Document:

Document

EXHIBIT 10.25

August 20, 2021

Nick Tzitzon 

Dear Nick:

This letter agreement (the “Agreement”) is entered into between you and ServiceNow, Inc. (the “Company”) and is effective as of September 1, 2021 (the “Effective Date”). The purpose of this Agreement is to confirm the current terms and conditions of your employment with the Company. 

1.Position. Effective as of the Effective Date, you will serve as the Company’s Chief Strategy and Corporate Affairs Officer reporting to the Company’s Chief Executive Officer. You will have all of the duties, responsibilities and authority commensurate with the position. Your employment with the Company commenced on January 6, 2020 (your “Start Date”). You will be expected to devote your full working time and attention to the business of the Company. 

2.Term. Subject to the terms of this Agreement, this Agreement will remain in effect for a period commencing on the Start Date and continuing until termination of your employment as set forth herein (the “Employment Term”).

3.Cash Compensation. 

a.Base Salary. Your annual base salary (the “Base Salary”) effective as of the Effective Date will be Five Hundred Fifty Thousand Dollars ($550,000), less required deductions and withholdings, payable in accordance with the Company’s normal payroll practices. Your Base Salary will be subject to adjustment by the Leadership Development and Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). Your Base Salary will be prorated for any partial years of employment during your Employment Term. 

b.Target Bonus. During the Employment Term, you will be eligible to participate in our executive corporate bonus program. Your annual bonus target effective as of the Effective Date will be one hundred percent (100%) of your Base Salary, which equals Five Hundred Fifty Thousand Dollars ($550,000) (your “Target Bonus”). Whether you receive the Target Bonus, and the amount of any actual bonus amount awarded (your “Actual Bonus”), will be determined by the Compensation Committee in its sole discretion based in all cases upon the achievement of both Company and individual performance objectives as established by the Compensation Committee. To earn any Actual Bonus, you must be employed by the Company on the last day of the period to which such bonus relates and at the time bonuses are paid, except as otherwise provided herein. Your bonus participation will be subject to all the terms, conditions and restrictions of the applicable Company bonus plan, as amended from time to time. The Actual Bonus shall be subject to required deductions and withholdings.

4.Benefits, Vacation & Expenses. 

a.You will be entitled to participate in all employee retirement, welfare, insurance, benefit and vacation programs of the Company as are in effect from time to time and in which other senior executives of the Company are eligible to participate, on the same terms as such other senior executives, pursuant to the governing plan documents. 

b.The Company will, in accordance with applicable Company policies and guidelines, reimburse you for all reasonable and necessary expenses incurred by you in connection with your performance of services on behalf of the Company. 

5.Equity Awards. 

a.Prior Equity Awards. The Company has previously granted you equity awards under the Company’s 2012 Equity Incentive Plan. Such awards will continue to be subject to their existing terms and any additional terms set forth in this Agreement. 

b.Future Equity. You may be eligible for future equity grants as determined by and pursuant to the terms established by the Compensation Committee. The amount and performance metrics for subsequent performance-based restricted stock units will be determined by the Compensation Committee.

6.Definitions. As used in this Agreement, the following terms have the following meanings. 

a.Cause. For purposes of this Agreement, “Cause” for the Company to terminate your employment hereunder shall mean the occurrence of any of the following events, as determined by the Company in its sole and absolute discretion: 

i.your conviction of, or plea of nolo contendere to, any felony or any crime involving fraud, dishonesty or moral turpitude; 

ii.your commission of or participation in a fraud or act of dishonesty against the Company that results in (or would reasonably be expected to result in) material harm to the business of the Company; 

iii.your intentional, material violation of any contract or agreement between you and the Company or any statutory duty you owe to the Company or the improper disclosure of confidential information (as defined in the Company’s standard confidentiality agreement); 

iv.your conduct that constitutes gross insubordination, incompetence or habitual neglect of duties and that results in (or would reasonably be expected to result in) material harm to the business of the Company; 

v.your material failure to perform the duties of your position as Chief Strategy and Corporate Affairs Officer; 

vi.your material failure to follow the Company’s material policies; or 

vii.your failure to cooperate with the Company in any investigation or formal proceeding; 

provided, however, that the action or conduct described in clauses (iii), (iv), (v), (vi) and (vii) above will constitute “Cause” only if such action or conduct continues after the Company has provided you with written notice thereof and thirty (30) days to cure the same if such action or conduct is curable. 

b.Change in Control. For purposes of this Agreement, “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events (excluding in any case transactions in which the Company or its successors issues securities to investors primarily for capital raising purposes):

i.the acquisition by a third party of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction; 

ii.a merger, consolidation or similar transaction following which the stockholders of the Company immediately prior thereto do not own at least fifty percent (50%) of the combined outstanding voting power of the surviving entity (or that entity’s parent) in such merger, consolidation or similar transaction; 

iii.the dissolution or liquidation of the Company; or

iv.the sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company. 

