December 6, 2019
On behalf of all of us at Freshpet, Inc. (the Company), I am pleased to confirm to you our offer to join The Freshpet Team initially as our Executive Vice President of Finance and then on October 1, 2020 as our Chief Financial Officer; in these roles, you will initially report to Dick Kassar, CFO and when you become the CFO you will report directly to me. This offer of employment is conditioned on your satisfactory completion of certain requirements, as more fully explained in this letter. Your employment is subject to the terms and conditions set forth in this letter.
Annual Base Salary
In consideration of your services, you will be paid bi-weekly at a gross rate of $15,384.62 ($400,000 annualized) in accordance with the Companys standard payroll practices and subject to all withholdings and deductions as required by law.
Your principal place of employment shall be at our Corporate Office location in Secaucus, NJ. Your role will also require some regular business travel to properly fulfill your employment duties and responsibilities, including periodic trips to our Freshpet Kitchens located in Bethlehem, PA.
During your employment, you will be eligible to participate in the Companys performance-based bonus program wherein your target level will be 50% of your annual salary ($200,000). Actual payments will be determined based on Company results against applicable performance goals established by the Companys Board of Directors and/or senior officers at their discretion. For 2020, any bonus you may receive would be pro-rated based on the number of days you are employed during the year. The Company reserves the right to amend, modify or terminate any of its bonus programs at any time and for any reason.
You must remain continuously employed through the bonus payment date to be eligible to receive an annual bonus for a fiscal year. Bonuses are typically paid in March following the completion of the calendar fiscal year.
You will be eligible to participate in the equity program as approved by the Board of Directors. This program for you is divided into two separate grants.
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Sign on Stock Grant This one-time equity award of 15,000 stock options. The strike price for the options will be based on the stock price on your first date as a Freshpet employee. All shares under this award will be time based and vest over a three-year period (1/3, 1/3, 1/3).
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Annual Stock Grant This equity award is based on 75% of your annual base salary divided by the Freshpet stock price to yield the number of equity shares. Given the current Freshpet stock price ($54.00) and a base salary of $400,000 (75% = $300,000) this would yield 5,556 shares. This annual stock is variable based upon the stock price when granted. Under this program 50% of the shares will be time based and 50% will be performance based and all shares will vest over a three-year period. This annual grant award will occur in the March / April timeframe.