Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On January 3, 2022, Rekor Systems, Inc. (the "Company") publicly announced the
appointment of David Desharnais, 50, as the Company's President. On December 10,
2021, Mr. Desharnais entered into an employment agreement with the Company (the
"Desharnais Employment Agreement").
Mr. Desharnais brings over two decades of experience leading growth strategies
for technology driven businesses from start-ups to multinational corporations
and across multiple industries. He will report to the Company's Chief Executive
Officer, Robert A. Berman, and lead the Company's global engineering, product
management, marketing, and strategic partnership efforts. Mr. Desharnais most
recently served as Executive Vice President, Chief Digital Product Officer and
as a member of the board of directors for IDEMIA, where he was responsible for
global strategy and teams across product management, engineering and application
development, customer delivery and integration, cybersecurity, data and
analytics, strategic alliances and digital labs. Prior to IDEMIA, Mr. Desharnais
was an executive at Amazon, where he served as the General Manager of Worldwide
Industries for Amazon Web Services (AWS). Prior to Amazon, Mr. Desharnais was an
executive at American Express, where he served as Senior Vice President and
General Manager for Digital and Commercial Platforms and Global Commercial
Payments. Mr. Desharnais graduated summa cum laude with a Bachelor of Science in
electrical engineering technology from University of Calgary, and received a
Master of Business Administration in strategy, finance, and marketing from the
University of Washington, Michael G. Foster School of Business.
The Desharnais Employment Agreement provides for an initial three-year term
beginning in January 2022, subject to automatic extension. Mr. Desharnais will
be eligible to receive annual performance bonuses as determined by the Company's
Chief Executive Officer and Board of Directors based on performance metrics
mutually determined by the Company and the Mr. Desharnais, subject to the
following terms: (i) for calendar year 2022, an amount up to $700,000, of which
$200,000 is guaranteed, and (ii) for calendar year 2023 and thereafter, the
Company and Mr. Desharnais will mutually agree, on or before January 30th of the
particular bonus measurement year, to metrics and goals that will apply to that
bonus measurement year, and Mr. Desharnais will be eligible for performance
bonuses of up to $700,000.00 per year. In addition to performance bonuses, Mr.
Desharnais will be paid a one-time signing bonus of $139,468. Mr. Desharnais is
eligible to receive two times his base salary then in effect if his employment
with the Company is terminated within 120 days of a change of control (as such
term is defined in the Desharnais Employment Agreement). Mr. Desharnais is
eligible for benefits available to management employees generally, as outlined
in the Company's annual proxy statement filed with the Securities Exchange
Commission ("SEC") on August 3, 2021. In connection with his employment, on
January 17, 2022, Mr. Desharnais will be granted 375,000 restricted stock units
pursuant to the Company's 2017 Equity Award Plan, which will vest in three equal
annual installments on the first (January 17, 2023), second (January 17, 2024),
and third (January 17, 2025) anniversaries of the grant date.
There is no arrangement or understanding between Mr. Desharnais and any other
person pursuant to which Mr. Desharnais is to be selected as an officer of the
Company that would require disclosure under Item 401(b) of Regulation S-K.
Additionally, there is no family relationship between Mr. Desharnais and any
other person that would require disclosure under Item 401(d) of Regulation S-K.
Mr. Desharnais is also not a party to any transactions that would require
disclosure under Item 404(a) of Regulation S-K.
The foregoing summary of the Desharnais Employment Agreement is not complete and
is qualified in its entirety by reference to the full text of the Desharnais
Employment Agreement attached as Exhibit 10.1 hereto and incorporated by
reference herein. The Company also issued a press release regarding the
appointment of Mr. Desharnais, which is attached as Exhibit 99.1 hereto.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
The following exhibits are filed herewith:
Exhibit
Number Description
10.1 Employment Agreement with David Desharnais dated December 10, 2021
99.1 Press Release issued on January 3, 2022
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