Notwithstanding any of the foregoing, any transaction or transactions effected solely for purposes of changing the Company’s domicile will not constitute a Change in Control pursuant to the foregoing definition. 

c.COBRA. For purposes of this Agreement, “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended. 

d.Code. For purposes of this Agreement, “Code” means the Internal Revenue Code of 1986, as amended. 

e.Disability. For purposes of this Agreement, “Disability” shall have that meaning set forth in Section 22(e)(3) of the Code. 

f.Good Reason. For purposes of this Agreement, “Good Reason” for you to terminate your employment hereunder shall mean the occurrence of any of the following events without your consent: 

i.any material diminution in your authority, duties or responsibilities as in effect immediately prior to such reduction or a material diminution in the authority, duties or responsibilities of the person or persons to whom you are required to report; 

ii.a material reduction by the Company in your annual Base Salary or Target Bonus, as initially set forth herein or as increased thereafter; provided, however, that Good Reason shall not be deemed to have occurred in the event of a reduction in your annual Base Salary or Target Bonus that is pursuant to a salary or bonus reduction program affecting substantially all of the employees of the Company or substantially all similarly situated executive employees and that does not adversely affect you to a greater extent than other similarly situated employees; 

iii.a relocation of your business office to a location that would increase your one-way commute distance by more than thirty-five (35) miles from the current location at which you performed your duties immediately prior to the relocation, except for required travel by you on the Company’s business to an extent substantially consistent with your business travel obligations prior to the relocation; or 

iv.failure of a successor entity to assume this Agreement; 

provided, however, that, any such termination by you shall only be deemed for Good Reason pursuant to this definition if: (1) you give the Company written notice of your intent to resign for Good Reason within ninety (90) days following the first occurrence of the condition(s) that you believe constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); and (3) you voluntarily resign your employment within one hundred twenty (120) days following the end of the Cure Period. 

7.Effect of Termination of Employment. 

a.Termination by the Company for Cause, Death or Disability or Resignation without Good Reason. In the event your employment is terminated by the Company for Cause, your employment terminates due to your death or Disability (which termination may be implemented by written notice by the Company if you have a Disability), or you resign your employment other than for Good Reason, you will be paid only: (i) any earned but unpaid Base Salary; (ii) except in the case of termination for Cause or resignation without Good Reason, the amount of any Actual Bonus earned and payable from a prior bonus period which remains unpaid by the Company as of the date of the termination of employment determined in good faith in accordance with customary practice, to be paid at the same time as bonuses are paid for that period to other eligible executives; (iii) other unpaid and then-vested amounts, including any amount payable to you under the specific terms of any agreements, plans or awards, including insurance and health and benefit plans in which you participate, unless otherwise specifically provided in this Agreement; and (iv) reimbursement for all reasonable and necessary expenses incurred by you in connection with your performance of services on behalf of the Company in accordance with applicable Company policies and guidelines, in each case as of the effective date of such termination of employment (the “Accrued Compensation”). 

b.Termination without Cause or Resignation for Good Reason, Absent a Change in Control. If the Company terminates your employment without Cause or you resign your employment for Good Reason, in either case not in connection with a Change in Control (which is dealt with in Section 7(c) below), provided that (except with respect to the Accrued Compensation) you deliver to the Company a signed general release of claims in favor of the Company on the Company’s standard form of release (the “Release”) and satisfy all conditions to make the Release effective within sixty (60) days following your termination of employment, then, you shall be entitled to:

i.the Accrued Compensation; and 

ii.a lump sum payment equal to six (6) months of your then-current Base Salary, less required deductions and withholdings; 

iii.a lump sum payment equal to fifty percent (50%) of your Actual Bonus for the then-current fiscal year based on: (x) actual achievement of Company performance objectives and (y) deemed 100% achievement of personal performance objectives, if any, less any quarterly payment previously paid, if any, subject to required deductions and withholdings and paid when annual bonuses are otherwise paid to active employees, but no later than March 15th of the year following the year in which the termination of employment occurs; 

iv.a payment of the COBRA premiums (or reimbursement to you of such premiums) for continued health coverage for you and your dependents for a period of six (6) months. 

c.Termination without Cause or Resignation for Good Reason, in Connection with a Change in Control. In the event a Change in Control occurs and if the Company terminates your employment without Cause or if you resign your employment for Good Reason, in either case within the period beginning three (3) months before, and ending twelve (12) months following, such Change in Control; and provided that (except with respect to the Accrued Compensation) you deliver to the Company the signed Release and satisfy all conditions to make the Release effective within sixty (60) days following your termination of employment, then, (in lieu of any benefits pursuant to Section 7(b)), you shall be entitled to:

i.the Accrued Compensation; 

ii.a lump sum payment equal to six (6) months of your then-current Base Salary, less required deductions and withholdings; 

iii.a lump sum payment equal to fifty percent (50%) of your Target Bonus for the then-current fiscal year less any quarterly payment previously paid, if any, subject to required deductions and withholdings; 

iv.a payment of the COBRA premiums (or reimbursement to you of such premiums) for continued health coverage for you and your dependents for a period of six (6) months; and 

v.immediate acceleration of one hundred percent (100%) of the number of then-unvested shares subject to equity grants, unless otherwise provided (and to the extent specified) by the terms of such grants. 

d.Miscellaneous. For the avoidance of doubt, the benefits payable pursuant to Sections 7(b) through (c) are mutually exclusive and not cumulative. All lump sum payments provided in this Section 7 shall be made no later than the 60th day following your termination of employment (unless explicitly provided otherwise above). Notwithstanding anything to the contrary in this Agreement, (i) any reference herein to a termination of your employment is intended to constitute a “separation from service” within the meaning of Section 409A of the Code, and Section 1.409A-1(h) of the regulations promulgated thereunder, and shall be so construed, and (ii) no payment will be made or become due to you during any period that you continue in a role with the Company that does not constitute a separation from service, and will be paid once you experience a “separation from service” from the Company within the meaning of Section 409A of the Code. In addition, notwithstanding anything to the contrary in this Agreement, upon a termination of your employment, you agree to resign prior to the time you deliver the Release from all positions you may hold with the Company and any of its subsidiaries or affiliated entities at such time, and no payment will be made or become due to you until you resign from all such positions, unless requested otherwise by the Board. 

