Document:

ex1018.htm

Exhibit 10.18

 

NOTE

 

 

	US $150,000.00 	Date: August 17, 2012 

 

 

	
1.  

	
BORROWER PROMISE TO PAY. In retum for a loan that Borrower has received, Borrower promise to pay ONE-HUNDRED-FIFTY-THOUSAND AND NO/100 DOLLARS (US S150,000.00) (this amount will be called "principal"), plus interest, to the order of ROBERT R. ROMER, unmarried (hereinafter "Payee"). Borrower understands that Payee may transfer this Note. Payee or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the "Lender",

 

	
2.  

	
INTEREST. Borrower will pay interest at a rate of NINE PERCENT (9.0%) per year. Interest will-he charged on that part of principal which has not been paid from August 21, 2012 and will continue for a period of THREE (3) YEARS, at which time the full amount of principal will be due.

 

	
3.  

	
PAYMENTS. Borrower will pay principal and interest by making payments every month in the amount of ONE-THOUSAND-F1VE-HUNDRED AND NO/l 00 DOLLARS (1,500.00).

 

Borrower will -make monthly payments on the TENTH (10TH) day of each month beginning on August 21, 2012-- until Borrower has paid all of the principal and interest and any other charges, described below, that Borrower may owe under this Note. The will be a Ten (10) day grace period for monthly payments due, if after the TENTH (10TH) day, payment has not yet been received, a penalty in the amount of ONE-HUNDRED FIFTY AND NO/ 00 DOLLARS (US $150.00) or TEN PERCENT (10%) of the monthly payment the will be charged. If on August 16, 2015, Borrower has not paid all monies Borrower owes under this Note; Borrower will pay all principal, interest and any other charges that Borrower may owe; in full, on that date.

 

Borrower will make my monthly payments at the Law Offices of Steven D. Strauss, Post Office Box 11517, Hilo, (Hawaii 96721, or at a different place if required by the Lender. Each of Borrower's monthly payments will be applied first to pay late charges, prepayment charges or other charges Borrower may owe, then to pay any advances the Lender may have made under the Mortgage described ,,below, then to pay the interest then owing on the principal and the balance shall be applied to reduce the amount of principal that Borrower owes under this Note.

 

	
4.  

	
BORROWER'S FAILURE TO PAY AS REQUIRED

 

(A)  Default and Acceleration. If Borrower defaults in the payment of this Note of in the performance of any obligation, and the default continues after Lender gives Borrower notice of the default and the time within which it must be cured, as may be required by law or written agreement, then Lender may declare the unpaid principal balance and earned interest on this Note immediately doe,, The Lender may also commence a lawsuit against Borrower or take other reasonable steps to collect any overdue amounts. Borrower and each surety, endorser, and guarantor waive all demands for payment, presentation for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity, protests, and notices of protest, to the extent permitted by law.

 

 

  

  

  

 

If at any time. when Borrower's in. default, the Lender does not require Borrower to pay immediately in full, the Lender will still' have the right to do so if, at a later time, Borrower's in default again. -

 

B)  Payment of-Lender's Costs and 'Expenses'. If the Lender takes any of the actions described in (A) above, Borrower promises to pay to the Lender all of the Lender's reasonable costs and expenses. Those expenses may include, for example, -reasonable attorneys' fees.

 

5.          BORROWER'S RIGHT TO MAKE PREPAYMENTS

 

Borrower has-the right to make payments of principal before they are due.  Any payment made before it is due is known as a "prepayment". A prepayment of only part of the unpaid principal is known as a "partial prepayment".

 

If Borrower chooses to make a partial prepayment, the Lender may require Borrower to make the-prepayment on the same day that one of Borrower's monthly payments is due. The Lender may also require that the amount of Borrower's partial prepayment be equal to the amount of principal that would have been part of Borrower's next one or more

 

Monthly payments.' If Borrower makes a partial payment there will-be no-delay's in the due dates or changes in the amounts of Borrower's monthly payments unless the Lender agrees in writing to those delays or changes. The Lender will use all of Borrower's prepayments to reduce the amount of principal that Borrower owes under this Note. The Borrower may make a full prepayment of the outstanding principal balance hereof, plus accrued and unpaid interest hereon, at any time without any premium or penalty.

