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Note 10: Employment Agreements
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Sep. 30, 2011
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| Compensation and Employee Benefit Plans [Text Block] |
Note
10: 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, the balance was converted to
subordinated, long term debt.
Pursuant
to a February 2011 amendment to the employment agreements,
salaries for 2011 were set at $125,000 exclusive of the car
allowance of $11,400. 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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