Document:

Exhibit
10.19

 

LANTRONIX
FORM OF CHANGE IN CONTROL AGREEMENT

  

 

Jeremy Whitaker 

Chief Financial
Officer 

 

 

Re: Change
In Control Agreement

 

Dear Jeremy:

 

In
connection with your employment at Lantronix, Inc (the "Lantronix" or "Company") the undersigned parties hereby
agree on the following provisions relating to a Change in Control of the Company.

 

CHANGE
IN CONTROL:

 

In
the event your employment with the Company is terminated by you for Good Reason or by the Company without Cause within 60 days
prior to or 12 months following a Change in Control (as defined below), then subject to your execution and non-revocation of a release
of claims in a form provided by the Company, in keeping with past practice, and resignation from any Company affiliated board positions,
all unvested Company equity awards that you then hold shall fully vest and be settled or become exercisable, as applicable, and you will
be entitled to receive (as applicable, the "Change-in-Control Severance Payment"):

 

(a) In the
event of a Change in Control where the transaction results in Lantronix shareholders receiving at closing consideration with a value
of less than a value of $5 per share on a fully diluted basis, in lieu of any other severance benefits, you will be entitled to receive
severance pay in a total amount equal to the sum of (i) six (6) months of your then current Base Salary, plus (ii) an amount equal to
fifty percent (50%) of your previous 12 months bonus. The Company will also provide you, your spouse and your eligible dependents with
continued group health, dental and vision coverage pursuant to the provisions of COBRA at the level in effect and upon substantially
the same terms and conditions as existed under applicable insurance plans immediately prior to the date of termination of your employment
(including without limitation contributions required by you, if any, for such benefits), for the first six (6) months following the date
of termination your employment without Cause or for Good Reason or until you become eligible for comparable benefits from another employer.

 

(b)
In the event of a Change in Control where the transaction results in Lantronix shareholders receiving at closing consideration with a
value of $5 per share or greater on a fully diluted basis, in lieu of any other severance benefits, you will be entitled to receive severance
pay in a total amount equal to the sum of (i) twelve (12) months of your then current Base Salary, plus (ii) an amount equal to one hundred
percent (100%) of your then current target bonus. The Company will also provide you, your spouse and your eligible dependents with continued
group health, dental and vision coverage pursuant to the provisions of COBRA at the level in effect and upon substantially the same terms
and conditions as existed under applicable insurance plans immediately prior to the date of termination of your employment (including
without limitation contributions required by you, if any, for such benefits), for the first twelve (12) months following the date of
termination your employment without Cause or for Good Reason or until you become eligible for comparable benefits from another employer.

 

Any Change-of-Control
Severance Payments shall be less required tax deductions and withholdings and shall be paid in a lump sum on the 53rd
day following your date of termination or such later date as is required to avoid potentially adverse taxation under Internal
Revenue Code Section 409A as described under the caption "Section 409A" below. Change-of-Control Severance Payments may also
be subject to reduction required to avoid potentially adverse taxation under Internal Revenue Code Section 280G as described under the
caption "Section 280G" below.

 

 

    	 	1	 

     

    

 

For purposes
of this letter, "Change in Control" shall mean the occurrence of any of the following events: (i) any "person" (as
such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), other
than the TL Parties, becomes the "beneficial owner" (as defined in Rule 13d-3 promulgated under the Exchange Act), directly
or indirectly, of securities of the Company representing fifty percent (50%) or, more of the total voting power represented by the Company's
then outstanding voting securities; or (ii) the consummation of the sale or disposition by the Company of all or substantially all of
the Company's assets, other than to the TL Parties; (iii) the consummation of a merger or consolidation of the Company with any other
corporation, other than (A) a merger or consolidation with the TL Parties or (B) a merger or consolidation which 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 or its parent) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger
or consolidation; or (iv) a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment
or election is not endorsed by a majority of the Board or the TL Parties before the date of appointment or election. In no event shall
a "Change in Control" be deemed to have occurred for purposes of this letter solely because the Company engages in an internal
reorganization, which may include a transfer of assets to, or a merger or consolidation with, one or more affiliates.

 

For purposes
of this letter, "TL Parties" shall mean, either individually or collectively, Bernhard Bruscha, TL Investments.

 

SECTION
409A:

 

This letter
is intended to comply with Section 409A of the Internal Revenue Code ("Section 409A") or an exemption thereunder and shall
be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this offer letter, payments provided
under this letter may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments
under this letter that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or
as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each
instalment payment provided under this letter shall be treated as a separate payment. Any payments to be made under this letter upon
a termination of employment shall only be made upon a "separation from service" under Section 409A. Notwithstanding the foregoing,
the Company makes no representations that the payments and benefits provided under this letter comply with Section 409A and in no event
shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by you on
account of non compliance with Section 409A.

