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Note 11: Employment Agreements
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Dec. 31, 2011
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| Compensation and Employee Benefit Plans [Text Block] |
Note
11: Employment Agreements
On
January 1, 2008, the Company entered into Employment
Agreements with four of the Officers of the Company for a
term of five years, expiring on December 31,
2012. The agreements specified increasing annual
salary amounts, car allowances, participation in benefit
plans, vacations, and stock option plans, and severance
benefits.
Authorized
salaries for each officer for the fiscal year ended December
31, 2010 were $210,000. On April 1, 2009, each of
the four officers agreed to a salary reduction to
$125,000. On February 11, 2011 each of the four
officers agreed to a retroactive salary reduction for 2010 to
$80,000 inclusive of the car allowance. As of
September 30, 2010, this balance was converted to
subordinated, long term debt.
On
April 26, 2011, the Company and each of the four Officers
agreed to terminate the existing employment agreements and
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. The
following is a schedule by year of the future minimum salary
payments related to these employment agreements:
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