in such circumstances by operation of law). The power of
 attorney is coupled with an interest and shall not be affected by the Executive's subsequent
 incapacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>No License</u>. The Executive understands that this Agreement does not, and shall not be construed
 to, grant the Executive any license or right of any nature with respect to any Work Product
 or Intellectual Property Rights or any Confidential Information, materials, software, or
 other tools made available to the Executive by the Company.

**14.** **Security.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Security and Access</u>. The Executive agrees and covenants (a) to comply with all Company security
 policies and procedures as in force from time to time including without limitation those
 regarding computer equipment, telephone systems, voicemail systems, facilities access, monitoring,
 key cards, access codes, Company intranet, internet, social media and instant messaging systems,
 computer systems, email systems, computer networks, document storage systems, software, data
 security, encryption, firewalls, passwords and any and all other Company Group facilities,
 IT resources and communication technologies ("  ***Facilities and Information Technology Resources*** "); (b) not to access or use any Facilities and Information Technology
 Resources except as authorized by the Company; and (iii) not to access or use any Facilities
 and Information Technology Resources in any manner after the termination of the Executive's
 employment by the Company, whether termination is voluntary or involuntary. The Executive
 agrees to notify the Company promptly in the event the Executive learns of any violation
 of the foregoing by others, or of any other misappropriation or unauthorized access, use,
 reproduction, or reverse engineering of, or tampering with any Facilities and Information
 Technology Resources or other Company property or materials by others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Exit Obligations</u>. Upon (a) voluntary or involuntary termination of the Executive's employment
 or (b) the Company's request at any time during the Executive's employment, the
 Executive shall (i) provide or return to the Company any and all Company Group property,
 including keys, key cards, access cards, identification cards, security devices, employer
 credit cards, network access devices, computers, cell phones, smartphones, PDAs, pagers,
 fax machines, equipment, speakers, webcams, manuals, reports, files, books, compilations,
 work product, email messages, recordings, tapes, disks, thumb drives or other removable information
 storage devices, hard drives, negatives, and data and all Company Group documents and materials
 belonging to the Company and stored in any fashion, including but not limited to those that
 constitute or contain any Confidential Information or Work Product, that are in the possession
 or control of the Executive, whether they were provided to the Executive by the Company Group

 employment by the Company; and (ii) delete or destroy all copies of any such documents and
 materials not returned to the Company that remain in the Executive's possession or
 control, including those stored on any non-Company Group devices, networks, storage locations,
 and media in the Executive's possession or control.

**15.** **Controlling Law, Jurisdiction and Venue.** This Agreement and all questions relating to its validity,
 interpretation, performance, and enforcement will be governed by and construed in accordance
 with the laws of the State of Texas, notwithstanding any Texas or other conflict-of-interest
 provisions to the contrary. Executive agrees that any and all claims arising between the
 parties out of this agreement shall be controlled by the laws of the State of Texas, as follows:
 any dispute, controversy arising out of, connected to, or relating to any matters herein
 of the transactions between Company and Executive, or this Agreement, which cannot be resolved
 by negotiation (including, without limitation, any dispute over the arbitrability of an issue),
 will be settled by binding arbitration in accordance with the J.A.M.S/ENDISPUTE Arbitration
 Rules and Procedures, as amended by this Agreement. Arbitration proceedings will be held
 in Dallas, Texas. Company and Executive agree that the prevailing party will be entitled
 to receive reasonable attorney fees. The parties agree that this provision and the Arbitrator's
 authority to grant relief are subject to the United States Arbitration Act, 9 U.S.C. 1- 16
 et seq. ("USAA") and the provisions of this Agreement. The parties agree that
 the arbitrator have no power or authority to make awards or issue orders of any kind except
 as expressly permitted by this Agreement, and in no event does the arbitrator have the authority
 to make any award that provides for punitive or exemplary damages. The award may be confirmed
 and enforced in any court of competent jurisdiction. All post-award proceedings will be governed
 by the USAA. Company and Executive irrevocably consent to the jurisdiction and venue of such
 arbitration and such courts.

