2018, (ii) a target bonus of 30% of his base salary based on the achievement of corporate and/or individual performance goals, as determined by the Board, (iii) a one-time grant of an option to purchase an aggregate of 55,000 shares of common stock at an exercise price of $8.69 (the fair market value on the date of the grant), which option vests as to one-fourth of the shares on the first anniversary of Mr. Awads start date as Head of Technical Operations and as to the remainder in equal monthly installments for the following 36 months, and (iv) a
sign-on bonus in the amount of $25,000, less any applicable withholding or other taxes, paid out by December 31, 2018.
In connection with his appointment as Chief Operating Officer in July 2020, the Compensation Committee, approved: (1) an increase in
Mr. Awads base salary to $376,000, effective as of July 1, 2020, (ii) a target bonus of 40% and (iii) a grant of an option to purchase an aggregate of 70,000 shares of the Companys common stock at an exercise price of
$1.85 (the fair market value on the date of the grant) which option vests in equal monthly installments for 48 months. In March 2024, the Board, upon recommendation of the Compensation Committee, approved an increase in Mr. Awads base
salary to $437,712, effective as of January 1, 2024.
Mr. Awads employment agreement, as amended, provides that, in the
event that Mr. Awads employment is terminated for any reason other than for cause, death or disability, or by Mr. Awad for good reason (each as defined in his employment agreement), he will be
entitled to receive (i) continuing severance pay at a rate equal to 100% of his base salary, as then in effect, for a period of six months from the date of such termination, to be paid periodically in accordance with normal Company payroll
practices; (ii) the right to continue health care benefits under COBRA, paid by the Company until the earlier of (a) six months from termination, or (b) the date on which Mr. Awad becomes eligible for healthcare insurance
with a subsequent employer, and (iii) a lump-sum payment equal to the prorated portion of the target bonus for the fiscal year in which Mr. Awad is terminated.
In addition, Mr. Awads employment agreement provides that, in the event Mr. Awads employment is terminated on account of
death, disability, resignation for good reason or without cause, in any case, within the 12-month period immediately following or the
30-day period immediately prior to a change in control, then he will be entitled to receive (i) continuing severance pay at a rate equal to 100% of his base salary, as then in effect, for a
period of 12 months from the date of such termination, to be paid periodically in accordance with normal Company payroll practices; (ii) the right to continue health care benefits under COBRA, paid by the Company until the earlier of (a) 12
months from termination, or (b) the date on which Mr. Awad becomes eligible for healthcare insurance with a subsequent employer, (iii) a lump-sum payment equal to the prorated portion of the
target bonus for the fiscal year in which Mr. Awad is terminated, and (iv) Mr. Awads outstanding unvested restricted stock and/or options shall become fully vested.
On February 17, 2024, the Company entered into a separation agreement with Antoine Awad, Chief Operating Officer, to be effective on
February 25, 2024 (the Awad Separation Agreement), pursuant to which, Mr. Awads employment with the Company will end on May 30, 2024 (the Awad Departure Date). Mr. Awad will assist the Company
through the Awad Departure Date in the transition of work in connection with his duties as Chief Operating Officer of the Company.
In
consideration for, among other things, his compliance with certain restrictive covenants and a typical release of claims, Mr. Awad shall receive a lump-sum payment equal to $218,856, which is equivalent
to six months of his base salary. Additionally, Mr. Awad will be eligible for consideration of 100% of his target 2024 bonus, pro-rated by the number of days employed in 2024, in the amount of $87,302.
The determination of whether to award a bonus and the amount of bonus shall be in the sole discretion of the Company. Mr. Awad is also entitled to continued health insurance coverage for up to six months following the Awad Departure Date.
Michael Jensen
We entered into an
employment agreement with Mr. Jensen in January 2022 as Chief Financial Officer, that initially provided for (i) an annual base salary of $395,000 commencing as of March 3, 2022, (ii) a target bonus
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