8.Parachute Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to you (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section, would be subject to the excise tax imposed by Section 4999 of the Code, then, at your discretion, your severance and other benefits under this Agreement shall be payable either (i) in full, or (ii) as to such lesser amount which would result in no portion of such severance and other benefits being subject to the excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by you on an after-tax basis, of the greatest amount of severance benefits under this Agreement, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Any reduction shall be made in the following manner: first a pro-rata reduction of (i) cash payments subject to Section 409A of the Code as deferred compensation and (ii) cash payments not subject to Section 409A of the Code, and second a pro rata cancellation of (i) equity-based compensation subject to Section 409A of the Code as deferred compensation and (ii) equity-based compensation not subject to Section 409A of the Code, with equity all being reduced in reverse order of vesting and equity not subject to treatment under Treasury regulation 1.280G- Q & A 24(c) being reduced before equity that is so subject. Unless the Company and you otherwise agree in writing, any determination required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon you and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Accountants shall deliver to the Company and you sufficient documentation for you to rely on it for purpose of filing your tax returns. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section. 

9.Section 409A. To the extent (i) any payments to which you become entitled under this Agreement, or any agreement or plan referenced herein, in connection with your termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (ii) you are deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from the date of your “separation from service” (as such term is at the time defined in 

regulations under Section 409A of the Code) with the Company; or (ii) the date of your death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty percent (20%) tax for which you would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to you or your beneficiary in one lump sum (without interest). 

Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any inkind benefit, in one calendar year shall not affect the expenses eligible for reimbursement or in kind benefits to be provided in any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. 

To the extent that any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant to this Agreement (or referenced in this Agreement), and each installment thereof, are intended to constitute separate payments for purposes of Section 1.409A2(b)(2) of the regulations under Section 409A. 

10.At Will Employment. Employment with the Company is for no specific period of time. Your employment with the Company continues to be “at will,” meaning that either you or the Company may terminate your employment at any time, with or without cause, and with or without advance notice. Any contrary representations that may have been made to you are superseded by this Agreement. This is the full and complete agreement between you and the Company on this term. Although your compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you). 

11.Confidential Information and Other Company Policies. You will continue to be bound by and comply fully with your existing At Will Employment, Confidential Information and Invention Assignment Agreement (the “CIIA”) and Arbitration Agreement (the “Arbitration Agreement”) as well as the insider trading policy, code of ethics, and any other policies and programs adopted by the Company regulating the behavior of its employees, as such policies and programs may be amended from time to time to the extent the same are not inconsistent with this Agreement, unless you consent to the same at the time of such amendment. 

12.Company Records and Confidential Information. 

a.Records. All records, files, documents and the like, or abstracts, summaries or copies thereof, relating to the business of the Company or the business of any subsidiary or affiliated companies, which the Company or you prepare or use or come into contact with, will remain the sole property of the Company or the affiliated or subsidiary company, as the case may be, and will be promptly returned upon termination of employment. 

b.Confidentiality. You acknowledge that you have acquired and will acquire knowledge regarding confidential, proprietary and/or trade secret information in the course of performing your responsibilities for the Company, and you further acknowledge that such knowledge and information is the sole and exclusive property of the Company. You recognize that disclosure of such knowledge and information, or use of such knowledge and information, to or by a competitor could cause serious and irreparable harm to the Company. 

13.Indemnification. You and the Company will enter into the form of indemnification agreement provided to other similarly situated officers of the Company. 

14.Compensation Recoupment. All amounts payable to you hereunder shall be subject to recoupment pursuant to the Company’s current compensation recoupment policy, and any additional compensation recoupment policy or amendments to the current policy adopted by the Board from time to time hereafter, as allowed by applicable law. 

15.Miscellaneous. 

a.Absence of Conflicts; Competition with Prior Employer. You represent that your performance of your duties under this Agreement will not breach any other agreement as to which you are a party. You agree that you have disclosed to the Company all of your existing employment and/or business relationships, including, but not limited to, any consulting or advising relationships, outside directorships, investments in privately held companies, and any other relationships that may create a conflict of interest. You are not to bring with you to the Company, or use or disclose to any person associated with the Company, any confidential or proprietary information belonging to any former employer or other person or entity with respect to which you owe an obligation of confidentiality under any agreement or otherwise. The Company does not need and will not use such information and we will assist you in any way possible to preserve and protect the confidentiality of proprietary information belonging to third parties. Also, we expect you to abide by any obligations to refrain from soliciting any person employed by or otherwise associated with any former employer and suggest that you refrain from having any contact with such persons until such time as any non-solicitation obligation expires. 

b.Successors. This Agreement is binding on and may be enforced by the Company and its successors and permitted assigns and is binding on and may be enforced by you and your heirs and legal representatives. Any successor to the Company or substantially all of its business (whether by purchase, merger, consolidation or otherwise) will in advance assume in writing and be bound by all of the Company’s obligations under this Agreement and shall be the only permitted assignee. 

c.Notices. Notices under this Agreement must be in writing and will be deemed to have been given when personally delivered or two days after mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices to you will be addressed to you at the home address which you have most recently communicated to the Company in writing. Notices to the Company will be addressed to the CEO at the Company’s corporate headquarters. 

d.Waiver. No provision of this Agreement will be modified or waived except in writing signed by you and an officer of the Company duly authorized by its Board or the Compensation Committee. No waiver by either party of any breach of this Agreement by the other party will be considered a waiver of any other breach of this Agreement. 