**16.** **Entire Agreement; Severability**. This Agreement and the agreements referenced herein contain
 the entire agreement of the parties relating to the subject matter hereof, and supersede
 in their entirety any and all prior agreements, understandings or representations relating
 to the subject matter hereof, including the Original Employment Agreement. No agreements
 or representations, oral or otherwise, express or implied, with respect to the subject matter
 hereof have been made by either party which are not expressly set forth in this Agreement.
 The provisions of this Agreement shall be deemed severable and, if any provision is found
 to be illegal, invalid or unenforceable for any reason, (a) the provision will be amended
 automatically to the minimum extent necessary to cure the illegality or invalidity and permit
 enforcement and (b) the illegality, invalidity or unenforceability will not affect the legality,
 validity or enforceability of the other provisions hereof.

**17.** **Amendment; Committee Authority**. This Agreement may be amended, supplemented, or modified only by
 a written instrument duly executed by or on behalf of each party hereto. All determinations
 and other actions required or permitted hereunder to be made by or on behalf of the Company
 or the Board may be made by either the Board (with Executive excluded from any voting or
 deliberations) or the Compensation Committee (or any other committee subsequently granted
 authority by the Board); provided that the actions of the Compensation Committee (or any
 other committee subsequently granted authority by the Board) shall be subject to the authority
 then vested in such committee by the Board, it being understood and agreed that as of the
 date of this Agreement the Compensation Committee has full authority, concurrent with the
 Board (so long as the Executive is not present at voting or deliberations on his compensation),
 to administer this Agreement; and provided, further, that a decision or action by the Compensation
 Committee (or any other committee subsequently granted authority by the Board) hereunder
 shall be subject to review or modification by the Board if the Board so chooses, so long
 as the Executive is not present at voting or deliberations on his compensation.

**18.** **Waiver**.
 The rights and remedies of the parties to this Agreement are cumulative and not alternative.
 Neither the failure nor any delay by either party in exercising any right, power, or privilege
 under this Agreement will operate as a waiver of such right, power, or privilege, and no
 single or partial exercise of any such right, power, or privilege will preclude any other
 or further exercise of such right, power, or privilege or the exercise of any other right,
 power, or privilege. To the maximum extent permitted by applicable law, (a) no claim or right
 arising out of this Agreement can be discharged by one party, in whole or in part, by a waiver
 or renunciation of the claim or right unless in writing signed by the other party; (b) no
 waiver that may be given by a party will be applicable except in the specific instance for
 which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver
 of any obligation of such party or of the right of the party giving such notice or demand
 to take further action without notice or demand as provided in this Agreement.

**19.** **No Violation.** Executive represents and warrants that the execution and delivery of this
 Agreement and the performance of Executive's services contemplated hereby will not
 violate or result in a breach by Executive of, or constitute a default under, or conflict
 with: (i) any provision or restriction of any employment, consulting, or other similar agreement;
 (ii) any agreement by Executive with any third party not to compete with, solicit from, or
 otherwise disparage such third party; (iii) any provision or restriction of any agreement,
 contract, or instrument to which Executive is a party or by which Executive is bound; or
 (iv) any order, judgment, award, decree, law, rule, ordinance, or regulation or any other
 restriction of any kind or character to which Executive is subject or by which Executive
 is bound.

**20.** **Assignment**.
 Notwithstanding anything else herein, this Agreement is personal to Executive and neither
 this Agreement nor any rights hereunder may be assigned by Executive. The Company may assign
 this Agreement to an affiliate or to any acquirer of all or substantially all of the business
 and/or assets of the Company, in which case the term "Company" will mean such
 affiliate or acquirer. This Agreement will inure to the benefit of and be binding upon the
 personal or legal representatives, executors, administrators, successors, heirs, distributees,
 devisees, legatees and permitted assignees of the parties.

**21.** **Counterparts, Facsimile**. This Agreement may be executed in one or more counterparts, each of which
 will be deemed to be an original copy of this Agreement and all of which, when taken together,
 will be deemed to constitute one and the same agreement. To the maximum extent permitted
 by applicable law, this Agreement may be executed via facsimile.

**22.** **Notices**.
 Any notice required to be given under this Agreement shall be deemed sufficient, if in writing,
 and sent by certified mail, return receipt requested, via overnight courier, by or hand delivered
 to the Company at its corporate address, Attn: Chairman of the Compensation Committee and
 Chief Financial Officer, and to Executive at the most recent address reflected in the Company's
 employment records or e-mail.

