In November 2018, Mr. Petrou became a full-time employee of NantHealth, with an initial
base salary of $290,000. On March 28, 2019, our board of directors determined to cease its search for a chief financial officer to replace Mr. Petrou, and that Mr. Petrou would serve as the permanent chief financial officer of
NantHealth upon completion of necessary immigration/VISA procedures and, pending such completion, Mr. Petrou continued to serve as our interim chief financial officer. In March 2019, our compensation committee also (i) adopted and approved
an increase to the base salary of Mr. Petrou to $335,000 per year, effective as of March 28, 2019, with a potential cash bonus of up to 50% of his base salary for the year ending December 31, 2019, and (ii) adopted and approved
the payment of a discretionary cash bonus of $36,250 to Mr. Petrou for assisting us in our financial reporting and plans since joining us in late 2018. Mr. Petrou became our permanent Chief Financial Officer in July 2019. In March 2020,
our compensation committee also adopted and approved an increase to the base salary of Mr. Petrou to $348,000 per year, effective as of March 16, 2020, with a potential cash bonus of up to 50% of his base salary for the year ending
December 31, 2020.
In August 2019, we granted Mr. Petrou an option to purchase 550,000 shares of our common stock, of which 25%
of the shares vested on August 12, 2019, with the remaining 75% of the shares vesting annually in equal installments, beginning on August 12, 2020, subject to continued service. In August 2020, we granted Mr. Petrou an additional
option to purchase 500,000 shares of our common stock, of which 25% of the options shall vest on August 19, 2021, with the remaining 75% of the options vesting annually in equal installments, beginning on August 19, 222, subject to
continued service.
Ron Louks. On and effective as of May 10, 2017, the board of directors of the Company appointed Ron Louks
as the Companys Chief Operating Officer.
The material terms of Mr. Louks employment are as follows:
Base Salary and Bonus. Mr. Louks received an initial annual base salary of $375,000 and receives a current annual base salary of
$475,200. He is also eligible for an annual bonus with a target amount of 75% of his current base salary. Mr. Louks also received a sign-on bonus of $475,000.
Equity Award. In connection with his appointment as our chief operating officer, our board of directors approved grants of restricted
stock units to Mr. Louks. In October 2017, we granted Mr. Louks 160,000 RSUs, of which 40,000 RSUs vested on October 6, 2017, with the remaining 120,000 RSUs vesting monthly in equal amounts for 12 months, beginning on
November 6, 2017. In addition, upon vesting, we agreed to repurchase the remaining vested shares from Mr. Louks October 2017 grant at the then current market value. In November 2017, we granted Mr. Louks 500,783 RSUs, of which
25% of the RSUs vested on November 6, 2017, with the remaining 75% of the RSUs vesting annually in equal installments, beginning on May 1, 2018, subject to continued service. For each RSU award, upon vesting, we agreed to withhold shares
sufficient to satisfy Mr. Louks tax withholding obligations. In August 2019, we granted Mr. Louks an option to purchase 550,000 shares of our common stock, of which 50% of the shares shall vest on August 12, 2020, with the
remaining 50% of the options vesting annually in equal installments, beginning on August 12, 2021, subject to continued service. In August 2020, we granted Mr. Louks an additional option to purchase 650,000 shares of our common stock, of
which 25% of the options shall vest on August 19, 2021, with the remaining 75% of the options vesting annually in equal installments, beginning on August 19, 2022, subject to continued service.
Other Benefits. Mr. Louks receives a monthly housing allowance of $3,500 and a $25,000 annual travel allowance and is eligible to
participate in the benefit programs generally available to senior executives of the Company.
Mr. Louks may also perform services to
affiliates of the Company under either the Shared Services Agreement between the Company and NantWorks, LLC or similar arrangements under which he would receive separate compensation, provided that such services do not interfere with his duties as
Chief Operating Officer of the Company.
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