e.Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision. 

f.Withholding. All sums payable to you hereunder shall be reduced by all federal, state, local and other withholding and similar taxes and payments required by applicable law. 

g.Entire Agreement. This Agreement, together with the CIIA and Arbitration Agreement, supersede and replace any prior agreements, representations or understandings (whether written, oral, implied or otherwise) between you and the Company, including, without limitation, your offer letter with the Company dated January 6, 2020 as well as your confirming internal transfer letter dated October 19, 2020, and constitute the entire agreement between you and the Company concerning the subject matter herein. This Agreement may be amended, or any of its provisions waived, only by a written document executed by both parties in the case of an amendment, or by the party against whom the waiver is asserted. 

h.Governing Law. This Agreement will be governed by the laws of the State of California without reference to conflict of laws provisions. 

i.Survival. The provisions of this Agreement shall survive the termination of your employment for any reason to the extent necessary to enable the parties to enforce their respective rights under this Agreement.

Please indicate your acceptance of this Agreement by signing the bottom portion of this Agreement.

			
	Best regards,

	/s/Jacqui Canney
	Jacqui Canney
	Chief People Officer
	ServiceNow, Inc.

                                                                          

I, the undersigned, hereby accept and agree to the terms and conditions of my employment with the Company as set forth in this Agreement. 

Accepted and agreed to as of the Effective Date.

			
	By: /s/ Nick Tzitzon    
	Nick Tzitzon

[SIGNATURE PAGE TO AGREEMENT]confidential_severancexa

Page 1 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  CONFIDENTIAL SEVERANCE AND RELEASE AGREEMENT  This CONFIDENTIAL SEVERANCE AND RELEASE AGREEMENT (the  “Agreement”) is hereby made and entered into this ______________ __, 202_, by and between  ITERIS, INC. (the “Company”) and RAMIN MASSOUMI (“Executive”) (the Company and  Executive, together, the “Parties”).  1. Termination. Executive’s employment with the Company will terminate effective as of December 31, 2021 (the “Termination Date”).  Upon the Termination Date, Executive  agrees to resign any and all board and officer positions with the Company and agrees to execute  any reasonably necessary documents requested by the Company to effectuate and further  evidence the same.  Executive will be receive his Accrued Rights (as defined in the Amended  and Restated Executive Severance Plan established by Iteris, Inc. on February 5, 2018 and  amended and restated effective June 4, 2019 (the “Severance Plan”)), including payment for any  accrued but unused vacation earned through the Termination Date, and will also be reimbursed  for any approved business expenses that Executive has timely submitted for reimbursement in  accordance with the Company’s business expense reimbursement policy or practice.  Except as  set out in this Agreement, as provided by the specific terms of a benefit plan or as required by  law, all employee benefits will end on the Termination Date.  Executive hereby acknowledges  that upon receipt of his final paycheck, he will have been paid all compensation due and owing  to him through the Termination Date for labor and services performed for the Company’s  benefit.  Executive agrees that as of the Termination Date, he will no longer hold a position  within the Company and/or its subsidiaries, including any signature authority or power of  attorney with respect to the Company, its subsidiaries and officers and directors.  2. Severance Benefits.  If Executive signs and does not revoke this Agreement as provided in Section 20 below, the Company will provide Executive with the following payments  and benefits collectively referred to in this Agreement as the “Severance Benefits”:  (a) Severance Pay.  Pursuant to the Severance Plan, the Company will provide Executive an amount in the aggregate equal to Executive’s annual Base Salary in effect as of the  Termination Date (the “Severance Pay”).  Subject to Section 8.13 of the Severance Plan, the  Severance Pay will be paid in substantially equal installment payments over the one-year period  following the Termination Date, payable in accordance with the Company’s normal payroll  practices, but no less frequently than monthly, which payments in the aggregate shall be equal to  the Severance Pay and which shall begin following the next pay period after the Effective Date  (as defined below). The Severance Pay will be subject to applicable federal, state and local  payroll taxes, and other withholdings required by law or authorized by Executive.  Each payment  of the Severance Pay shall be treated as a separate payment for purposes of Section 409A of the  Internal Revenue Code, as amended (the “Code”), and the regulations issued thereunder (Section  409A”).    (b) COBRA Reimbursement.  Executive’s health benefit coverage as an active employee will end on the Termination Date. However, Executive will be eligible for COBRA  Severance (defined below). If Executive timely elects continued health insurance coverage under  December 30 1 DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

