
Exhibit 19.1
TRADES IN SECURITIES BY DIRECTORS, OFFICERS AND COMPANY PERSONNEL AND TREATMENT OF CONFIDENTIAL INFORMATION
(ALSO KNOWN AS THE “INSIDER TRADING POLICY”)
ADOPTED AS OF FEBRUARY 25, 2025
Strict laws and regulations in the United States and other countries prohibit the trading of securities based on material non-public information (also known as “insider trading”). In the United States, these laws are enforced by the Securities and Exchange Commission (the “SEC”) and by criminal prosecutors at both the federal and state levels. These laws require that publicly-traded companies adopt and communicate clear policies on insider trading.
Xperi Inc. (together with its subsidiaries, “Xperi” or the “Company”) is adopting this policy (the “Policy”) to avoid improper conduct, and the appearance of improper conduct, on the part of anyone employed by or associated with the Company with respect to insider trading.
The consequences of insider trading violations can be significant. For individuals who trade on inside information (or tip information to others):
For a company (as well as possibly any supervisory person) that fails to take appropriate steps to prevent illegal trading:
If a director, officer, or employee violates this Policy, Company-imposed sanctions, including removal or dismissal for cause, could result. Any of the above consequences, even an SEC investigation that does not result in prosecution, can tarnish one’s reputation, irreparably damage one’s career, and significantly hurt the reputation and future
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business prospects of the Company. There are no limits on the size of a transaction that will trigger insider trading liability. In the past, relatively small trades have resulted in SEC investigations and lawsuits.
The Company’s Chief Legal Officer is responsible for administering this Policy; provided, however, that if the Chief Legal Officer is a party to a proposed trade, transaction, or inquiry relating to this Policy, the Company’s Chief Financial Officer will act as the compliance officer with respect to such proposed trade, transaction, or inquiry. The Chief Legal Officer may delegate authority to act pursuant to this Policy as deemed necessary or appropriate in the Chief Legal Officer’s sole discretion. The duties and powers of the Chief Legal Officer and any delegees under this Policy may include the following:
III. POLICY
Coverage. This Policy shall apply to all directors, officers, employees (including full-time employees and part-time employees), temporary workers and consultants of the Company, to all persons living in their households and any other person or entity whose securities trading
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decisions are influenced or controlled by any of the foregoing. Persons subject to this Policy shall be responsible for ensuring that members of their households comply with this Policy.
General Prohibition. There will be no trading permitted at any time based upon material non-public information in any Company securities or any securities of other companies with which the Company does business (“Restricted Companies”).
Additionally, the CFO or Chief Legal Officer may, at any time in their discretion, prohibit or restrict any or all of the Company’s directors, officers, employees, temporary workers and consultants (and members of their households) from trading in any Company securities, whether or not such persons are actually in possession of material non-public information.
Directors, Officers and Certain Designated Employees. To avoid even the appearance of impropriety, additional restrictions on trading Company securities apply to directors, officers and certain designated employees who have regular access to material non-public information about the Company. These policies are set forth in the Company’s Addendum to the Policy, attached hereto (the “Addendum”). The Company will notify you if you are subject to the Addendum. The Addendum generally prohibits directors, officers and designated employees from trading in Company securities during blackout periods and, for directors and officers, requires pre-clearance for all transactions in Company securities.
Definitions. Terms used in this Policy are defined as set forth immediately below.
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IV. ADDITIONAL PROHIBITED TRANSACTIONS
Persons subject to this Policy are not permitted to engage in any of the following activities with respect to securities of the Company:
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V. CONFIDENTIAL INFORMATION AND COMMUNICATIONS WITH THE MEDIA
Unauthorized disclosure of internal information relating to the Company (including information regarding new products, the Company’s suppliers, customers or collaborators) could cause competitive harm to the Company and in some cases could result in liability for the Company.
Individual employees should not comment on or respond to rumors and should refer any requests for comments or responses to the CFO or Chief Legal Officer.
VI. REPORTING VIOLATIONS / COMPANY ASSISTANCE
You should refer suspected violations of this Policy to the CFO or Chief Legal Officer, or through the reporting procedures set forth in the Company’s Whistleblower Policy. In addition, if you:
you should not share it with anyone. To seek advice about what to do under those circumstances, you should contact the CFO or Chief Legal Officer. Consulting your colleagues may have the
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effect of exacerbating the problem, as containment of the information, until the legal implications of possessing it are determined, is critical.
Any person who has any questions about specific transactions may obtain additional guidance from the CFO or Chief Legal Officer.
