Document:

iots-ex102_6.htm

Exhibit 10.2 

 

November 26, 2014

Mr. Tom Spade

14910 Sky Lane

Los Gatos, CA 95032

Re:Offer of Employment by Adesto Technologies Corporation

Dear Tom:

I am very pleased to confirm our offer to you of employment with Adesto Technologies Corporation (“the Company”).  You will initially report to Narbeh Derhacobian and your position will have the title of Vice President of World Wide Sales.  The terms of our offer and the benefits currently provided by the Company are as follows:

	
 
	
1.
	
Start Date.  Your expected 1st day of employment with the Company is December 8th, 2014.

	
 
	
2.
	
Starting Salary.  Your starting base salary of will be Two Hundred and Forty Thousand ($240,000) Dollars per year. In the event that the Company completes an initial public offering, your base salary will be adjusted to Two Hundred and Seventy Thousand ($270,000) Dollars per year.

	
 
	
3.
	
Options.  We will recommend to the Board of Directors of the Company that you be granted the opportunity to purchase up to One Million Three Hundred and Forty Four Thousand (1,344,000) shares of Common Stock of the Company under our 2007 Equity Incentive/Option Plan (the “Plan”) at the fair market value of the Company’s Common Stock, as determined by the Board of Directors on the date the Board approves such grant. The shares you will be given the opportunity to purchase will vest at the rate of twenty five percent (25%) at the end of your first anniversary with the Company, and an additional two and one twelfth of a percent (2.0833%) per month thereafter, so long as you remain employed by the Company.  Additionally, 50% of the unvested options will be vested immediately following either your termination without-cause by the Company or a change-in­control event of the Company.  However, the grant of such options by the Company is subject to the Board’s approval and this promise to recommend such approval is not a promise of compensation and is not intended to create any obligation on the part of the Company.  Further details on the Plan and any specific option grant to you will be provided upon approval of such grant by the Company’s Board of Directors.

	
 
	
4.
	
Sales Bonus Structure.  You will be entitled to receive a cash and equity bonus structure based on mutually agreed upon goals with the CEO and the Company Board of Directors.  The structure for the cash components of this bonus is outlined in Table 1 of this offer letter.  The structure for the equity bonus is also outlined in Table 1 and is geared towards meeting specific goals for Q1’2015 and Q2’2015.  Further, the equity component of the bonus is only applicable so long as the company has not completed an initial public offering.

	
 
	
5.
	
Vacation/PTO/Sick-Leave.  You will be entitled to 120 hours of PTO during every calendar year for the first five years of employment and earn an additional 8 hours PTO for each subsequent year of employment, up to a maximum of 160 hours.  The amount of PTO available 

 

	
 
		
to you can be accrued and carried over from one year to the next, but in no circumstance shall it exceed 200 hours unless determined otherwise by the Company Compensation Committee.

	
 
	
6.
	
Confidentiality.  As an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company.  To protect the interests of the Company, you will need to sign the Company’s standard “Employee Invention Assignment and Confidentiality Agreement” as a condition of your employment.  We wish to impress upon you that we do not want you to, and we hereby direct you not to, bring with you any confidential or proprietary material of any former employer or to violate any other obligations you may have to any former employer. During the period that you render services to the Company, you agree to not engage in any employment, business or activity that is in any way competitive with the business or proposed business of the Company.  You will disclose to the Company in writing any other gainful employment, business or activity that you are currently associated with or participate in that competes with the Company.  You will not assist any other person or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company.  You represent that your signing of this offer letter, agreement(s) concerning stock options granted to you, if any, under the Plan (as defined above) and the Company’s Employee Invention Assignment and Confidentiality Agreement and your commencement of employment with the Company will not violate any agreement currently in place between yourself and current or past employers.

	
 
	
7.
	
Employment with TriNet.  Our benefits, payroll, and other human resource management services are provided through TriNet Employer Group, Inc., a professional employer organization.  As a result of ADESTO TECHNOLOGIES’ arrangement with TriNet, TriNet will be considered your employer of record for these purposes and your managers here at ADESTO TECHNOLOGIES will be responsible for directing your work, reviewing your performance, setting your schedule, and otherwise directing your work at ADESTO TECHNOLOGIES.

	
 
	
8.
	
