In this template, executive's compensation is tied to company performance. Salary is to be calculated on the basis of monthly reoccurring revenue of the Corporation. The executive will receive stock options if the company achieves reoccurring revenue milestones.
Here it is in a PDF format.
EXECUTIVE COMPENSATION AGREEMENT
This Agreement is made this ____ day of _____________,
2016 (the “Effective Date”), by and between __[Corp Name]_______________ (the "Corporation"),
of ___[address]_____________________________, and, _______[Name]_________ (the
“President”), of ___[address]_____________________________. The President accepts employment as President
of the Corporation on the following terms and conditions:
- TERM OF EMPLOYMENT
By this Agreement, the Corporation employs the President,
and the President accepts employment with the Corporation. The term of the
President’s employment shall be three years, beginning on the Effective Date
above (the “Term”), unless his employment is sooner terminated pursuant to the
provisions of this Agreement. Commencing on the third anniversary of the
Effective Date, the Term shall be automatically extended for additional
consecutive three-year periods.
- COMPENSATION
2.01. As
compensation for all services rendered under this Agreement, the President
shall be paid by the Corporation a salary to be calculated on the basis of
monthly reoccurring revenue (MRR) of the Corporation according to the table
below. President’s salary shall be payable in pro-rated monthly installments.
MRR
|
Salary per year
|
From
0 to $25,000
|
$_________
|
From
$25,000 to $50,000
|
$_________
|
Over
$50,000
|
$_________
|
2.02. The President
is authorized to incur reasonable business expenses in the performance of the President's
administrative duties under this Agreement.
The Corporation
will reimburse the President from time to time for all
such business expenses, provided that the President presents to the Corporation
one of the following:
(a) A
statement of expenses in which the President recorded at or near the time each
expenditure was made:
(i) The amount
of the expenditure;
(ii) The
time, place, and type of expense; and
(iii) The business reason for the expenditure.
(b) Receipts
that state sufficient information to establish the amount, date, place, and
essential character of each expenditure.
The President must receive a prior permission from the
Board of Directors of the Corporation prior to expending out of pocket any
amount exceeding $ 5,000 .
2.03. President shall be
granted options to purchase shares of common stock of the Corporation at an
exercise price of $_____ per share (the “Grant”), when, and if, the Corporation
achieves each of the following annual reoccurring revenue (ARR) milestones. All
shares shall immediately become exercisable. The President may exercise the
Grant in full or in part.
ARR
|
Number of shares
|
$1,000,000
|
X
|
$5,000,000
|
Additional X
|
$10,000,000
|
Additional X
|
Except as otherwise provided in this
Agreement, the Grant will be subject to the Corporation’s standard terms and
conditions for executive stock option awards
2.04. The President understands and
acknowledges that this Agreement does not entitle him to any other
compensation, benefits or plans, except as provided for in this Article 2 of
this Agreement.
- DUTIES OF PRESIDENT
3.01. As the Corporation's
President, he shall carry out the policies of the Corporation and control the
day-to-day operations of the business and affairs of the Corporation. The President shall report directly to the Corporation.
3.02. The President
shall not be required to work more than ___________ hours a week. Normal working days and hours are Monday
through Friday, 9 a.m. to 5:00 p.m.
3.03. The President
shall devote his ability, attention, and energies to the business of the Corporation
during the term of this Agreement.
- VACATION AND SICK DAYS
4.01. The President shall be entitled to twenty days paid vacation per
year, which, to the extent they are not used at the end of the contract term, a
maximum of ten days may be carried over at the end of the contract term.
4.02. The President shall be entitled to ten days
paid sick leave per annum. Upon termination
of employment, the President shall be entitled to a maximum of ten days paid
sick leave.
- MONITORING
The President shall give Corporation, through its
authorized representatives, access to and the right to examine any or all
pertinent records or other written materials maintained by President and
related to the business of the Corporation or this Agreement. President shall also give Corporation the
right at all reasonable times to inspect or otherwise evaluate the work
performed or being performed hereunder by President.
- TERMINATION
7.01. This Agreement may be terminated by either party, for any reason
or no reason, by giving ten days' written notice of termination to the other
party.
7.02. In the
event of the termination of this Agreement prior to the term of employment
specified above, the President shall be
entitled to the compensation earned by the President prior to the date of
termination as provided for in this Agreement, computed pro rata to and
including that date.
- PROPERTY RIGHTS OF PARTIES
7.01. All
files, records, documents, drawings, specifications, equipment and similar
items relating to the business of the Corporation, whether or not prepared by
the President, shall remain the exclusive property of Corporation.
7.02. Corporation
shall have the right to use, copyright, reproduce, publish, or distribute any
and all materials created by President under the name of Corporation, without
obtaining permission from President and without expense and charge.
7.03. On the
termination of employment or whenever requested by Corporation, President shall
immediately deliver to the Corporation all property in the President’s
possession or under the Employee's control belonging to the Corporation
(including but not limited to all accounting records and files). Such property shall be returned in good
condition, ordinary wear and tear excepted.
- GENERAL PROVISIONS
8.01. The President
shall comply with all applicable laws, ordinances, codes, and regulations of
the State of California, local and federal governments.
8.02. Neither
this Agreement nor any duties or obligations under it shall be assignable by President
without the prior written consent of Corporation.
8.03. Subject
to the provisions regarding assignment, this Agreement shall be binding on and
inure to the benefit of the parties to it and their respective heirs,
executors, administrators, legal representatives, successors, and assigns.
8.04. The validity
of this Agreement and any of its terms or provisions, as well as the rights and
duties of the parties, shall be governed by the laws of the State of California.
8.05. In the
event that any or more of the provisions contained in this Agreement shall for
any reason be held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect any other
provisions, and the Agreement shall be construed as if such invalid, illegal,
or unenforceable provision had never been contained in it.
IN WITNESS WHEREOF, the Parties have
executed this Agreement as of the Effective Date.
CORPORATION:
By:
_______________________________
Name/Title: _________________________
Date:______________________________
|
PRESIDENT:
By: _________________________________
Name:
_______________________________
Date: ________________________________
|
