ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS
Modification of Employment Agreement with Nicholas Yates
On May 23, 2016, the Company modified the bonus/commission provision of the Employment Agreement dated July 19, 2013 (the “Agreement”) between the Company and Nicholas Yates, Chairman of Company. The Agreement was amended to reflect the following:
3.2
Commissions
. Executive shall be eligible to earn commissions on sales made by the Company. Executive shall be paid commissions each pay period, unless Executive’s commissions are not calculable until month-end. One hundred percent (100%) of the commission on each sale will be deemed earned and payable in the month in which the franchisee pays an initial or subsequent deposit cumulatively equal to at least forty percent (40%) of the amount owed by such franchisee. Executive’s eligibility for and the applicable rates of these commissions are as follows:
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FHV Bookings
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$100 per Machine
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Reis & Irvy’s Bookings
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$500 per Kiosk
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Service revenue up to $5 million
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2.00 percent
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Service revenue $5 million to $10 million
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3.00 percent
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Service revenue over $10 million
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4.00 percent
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Reis & Irvy’s Kiosks Referred by Executive
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Kiosk 1-16 during the month
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$1,250 per Kiosk
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Kiosk 17+ during the month
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$1,500 per Kiosk
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Reis & Irvy’s secured locations
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$1,000 per location
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In addition, for international sales of Reis & Irvy’s Kiosks sourced by Lancer where Robofusion, Inc. receives a commission from Lancer and remits a portion of the commission to Company, Executive shall receive 10 percent (10%) of the commission rebate paid by Robofusion to Company.
Notwithstanding anything to the contrary set forth in the Agreement, Company shall pay for Executive’s lease of an appropriate luxury automobile.
Modification of Employment Agreement with Arthur Budman
On May 23, 2016, the Company modified the bonus/commission provision of the Employment Agreement dated October 1, 2014 (the “Agreement”) between the Company and Arthur Budman, Chief Executive Officer and Chief Financial Officer of Company. The Agreement was amended to reflect the following:
3.2
Bonus and Commissions
. Executive shall be eligible to receive a bonus each year, with the amount of such bonus to be determined in the Board’s sole discretion. Executive shall be eligible to earn commissions on sales made by the Company. Executive shall be paid commissions each pay period, unless Executive’s commissions are not calculable until month-end. One hundred percent (100%) of the commission on each sale will be deemed earned and payable in the month in which the franchisee pays an initial or subsequent deposit cumulatively equal to at least forty percent (40%) of the amount owed by such franchisee. Executive’s eligibility for and the applicable rates of these commissions are as follows:
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FHV Bookings
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$50 per Machine
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Reis & Irvy’s Bookings
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$175 per Kiosk
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Service revenue up to $5 million
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0.75 percent
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Service revenue $5 million to $10 million
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1.00 percent
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Service revenue over $10 million
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1.25 percent
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Reis & Irvy’s Kiosks Referred by Executive
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Kiosk 1-16 during the month
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$1,250 per Kiosk
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Kiosk 17+ during the month
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$1,500 per Kiosk
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Reis & Irvy’s secured locations
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$1,000 per location
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Each of the above summaries of the Yates Amended Employment Agreement and the Budman Amended Employment Agreement is qualified in its entirety by reference to the corresponding agreements filed as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and each is incorporated herein by reference.
(d) Exhibits
Exhibit No. Description