At Will Employment.  While we look forward to a long and profitable relationship, should you decide to accept our offer, you will be an at-will employee of the Company, which means the employment relationship can be terminated by either you or the Company for any reason, at any time, with or without prior notice and with or without cause.  Any statements or representations to the contrary (and, indeed, any statements contradicting any provision in this letter) should be regarded by you as ineffective.  Further, your participation in any stock option or benefit program is not to be regarded as assuring you of continuing employment for any particular period of time.  Any modification or change in your at will employment status may only occur by way of a written employment agreement signed by you and the Chief Executive Officer of the Company.

	
 
	
9.
	
Authorization to Work. Please note that because of employer regulations adopted in the Immigration Reform and Control Act of 1986, within three (3) business days of starting your new position you will need to present documentation demonstrating that you have authorization to work in the United States. If you have questions about this requirement, which applies to U.S. citizens and non-U.S. citizens alike, you may contact our personnel office.

	
 
	
10.
	
Arbitration.  You and the Company agree to submit to mandatory binding arbitration any and all claims arising out of or related to your employment with the Company.  This agreement to arbitrate applies to claims including, but by no means limited to, claims of discrimination, harassment, unpaid wages, breach of contract (express or implied), wrongful termination, torts, claims for stock or stock options, as well as claims based upon any federal, state or local 

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ordinance, statute, regulation or constitutional provision, including, but not limited to, the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and 42 U.S.C. § 1981, and any and all state or local laws prohibiting discrimination or regulating any terms or conditions of employment (“Arbitrable Claims”).  Arbitration shall be the exclusive method by which to resolve Arbitrable Claims, except that each party may, at its, his or her option, seek injunctive relief in a court of competent jurisdiction related to the improper use, disclosure or misappropriation of a party’s proprietary, confidential or trade secret information.  THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO SUCH CLAIMS.  Arbitrable Claims do not include, and this Agreement does not apply to or otherwise restrict, administrative claims you may bring before any government agency where, as a matter of law, the parties may not restrict the Employee’s ability to file such claims (including the Equal Employment Opportunity Commission and the National Labor Relations Board).  Otherwise, the parties agree that arbitration shall be the exclusive remedy for administrative claims.  The arbitration shall be conducted through the American Arbitration Association, before a single neutral arbitrator, in accordance with the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association.  The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based.

	
 
	
11.
	
Background Check.  This offer is contingent upon a successful employment verification of criminal, education, and employment background.  This offer can be rescinded based upon data received in the verification.  You will also agree that the Company reserves the right to do a background check anytime during your full time employment with the Company.

	
 
	
12.
	
Acceptance.  This offer will remain open until August 10, 2011.  If you decide to accept our offer, and I hope you will, please sign the enclosed copy of this letter in the space indicated and return it to me.  Your signature will acknowledge that you have read and understood and agreed to the terms and conditions of this offer letter and the attached documents, if any.  Should you have anything else that you wish to discuss, please do not hesitate to contact us.

We are very excited and absolutely look forward to the opportunity to welcome you to Adesto Technologies Corporation.

Very truly yours,

Narbeh Derhacobian, President and CEO

Date: 

I have read and understood this offer letter and hereby acknowledge, accept and agree to the terms as set forth above and further acknowledge that no other commitments were made to me as part of my employment offer except as specifically set forth herein.

Date signed: Dec 1, 2014

Name: TOM SPADE

Signature: /s/Tom Spade

 

 

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Exhibit 10.2 

 

Table 1

CASH COMP

 

					
	
 
	
 
	
 
	
Pre IPO
	
Post IPO

	
 
	
 
	
Base
	
$240,000
	
$270,000

	
 
	
 
	
Annual Bonus Base
	
$150,000
	
$180,000

	
55%
	
Revenue
	
Lower than 85% Target
	
$-
	
$-

	
85% to 90% Target
	
$41,250
	
$49,500

	
90% to 99% Target
	
$66,000
	
$79,200

	
100% Target
	
$82,500
	
$99,000

	
101% to 110% Target
	
$86,625
	
$103,950

	
111% or higher
	
$99,000
	
$118,800

	
30%
	
Design Wins
	
Lower than 85% Target
	
$-
	
$-

	
85% to 90% Target
	
$22,500
	
$27,000

	
90% to 99% Target
	
$36,000
	
$43,200

	
100% Plan
	
$45,000
	
$54,000

	
101% to 110% Target
	
$47,250
	
$56,700

	
110% Plan or higher
	
$49,500
	
$59,400

	
15%
	
MBO
	
 
	
$22,500
	
$27,000

	
Assumes meeting MBO->
	
Total Comp Minimum
	
$262,500
	
$297,000

	
 
	
 
	
Total Comp (15% Below)
	
$326,250
	
$373,500

	
 
	
 
	
Total Comp (10% Below)
	