 

6.   WAIVERS

 

Borrower waives Borrower's rights to require the Lender to do certain things. Those things are: (A) to demand payment of amounts due (known as "presentment"); (B) to give. notice that amounts due have not been paid (known as "notice of dishonor");  (C) to obtain an official certification of nonpayment (known as "protest"). Anyone else (i) who agrees to keep Borrower's promises made in this Note, or (ii) who agrees to make payments to the Lender if Borrower fails to keep Borrower's promises under this Note, or (iii) who signs this Note to transfer it to someone else (known as "guarantors", "sureties" and "endorsers"), also waives these rights,

 

7.   GIVING OF NOTICES

 

Any notice that must be given to Borrower under this Note will be given by delivering it or by mailing it addressed to Borrower at the Property Address below. A notice will be delivered or mailed to Borrower at a different address if Borrower gives the Lender a notice of Borrower's different address.

 

Any notice that must be given to the Lender under this Note will be given by mailing ft to the Lender at the address stated in Section 3 above. A notice will be mailed to the Lender at a different address if Borrower is given a notice of that different address.

 

8.  TH1S NOTE COVERED BY A MORTGAGE

 

A Mortgage, dated August 17, 2012, protects the Lender from possible losses which result if Borrower does not keep the promises which Borrower makes in this Note. The Mortgage describes how and under what conditions Borrower may be required to make immediate payment in fall of all mounts that Borrower owes under this Note. The Mortgage is secondary and inferior to that certain Mortgage, Security Agreement and Financing Statement (the "First Mortgage') provided by Borrower to Southwest Capital Funding, Ltd. (the "First Lender"), and its successors or assigns. Any default by Borrower in the terms and conditions of the First Mortgage shall also constitute a default  in the Mortgage.

 

 

  

  

  

 

9.         RESPONSIBILITY OF PERSONS -UNDER THIS NOTE

 

The Borrower is fully obligated to pay the full amount owed and to keep all of the promises made in this Note, Any guarantor, surety, or endorser of this Note (as described In Section 5 above) .is also obligated to do these things. The Lender may enforce its rights under this Nate against the Borrower. This means that the Borrower may be required to pay all of the amounts owed under this Note.

 

Any person or entity who takes ever the Borrower's rights or obligations under this Note will have all of the Borrower's rights and must keep all of the Borrower's promises made in this Note. Any person or entity who takes over the rights or obligations of a guarantor, surety, or endorser of this Note (as described in Section 6 above) is also obligated to keep all of the promises made in this Note.  Security of this Note Property Address:

 

 

	 	 
96-2232 South Road

Pahala, Hawaii  96777

 

 

MAMAKI TEA, INC., a Nevada corporation

 

/s/ Joe LaCoste

By: Joe LaCosteEXHIBIT 10.13

 

FORM OF INDEMNIFICATION AGREEMENT

 

This Indemnification
Agreement (“Agreement”) is entered into as of the [____] day of [______________], [_____] by and between Lantronix,
Inc., a Delaware corporation (the “Company”), and [_______________] (“Indemnitee”).

 

RECITALS

 

A.The Company and
Indemnitee recognize the continued difficulty in obtaining liability insurance for its directors, officers, employees, agents and
fiduciaries, the significant increases in the cost of such insurance and the general reductions in the coverage of such insurance.

 

B.The Company and
Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors, officers, employees,
agents and fiduciaries to expensive litigation risks at the same time as the availability and coverage of liability insurance has
been severely limited.

 

C.Indemnitee does
not regard the current protection available as adequate under the present circumstances, and Indemnitee and other directors, officers,
employees, agents and fiduciaries of the Company may not be willing to continue to serve in such capacities without additional
protection.

 

D.The Company desires
to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company and, in part, in order
to induce Indemnitee to continue to provide services to the Company, wishes to provide for the indemnification and advancing of
expenses to Indemnitee to the maximum extent permitted by law.

 

E.In view of the
considerations set forth above, the Company desires that Indemnitee be indemnified by the Company as set forth herein.

