Material Agreement Form 8 K

Item 1.01 Entry into Material Definitive Agreements

Employment Agreement Extension

On August 9, 2024, Socket Mobile Inc. (the "Company") extended Executive Employment Agreements ("Agreements") with the following officers of the Company: Dave Holmes, Chief Business Officer; Leonard L. Ott, Senior Vice President and Chief Information Officer and Lynn Zhao, Chief Financial Officer (collectively the "Executives"). The Agreements replace the employment agreements previously reported in a Form 8-K dated May 19, 2021, and January 27, 2021. Previous and new expiration dates are listed below:

Under the terms of the Agreements, the Executive's employment is at will and termination of employment of the Executive may occur at any time. The Agreement defines termination arrangements that apply if the Executive is terminated for Cause as defined in the Agreement, resigns for Good Reason as defined in the Agreement, is terminated due to death or disability, or is otherwise terminated involuntarily.

Should the Executive's employment be terminated involuntarily, not for Cause, death, disability, or if the Executive resigns for Good Cause, in addition to all accrued but unpaid compensations, he is also entitled under the Agreement to (i) receive a severance equivalent to six (6) months of base salary; (ii) receive reimbursement for payment of COBRA health premiums for the lesser of six (6) months after the termination date or until eligible for alternative health insurance benefits; (iii) purchase from the Company, at book value, certain items purchased for his use. Stock options granted to the Executive shall cease vesting immediately upon the termination date of employment. Vested stock options will be exercisable after termination for the lesser of twenty-four (24) months or the expiration date of the grant. A pro rata portion of unvested Restricted Stocks granted to Executive shall vest as of the termination date, while all other unvested Restricted Stock will immediately terminate and be forfeited.

In the event of voluntary termination with at least a 60-day notice by an Executive with more than ten years of consecutive service to the Company, the Executive's vested stock options will be exercisable after termination for the remaining life of the grants.

The Agreement also provides for compensation in the event of a Change of Control as defined in the Agreement. This compensation consists of an involuntary termination payment as described above and a payment equal to 1% of the consideration payable in connection with a Change of Control, provided that the price offered for the Company's common stock is equal to or greater than $5.00 per share.