Ralph A. Goldwasser:
On March 9, 2018, we entered into an employment agreement with Mr. Goldwasser, which we refer to as the Goldwasser Agreement, pursuant to which
Mr. Goldwasser agreed to serve us as chief financial officer for fiscal year 2018. The initial base salary being $200,000 per annum for working full-time for the period January 1, 2018 through June 30, 2018. Mr. Goldwasser was
eligible to receive cash incentive compensation as determined annually by the chief executive officer and the board of directors.
Subsequently, it was
agreed that Mr. Goldwasser would continue working full-time with the Company at the same base salary after June 30, 2018.
As set forth in the
Goldwasser Agreement, Mr. Goldwassers employment was at will, though in the case of termination without cause then (i) we were required to pay Mr. Goldwasser his base salary for twelve (12) months, plus a
pro-rata
portion of the incentive bonus for the year, to be paid at the usual time bonuses are paid, (ii) all stock options and other stock-based awards held by Mr. Goldwasser which would have vested if
employment had continued for twelve (12) additional months will vest and become exercisable or
non-forfeitable,
and (iii) the amounts payable according to this provision shall, at the option of the
Company, be paid out either by a
lump-sum
or paid in equal installments for the remainder of the severance payment period in accordance with our payroll practice. And (iv) at the discretion of the
Company, he was required to either continue to work for the Company for a reasonable transition period and/or provide reasonable outside transition assistance as requested for 90 days after employment cessation. If employment was terminated without
cause by the Company, or by Mr. Goldwasser for good reason, within the 12 months following a change in control, then, notwithstanding anything to the contrary, all stock options and other stock-based awards held by him would immediately
accelerate and become fully exercisable or not forfeitable as of the date of transition.
On February 6, 2019, we announced that Mr. Goldwasser
is retiring effective as of February 18, 2019 from his position as chief financial officer and will provide transitional services to the Company for an expected three-month term under a transition and consulting agreement. In connection with
Mr. Goldwassers retirement, we entered into a consultancy agreement (the Goldwasser Consulting
Agreement) which provides for, among other things, Mr. Goldwassers continuing to provide services to the Company
as a consultant in a transitional capacity for an expected term until May 18, 2019. Pursuant to the Goldwasser Consulting Agreement, Mr. Goldwasser will receive a monthly retainer of $10,000 and will continue to be eligible to participate
in the Companys 2018 bonus program. In addition, upon the commencement of his consultancy period, Mr. Goldwasser received 20,000 restricted stock units , all of which will vest upon the conclusion of his consultancy period. Upon the
conclusion of his consultancy period, the 8,750 restricted stock units held by Mr. Goldwasser prior to his retirement will vest in full. In addition, notwithstanding anything to the contrary, the unvested portion of the stock option to purchase
40,000 shares of common stock held by Mr. Goldwasser prior to his retirement will continue to vest in accordance with the vesting schedule of his grant.
Should the Goldwasser Consulting Agreement be terminated by the Company for cause before May 18, 2019, no further monthly retainer payments will be owed
him after the date of termination, and in addition, his unvested restricted stock units and consultancy RSUs will be forfeited,
Jonathan Naft:
On December 23, 2016, we entered into a new employment agreement with Mr. Naft, which we refer to as the Naft Agreement, pursuant to which
Mr. Naft agreed to serve us as vice president and general manager. Mr. Nafts initial annual base salary under the Naft Agreement of $100,000 was increased to $200,000 in June 2017. This base salary shall be determined annually by our
chief executive officer. During the term, which is initially for two years with automatic
one-year
renewals thereafter, Mr. Naft is eligible to receive cash incentive compensation as determined annually
by the chief executive officer and the board of directors. Mr. Nafts target annual incentive compensation is 50% of his base salary.
22