 

NOW, THEREFORE, the
Company and Indemnitee hereby agree as follows:

 

1.            Indemnification.

 

(a)               
Indemnification of Expenses. The Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee
was or is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other
participant in, any threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, or any
hearing, inquiry or investigation that Indemnitee in good faith believes might lead to the institution of any such action, suit,
proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, investigative or other (hereinafter
a “Claim”) by reason of (or arising in part out of) any event or occurrence related to the fact that Indemnitee
is or was a director, officer, employee, agent or fiduciary of the Company, or any subsidiary of the Company, or is or was serving
at the request of the Company as a director, officer, employee, agent or fiduciary of another corporation, partnership, joint venture,
trust or other enterprise, or by reason of any action or inaction on the part of Indemnitee while serving in such capacity (hereinafter
an “Indemnifiable Event”) against any and all expenses (including attorneys’ fees and all other costs,
expenses and obligations incurred in connection with investigating, defending, being a witness in or participating in (including
on appeal), or preparing to defend, be a witness in or participate in, any such action, suit, proceeding, alternative dispute resolution
mechanism, hearing, inquiry or investigation), judgments, fines, penalties and amounts paid in settlement (if such settlement is
approved in advance by the Company, which approval shall not be unreasonably withheld) of such Claim and any federal, state, local
or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement (collectively,
hereinafter “Expenses”), including all interest, assessments and other charges paid or payable in connection
with or in respect of such Expenses. Such payment of Expenses shall be made by the Company as soon as practicable but in any event
no later than five days after written demand by Indemnitee therefor is presented to the Company.

 

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(b)              
Reviewing Party. Notwithstanding the foregoing, (i) the obligations of the Company under Section 1(a) shall
be subject to the condition that the Reviewing Party (as described in Section 10(e) hereof) shall not have determined (in
a written opinion, in any case in which the Independent Legal Counsel referred to in Section 1(c) hereof is involved) that
Indemnitee would not be permitted to be indemnified under applicable law, and (ii) the obligation of the Company to make an
advance payment of Expenses to Indemnitee pursuant to Section 2(a) (an “Expense Advance”) shall be subject
to the condition that, if, when and to the extent that the Reviewing Party determines that Indemnitee would not be permitted to
be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse
the Company) for all such amounts theretofore paid; provided, however, that if Indemnitee has commenced or thereafter
commences legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified
under applicable law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under
applicable law shall not be binding and Indemnitee shall not be required to reimburse the Company for any Expense Advance until
a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or
lapsed). Indemnitees’ obligation to reimburse the Company for any Expense Advance shall be unsecured and no interest shall
be charged thereon. If there has not been a Change in Control (as defined in Section 10(c) hereof), the Reviewing Party shall
be selected by the Board of Directors, and if there has been such a Change in Control (other than a Change in Control that has
been approved by a majority of the Company’s Board of Directors who were directors immediately prior to such Change in Control),
the Reviewing Party shall be the Independent Legal Counsel referred to in Section 1(c) hereof. If there has been no determination
by the Reviewing Party or if the Reviewing Party determines that Indemnitee substantively would not be permitted to be indemnified
in whole or in part under applicable law, Indemnitee shall have the right to commence litigation seeking an initial determination
by the court or challenging any such determination by the Reviewing Party or any aspect thereof, including the legal or factual
bases therefor, and the Company hereby consents to service of process and to appear in any such proceeding. Any determination by
the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee.

 

(c)               
Change in Control. The Company agrees that if there is a Change in Control of the Company (other than a Change in
Control that has been approved by a majority of the Company’s Board of Directors who were directors immediately prior to
such Change in Control) then, with respect to all matters thereafter arising concerning the rights of Indemnitees to payments of
Expenses and Expense Advances under this Agreement or any other agreement or under the Company’s Certificate of Incorporation
or Bylaws as now or hereafter in effect, Independent Legal Counsel (as defined in Section 10(d) hereof) shall be selected
by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld). Such counsel, among other things,
shall render its written opinion to the Company and Indemnitee as to whether and to what extent Indemnitee would be permitted to
be indemnified under applicable law and the Company agrees to abide by such opinion. The Company agrees to pay the reasonable fees
of the Independent Legal Counsel referred to above and to fully indemnify such counsel against any and all expenses (including
attorneys’ fees), claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

 

(d)              
Mandatory Payment of Expenses. Notwithstanding any other provision of this Agreement other than Section 9 hereof,
to the extent that Indemnitee has been successful on the merits or otherwise, including, without limitation, the dismissal of an
action without prejudice, in defense of any action, suit, proceeding, inquiry or investigation referred to in Section (1)(a)
hereof or in the defense of any claim, issue or matter therein, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

 

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2.            Expenses; Indemnification Procedure.