Page 2 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  COBRA, the Company will pay Executive’s COBRA premiums to continue Executive’s group  health care coverage (including coverage for eligible dependents and domestic partner, if  applicable) (the “COBRA Severance”) at its current level through the period starting on the  Termination Date and ending on the earliest to occur of (i) the end of the twelve-month period  following the Termination Date; (ii) the date Executive becomes eligible for group health  insurance coverage through a new employer; or (iii) the date Executive (or a dependent, as  applicable) ceases to be eligible for COBRA continuation coverage for any reason, including  plan termination (the “COBRA Payment Period”). In the event Executive becomes covered  under another employer's group health plan or otherwise ceases to be eligible for COBRA during  the COBRA Payment Period, Executive must notify the Company in writing of such event  within two (2) weeks. Notwithstanding the foregoing, if the Company determines, in its sole  discretion, that it cannot pay the COBRA Severance without a substantial risk of violating  applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the  Company shall in lieu thereof provide to Executive a taxable monthly cash payment in an  amount equal to the monthly COBRA premium that Executive would be required to pay to  continue Executive’s group health insurance coverage in effect of the Termination Date (which  amount shall be based on the premium for the first month of COBRA coverage), which payments  shall be made on the last day of each month regardless of whether Executive elects COBRA  continuation coverage and shall end on the earlier of (x) the date upon which Executive obtains  other employment or (y) the end of the twelve-month period following the Termination Date.  (c) Consulting Services; Continued Vesting. i. For up to the twelve (12) month period following the Termination Date (the “Consulting Period”), Executive agrees to make himself available for reasonable  consulting as requested by the Company during such period. Executive agrees to perform the  consulting services diligently, competently, and in a professional manner, in compliance with all  laws applicable to the provision of such services.  Executive will at all times retain discretion and  judgment in the manner and means of carrying out the consulting services and will not be  expected to adhere to any particular schedule for the performance of such services, except in the  case of occasional scheduled conferences or meetings.    ii. To the extent Executive travels in the course of providing services to the Company during the Consulting Period, the Company will pay for all of Executive’s  reasonable out of pocket expenses incurred in connection with such travel. The reimbursement of  expenses will include pre-approved airfare, hotel and conference fees associated with  conferences that Executive attends on Company’s behalf. These expenses will be reimbursed to  Executive by Company no later than thirty (30) days after submission of the reimbursement  request (with appropriate documentation) to Company by Executive.   iii. Executive acknowledges and agrees that, during the Consulting Period, Executive will be an independent contractor and not an employee of the Company, and  will not be entitled to receive any compensation for Executive’s service as an independent  contractor other than as expressly provided above.  Executive shall be eligible and free to  become employed with any business or company of his choosing (or become self-employed)  DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

Page 3 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  outside the Company immediately after the Termination Date without limitation, provided that  Executive continues to comply with any obligations to the Company that survive the termination  of Executive’s employment, including but not limited to the obligations set forth in Executive’s  Iteris Associate Agreement regarding proprietary information and intellectual property (the  “Surviving Obligations”). In the event Executive becomes employed by a business other than the  Company after the Termination Date, this will not affect or change any of Company’s  obligations to pay any Severance benefits or other compensation due to Executive pursuant to  this agreement.   iv. Provided Executive reasonably makes himself available for consulting services during the Consulting Period, Executive will be entitled to continued vesting  of all outstanding equity awards in accordance with and subject to the terms and conditions of  any equity agreements and governing plan documents applicable to Executive.  Executive  acknowledges and agrees that to the extent any such equity awards were designated as incentive  stock options pursuant to Section 422 of the Internal Revenue Code of 1986, the exercise of such  options more than three months after Executive’s employment with the Company ends will result  in the options being deemed nonstatutory stock options (except in certain limited circumstances  specified in the applicable option grant agreement as permitted by applicable tax laws).  Treatment of the options as nonstatutory stock options may result in tax consequences to  Executive, including an obligation on the part of the Company to withhold taxes from income  Executive may recognize at the time of exercise.  Executive is encouraged to seek his own tax  and financial advice regarding the consequences any decision to exercise the options, and  acknowledges that he is not relying on any statements or representations of the Company or any  of its agents with regard to such tax consequences.  Except as expressly provided herein, the  equity awards remain subject to the terms of the applicable award agreement(s) between  Executive and the Company.    If Executive does not sign this Agreement and return it to the Company within twenty-one  (21) days of the date it was provided to Executive, or if Executive revokes this Agreement pursuant to Section 20, Executive will not be entitled to the Severance Benefits as described above.  Executive hereby acknowledges and agrees that but for his execution of this Agreement, he would not be entitled to the Severance Benefits as set out herein. 3. Payment in Full.  Executive agrees and acknowledges the Severance Benefits are specific and sufficient consideration for the releases and covenants contained in this Agreement.   Executive further represents and affirms that, except as set forth in this Agreement, he has been  paid and/or received all leave (paid or unpaid), compensation, wages, bonuses, commissions,  severance, and/or benefits to which he may be entitled for any and all work performed for the  benefit of the Company, including but not limited to his work as an employee and that no other  leave (paid or unpaid), compensation, wages, bonuses, commissions, severance and/or benefits  are due, except as provided for in this Agreement.  Executive specifically agrees and  acknowledges that the Severance Benefits described in this Agreement represent the total amount  of severance and benefit continuation for which he is eligible under the Severance Plan.  DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