 

Notwithstanding
any other provision of this letter, if any payment or benefit provided to you in connection with termination of employment is determined
to constitute "nonqualified deferred compensation" within the meaning of Section 409A and you are determined to be a "specified
employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to
occur following the six-month anniversary of your termination date (the "Specified Employee Payment Date") or, if earlier,
on the date of your death. The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date
shall be paid to you in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without
delay in accordance with their original schedule. To the extent necessary to avoid application of any tax under Section 409A applying
to any compensation or benefit included herein that constitutes nonqualified deferred compensation, the definition of "Change in
Control" shall be reformed such that a transaction will only qualify as a Change in Control if it also constitutes a "change
in control event" as defined under Section 409A.

 

SECTION
280G:

 

Notwithstanding
any other provision of this letter or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided
or to be provided by the Company or its affiliates to you or for your benefit pursuant to the terms of this letter or otherwise ("Covered
Payments") constitute parachute payments ("Parachute Payments") within the meaning of Section 280G of the Internal Revenue
Code ("Section 280G") and would, but for this section be subject to the excise tax imposed under Section 4999 of the Internal
Revenue Code (or any successor provision thereto) ("Section 4999") or any similar tax imposed by state or local law or any
interest or penalties with respect to such taxes (collectively, the "Excise Tax"), then prior to making the Covered Payments,
a calculation shall be made comparing (i) the Net Benefit
(as defined below) to you of the Covered Payments after payment of the Excise Tax to (ii) the Net Benefit to you if the Covered Payments
are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than
the amount under (ii) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered
Payments is subject to the Excise Tax (that amount, the "Reduced Amount"). "Net Benefit" shall mean the present value
of the Covered Payments net of all federal, state, local, foreign income, employment, and excise
taxes.

 

 

    	 	2	 

     

    

 

Any such
reduction shall be made in accordance with Section 409A and the following: (i) the Covered Payments which do not constitute nonqualified
deferred compensation subject to Section 409A shall be reduced first; and (ii) all other Covered
Payments shall then be reduced as follows:

 

(A) cash
payments shall be reduced before non-cash payments; and (B) payments to be made on a later payment date shall be reduced before payments
to be made on an earlier payment date.

 

Any determination
required under this section shall be made in writing in good faith by the accounting firm that was the Company's independent registered
public accounting firm immediately before the change in control (the "Accountants"), which shall provide detailed supporting
calculations to the Company and you as requested by the Company or you. The Company and you shall provide the Accountants with such information
and documents as the Accountants may reasonably request in order to make a determination under this section. For purposes of making the
calculations and determinations required by this section, the Accountants may rely on reasonable, good faith assumptions and approximations
concerning the application of Section 280G and Section 4999. The Accountants' determinations shall be final and binding on the Company
and you. The Company shall be responsible for all fees and expenses incurred by the Accountants in connection with the calculations required
by this section.

 

This Agreement
shall expire on May 31, 2024. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
Any dispute hereunder, including with respect to validity, construction and breach shall be resolved exclusively by arbitration, before
a single arbitrator appointed by the Judicial Arbitration Mediation Service ("JAMS"), in accordance with the JAMS Streamlined
Arbitration Rules. The Arbitration shall be conducted in Orange County and if that venue is not available than at a nearest JAMS facility.

 

Please indicate
your acceptance of this Agreement by executing a copy of this Agreement at the space provided below and returning the same to our attention.

 

 

 

	LANTRONIX, INC.	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Jeremy Whitaker	 	12/1/21	 
	 	Jeremy Whitaker	 	Date	 
	 	Chief Financial Officer	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	ACCEPTED AND AGREED TO	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Paul Pickle	 	12/02/2021	 
	 	Paul Pickle	 	Date	 
	 	President & CEO	 	 	 

 

 

 

 

  

    	 	3Exhibit 10.32

 

 

 

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

 

This compensation policy has been developed to compensate the non-employee
directors of Lantronix, Inc. (the "Company") for their time, commitment and contributions to the Board of Directors of the Company
(the "Board"). Directors who are also employees of the Company are not paid any fees or remuneration for their service on the
Board or on any Board committee.

 

Cash Compensation

 

Annual Retainer

 

Each non-employee director will be paid an annual retainer
of $50,000 for his or her service on the Board. Annual retainers will be paid in equal quarterly installments.

 

Chairman of the Board Retainer

 

A non-employee director serving as Chairman of the Board will be paid
an annual retainer of $35,000 in addition to his or her annual retainer as a non-employee director. The Chairman of the Board retainer
will be paid in equal quarterly installments.

