Employment Contracts Term Sheet between SPFX and William Koppelmann and Brian Krogol
This term sheet outlines the main terms of employment contracts for William Koppelmann, who will serve as President, CEO, and Chairman, and Brian Krogol, who will serve as CFO. Both contracts have a five-year term, with annual base salaries starting at $250,000 for Koppelmann and $175,000 for Krogol, increasing by $25,000 each year. Each executive receives a $25,000 annual cash bonus, a signing bonus of 10,000 stock options, and the opportunity to earn additional stock options based on company revenue performance for fiscal year 2022.
EXHIBIT 10.1
Employment Contracts Term Sheet
The material terms of the employment contract with William Koppelmann are as follows:
| · | Duties: Serve as President, Chief Executive Officer, and Chairman of the Board of Directors |
| · | Term of contract: Five (5) Years |
| · | Salary: $250,000 for the twelve months period of July 1, 2022 through June 30, 2023 with annual increases of $25,000 for the four years thereafter |
| · | Cash Bonus: $25,000 payable annually on June 30 |
| · | Equity Signing Bonus: 10,000 options for the purchase of Common Stock |
| · | Performance Bonus: Additional options can be earned based on the following performance for fiscal year 2022: |
| Performance Target – Consolidated Total Revenue as reported in the 2022 Form 10-K | Number of Additional Stock Options |
| $10,000,000 or above | 25,000 |
| $9,000,000 - $9,999,999 | 22,500 |
| $8,000,000 - $8,999,999 | 20,000 |
| $7,000,000 - $7,999,999 | 10,000 |
The material terms of the employment contract with Brian Krogol are as follows:
| · | Duties: Serve as Chief Financial Officer |
| · | Term of contract: Five (5) Years |
| · | Salary: $175,000 for the twelve months period of July 1, 2022 through June 30, 2023 with annual increases of $25,000 for the four years thereafter |
| · | Cash Bonus: $25,000 payable annually on June 30 |
| · | Equity Signing Bonus: 10,000 options for the purchase of Common Stock |
| · | Performance Bonus: Additional options can be earned based on the following performance for fiscal year 2022: |
| Performance Target – Consolidated Total Revenue as reported in the 2022 Form 10-K | Number of Additional Stock Options |
| $10,000,000 or above | 25,000 |
| $9,000,000 - $9,999,999 | 22,500 |
| $8,000,000 - $8,999,999 | 20,000 |
| $7,000,000 - $7,999,999 | 10,000 |