Page 4 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  4. Release of Claims.  In consideration for the promises set forth in this Agreement, Executive, for himself and for his spouse, family, heirs, and anyone acting for him, including  representatives, attorneys, executors, administrators, successors, insurers, and assigns, hereby  releases, acquits, and forever discharges the Company, its past, present and future directors,  officers, partners, representatives, shareholders, employees, agents, attorneys, parents,  subsidiaries, affiliates, successors, predecessors and assigns, (the “Company Releasees”) or any  of them, from any and all actions, causes of action, grievances, obligations, costs, expenses,  damages, punitive damages, losses, claims, liabilities, suits, debts, demands, agreements, orders,  benefits (including attorneys’ fees and costs actually incurred), or liabilities of whatever  character, in law or in equity, known or unknown, suspected or unsuspected, matured or  unmatured, asserted or not asserted, based on any act, omission, event, occurrence, or non- occurrence from the beginning of time through the Effective Date of this Agreement, including  but not limited to any claims or causes of action arising out of or in any way relating to  Executive’s employment, the termination of his employment with the Company, and/or any other  occurrence arising before the Effective Date of this Agreement.    This waiver and release includes, but is not limited to, claims that the Company and/or  any of the Company Releasees:  a. have violated or breached any personnel policies, handbooks, contracts of employment, severance pay agreements (including but not limited to the Severance Plan) or  covenants of good faith and fair dealing;   b. have discriminated, harassed or retaliated against Executive on the basis of age, race, color, sex, national origin, ancestry, disability, religion, harassment, marital status,  parental status, handicap, genetic information, source of income, veteran status, entitlement to  benefits, or any other protected characteristic, in violation of any local, state or federal law,  ordinance or regulation, including, but not limited to: Title VII of the Civil Rights Act of 1964;  42 U.S.C. § 1981; the Civil Rights Act of 1866, 1964, and 1991; the Age Discrimination in  Employment Act as amended by the Older Workers’ Benefit Protection Act; the Americans  With Disabilities Act of 1990; the Rehabilitation Act of 1973; the Worker Adjustment Retraining  and Notification Act; the National Labor Relations Act; the Occupational Safety and Health Act  of 1970; the Equal Pay Act of 1963; the Genetic Information Nondiscrimination Act of 2008; the  Sarbanes-Oxley Act; the California Fair Employment and Housing Act; the California Equal Pay  Law; the California Wage Theft Protection Act; California Healthy Workplaces, Healthy  Families Act of 2014; the California Occupational Health and Safety Act of 1973; the California  Family Rights Act; the California Political Activities Discrimination Law; the California  Whistleblower Laws; California Government Code § 12900, et seq.; California Labor Code;  California New Parent Leave Act; and the California Family and Medical Leave Act;   c. have violated public policy or common law, including claims under state and federal law for retaliatory discharge, negligent hiring or supervision, breach of contract,  wrongful termination, tort, personal injury, invasion of privacy, defamation, intentional or  negligent infliction of emotional distress and/or mental anguish, intentional interference with  DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

   Page 5 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9    contract, negligence, detrimental reliance, loss of consortium to Executive or to any member of  his family, and/or promissory estoppel;   d. have failed to pay wages or otherwise violated any law governing the  payment of wages or protection of workers seeking payment for work performed, including, but  not limited to laws governing the payment of wages in the State of California, and any other  federal, state or local statutory and/or common laws; and/or  e. have violated any other federal, state or local law, ordinance or regulation,  including, but not limited to the Employee Retirement Income Security Act of 1974 (ERISA),  the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), and/or the Family and  Medical Leave Act (FMLA). However, this section does not apply to any COBRA benefits that  may come due as a result of the Termination Date that will be made available subsequent to the  Termination Date.   Excluded from this release are any claims which cannot be waived by law, including  but not limited to the right to file a charge with or participate in an investigation conducted  by the U.S. Equal Employment Opportunity Commission, the California Department of  Fair Employment and Housing, the National Labor Relations Board or any other federal,  state or local governmental agency charged with investigating complaints, whether based in  employment discrimination, violations of laws governing the payment of wages, labor law  violations or otherwise (collectively, “Governmental Agencies”), provided that Executive is  waiving, however, his right to any monetary compensation, or other relief should  Governmental Agencies pursue any claims on his behalf.  Also excluded from this release  are any claims for a breach of this Agreement.    Executive expressly agrees and understands that this release and waiver of claims is a  GENERAL RELEASE, and that any reference to specific claims arising out of or in connection  with his employment is not intended to limit the release and waiver of claims.  Executive, his  heirs, executors, beneficiaries, legal representatives and assigns, individually and/or in their  beneficial capacity, further agree never to institute against the Company or any of the Company  Releasees any lawsuit with respect to any claim or cause of action of any type which may have  existed at any time prior to the Effective Date, provided that Executive may file a charge or  complaint with or participate in an investigation conducted by a Governmental Agency as  provided above.  By signing this Agreement, Executive will waive any right he had to bring a  lawsuit against any of the Company Releasees based upon any actions taken by any of the  Company Releasees prior to the Effective Date, and he will have released the Company  Releasees of any and all claims of any nature arising up to the Effective Date.    Executive acknowledges that Executive is aware that Executive may hereafter discover  facts in addition to, or different from, those which Executive now knows or believes to be true,  but it is Executive’s intention here, fully and finally and forever, to settle and to release any and  all matters, disputes and differences, known or unknown, suspected or unsuspected, that do now  exist, may exist or heretofore have existed with respect to those matters described above.   Executive hereby acknowledges that this release applies both to known and unknown claims that  may exist between Executive and the Company and the Company Releasees.  Executive hereby  DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