 

(a)               
Advancement of Expenses. The Company shall advance all Expenses incurred by Indemnitee. The advances to be made hereunder
shall be paid by the Company to Indemnitee as soon as practicable but in any event no later than five days after written demand
by Indemnitee therefor to the Company.

 

(b)              
Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to Indemnitees’ right to be indemnified
under this Agreement, give the Company notice in writing as soon as practicable of any Claim made against Indemnitee for which
indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to the Chief Executive Officer
of the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall designate
in writing to Indemnitee). In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably
require and as shall be within Indemnitees’ power.

 

(c)               
No Presumptions; Burden of Proof. For purposes of this Agreement, the termination of any Claim by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent,
shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or
that a court has determined that indemnification is not permitted by applicable law. In addition, neither the failure of the Reviewing
Party to have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief,
nor an actual determination by the Reviewing Party that Indemnitee has not met such standard of conduct or did not have such belief,
prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that Indemnitee should be indemnified
under applicable law, shall be a defense to Indemnitee’s claim or create a presumption that Indemnitee has not met any particular
standard of conduct or did not have any particular belief. In connection with any determination by the Reviewing Party or otherwise
as to whether Indemnitee is entitled to be indemnified hereunder, the burden of proof shall be on the Company to establish that
Indemnitee is not so entitled.

 

(d)              
Notice to Insurers. If, at the time of the receipt by the Company of a notice of a Claim pursuant to Section 2(b)
hereof, the Company has liability insurance in effect that may cover such Claim, the Company shall give prompt notice of the commencement
of such Claim to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result
of such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies.

 

(e)               
Selection of Counsel. In the event the Company shall be obligated hereunder to pay the Expenses of any Claim, the
Company shall be entitled to assume the defense of such Claim with counsel approved by Indemnitee, which approval shall not be
unreasonably withheld, upon the delivery to Indemnitee of written notice of its election so to do. After delivery of such notice,
approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee
under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same Claim; provided
that, (i) Indemnitee shall have the right to employ Indemnitees’ counsel in any such Claim at Indemnitee expense and
(ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee
shall have reasonably concluded that there is a conflict of interest between the Company and Indemnitee in the conduct of any such
defense, or (C) the Company shall not continue to retain such counsel to defend such Claim, then the fees and expenses of
Indemnitee counsel shall be at the expense of the Company. The Company shall have the right to conduct such defense as it sees
fit in its sole discretion, including the right to settle any claim against Indemnitee without the consent of the Indemnitee.

 

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3.            Additional Indemnification Rights; Nonexclusivity.

 

(a)               
Scope. The Company hereby agrees to indemnify Indemnitee to the fullest extent permitted by law, notwithstanding
that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Certificate
of Incorporation, the Company’s Bylaws or by statute. In the event of any change after the date of this Agreement in any
applicable law, statute or rule that expands the right of a Delaware corporation to indemnify a member of its Board of Directors
or an officer, employee, agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement
the greater benefits afforded by such change. In the event of any change in any applicable law, statute or rule that narrows the
right of a Delaware corporation to indemnify a member of its Board of Directors or an officer, employee, agent or fiduciary, such
change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect
on this Agreement or the parties’ rights and obligations hereunder except as set forth in Section 8(a) hereof.

 

(b)              
Nonexclusivity. The indemnification provided by this Agreement shall be in addition to any rights to which Indemnitee
may be entitled under the Company’s Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or
disinterested directors, the General Corporation Law of the State of Delaware, or otherwise. The indemnification provided under
this Agreement shall continue as to Indemnitee for any action Indemnitee took or did not take while serving in an indemnified capacity
even though Indemnitee may have ceased to serve in such capacity.

 

4.            No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection
with any Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance policy,
Certificate of Incorporation, Bylaw or otherwise) of the amounts otherwise indemnifiable hereunder.

 

5.            Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of Expenses incurred in connection with any Claim, but not, however, for all of the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee are entitled.

 

6.            Mutual Acknowledgement. Both the Company and Indemnitee acknowledge that in certain instances, Federal law or applicable
public policy may prohibit the Company from indemnifying its directors, officers, employees, agents or fiduciaries under this Agreement
or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake
with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a
determination of the Company’s right under public policy to indemnify Indemnitee.

