Document:

Letter of Employment dated March 2, 2004

 EXHIBIT 10.11 
 UPEK, Inc. 
 2001 Center Street, Suite 500 
 Berkeley, CA 94704 
 March 2nd, 2004

 Alan Kramer 
 c/o UPEK, Inc. 
 2001 Center Street, Suite 500 
 Berkeley, CA 94804 
 Dear Alan: 
 This letter memorializes our agreement to the principal terms of
your employment with UPEK, Inc. (the “Company”), and is a material inducement for your agreement to become the Chief Executive Officer of the Company (“CEO”) and a member of the Board of Directors of the Company as long as you
are the CEO. It is understood that this agreement shall be null and void if the Company does not consummate the purchase of the assets from ST Microelectronics and the financing of the asset purchase. Subject to approval of the Board of Directors of
the Company, we have agreed as follows: 
 1. Cash Compensation. Commencing with the first closing of the Series B/B-1 financing, you
will be paid a base salary of $225,000 per annum, less applicable withholdings and deductions, payable pursuant to the Company’s standard payroll policy. In addition, you will be entitled to all other Company benefits that become available to
all other Company employees as soon as such benefits are approved by the Board of Directors. You will be eligible to receive a target bonus of $67,500 for fiscal 2004, pursuant to a bonus plan to be established by the Compensation Committee of the
Board and approved by the Board. Such bonus will be based on the achievement of milestones to be determined by the Compensation Committee, with input from you, by the end of March 2004. 
 2. Stock Options. At the first meeting of the Board of Directors following the closing of the Company’s contemplated Series B/B-1 financing,
you will be granted an option to purchase a number of shares of Common Stock of the Company equal to five percent (5%) of the Company’s then outstanding voting securities, calculated on a Fully-Diluted Basis (as defined below) (which
number is currently anticipated to be 1,300,000 shares). In addition, you will be granted an additional option(s) (the “Additional Option(s)”) to maintain your 5% ownership interest in the Company (calculated on a Fully-Diluted Basis) in
connection with the Company’s raising of up to an additional $11 million in preferred stock private equity financing(s) (in one or more transactions, which may include the second tranche of the currently contemplated Series B/B-1
financing) following the initial closing of the Series B financing (the “Additional Financing(s)”). For purposes of this letter, “Fully-Diluted Basis” shall mean that all exercisable and convertible securities of the Company
shall be deemed to have been exercised and all option shares reserved for issuance under the Company’s option plan shall be deemed to have been granted. The First Option and the Additional Option(s) (collectively, the “Options”) that
are 

 Alan Kramer 
 March 2nd,
2004 
 Page 2 
 granted to you while you are an employee will be
subject to vesting over a 48-month period and each Option, once granted to you while you are an employee, shall vest 25% of the underlying Option shares on the one-year anniversary of the initial closing of the Series B/B-1 financing of the Company,
and the balance in 36 equal monthly installments thereafter commencing from such one-year anniversary until fully vested four years after the initial closing of the Series B/B-1 financing, provided you are a continuing employee during such period.
The Options shall be granted at then fair market value and shall be “incentive stock options” to the maximum extent permitted under the IRS rules. The Options shall be immediately exercisable, meaning that they can be exercised in whole or
in part prior to vesting, but they shall be subject to a Company repurchase right exercisable upon the termination of your employment, which repurchase right shall lapse as the shares become vested in accordance with the terms of this letter.

 3. Accelerated Vesting. The Options will also contain the following terms: (A) in the event your employment as Chief Executive
Officer of the Company is terminated without cause by the Company (as customarily defined and mutually agreed to in the stock option documentation) or you depart for good reason (as customarily defined and mutually agreed to in the stock option
documentation, provided that a change in your Chief Executive Officer position, title, responsibilities and duties to any other Company employee position shall constitute good reason, unless you are made at least a Vice President of the Company with
a base salary of at least $150,000 per year and you remain on the Board of Directors of the Company) prior to a Corporate Transaction (as defined in the stock option plan), the vesting of the Options that have been granted to you as of the date of
such termination shall accelerate as if you had provided an additional (x) 12 months of service to the Company from termination if such termination occurs prior to an Additional Financing(s) raising $9 million or more or
(y) 6 months of service to the Company from termination if such termination occurs following an Additional Financing(s) raising $9 million or more; and (B) in the event your employment as Chief Executive Officer of the Company is
terminated without cause by the Company or if you resign for good reason as a condition to or within 12 months after a Corporate Transaction, the Options that have been granted to you as of the date of such termination will vest in full. In
either such event, you will have 90 days from the date of termination to exercise any unexercised, vested Options. If you are terminated with cause by the Company, resign from the Company (or a successor) without good reason, die or become
permanently disabled, you will not be entitled to any accelerated vesting or severance benefits. In addition, if you are entitled to accelerated vesting pursuant to this paragraph at any time prior to the date that the Additional Option is granted,
then, at such time(s) that the Additional Option would have been granted to you pursuant to paragraph 2 above, the Company will grant you the Additional Option as a nonqualified stock option which shall be immediately vested at the time of grant for
that number of shares which would have otherwise become vested had the Additional Option been granted to you prior to the acceleration event (with the acceleration provisions contained in this paragraph 3 applying to the Additional Option as well).
In such event, the Additional Option shall not be subject to any further vesting and you will have 90 days after the date of grant to exercise such vested Additional Option. 
 4. Severance. In the event your employment as Chief Executive Officer of the Company is terminated under any of the circumstances provided in 2(A)
or 2(B) above, the 

