October 14, 2020
EngageSmart is pleased to offer you the position as Chief Financial Officer as set forth in this letter, contingent on the successful completion of a background and reference check and upon the execution of the documents referenced below. In this position, you will be reporting to our CEO. Bob Bennett, commencing on or before November 2, 2020. The position is based in our headquarters Braintree, MA.
Base Salary: You will be paid in semi-monthly installments at a rate of ($14,583 per pay cycle) based on an annual salary of $350,000 subject to deductions for taxes and other withholdings as required by law or the policies of the company. As an exempt employee you will not be eligible to receive overtime pay.
Bonus: For 2020, you will be eligible to receive a prorated portion of your annual bonus for the months of November and December, your payout will be based on company achievement. For 2021, you will be eligible to participate in an annual performance bonus program with a target bonus opportunity of (40%) of your 2021 eligible earnings based on the same bonus metrics as the other EngageSmart senior managers. The company reserves the right to make changes to the incentive program at any time.
Stock Option and Incentive Plan: You will receive a stock option grant to purchase up to 250,000 shares based on the EngageSmart LLC Amended and Restated 2019 Stock Option Plan (the Plan) and the standard the EngageSmart LLC LLC Stock Option Agreement (Stock Option Agreement). The option will vest as follows: 125,000 share options are subject to time-based vesting; with 25% vesting on the first anniversary of the grant date, and the remaining 75% vesting in equal quarterly installments over the subsequent 3 years; and 125,000 share options are subject to performance based vesting as follows: 62,500 options vest if General Atlantic receives a Multiple of Invested Capital (MOIC) of 2.25x and 62,500 options vest if General Atlantic receives a Multiple of Invested Capital (MOIC) of 2.75x on change of control (as defined in the option plan). A change in control would trigger full acceleration of the time-based portion of grant.
Health & Welfare Benefits: As an employee of EngageSmart, you are eligible for certain company benefits, commencing on your start date, as outlined in the attached Benefits Summary document. You have 30 days from your start date to make your elections through our ADP HR system for medical, dental, vision and supplemental life and AD&D insurance.
401K Plan: Eligibility for the 401K program plan commences on the first day of the month following thirty (30) days of employment with the EngageSmart. You will automatically be enrolled in our plan at a 3% contribution level. The contributions will be placed in the Target Date Fund based on your normal retirement age. You may opt out of the 401K and change your contribution level and fund line up at any time. The attached Benefits Summary provides additional details on the current discretionary company match and vesting schedule.