$364,500
	
$419,400

	
 
	
 
	
Total Comp (Meet Plan)
	
$390,000
	
$450,000

	
 
	
 
	
Total Comp (Max)
	
$411,000
	
$475,200

 

 

 

Equity COMP

 

				
	
 
	
 
	
 
	
Pre IPO

	
 
	
 
	
Base
	
1,344,000

	
 
	
 
	
 
	
 

	
Additional Equity Pre IPO and Std Vesting
	
Q1’2015
	
Hit 100% Revenue Target
	
153,600

	
Hit 105% Revenue Target
	
172,800

	
Hit 110% Revenue Target
	
288,000

	
Q2’2015
	
Hit 100% Revenue Target
	
153,600

	
Hit 105% Revenue Target
	
172,800

	
Hit 110% Revenue Target
	
288,000iots-ex103_10.htm

Exhibit 10.3 

 

NOTICE OF PERFORMANCE- BASED

PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD

ADESTO TECHNOLOGIES CORPORATION

2015 EQUITY INCENTIVE PLAN

GRANT NUMBER:  

Unless otherwise defined herein, the terms defined in the Adesto Technologies Corporation (the “Company”) 2015 Equity Incentive Plan (the “Plan”) shall have the same meanings in this Notice of Restricted Stock Unit Award (this “Notice”) and the attached Restricted Stock Unit Agreement (the “Agreement”).  You have been granted an award of Performance-Based Restricted Stock Units (the “RSUs”) under the Plan subject to the terms and conditions of the Plan, this Notice and the Agreement. 

 

Name:

	
Address:
	

	
Number of RSUs:
	
[MAXIMUM NUMBER]

	
Date of Grant:
	
[DATE]

	
Vesting Commencement Date:
	
N/A

	
Expiration Date:
	
The earlier to occur of: (a) the settlement of all vested RSUs granted hereunder, and (b) the tenth anniversary of the Date of Grant.  The RSUs expire earlier if your Service terminates earlier, as described in the Agreement.
	
 

	
Vesting Schedule:  
	
Subject to the limitations set forth in this Notice, the Plan and the Agreement, the RSUs will vest in accordance with the schedule set forth on Exhibit A.
	
 

	
Additional Terms:
	
☐If this box is checked, the additional terms and conditions set forth on Attachment 1 hereto (as executed by the Company) are applicable and are incorporated herein by reference.  No document need be attached as Attachment 1 if the box is not checked.
	
 

You acknowledge that the vesting of the RSUs pursuant to this Notice is earned only by continuing Service.  By accepting the RSUs, you and the Company agree that the RSUs are granted under and governed by the terms and conditions of the Plan, this Notice and the Agreement.  By accepting the RSUs, you consent to electronic delivery as set forth in the Agreement.

		
	
PARTICIPANT:

Signature: 

Print Name: 
	
ADESTO TECHNOLOGIES CORPORATION:

By: 

Name: 

Its: 

 

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PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT

ADESTO TECHNOLOGIES CORPORATION

2015 EQUITY INCENTIVE PLAN

You have been granted Performance-Based Restricted Stock Units (“RSUs”) by Adesto Technologies Corporation (the “Company”) under the 2015 Equity Incentive Plan (the “Plan”) subject to the terms, restrictions and conditions of the Plan, the Notice of Restricted Stock Unit Award (the “Notice”) and this Restricted Stock Unit Agreement (this “Agreement”).

1.Settlement.  Settlement of RSUs shall be made in the same calendar year as the applicable date of vesting under the Vesting Schedule set forth in the Notice; provided, however, that if the vesting date under the Vesting Schedule set forth in the Notice is in December, then settlement of any RSUs that vest in December shall be within 30 days of vesting.  Settlement of RSUs shall be in Shares.  Settlement means the delivery to you of the Shares vested under an RSU. No fractional RSUs or rights for fractional Shares shall be created pursuant to this Agreement.

2.No Stockholder Rights.  Unless and until such time as Shares are issued in settlement of vested RSUs, you shall have no ownership of the Shares allocated to the RSUs and shall have no right to dividends or to vote such Shares.

3.Dividend Equivalents.  Dividends, if any (whether in cash or Shares), shall not be credited to you.

4.No Transfer.  RSUs may not be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of in any manner other than by will or by the laws of descent or distribution or court order or unless otherwise permitted by the Committee on a case-by-case basis.  