 Alan Kramer 
 March 2nd,
2004 
 Page 3 
 Company (or its successor) will, for a period of
six months, continue to pay your then current base salary in accordance with its regular payroll practice, pay you your earned and accrued but unpaid bonus as if you had been employed for an additional six months after termination and reimburse you
for COBRA premiums for a period of six months following termination, should you elect to continue insurance coverage under COBRA, for you and your dependents. 
 Any payment of severance and/or acceleration would be conditional upon your execution of a full general release and your resignation as a Board member. You understand and agree that you will be an “at will” employee and can be
terminated at any time with or without notice or cause. 
 You also understand that this offer is contingent upon the consummation of the asset purchase and
Series B/B-1 financing, Board approval and your execution of all documentation necessary to obtain employment with the Company, including a Proprietary Information and Inventions Agreement. 
 You will also be given an opportunity to purchase up to 200,000 shares of Series B Preferred Stock in the initial closing of the Series B/B-1 financing round and an
aggregate of another $200,000 worth of preferred stock in future private rounds of financing of the Company. 
 Please sign below to indicate your agreement
with the foregoing. 
  

	
	Very truly yours,
	
	UPEK, Inc.
	
	 /s/ Eric Buatois

	Eric Buatois
	Member of the Board of Directors

  

			
	Agreed and Accepted:
		
	By:	 	 /s/ Alan Kramer

		 	Alan KramerOffer of Employment Letter dated February 24, 2006

 EXHIBIT 10.12 
 

 
 UPEK, Inc. 
 2200 Powell Street

 Suite 300 
 Emeryville, CA 94608 
 Tel: 510.420.2600 
 Fax: 510.420.2699 
 www.upek.com 
 February 24, 2006 
 Gary Martell 
 Re: Offer of Employment -
Chief Financial Officer 
 Dear Gary: 
 On behalf of UPEK, Inc.
(the “Company”), I am delighted to make you an offer to join the company as Chief Financial Officer. We believe that you have the experience and expertise to help us strengthen UPEK as a growing and successful company, which continues to
offer value to our customers in their efforts to build successful businesses. 
 This letter will serve to confirm the specific terms of your employment
offer. 
  

	1.	Initial assignment: Your initial assignment will be Chief Financial Officer, reporting to Alan Kramer, CEO. You will be employed in a full-time, exempt position.

  

	 2.
	 Compensation: You will receive an annual base salary of $190,000, less all applicable deductions and
withholdings, which shall be paid semi-monthly in arrears in accordance with the Company’s regular payroll schedule. The Company pay dates in the U.S. will be on the 15th and last day of each calendar month. Your salary will be reviewed from time to time, generally on an annual basis. 

  

	3.	Severance: In the event your employment with the Company is terminated without cause by the Company (as customarily defined and set forth in the stock option documentation)
at any time during your employment with the Company, the Company will, for a period of six months, continue to pay your then current base salary in accordance with its regular payroll practice and subject to applicable deductions and withholdings.
The payment of such severance shall be conditioned upon your execution of a full general release in favor of the Company and its affiliates. 

  

	4.	 Bonus: You will be eligible to participate in UPEK’s bonus programs, applicable to your position, which are based on company and individual performance.
Bonuses will generally be paid annually after the end of the fiscal period to which they relate. Your bonus target will be $60,000, less all applicable deductions and withholdings, and you 

  

 1 

 
Offer of employment 
 will earn that bonus,
subject to company and individual performance, by meeting certain goals and objectives that you and your manager have agreed to for the period. This bonus arrangement and the calculation of any payment may be changed at any time at the sole
discretion of UPEK’s executive management and Board of Directors. 
  

	 5.
	 Stock Options: Subject to the approval of UPEK’s Board of Directors, you will be eligible to receive an
option to purchase 500,000 shares of UPEK’s Common Stock (the “Stock Options”) under UPEK’s 2004 Stock Plan. The Stock Options are intended to be incentive stock options within the meaning of Section 422(A) of the Internal
Revenue Code of 1986, as amended. They will have an exercise price per share equal to the fair market value on the date of grant, as determined by the board. The Stock Option shall be immediately exercisable, meaning that it can be exercised in
whole or in part prior to vesting, but it shall be subject to the Company repurchase right exercisable upon the termination of your employment, which repurchase right shall lapse as the shares become vested in accordance with the terms of this
letter. You will vest in twenty-five percent (25%) of the Stock Options upon completion of your first twelve (12) months of continuous employment with UPEK. Thereafter, you will vest in the balance of the Stock Options monthly over the 36
months following the first anniversary of your start date at the rate of 1/48th of the Stock Options each month.
Additional information regarding the 2004 Stock Plan will be sent to you as soon as possible. 

