3. Base Salary. Your current annual base salary is $500,000, which will be payable, less applicable withholdings and deductions, in accordance with the Companys normal payroll practices. Your annual base salary will be subject to review and adjustment based upon the Companys normal performance review practices.
4. Annual Bonus. You are eligible to earn an annual cash bonus with a target value of 25% of your annual base salary, based on achieving performance objectives established by the Board or an authorized committee thereof (the Committee) in its sole discretion and payable upon achievement of those objectives as determined by the Committee. If any portion of such bonus is earned, it will be paid when practicable after the Committee determines it has been earned, subject to you remaining employed with the Company through the payment date. Your annual bonus opportunity will be subject to review and adjustment based upon the Companys normal performance review practices.
5. Equity Awards. You will be eligible to receive awards of stock options, restricted stock units or other equity awards pursuant to any plans or arrangements the Company may have in effect from time to time. The Committee will determine in its discretion whether you will be granted any such equity awards and the terms of any such award in accordance with the terms of any applicable plan or arrangement that may be in effect from time to time.
6. Employee Benefits. As a regular full time, employee of the Company, you will continue to be eligible to participate in Company-sponsored benefits in accordance with the terms of the Companys policies and benefits plan. In addition, you will continue to be entitled to paid vacation in accordance with the Companys vacation policy, as in effect from time to time. Information regarding coverage, eligibility, and other information regarding these benefits is set forth in more detailed documents that are available from the Company. With the exception of the Companys at-will employment policy, discussed below, the Company may, from time to time, in its sole discretion, modify or eliminate its policies and/or benefits offered to employees.
7. Severance. You will be eligible for the Companys Executive Change in Control and Severance Plan (the Severance Plan) beginning of the IPO Effective Date. Your Participation Agreement under the Severance Plan will specify the severance payments and benefits you could be eligible to receive in connection with certain terminations of your employment with the Company. These protections will supersede all other severance payments and benefits you would otherwise currently be eligible for to, or would become eligible for in the future, under any plan, program or policy that the Company may have in effect from time to time. The IPO Effective Date means the effective date of the Companys registration statement relating to the Companys initial public offering.
8. Employee Confidentiality and Invention Assignment. As an employee of the Company, you will continue to have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company. To protect the interests of the Company, your acceptance of this Agreement confirms that the terms of the Companys At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement you previously signed with the Company (the Confidentiality Agreement) still apply.