Transactional Sales shall be defined as all billed revenue in 2018 with the exception of revenue from the Application Launch Program (“ALP”) and revenue from Enterprise Clients. For each new participant in ALP which you or your team introduce, 25% of the billed fees for ALP shall be added to the Transactional Sales total. Enterprise Clients include the companies enrolled in the Application Launch Program and other clients where the engagement model is more focused on new product development, application discovery, and other longer sales cycle models. Current Enterprise Clients are: [***]. Additional Enterprise Clients shall be specifically defined on an on-going basis via email by the CEO.
In order to qualify for the Performance Bonus, aggregate gross margin for Transactional Sales must be at least [***]. In the event gross margin is less than [***] and/or revenue is less than 75% of the base plan, any Performance Bonus will be at the discretion of the Board of Directors and shall be consistent with how the Board sets Performance Bonus payouts for other members of the Executive Team.
Your compensation will be paid in accordance with the Company’s regular payroll practices and will be subject to all applicable withholdings and deductions as required by federal, state and local laws. Performance Bonuses are paid in the first payroll period in February for the prior year’s bonus at which point employees must be current employees in good standing to receive Performance Bonus payment.
You will also be eligible to receive 206,966 Incentive Stock Options (“ISOs”) in accordance with the Fast Radius 2017 Stock Plan (“Time-based Equity Grant”). ISOs will vest over a four-year period, with a one-year cliff and monthly vesting thereafter. These options will be granted no less than 30 days from your Start Date, subject to your continued employment through the vesting date.
In addition, you will be eligible to receive an additional 26,216 ISOs which will follow the same vesting schedule as the Time-based Equity Grant, but will only vest once Company qualifies for its “Tranche 2” equity financing (“Milestone-based Equity Grant”). For example, if the Company has not received its Tranche 2 equity investment 14 months after your start date, none of the Milestone-based Equity Grant will be vested. If the Company receives its Tranche 2 equity investment in your 15th month, then 15/48 of your Milestone-based Equity Grant will immediately vest and continue vesting on a monthly basis thereafter.
Note that Fast Radius, Inc. currently has 20,696,606 shares outstanding and anticipates that after Tranche 2 there will be 23,318,175 shares outstanding.
Additionally, you will be eligible for medical benefits beginning on the first day of the month following your Start Date (i.e., March 1, 2018). Fast Radius will provide health insurance and will provide a subsidy to your health insurance premium of up to $1000 / month.
Should your employment be terminated by the Company without Cause, you will be eligible for three months of salary after the Termination Date and the vesting on your Time-based Equity Grant (excluding the Milestone-Based Equity Grant, unless Company has secured its Tranche 2 financings) will accelerate by six months. For example, if your employment is terminated by the Company in month 10 of your employment and the Company has not secured its Tranche 2 financings, 16/48ths of your Time-based Equity Grant will vest as of the termination date and you will forfeit 100% of your Milestone-based Equity Grant.
As a condition of your employment, you will be required to accept and sign the enclosed Employee Non-Disclosure, Intellectual Property and Restrictive Covenants Agreement (the “Employee Agreement”). Please return the signed Employee Agreement to us before commencement of your employment.
