Item 1.01Item 1.01 - Entry into Material Agreement
Item
1.01 Entry into a Material Definitive Agreement.
The
information contained below in Item 5.02 related to the Employment Agreement (as defined below) is hereby incorporated by reference into
this Item 1.01.
Item
5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of
Certain Officers.
Appointment
of Chief Operating Officer
On
August 27, 2026, SharonAI Holdings Inc. (the “ Company ”) announced that its Board of Directors (the “ Board ”)
appointed David Burns, age 60, as Chief Operating Officer of the Company, effective as of September 7, 2026 (the “ Effective
Date ”). Mr. Burns will succeed Andrew Leece, who is transitioning into the role of Head of Strategic Partnerships in order
to provide founder-level sponsorship across the Company’s most important customer, data center and strategic relationships.
In
connection with his appointment, on August 26, 2026, Mr. Burns entered into an employment agreement with the Company’s subsidiary,
SharonAI Pty Ltd, and the Company as a guarantor of the agreement, pursuant to which Mr. Burns will serve as Chief Operating Officer
of the Company (the “ Employment Agreement ”) commencing September 7, 2026. Pursuant to the Employment Agreement, Mr.
Burns will receive (i) an annual base salary of AUD$550,000 (which is the USD equivalent of approximately US$395,000 based on an exchange
rate of AUD/US $0.7185), which may be increased from time to time at the discretion of the Company, (ii) eligibility to receive an annual
short-term incentive award of up to 150% of his base salary, payable in cash and/or restricted stock units, at the discretion of the
Company, and (iii) eligibility to receive an annual long-term incentive award of up to 150% of his base salary, issuable in restricted
stock units, at the discretion of the Company.
Mr.
Burns will also be entitled to vacation, sick and holiday pay in accordance with the Company’s policies established and in effect
from time to time. The Employment Agreement is for an indefinite term, subject to an initial probationary period of six months. Either
party may terminate the Employment Agreement by providing three months’ written notice (or, in the case of the Company, payment
in lieu of such notice). The Company may also terminate the Employment Agreement immediately without notice for cause, including for
serious misconduct, material breach or other grounds specified therein. During the probationary period, either party may terminate the
Employment Agreement by providing one week’s written notice (or, in the case of the Company, payment of one week’s wages
in lieu of notice). Upon the termination of Mr. Burns’s employment, Mr. Burns will be entitled to receive accrued but unpaid salary,
superannuation contributions and any accrued but unused annual leave entitlements, in each case less applicable tax withholdings. The
Employment Agreement also contains customary provisions relating to confidentiality, intellectual property assignment, post-termination
restraints and non-compete obligations.
The
foregoing description of the Employment Agreement is qualified in its entirety by reference to the full text of the Employment Agreement,
a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Prior
to joining the Company, since 2024 Mr. Burns served as Principal of David Burns Advisory & Thinkingcubed, where he advised enterprise
clients and private equity firms on acquisitions, organizational transformation, leadership and strategic customer priorities, and served
as an active investor in Humanico, a workforce-intelligence software business. From 2020 to 2024, Mr. Burns served as Group Executive,
Telstra Enterprise at Telstra Corporation Limited (“Telstra”), a telecommunications company, where he led Telstra’s Australian
B2B business and international portfolio. From 2018 to 2020, Mr. Burns served as Group Executive, Global Business Services at Telstra,
where he founded and led Telstra’s Global Business Services function as part of the company’s T22 transformation. From 2017
to 2018, Mr. Burns served as Group Managing Director, Global Services & International at Telstra, where he led Telstra’s Global
Services and International businesses. From 2012 to 2017, Mr. Burns held senior leadership roles at Telstra, including establishing and
leading Telstra’s Network Applications and Services business and serving as Acting Group Executive, Enterprise & International
Business. Prior to Telstra, from 1990 to 2012, Mr. Burns held senior leadership roles over more than 20 years with International Business
Machines Corporation (“IBM”) across Australia, the United States, Japan and the United Kingdom, including as General Manager
of Global Technology Services for IBM UK & Ireland, Managing Director of the IBM Telstra account, and General Manager of Global Technology
Services for Australia and New Zealand.
2
There
are no family relationships between Mr. Burns and any of our directors or executive officers. Except as set forth herein, there is no
arrangement or understanding between Mr. Burns and any other persons pursuant to which Mr. Burns was appointed Chief Operating Officer
of the Company. There are no related party transactions involving Mr. Burns that are reportable under Item 404(a) of Regulation S-K.