  

	6.	Accelerated Vesting: In the event your employment with the Company is terminated without cause by the Company (as customarily defined and set forth the stock option
documentation) as a condition to or within 12 months after a Corporate Transaction (as defined in the stock option plan), the Stock Options that have been granted to you as of the date of such termination shall automatically vest with respect to
that number of underlying shares which would have become vested had you been employed by the Company for an additional 12 months following such termination. The award of any such acceleration shall be conditioned upon your execution of a full
general release in favor of the Company and its affiliates. 

  

	7.	Benefits: You will be eligible for all UPEK benefits, which include the following: 

  

	 	•	 	 401K plan (employee election) 

  

	 	•	 	 Section 125 plan (Employee election for pre-tax medical and dependent care expenses) 

  

	 	•	 	 Health and dental insurance 

  

	 	•	 	 Life insurance 

  

	 	•	 	 Disability insurance 

  

	 	•	 	 Company paid parking at our Emeryville location 

  

	 	•	 	 Paid Time Off (PTO) of 200 hours per annum, which combines company-paid vacation, sick days, and company holidays 

 Participation in UPEK benefit programs is subject to the specific terms of the respective programs and to any qualification or availability requirements
that may be imposed by state law or regulation. Please note especially that there is usually a waiting period to obtain full benefits under the medical programs. All benefits offered are subject to change at the discretion of UPEK’s executive
management and Board of Directors. 
  

 2 

 Offer of employment 
  

	8.	Location: Your position will be based in our Emeryville, CA headquarters office. 

  

	9.	Proof of citizenship/employability: Our offer to hire you is contingent upon your submission of satisfactory proof of your identity and your legal authorization to work in
the United States. 

  

	10.	Company Policy: As an employee of the Company you will be subject to, and will be expected to comply with, the Company’s policies and procedures, personnel and
otherwise, as those policies are developed. Shortly after your employment commences you will be provided with a copy of UPEK’s Employee Handbook, which defines the Company’s policies and procedures. 

  

	11.	Proprietary Information Agreement: As a condition of employment, you will be required to sign a Proprietary Information Agreement. This agreement generally provides that the
intellectual property created by you during or related to your employment by UPEK will be the property of the company, and obligates you to protect the confidential information of the company, its sources and its clients. These obligations continue
after employment with UPEK ceases. 

  

	12.	At-Will Employment: Your employment with the Company is “at-will”. This means that it is not for any specified period of time and can be terminated by you or the
Company at any time, with or without notice, with or without cause. It also means that your job duties, title and responsibility and reporting level, compensation and benefits, as well as the Company’s personnel policies and procedures, may be
changed at any time at the sole discretion of the Company. However, the “at-will” nature of your employment shall remain unchanged during your tenure as an employee of the Company and may not be changed, except in an express writing signed
by you and by the Company’s CEO. 

  

	13.	Miscellaneous terms of employment: In order to avoid any potential conflict of interest or appearance of impropriety, during your employment at UPEK you are not permitted to
(a) engage in any other employment or consulting, (b) serve as an adviser or director to any enterprise related to the field of biometrics, or (c) receive special financial benefit from such an enterprise, without the prior written
consent of the CEO of UPEK. This letter, along with the Proprietary Information Agreement, cancels, supersedes, and replaces all prior negotiations, representations or agreements, written or oral, between you and the Company regarding any aspect of
employment with the Company. To be effective, any change to the terms of your employment with the Company, as set forth in this letter, must be in an individualized and dated writing to you, signed by the CEO of the Company.

  

	14.	Contingent offer: This offer is contingent upon the completion of satisfactory reference checks (and subsequent approval by the UPEK Board of Directors).

  

	15.	Requested response: We would appreciate your response by February 28th, 2006. This offer will expire on March 3rd, 2006. 

  

 3 

 Offer of employment 
 Gary,
I look forward to having you join UPEK, Inc. and hope that you will find it an exciting and rewarding place to work. Please confirm your acceptance of this offer by signing and returning the enclosed copy of this letter and the PIA directly to me.

  

	
	Sincerely,
	
	 /s/ Alan Kramer

	Alan Kramer
	President & CEO

  

			
	 I ACCEPT UPEK’S OFFER OF EMPLOYMENT ON THE
 TERMS SET FORTH IN THIS LETTER.

	
	 /s/ Gary Martell

	Gary Martell
	
	Date: 2/24/06
	
	Start Date: 3/31/06

  

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