Remember, however, the ultimate responsibility for adhering to this Policy and avoiding improper transactions rests with you. In this regard, it is imperative that you use your best judgment. Any action on the part of the Company or any other employee pursuant to this Policy (or otherwise) does not in any way constitute legal advice or insulate an individual from liability under applicable securities laws.
VII. RULE 10B5-1 TRADING PLANS
Notwithstanding the prohibition against insider trading, SEC Rule 10b5-1 provides an affirmative defense against insider trading liability. A person subject to this Policy can rely on this defense and trade in Company securities, regardless of their awareness of inside information and without the restrictions of windows and blackout periods, if the transaction occurs pursuant to a pre-arranged written trading plan (a “Trading Plan”) that was entered into when the person was not in possession of material non-public information and that complies with the requirements of Rule 10b5-1. The use of such Trading Plans might also help reduce negative publicity that may result when key executives sell the Company’s stock.
Employees may adopt Trading Plans with brokers that outline a pre-set plan for trading of the Company’s stock, including the exercise of options. Trading Plans (and any amendments thereto) are to be implemented only when the individual is not aware of any material non-public information, and Trading Plans adopted by Insiders (and Related Insiders) (each as defined in the Addendum) are required to be pre-cleared by the Chief Legal Officer prior to implementing a Trading Plan. Trades pursuant to a Trading Plan may occur at any time. For individuals other than Insiders (or Related Insiders) who are subject to the policies and procedures set forth in the Addendum, the Company requires a “cooling off” period of at least thirty days (or such longer period as may be required by Rule 10b5-1) between the establishment of a Trading Plan and the commencement of sales under the Trading Plan.
You should note that the termination of a Trading Plan can result in the loss of an affirmative defense for past or future transactions under a Trading Plan. If an individual terminates a Trading Plan after the first option exercise or stock sale, then the individual must cancel all outstanding Trading Plans and agree not to enter into another Trading Plan until at least six months after revocation of the Trading Plan. In any event, you should not assume that compliance with the six-month bar will protect you from possible adverse legal consequences of a Trading Plan termination.
Amendments to plans call into question whether the Trading Plan was initially executed in good faith and increase the risk of a loss of affirmative defense afforded under Rule 10b5-1. Accordingly, any amendment of a Trading Plan will not be permitted unless it has been pre-cleared by the CFO and Chief Legal Officer.
None of the Company, the Chief Legal Officer, nor any of the Company’s officers, employees or other representatives will be deemed, solely by their pre-clearance of a Trading
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Plan, to have represented that it complies with Rule 10b5-1 or to have assumed any liability or responsibility to the Insider or any other party if the Trading Plan fails to comply with Rule 10b5-1.
VIII. ACKNOWLEDGEMENTS
All directors, officers, employees, and consultants will be required to acknowledge their understanding of, and an agreement to comply with, this Policy.
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XPERI INC.
ADDENDUM TO
INSIDER TRADING POLICY
This Addendum explains requirements and procedures, which apply to all directors and officers (collectively, “Section 16 Insiders”) subject to Section 16 of the Securities Exchange Act of 1934 (the “Exchange Act”), as well as certain designated employees (“Designated Employees” and, together with the Section 16 Insiders the “Insiders”)) of Xperi Inc. and its subsidiaries (the “Company”) who have access to material non-public information about the Company, and is in addition to and supplements the Insider Trading Policy (the “Policy”). Please note that this Addendum applies to all Company securities which you hold or may acquire in the future. Those subject to this Addendum include spouses, minor children, adult family members sharing the same household and any other person or entity over whom the Section 16 Insider or Designated Employee exercises influence or control over the securities trading decisions of such person or entity (collectively, “Related Insiders”).
Section 16 Insiders, any Designated Employees who are at the Vice President or more senior level, and any Related Insiders of such individuals (collectively, “Pre-Clearance Insiders”), may not engage in any transaction involving the Company’s securities (including the net or cashless exercise of stock options, gifts, loans, contributions to a trust or any other transfers) without first obtaining pre-clearance of the transaction from the Company’s Chief Legal Officer. Each proposed transaction will be evaluated to determine if it raises insider trading concerns or other concerns under federal laws and regulations. Any advice will relate solely to the restraints imposed by law and will not constitute advice regarding the investment aspects of any transaction. Clearance of a transaction must be re-requested if the transaction order is not placed within three trading days of obtaining pre-clearance. If clearance is denied, the fact of such denial must be kept confidential by the person requesting such clearance.