 

Committee Chairmanship Retainers

 

Each non-employee director serving as Chairman of the Audit, Compensation
and Corporate Governance and Nominating Committees of the Board will be paid an annual retainer in addition to his or her annual retainer
as a non-employee director, as follows:

 

	Committee Chairmanship	Annual Retainer
	Audit	$15,000
	Compensation	$10,000
	Corporate Governance and Nominating	$10,000

 

Committee chairmanship retainers will be paid in equal quarterly
installments.

 

Meeting Attendance Fees

 

Each non-employee director will be paid a meeting fee of
$1,000 for each regular or special Board meeting attended in person or by telephone in excess of twelve meetings during the fiscal year.
Each non-employee director will be paid a meeting fee of $1,000 for attending in person or by telephone a regular or special meeting a
committee of which he or she is a member, in excess of twelve meetings per committee during the fiscal year. For purposes of this policy,
a meeting is defined as a duly noticed meeting of the Board or a committee for which minutes are kept.

 

Ad Hoc Committees

 

From time to time, the Board may establish ad hoc committees
of the Board to address issues with defined scope and authority. At the time such a committee is established the Board will determine
the compensation payable to non-employee directors for services rendered in connection with the committee.

 

Equity Compensation

 

 

    	 	 	 

     

    

 

The Board will make an annual grant of restricted stock
units (RSUs) to each non-employee director upon his or her election at the Company's annual meeting of stockholders. The number of RSUs
subject to each such grant shall equal $75,000 divided by the average of the closing prices (in regular trading) of a share of Company
common stock on The Nasdaq Stock Market for the last thirty (30) trading days of the fiscal quarter preceding the fiscal quarter in which
the date of grant of such award occurs, rounded to the nearest whole share. Each such award of RSUs will be scheduled to vest as to fifty
percent (50%) of the RSUs subject to the award six months after the grant date and the remaining fifty percent (50%) of the RSUs subject
to the award will be scheduled to vest on the earlier of (i) the one year anniversary of the grant date or (ii) the day immediately preceding
the date of the first annual meeting of the Company’s stockholders at which one or more members of the Board are to be elected that
occurs in the year following the year in which the date of grant of the award occurs.

 

If a non-employee director is appointed to the Board at
a time other than at the Company’s annual stockholders meeting, the director shall receive an initial award of RSUs. The number
of RSUs subject to each such grant shall equal (i) $75,000, divided by (ii) the average of the closing prices (in regular trading) of
a share of Company common stock on The Nasdaq Stock Market for the last thirty (30) trading days of the fiscal quarter preceding the fiscal
quarter in which the date of grant of such award occurs, multiplied by (iii) a fraction, the numerator of which is 365 less the number
of calendar days that have elapsed since the Company’s most recent annual meeting of stockholders and the denominator of which is
365, rounded to the nearest whole share. If such an award is granted more than six months after the Company’s most recent annual
meeting of stockholders, the RSUs subject to such award will be scheduled to vest on the on the earlier of (i) the date that is one year
after such most recent annual meeting of stockholders or (ii) the day immediately preceding the date of the first annual meeting of the
Company’s stockholders at which one or more members of the Board are to be elected that occurs in the year following the year in
which the date of grant of the award. If such an award is granted not more than six months after the Company’s most recent annual
meeting of stockholders, a portion of the RSUs subject to the award will be scheduled to vest on the date that is six months after the
Company’s most recent annual meeting of stockholders and the balance of such award will be scheduled to vest on the earlier of (i)
the date that is one year after such most recent annual meeting of stockholders or (ii) the day immediately preceding the date of the
first annual meeting of the Company’s stockholders at which one or more members of the Board are to be elected that occurs in the
year following the year in which the date of grant of the award, with the number of RSUs allocated to each scheduled vesting date to be
proportionate based on the period of time from and including the actual date of grant of the award through and including the scheduled
vesting date (ignoring, for purposes of this allocation, clause (ii) of such vesting provision).

 

Notwithstanding the foregoing, in the event that a Change
in Control of the Company occurs, each such award of RSUs theretofore granted to a non-employee director, to the extent that the award
is then outstanding and otherwise unvested, shall accelerate and become fully vested as of (or, as may be necessary to effectuate the
purposes of this acceleration, immediately prior to) the date of the Change in Control. For this purposes, a “Change in Control”
has the meaning given to such term in the award agreement evidencing the award.

 

Expense Reimbursement

 

Each of the non-employee directors will be entitled to receive
reimbursement for reasonable expenses which they properly incur in connection with their functions and duties as a director, including
travel expenses incurred to attend meetings not to exceed $2,000 per meeting requiring travel.

 

Amendments, Revision and Termination 

 

This policy may be amended, revised or terminated by the Board at any
time.

 

Adopted: November 12, 2012, effective January 1, 2013

 

Revised: August 9, 2022 (revisions to be effective November 8, 2022)

 

 

 

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