**23.** **Survival; Remedies.** Sections 6, 7, 8, 13, 14 and 15 shall survive the Term of this Agreement and
 will be fully enforceable thereafter. In the event of a breach or threatened breach by the
 Executive of Sections 6, 7, 8, 13 or 14, whether or not such breach or threatened breach
 occurs during the Term, the Executive hereby consents and agrees that the Company shall be
 entitled to seek, in addition to other available remedies, a temporary or permanent injunction
 or other equitable relief against such breach or threatened breach from any court of competent
 jurisdiction, and that money damages would not afford an adequate remedy, without the necessity
 of showing any actual damages, and without the necessity of posting any bond or other security.
 The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies,
 monetary damages, or other available forms of relief.

**24.** **Acknowledgement of Full Understanding.** THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE EXECUTIVE HAS FULLY
 READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES
 AND AGREES THAT THE EXECUTIVE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN
 ATTORNEY OF THE EXECUTIVE'S CHOICE BEFORE SIGNING THIS AGREEMENT.

**[signature page follows]**

IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **Optex Systems Holdings, Inc.**, a Delaware corporation | **Optex Systems Holdings, Inc.**, a Delaware corporation |
| By: | /s/ Dale E. Lehmann |
| Name: | Dale E. Lehmann |
| Title: | Director, Chair of Compensation Committee |
| Date: |  |

---

---

| | |
|:---|:---|
| **EXECUTIVE** | **EXECUTIVE** |
| By: | /s/ Chad George |
| Chad George, an individual | Chad George, an individual |
| Date: |  |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**Optex Systems Holdings Announces Chad George as Chief Executive Officer**

RICHARDSON, Texas, December 8, 2025 – Optex Systems Holdings, Inc. (Nasdaq: OPXS), a leading manufacturer of precision optical sighting systems for domestic and global military and commercial applications, is pleased to announce the promotion of Chad George to President and Chief Executive Officer, effective December 20, 2025. Mr. George previously served as President and will now assume full executive leadership of the organization.

Mr. George brings an extensive record of operational excellence, strategic vision, and defense industry expertise to his new role. Before joining Optex, Mr. George served in senior operations and supply chain leadership roles within the defense industry, most recently as Vice President of Operations and Supply Chain at Leonardo DRS, where he successfully streamlined production processes and enhanced strategic sourcing capabilities. His background also includes impactful roles at Raytheon, where he developed a strong foundation in defense manufacturing and operational strategy.

Mr. George began his professional career as a manufacturing engineer for Raytheon, then transitioned to the consumer goods sector for Dr. Pepper for 4 years before returning to the defense sector, in which he has spent more than 20 years throughout his career.

He holds a Bachelor's Degree in Industrial Engineering from Oklahoma State University and an MBA from the University of Texas at Dallas, equipping him with both the technical expertise and strategic insight necessary to lead Optex into its next phase of expansion.

"Chad has demonstrated exceptional leadership and a clear strategic vision since joining Optex," said Danny Schoening, outgoing CEO of Optex Systems Holdings. "His deep understanding of defense manufacturing, his operational leadership, and most importantly, his commitment to innovation makes him the ideal choice to guide Optex forward. After 13 years as serving as CEO, I am delighted to transition stewardship of Optex to Chad. I have the utmost confidence that under his leadership, the company will continue to strengthen its position as a leader in defense optics and prosper."

"I am honored to step into the role of Chief Executive Officer," said Chad George, President and CEO of Optex Systems Holdings. "Optex has a proud legacy of delivering mission-critical optical systems, and I look forward to expanding our product portfolio, advancing our technological capabilities, and exploring adjacent markets to create new opportunities for growth. I am excited to lead this exceptional team into the future."

In his role as President and CEO, Mr. George will oversee the company's strategic direction, drive innovation across product lines, and continue efforts to expand Optex's presence in both core and emerging market verticals. As part of this transition Mr. George has also been appointed to Optex's board of directors. Mr. Schoening will continue to serve on the board in his role as Chairman for Optex Systems Holdings, Inc.

**ABOUT OPTEX SYSTEMS HOLDINGS**

Optex, which was founded in 1987, is a Richardson, Texas based ISO 9001:2015 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com.

**Safe Harbor Statement**

This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control.

You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.

**Contact:**

IR@optexsys.com

(972) 764-5718