Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Executive Employment Agreements
On
? The Executives will be paid initial base salaries of$540,750 forMr. Scott Fine,$342,990 forMr. Lisjak ,$335,780 for Mr.Josh Fine and$309,000 for Mr. Tate, representing a 3% increase in the base salaries of the Executives in effect prior to the execution of the Employment Agreements. ? Each Executive is eligible to receive an annual raise in his base salary targeted at 3%, in addition to any additional increase approved by the Company. ? Each Employment Agreement is for a two year term, subject to automatic renewal for successive one-year periods unless either party provides notice of non-renewal prior to the then end of the term. ? Each Executive is entitled to an annual cash bonus targeted at a percentage of his base salary as set forth below: Officer Percentage of Base Salary N. Scott Fine 50% Michael Lisjak 35% Joshua Fine 40% Jeffrey Tate 35% ? Each Executive was awarded an option to purchase a number of shares of the Company's common stock upon execution of the Employment Agreement, and is entitled to be awarded annually an option to purchase a number of shares of common stock of the Company targeted at a percentage of the Company's outstanding shares of common stock on the date of grant, in each case, as set forth below: Officer Initial Option Grant Annual Option Grant N. Scott Fine 74,907 0.89 % Michael Lisjak 31,141 0.37 % Joshua Fine 31,141 0.37 % Jeffrey Tate 31,141 0.37 % ? In the event of the termination of the Executive's employment by the Company other than for Cause (as defined in the Employment Agreements), the Executive will be entitled to continued payment of base salary for one year; and if such termination occurs within 12 months following a "Change of Control," all unvested stock options of the terminated Executive shall immediately vest in full. ? Upon the termination Mr.Scott Fine's employment by the Company other than for Cause absent a Change of Control, all unvested stock options that would have vested within 12 months following such termination will immediately vest.
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? Each Executive is subject to confidentiality, non-compete, non-solicitation and work-for-hire provisions.
The foregoing is a summary of the terms of the Employment Agreements, does not purport to be complete, and is subject to and qualified in its entirety by reference to the text of such agreements, which have been filed as exhibits to this Current Report on Form 8-K.
Resignation
On
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1 Employment Agreement between the Company and
10.2 Employment Agreement between the Company and
10.3 Employment Agreement between the Company and
10.4 Employment Agreement between the Company and
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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