Page 6 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  expressly waives and relinquishes all rights and benefits that Executive may have under any state  or federal statute or common law principle that would otherwise limit the effect of this  Agreement to claims known or suspected prior to the date Executive executes this Agreement,  and does so understanding and acknowledging the significance and consequences of such  specific waiver.   In addition, Executive hereby expressly understands and acknowledges that it  is possible that unknown losses or claims exist or that present losses may have been  underestimated in amount or severity, and Executive explicitly took that into account in giving  this release.  Executive hereby waives any and all rights under Calif. Civil Code § 1542, which  provides that:  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.  Section 2699 of the California Labor Code (the Private Attorneys General Act (PAGA)) allows  employees to recover penalties for violations of the California Labor Code (“labor code  violations”) on behalf of all “aggrieved” employees and the State of California.  Section 2699(c)  of the PAGA defines an “aggrieved employee” as follows:    [A]ny person who was employed by the alleged violator and against whom one or more of the alleged violations was committed. As of the Effective Date of this Agreement, Executive acknowledges that  Executive is not “aggrieved” for the purposes of any potential claims under  PAGA because Executive agrees that Executive has not committed any labor  code violations against Executive.  Thus, as of the Effective Date of this  Agreement, Executive lacks standing to bring a PAGA action because Employee  is not “aggrieved.”  5. No Filings.  Executive represents and warrants that he has not filed or otherwise initiated any action, claim, charge, complaint or lawsuit against the Company or any of the  Company Releasees, with any agency, court or Governmental Agency.  By signing this  Agreement, Executive agrees and acknowledges that he has no cause to believe that any  violation of any local, state or federal law has occurred with respect to his employment or  separation of employment from the Company, including but not limited to any violation of any  federal, state municipal, foreign or international whistleblower or fraud law, statute or regulation.   In addition, Executive further agrees and acknowledges that he is not aware of any conduct that  would be unlawful under the False Claims Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, or  any other compliance obligation.  6. Confidentiality.  Executive hereby represents and agrees that he will not (except as required by law) disclose information regarding the specific terms of this Agreement to  DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

   Page 7 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9    anyone except his immediate family, his attorney and accountant or financial advisor as  reasonably necessary.    7. Defend Trade Secrets Act.  Pursuant to the Federal Defend Trade Secrets Act of  2016, an individual shall not be held criminally or civilly liable under any federal or state trade  secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a federal, state  or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the  purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint  or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An  individual who files a lawsuit for retaliation by an employer for reporting a suspected violation  of law may disclose the trade secret to his or her attorney and use the trade secret information in  the court proceeding, if the individual (a) files any document containing the trade secret under  seal; and (b) does not disclose the trade secret, except pursuant to court order.  8. Post-Employment Cooperation. Executive agrees to fully cooperate with the  Company in all matters relating to the winding up of his work, including but not limited to, any  current or future litigation in which the Company is or becomes involved; provided that, any  such requested cooperation will be reasonable and with due regard for Executive’s other  commitments, and provided further that Executive will be entitled to reimbursement of  reasonable, necessary and approved expenses in rendering such cooperation which will include  payment of Executive’s then existing hourly rate for time spent on any matters which occur  subsequent to the Consulting Period.  In addition, Executive will immediately return to the  Company all personal property belonging to the Company that is in Executive’s possession or  control, including, without limitation, all records, papers, files, drawings, notes, specifications,  marketing materials, software, reports, proposals, equipment, or any other device, material,  document or possession, however obtained.  The Company acknowledges that Executive will  retain as his own, all hardware in his possession, including his current laptop, cell phone and  printer in Executive’s home office, provided that all Company data, software, and systems are  deleted from such hardware to the satisfaction of the Company. The return of Company property  as described in this Section is an express requirement under this Agreement and a condition to  Executive’s receipt of the Severance Benefits.        9. No Admissions/No Representations.  Executive understands, acknowledges and  agrees that the release set out in Section 4 of this Agreement is a final compromise of any  potential claims by Executive against the Company and the Company Releases.  Executive  further understands, acknowledges and agrees that the release set out in Section 4 of this  Agreement in connection with his employment by and service to the Company is not an  admission by the Company or the Company Releases that any such claims exist or that the  Company or any of the Company Releases are liable for any such claims.  The Parties each  individually and independently acknowledge that, except as expressly set forth herein, no  representation of any kind or character has been made to induce the execution of this Agreement.   The Parties individually warrant for themselves that each is competent to execute this Agreement  and accepts full responsibility therefor.  The Parties further agree that this Agreement shall be  deemed to have been prepared by the Parties jointly, and no ambiguity shall be resolved against  any Party on the premise that it was responsible for drafting this Agreement, in whole or in part.  DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

Page 8 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  10. Non-Disparagement.  Executive agrees not to publicly or privately criticize, denigrate, or disparage or make any statements or remarks that have the intended or foreseeable  effect of harming the reputation of the Company and/or any of its present and former directors,  officers, partners, representatives, shareholders, employees, agents, attorneys, insurers, parents,  subsidiaries, affiliates, successors, predecessors and assigns through any means of  communication, including, but not limited to, print or broadcast media or any Internet  communication outlet.  The Company agrees to instruct its senior management employees,  executives, officers, and Human Resources not to denigrate, defame, or disparage Executive  and/or his family members, agents, attorneys and/or representatives.  Notwithstanding the  foregoing, nothing in this Agreement prohibits any person from providing truthful information  and/or testimony in connection with any investigation or proceeding conducted by Governmental  Agencies.  To the extent any prospective employer would like to contact the Company,  Executive will direct such prospective employer to Human Resources, who will confirm only  Executive’s dates of employment and job title and salary if requested by Executive.  11. Non-Solicit.  To the fullest extent permitted under applicable law, Executive agrees that for a period of twelve (12) months immediately following the Termination Date,  Executive will not directly or indirectly solicit any of the Company’s employees to leave their  employment at the Company.  12. Relief and Enforcement.  Executive understands and agrees that any breach of this Agreement by him will relieve the Company of its obligation to provide the Severance Benefits.   However, this shall not apply unless the Company provides Executive with written notice of  such breach, care of his attorney Alyssa Milman White, Esq., 610 Newport Center Drive, Suite  1200, Newport Beach, CA 92660, (949) 640-0800, within thirty (30) days, and to the extent such  breach is curable, Executive will be given fifteen (15) days to cure said breach. Executive also  understands and agrees that if he violates the terms of Sections 4, 5, 6, 7, 8, 10 or 11 of this  Agreement, he will cause injury to the Company (and/or one or more of the Company Releasees)  that will be difficult to quantify or repair, so that the Company (and/or the Company Releasees)  will have no adequate remedy at law.  Accordingly, Executive agrees that if he violates Sections  4, 5, 6, 7, 8, 10 or 11 of this Agreement, the Company (or the Company Releasees) will be  entitled as a matter of right to obtain an injunction from a court of law, restraining him from any  further violation of this Agreement.  The right to an injunction is in addition to and not in lieu of  any other remedies that the Company (or the Company Releasees) has at law or in equity.  13. Voluntary Execution.  By signing below, Executive acknowledges that he has read the foregoing Agreement, that he understands its contents and that he has relied upon or had  the opportunity to seek the legal advice of his attorney, who is the attorney of his own choosing.  14. Reservation of Rights/Waiver.  Both Parties reserve the right to sue for breach of contract in the event that there is a breach of the covenants and/or obligations set forth herein.   The failure of either Party to insist upon strict adherence to any term of this Agreement on any  occasion shall not be considered a waiver thereof or deprive that Party of the right thereafter to  insist upon strict adherence to that term or any other term of this Agreement.  DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

