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Management Changes and Other Severance
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Note 22 - Management Changes and Other Severance

In July 2010, the Board of Directors (the “Board”) of the Company effected a termination without cause of David W. Robinson, its Co-Chief Executive Officer, General Counsel and Executive Vice President of Business Development.

 

Effective July 29, 2010, Mr. Robinson voluntarily resigned as a member of the Board. Mr. Robinson did not resign because of any disagreement with the Company, nor was he removed for cause from the Board. Pursuant to the terms of the Employment Agreement between Glowpoint and Mr. Robinson dated May 1, 2006 (as amended, the “Employment Agreement”) and the Separation Agreement between the Company and Mr. Robinson effective as of August 6, 2010, Mr. Robinson is entitled to receive cash payments totaling approximately $265,000 and other severance benefits (e.g., grants of new restricted stock, reimbursement of medical insurance premiums and an extension to exercise vested options) valued at approximately $152,000. These costs were included in general and administrative costs in 2010. As of December 31, 2011 and 2010, $0 and $185,000, respectively, of unpaid severance related expenses were included as accrued expenses in the consolidated balance sheets for Mr. Robinson.

 

On November 30, 2010, John McGovern was appointed as the Company’s Executive Vice President and Chief Financial Officer replacing Mr. Heinen, the Company’s previous Chief Financial Officer. Pursuant to the terms of the Separation Agreement between the Company and Mr. Heinen effective as of December 27, 2010, Mr. Heinen is entitled to receive cash payments totaling approximately $216,000 and other severance benefits (e.g., accelerated vesting of restricted stock and options and reimbursement of medical insurance premiums) valued at approximately $49,000. These costs were included in general and administrative costs. As of December 31, 2011 and 2010, $0 and $265,000, respectively, of unpaid severance related expenses were included as accrued expenses in the consolidated balance sheets for Mr. Heinen.

In 2011 and 2010, the Company effected terminations of certain employees which entitled them to receive cash payments and other severance benefits (e.g., reimbursement of medical insurance premiums). As of December 31, 2011 and 2010, $110,000 and $20,000, respectively, of unpaid severance related expenses were included as accrued expenses in the consolidated balance sheets for these employees.