Terms of the Thomas McCabe hiring...Senior VP Braintech Government and Defense Division
The Employment Agreement also provides that Mr. McCabe is entitled to purchase up to 1,750,000 shares of the Company’s common stock at a purchase price of $0.001 per share and receive options to purchase 250,000 shares of common stock (the “ Bonus Stock Options ”) upon achievement of certain milestones. Pursuant to the Employment Agreement, the Company has paid $17,500 to Mr. McCabe as a signing bonus, which Mr. McCabe will apply to purchase the 1,750,000 shares. In addition, the Company has agreed to grant a guaranteed cash bonus equal to $76,395.93 to be paid on September 30, 2009, and an annual bonus up to 25% of the Base Salary on April 1, 2010 and an annual bonus up to 50% of the Base Salary on April 1, 2011 and on April 1 of each year thereafter, depending on Mr. McCabe’s performance.
Milestone 1: Execution of a new, modified or extended agreement to the existing agreement with BRAINTECH’s current channel partner, or execution of an agreement with another industrial partner, on terms acceptable to the CEO. On achievement of Milestone 1, 585,000 shares of EXECUTIVE’s Bonus Stock will vest.
Milestone 2: Effective management of outside legal fees, substantial reduction in legal risk, or other substantial cleanup or process improvement in the legal area. On achievement of Milestone 2, 585,000 shares of EXECUTIVE’s Bonus Stock will vest. BRAINTECH and EXECUTIVE have agreed to measure this goal from the level for the 12 months ending October 31, 2008 with respect to the same or comparable matters that were handled by outside counsel during that 12 month period.
Milestone 3: Completion of four (4) acquisitions or other suitable corporate development opportunities (including but not limited to those described in Paragraph 4(c) of this Agreement) or customer contracts. On achievement of Milestone 3, 580,000 shares of EXECUTIVE’s Bonus Stock will vest.
Milestone 4: BRAINTECH’s contracts and subcontracts with government, military and defense customers, contractors, end users, integrators, and customers and partners of Braintech GDS reach a cumulative total of $1,250,000 in contracted revenue. On achievement of Milestone 4, EXECUTIVE’s 250,000 Bonus Stock Options will vest and become fully exercisable for the remainder of their term.
