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Note 10: Employment Agreements
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Mar. 31, 2012
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| Compensation and Employee Benefit Plans [Text Block] |
Note
10: Employment Agreements
On
April 26, 2011, the Company and each of four Officers agreed
to enter into new five-year employment agreements unless
written termination is provided by either
party. Each employment agreement provides for a
graduated base salary beginning at $165,000 per annum
retroactive to March 20, 2011 and continuing to December 31,
2011 and increasing to $195,000 for 2012, $225,000 for 2013.
After 2013, the agreement provides for base salary increases
at the discretion of the Board of Directors, with a minimum
5% increase. In addition to base salary, each
Executive continues to receive an annual car allowance of
$11,400.
On
May 2, 2012, the Company entered into a five-year “at
will” employment agreement with Jeanene Morgan to serve
as the Company’s Chief Financial
Officer. The agreement provides a base salary of
$165,000 per annum from January 1, 2012 to December 31, 2012,
increasing to $190,000 on January 1, 2013 and $215,000 on
January 1, 2014. After 2014, the agreement
provides for base salary increases at the discretion of the
Board of Directors with a minimum 5% increase. The
board of directors, in its sole discretion, may grant Ms.
Morgan a year-end bonus with a value of no less than 2% of
EBITDA of the Company (assuming a positive figure) and up to
100% of Ms. Morgan’s base salary. Ms. Morgan
shall be granted an option to purchase 200,000 shares of the
Company’s common stock. Ms. Morgan shall be
permitted to participate in all benefit plans of the Company
and receive 4 weeks paid vacation.
The
following is a schedule by year of the future minimum salary
payments related to these employment agreements:
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