 

7.            Liability Insurance. To the extent the Company maintains liability insurance applicable to directors, officers, employees,
agents or fiduciaries, Indemnitee shall be covered by such policies in such a manner as to provide Indemnitee the same rights and
benefits as are accorded to the most favorably insured of the Company’s directors, if Indemnitee is a director; or of the
Company’s officers, if Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees,
agents or fiduciaries, if Indemnitee is not an officer or director but is a key employee, agent or fiduciary.

 

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8.            Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant
to the terms of this Agreement:

 

(a)               
Excluded Action or Omissions. To indemnify Indemnitee for Indemnitee’s acts, omissions or transactions from
which Indemnitee or the Indemnitee may not be relieved of liability under applicable law;

 

(b)              
Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to Claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except (i) with respect to actions or proceedings brought to
establish or enforce a right to indemnification under this Agreement or any other agreement or insurance policy or under the Company’s
Certificate of Incorporation or Bylaws now or hereafter in effect relating to Claims for Indemnifiable Events, (ii) in specific
cases if the Board of Directors has approved the initiation or bringing of such Claim, or (iii) as otherwise required under
Section 145 of the Delaware General Corporation Law, regardless of whether Indemnitee ultimately is determined to be entitled
to such indemnification, advance expense payment or insurance recovery, as the case may be;

 

(c)               
Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by Indemnitee with respect to any proceeding
instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the
material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous; or

 

(d)              
Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment of profits arising from the
purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended,
or any similar successor statute.

 

9.            Period of Limitations. No legal action shall be brought and no cause of action shall be asserted by or in the right
of the Company against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or personal or legal representatives after
the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall
be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided,
however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period
shall govern.

 

10.          Construction of Certain Phrases.

 

(a)               
For purposes of this Agreement, references to the “Company” shall include, in addition to the resulting corporation,
any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger that, if its separate
existence had continued, would have had power and authority to indemnify its directors, officers, employees, agents or fiduciaries,
so that if Indemnitee is or was a director, officer, employee, agent or fiduciary of such constituent corporation, or is or was
serving at the request of such constituent corporation as a director, officer, employee, agent or fiduciary of another corporation,
partnership, joint venture, employee benefit plan, trust or other enterprise, Indemnitee shall stand in the same position under
the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to
such constituent corporation if its separate existence had continued.

 

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(b)              
For purposes of this Agreement, references to “other enterprises” shall include employee benefit plans; references
to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references
to “serving at the request of the Company” shall include any service as a director, officer, employee, agent or fiduciary
of the Company that imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect
to an employee benefit plan, its participants or its beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

(c)               
For purposes of this Agreement a “Change in Control” shall be deemed to have occurred if (i) any “person”
(as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than a trustee
or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned directly or indirectly
by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, (A) who
is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 10% or more of the combined
voting power of the Company’s then outstanding Voting Securities, increases his beneficial ownership of such securities by
5% or more over the percentage so owned by such person, or (B) becomes the “beneficial owner” (as defined in Rule 13d-3
under said Act), directly or indirectly, of securities of the Company representing more than 20% of the total voting power represented
by the Company’s then outstanding Voting Securities, (ii) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board of Directors of the Company and any new director whose election by the Board
of Directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of the period or whose election or nomination for election
was previously so approved, cease for any reason to constitute a majority thereof, or (iii) the stockholders of the Company
approve a merger or consolidation of the Company with any other corporation other than a merger or consolidation that would result
in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into Voting Securities of the surviving entity) at least 80% of the total voting power represented by the
Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders
of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company
of (in one transaction or a series of transactions) all or substantially all of the Company’s assets.

 

(d)              
For purposes of this Agreement, “Independent Legal Counsel” shall mean an attorney or firm of attorneys, selected
in accordance with the provisions of Section 1(c) hereof, who shall not have otherwise performed services for the Company
or Indemnitee within the last three years (other than with respect to matters concerning the rights of Indemnitee under this Agreement,
or of other indemnitees under similar indemnity agreements).

 

(e)               
For purposes of this Agreement, a “Reviewing Party” shall mean any appropriate person or body consisting of
a member or members of the Company’s Board of Directors or any other person or body appointed by the Board of Directors who
is not a party to the particular Claim for which Indemnitee are seeking indemnification, or Independent Legal Counsel.