5.Termination.  If your Service terminates for any reason, all unvested RSUs shall be forfeited to the Company forthwith, and all rights you have to such RSUs shall immediately terminate, without payment of any consideration to you.  Your Service will be considered terminated as of the date you are no longer providing Service (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any) and will not, subject to the laws applicable to your RSUs, be extended by any notice period mandated under local employment laws (e.g., Service would not include a period of “garden leave” or similar period).  In case of any dispute as to whether your termination of Service has occurred, the Committee shall have sole discretion to determine whether such termination has occurred and the effective date of such termination.

6.Tax Consequences.  You acknowledge that there will be tax consequences upon settlement of the RSUs or disposition of the Shares, if any, received in connection therewith, and you should consult a tax adviser regarding your tax obligations prior to such settlement or disposition in the jurisdiction where you are subject to tax. 

7.Withholding Taxes and Stock Withholding.  Regardless of any action the Company or your actual employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including the grant, vesting or settlement of the RSUs, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends and (2) do not commit to structure the terms of the award or any aspect of the RSUs to reduce or eliminate your liability for Tax-Related Items.  You acknowledge that if you are subject to Tax-Related Items in more than one jurisdiction, the Company and/or the Employer may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

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Prior to the settlement of your RSUs, you shall pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all withholding and payment on account obligations of the Company and/or the Employer.  In this regard, you authorize the Company and/or the Employer to withhold all applicable Tax-Related Items legally payable by you from your wages or other cash compensation paid to you by the Company and/or the Employer. With the Company’s consent, these arrangements may also include, if permissible under local law, (a) withholding Shares that otherwise would be issued to you when your RSUs are settled, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum statutory withholding amount, (b) having the Company withhold taxes from the proceeds of the sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf and you hereby authorize such sales by this authorization), (c) your payment by cash, cheque, wire transfer, bank draft or money order payable to the Company, or (d) any other arrangement approved by the Company; all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable; provided however, that if you are a Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) shall establish the method of withholding from alternatives (a)-(d) above, and the Committee shall establish the method prior to the Tax-Related Items withholding event. The Fair Market Value of these Shares, determined as of the effective date when taxes otherwise would have been withheld in cash, will be applied as a credit against the withholding taxes.  

Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding rates, including maximum applicable rates, in which case you will receive a refund of any over-withheld amount in cash and will have no entitlement to the Shares equivalent. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, you are deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items.

You shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of your participation in the Plan or the vesting and settlement of the RSUs that cannot be satisfied by the means previously described.  Finally, you acknowledge that the Company has no obligation to deliver Shares to you until you have satisfied the obligations in connection with the Tax-Related Items as described in this Section.

8.Acknowledgement.  The Company and you agree that the RSUs are granted under and governed by the Notice, this Agreement and the provisions of the Plan (incorporated herein by reference).  You: (i) acknowledge receipt of a copy of the Plan and the Plan prospectus, (ii) represent that you have carefully read and are familiar with their provisions, and (iii) hereby accept the RSUs subject to all of the terms and conditions set forth in this Agreement and those set forth in the Plan and the Notice.  You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice and this Agreement.

9.Entire Agreement; Enforcement of Rights.  This Agreement, the Plan and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Shares hereunder are superseded. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the parties to this Agreement.  The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

10.Compliance with Laws and Regulations.  The issuance of Shares will be subject to and conditioned upon compliance by the Company and you with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s common stock (“Common Stock”) may be listed or quoted at the time of such issuance or transfer, which 

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compliance the Company shall, in its absolute discretion, deem necessary or advisable.  You understand that the Company is under no obligation to register or qualify the Common Stock with any state, federal or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares.  Further, you agree that the Company shall have unilateral authority to amend the Plan and this Agreement without your consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares.  Finally, the Shares issued pursuant to this Agreement shall be endorsed with appropriate legends, if any, determined by the Company. 

11.No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares.  You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

12.Governing Law; Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of this Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance with its terms.  This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law.  For purposes of litigating any dispute that may arise directly or indirectly from the Plan, the Notice and this Agreement, the parties hereby submit and consent to litigation in the exclusive jurisdiction of the State of California and agree that any such litigation shall be conducted only in the courts of California in Santa Clara County or the federal courts of the United States for the Northern District of California and no other courts.

13.No Rights as Employee, Director or Consultant.  You understand that your employment or consulting relationship with the Company is for an unspecified duration, can be terminated at any time (i.e., is “at-will”), and that nothing in this Agreement changes the at-will nature of that relationship.  Nothing in this Agreement shall affect in any manner whatsoever the right or power of the Company, or a Parent, Subsidiary or Affiliate of the Company, to terminate your Service, for any reason, with or without Cause.

