September 17, 2015
Ms. Emily C. Smith
Via Email: emilysmith4@gmail.com
Re: Offer of Employment with ERI
Dear Ms. Smith,
We are pleased to offer you the full-time position with Energy Recovery, Inc. (“ERI”) as Senior Director of Corporate Development, reporting to Joel Gay, Chief Executive Officer, based out of the San Leandro office. Your technical skills and work experience will provide a valuable addition to our team.
Start Date and Salary. We would like your employment with ERI to begin on September 30, 2015. You will receive a bi-weekly salary of
$6, 923.08 (annualized $180,000.00), less deductions authorized or required by law, which will be paid bi-weekly in accordance with the Company’s standard payroll procedures.
Annual Incentive Plan. You will be eligible to participate in the Company’s Annual Incentive Plan (“AIP”) in 2015, under which you will be eligible to receive up to forty percent (40%) of your base salary for achieving performance goals. Energy Recovery will guarantee your 2015 bonus of $72,000 which is payable in March of 2016.
Sign-on Stock Option Grant. As part of this offer and subject to the approval of the Company's Board of Directors or its Compensation Committee, you may be granted an option to purchase fifty thousand (50,000) shares of ERI Common Stock under the standard terms of the Company's Amended and Restated 2008 Equity Incentive Plan. (This stock option grant has a fair market value of roughly $100,000). The option will vest over four (4) years with twenty-five percent (25%) of the shares vesting on the first anniversary of the vesting commencement date, which will be the first day of your employment. After the first anniversary of the vesting commencement date, one thirty-sixth (1/36th) of the remaining shares will vest each month thereafter.
Sign-on Bonus. This offer includes a one-time sign-on bonus of $10,000.00, subject to all mandated state and federal withholdings, to be paid to you on your first paycheck after you commence your employment with ERI.