 

(f)               
For purposes of this Agreement, “Voting Securities” shall mean any securities of the Company that vote generally
in the election of directors.

 

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11.            Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original.

 

12.            Binding Effect; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business and/or assets of the Company, spouses, heirs, and personal
and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation
or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement
in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform if no such succession had taken place. This Agreement shall continue
in effect with respect to Claims relating to Indemnifiable Events regardless of whether Indemnitee continues to serve as a director,
officer, employee, agent or fiduciary of the Company or of any other enterprise at the Company’s request.

 

13.            Attorneys’ Fees. In the event that any action is instituted by Indemnitee under this Agreement or under any
liability insurance policies maintained by the Company to enforce or interpret any of the terms hereof or thereof, Indemnitee shall
be entitled to be paid all Expenses incurred by Indemnitee with respect to such action, regardless of whether Indemnitee is ultimately
successful in such action, and shall be entitled to the advancement of Expenses with respect to such action, unless, as a part
of such action, a court of competent jurisdiction over such action determines that each of the material assertions made by Indemnitee
as a basis for such action was not made in good faith or was frivolous. In the event of an action instituted by or in the name
of the Company under this Agreement to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to
be paid all Expenses incurred by Indemnitee in defense of such action (including costs and expenses incurred with respect to Indemnitee
counterclaims and cross-claims made in such action), and shall be entitled to the advancement of Expenses with respect to such
action, unless, as a part of such action, a court having jurisdiction over such action determines that each of Indemnitee material
defenses to such action was made in bad faith or was frivolous.

 

14.            Notice. All notices and other communications required or permitted hereunder shall be in writing, shall be effective
when given, and shall in any event be deemed to be given (a) five (5) days after deposit with the U.S. Postal Service or other
applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one
(1) business day after the business day of deposit with Federal Express or similar overnight courier, freight prepaid, or (d) one
(1) day after the business day of delivery by facsimile transmission, if delivered by facsimile transmission, with copy by first
class mail, postage prepaid, and shall be addressed if to Indemnitee, at the Indemnitee address as set forth beneath Indemnitee
signatures to this Agreement and if to the Company at the address of its principal corporate offices (attention: Secretary) or
at such other address as such party may designate by ten days’ advance written notice to the other party hereto.

 

15.            Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts
of the State of Delaware for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement
and agree that any action instituted under this Agreement shall be commenced, prosecuted and continued only in the Court of Chancery
of the State of Delaware in and for New Castle County, which shall be the exclusive and only proper forum for adjudicating such
a claim.

 

    	7

    	 

    

 

16.            Severability. The provisions of this Agreement shall be severable in the event that any of the provisions hereof
(including any provision within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid,
void or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law.
Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitations, each portion of
this Agreement containing any provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

 

17.            Choice of Law. This Agreement shall be governed by and its provisions construed and enforced in accordance with the
laws of the State of Delaware, as applied to contracts between Delaware residents, entered into and to be performed entirely within
the State of Delaware, without regard to the conflict of laws principles thereof.

 

18.            Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such
payment to all of the rights of recovery of Indemnitee who shall execute all documents required and shall do all acts that may
be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

 

19.            Amendment and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective
unless it is in writing signed by both the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

20.            Integration and Entire Agreement. This Agreement sets forth the entire understanding between the parties hereto and
supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject
matter hereof between the parties hereto.

 

21.            No Construction as Employment Agreement. Nothing contained in this Agreement shall be construed as giving Indemnitee
any right to be retained in the employ of the Company or any of its subsidiaries.

 

 

 

[Signature page follows.]

 

    	8

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date first above written.

 

	LANTRONIX, INC.
	Signature:	 
	Name:	 
	Title:	 
	Address:	167 Technology Drive
	 	Irvine, CA 92618

 

 

 

 

 

	AGREED TO AND ACCEPTED BY:
	Signature:	 
	Name:	 
	Title:	 
	Address:	 
	 	Irvine, CA 92614

 

 

 

 

 

 

[Signature Page to Indemnification Agreement]

 

    	9

    	 

    

 

Schedule A 

 

The following directors and executive
officers have entered into the form of indemnification agreement:

 

Directors

Bernhard Bruscha

Kurt Busch

Bruce Edwards

Paul Folino

Hoshi Printer

 

Executive Officers

Kurt Busch

Kurt Scheuerman

Jeremy Whitaker

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	10

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