14.Consent to Electronic Delivery of All Plan Documents and Disclosures.  By your acceptance of the RSUs, you consent to the electronic delivery of the Notice, this Agreement, the Plan, account statements, Plan prospectuses required by the Securities and Exchange Commission, U.S. financial reports of the Company, and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the RSUs. Electronic delivery may include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion. You acknowledge that you may receive from the Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or electronic mail.  You further acknowledge that you will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, you understand that you must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. You agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. Also, you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail. Finally, you understand that you are not required to consent to electronic delivery.

15.Imposition of Other Requirements.  The Company reserves the right to impose other requirements on your participation in the Plan, on the RSUs and on any Shares acquired under the Plan, to the extent the 

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Company determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

 

16.Code Section 409A.  For purposes of this Agreement, a termination of employment will be determined consistent with the rules relating to a “separation from service” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations thereunder (“Section 409A”).  Notwithstanding anything else provided herein, to the extent any payments provided under this Agreement in connection with your termination of employment constitute deferred compensation subject to Section 409A, and you are deemed at the time of such termination of employment to be a “specified employee” under Section 409A, then such payment shall not be made or commence until the earlier of (i) the expiration of the six-month period measured from your separation from service from the Company or (ii) the date of your death following such a separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you including, without limitation, the additional tax for which you would otherwise be liable under Section 409A(a)(1)(B) in the absence of such a deferral.  To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  Payments pursuant to this section are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

17.Award Subject to Company Clawback or Recoupment.  The RSUs shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of your employment or other Service that is applicable to you. In addition to any other remedies available under such policy, applicable law may require the cancellation of your RSUs (whether vested or unvested) and the recoupment of any gains realized with respect to your RSUs.

 

BY ACCEPTING THE RSUs, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.

 

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EXHIBIT A

 

VESTING SCHEDULE TO PERFORMANCE-BASED RESTRICTED STOCK UNIT

 

 

Subject to the satisfaction of the condition set forth next paragraph, upon certification by the Compensation Committee at the end of the Performance Period (which certification shall occur not later than the first regularly-scheduled meeting of the Committee during the calendar quarter immediately following the end of the Performance Period) that the Closing Average Price for the Performance Period is at or above the Price Threshold, then 100% of the Shares subject to this RSU award shall be earned (the “Earned Shares”) and (i) 20% of the Earned Shares shall vest upon such certification by the Compensation Committee and (ii) 10% of the Earned Shares shall vest on June 30, 2018 and at the end of each of the next seven quarters thereafter until all of the Earned Shares have completed vested, subject to the Participant’s Service on each such vesting date. If the Closing Average Price for the Performance Period is less than the Price Threshold, then all shares subject to this RSU award shall be forfeited.

 

Notwithstanding the foregoing, no Shares will be earned under this RSU award unless the Company’s revenue, gross profit and EBITDA are each at least equal to a threshold dollar amount established for each financial measure by the Compensation Committee and communicated to the Participant in connection herewith (each a “Milestone” and collectively the “Milestones”).  For the avoidance of doubt, if the Company fails to at least meet a single Milestone, then no Shares will be earned under this RSU award even if the other two Milestones are met or surpassed; the amount of the Earned Shares, if any, will be based on achievement of the Price Threshold as set forth above only if all of the Milestones are met or surpassed.  

 

For purposes of this RSU award, the definitions below shall apply. If not otherwise defined in this Exhibit A, in the Notice or the Agreement, then such term shall have the meaning ascribed to it in the Plan.

“Closing Average Price” means the average closing price per share of Company Common Stock for the 30 consecutive trading days prior to and including March 30, 2018.

 

“Nasdaq Index Adjusted Target Price” means the product of the Target Price multiplied by the cumulative appreciation or depreciation of the Nasdaq Composite Index as measured by dividing the index value on March 30, 2018 by the index value on March 31, 2017 (rounded down to the nearest tenth of a percentage point).  For example, if the Nasdaq Composite Index is 5,800 on March 31, 2017 and 6,100 on March 30, 2018, the Nasdaq Index Adjusted Price would be equal to the Target Price multiplied by 105.1% (i.e., 6,100 divided by 5,800).      

 

“Performance Period” means the period from April 1, 2017 to March 31, 2018.

 

“Price Threshold” means the greater of the Target Price and the Nasdaq Index Adjusted Target Price.

 

“Target Price” means a price per share of Company Common Stock established by the Compensation Committee and communicated to the Participant in connection herewith.

 

 

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