Page 9 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  15. Choice of Law.  This Agreement shall be governed by and interpreted under the laws of the State of California without regard for any conflict of law principle that would dictate  the application of the laws of another jurisdiction.   Venue of any litigation or dispute arising out  of this Agreement shall be in Orange County, California.  16. Entire Agreement/Severability.  This Agreement, including the Surviving Obligations (which are incorporated herein by reference) contains the entire, final expression of  the agreement and understanding by and between the Parties with respect to the matters herein  referred to, and it is a complete and exclusive statement of the terms thereof.  This Agreement  shall supersede all prior understandings, oral and written, hereto before had between the Parties  with respect to the subject matter hereof.  No amendments, representations, promises,  agreements, or understandings, written or oral, not herein contained shall be valid or binding  unless the same is in writing and signed by both Parties.  Should any provision of this Agreement  be declared or be determined by any agency or court to be illegal or invalid, the validity of the  remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part,  term or provision shall be deemed not a part of this Agreement.  17. Binding Nature of Agreement.  This Agreement shall inure to the benefit of and shall be binding upon Executive, his heirs, administrators, representatives, executors, successors  and assigns and upon the successors and assigns of the Company.   18. Headings.  The headings of the sections of this Agreement are for convenience only and are not binding on any interpretation of this Agreement.   19. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same  instrument.  20. Review and Effective Date. a. Agreement is Knowing and Voluntary. Executive understands, agrees and acknowledges that he:  1. has carefully read and/or had read to him and fully understands all of the provisions of this Agreement;  2. knowingly and voluntarily agrees to all of the terms set forth in this Agreement;  3. knowingly and voluntarily intends to be legally bound by the same; and  4. was advised, and hereby is advised in writing, to consider the terms of this Agreement and consult with an attorney of Executive’s choice prior to  executing this Agreement.   DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

Page 10 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  b. 21-Day Consideration Period.  Executive acknowledges that the Company has offered him twenty-one (21) days to consider the terms and conditions of this Agreement and  to decide whether to sign and enter into this Agreement.  In the event that Executive elects to  sign this Agreement prior to the expiration of the twenty-one (21) day period, he acknowledges  that in doing so, he will voluntarily waive the balance of the twenty-one (21) days permitted.   Executive understands and agrees that any change to the initially drafted terms of this Agreement  are not material and will not restart the running of this twenty-one (21) day period.  c. 7-Day Revocation Period.  Executive has seven (7) days after his execution of this Agreement to revoke his acceptance of it (the “Revocation Period”).  Any such  revocation must be made in writing to be received by Jeff McDermott by the close of business on  the seventh (7th) day following Executive’s signature to be effective.  The Parties acknowledge  and agree that this Agreement is neither effective nor enforceable and neither Party is obligated  to perform the promises contained herein in the event that the Agreement is revoked or until  expiration of the seven (7) day revocation period, the “Effective Date” of this Agreement.   Notwithstanding any provision of this Agreement to the contrary, in no event shall the timing of  the Executive’s execution of this Agreement, directly or indirectly, result in the Executive  designating the calendar year of payment of an amount that is subject to Section 409A, and if a  payment that is subject to execution of this Agreement and is subject to Section 409A could be  made in more than one taxable year, payment will be made in the later taxable year to the extent  required to comply with Section 409A.  [Remainder of page left intentionally blank; signature page immediately follows.]  DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 

 

Page 11 of 11  Confidential Separation and Release Agreement:  030697.011-3056970v9  THE PARTIES EACH ACKNOWLEDGE FOR THEMSELVES THAT THEY EACH  HAVE CAREFULLY READ THE FOREGOING CONFIDENTIAL SEPARATION AND  RELEASE AGREEMENT, AND FULLY UNDERSTAND EACH OF ITS TERMS.  THE  PARTIES FURTHER ACKNOWLEDGE FOR THEMSELVES THAT EACH HAS FULL  KNOWLEDGE AND UNDERSTANDING OF THE AGREEMENT’S LEGAL  CONSEQUENCES AND EACH INTENDS TO BE BOUND BY SAME.  Dated:  12/30/2021  RAMIN MASSOUMI  Dated:   ITERIS, INC.  By:   Title:   DocuSign Envelope ID: 0C80020A-FBB9-483E-B812-58A7E5EE1B11 Joe Bergera 12/31/2021 President & CEO

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