Requests for pre-clearance must be submitted via email to the Chief Legal Officer (or a specified delegate) at least two business days in advance of each proposed transaction. If the Pre-Clearance Insider does not receive a response to the request within 24 hours, the Pre-Clearance Insider must follow up to ensure that the message was received. Each Pre-Clearance Insider’s request for pre-clearance should include the information requested in any pre-clearance request form provided by the Company, or any other information that is material to consideration of the proposed transaction.
Notwithstanding the foregoing, pre-clearance is not required for any trades made pursuant to a pre-arranged Rule 10b5-1 Plan adopted in accordance with the requirements of the Policy. Pre-clearance is also not required for purchases under the employee stock purchase plan, receipt of option grants and the cash exercise of options unaccompanied by a sale.
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Special Guidelines for 10b5-1 Trading Plans. In addition to the requirements set forth in this Policy or this Addendum and notwithstanding anything to the contrary, a Pre-Clearance Insider will not be deemed to have violated this Policy for transactions pursuant to a 10b5-1 Plan that has been pre-cleared by the Chief Legal Officer. The Chief Legal Officer may withhold or condition pre-clearance of any proposed 10b5-1 Plan (each, a “Trading Plan”) for any reason, in the Chief Legal Officer’s sole discretion.
A Trading Plan will not be pre-cleared if the Chief Legal Officer concludes that the Trading Plan:
Any modifications to or deviations from a Trading Plan are deemed to be the Pre-Clearance Insider entering into a new Trading Plan and, accordingly, require pre-clearance of such modification or deviation pursuant to Section II of this Addendum.
Any termination of a Trading Plan must be immediately reported to the Chief Legal Officer. If a Pre-Clearance Insider has pre-cleared a new Trading Plan (the “Second Plan”) intended to succeed an earlier pre-cleared Trading Plan (the “First Plan”), the Pre-Clearance Insider may not affirmatively terminate the First Plan without pre-clearance pursuant to Section II of this Addendum.
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None of the Company, the Chief Legal Officer, nor any of the Company’s officers, employees or other representatives shall be deemed, solely by their pre-clearance of a Trading Plan, to have represented that it complies with Rule 10b5-1 or to have assumed any liability or responsibility to the Insider or any other party if the Trading Plan fails to comply with Rule 10b5-1.
Upon entering into or amending a Trading Plan, the Pre-Clearance Insider must promptly provide a signed copy of the plan to the Company and, upon request, confirm the Company’s planned disclosure regarding the entry into or termination of a plan (including the date of adoption or termination of the plan, duration of the plan, and aggregate number of securities to be sold or purchased under the plan).
Insiders subject to this Addendum (and Related Insiders) are subject to the following blackout periods, during which they may not trade in the Company’s securities (except by means of pre-arranged Rule 10b5-1 Plans established in compliance with this Policy).
Quarterly Blackout. Because the announcement of the Company’s quarterly financial results will almost always have the potential to have a material effect on the market for the Company’s securities, Insiders are not permitted to trade in the Company’s securities during the period beginning at 5:00 pm Eastern Time on the 15th day of the last month of the quarter (or if the 15th day of such month falls on a weekend or holiday, after market on the last Trading Day before the 15th) and ending one full Trading Day following the release of the Company’s earnings for that quarter. The definition of “Trading Day,” for purposes of this Policy, shall be any day that the New York Stock Exchange is open.
Interim Earnings Guidance Blackout. The Company may on occasion issue interim earnings guidance or other potentially material information by means of a press release, SEC filing on Form 8-K or other means designed to achieve widespread dissemination of the information. You should anticipate that trading will be blacked out while the Company is in the process of assembling the information to be released and until the information has been released and fully absorbed by the market.
Event-Specific Blackout. From time to time, an event may occur that is material to the Company and is known by only a few directors, officers and/or employees. The existence of an event-specific blackout will not be announced. If, however, a person whose trades are subject to pre-clearance requests permission to trade in the Company’s securities during an event-specific blackout, the Chief Legal Officer will inform the requesting person of the existence of a blackout period, without disclosing the reason for the blackout. Any person made aware of the existence of an event-specific blackout should not disclose the existence of the blackout to any other person.
NOTE: Even if a blackout period is not in effect, at no time are you permitted to trade in Company securities if you are in possession of material non-public information about the Company. Do not assume that the Company will notify you when it believes you are in possession of inside information. The law states that you are prohibited from trading while in the possession of material non-public information.
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