Subsequent Events

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 9. Subsequent Events

Mark E. Goldstein, the President and Chief Executive Officer of the Company and a member of the Board of Directors, retired effective as of April 26, 2021. In connection with Mr. Goldstein’s retirement, the Company and Mr. Goldstein entered into a Separation Agreement, Waiver and Release (the “Separation Agreement”), pursuant to which the Company will pay Mr. Goldstein $720,000 in severance payments (equal to 18 months base salary) over a period of 30 months and reimbursement for the costs of continuing health benefits for a period of 18 months. In exchange, Mr. Goldstein provided a broad release of the Company, agreed to assist with transitional matters and agreed to vote at the Annual Meeting of the Company’s Shareholders as recommended by the Company. Following Mr. Goldstein’s retirement, the Employment Agreement, dated as of March 26, 2014, by and between the Company and Mr. Goldstein is terminated and no longer in effect, except for those provisions that are intended to survive Mr. Goldstein’s separation from service, including non-disclosure, non-solicitation and non-competition provisions. Effective as of April 26, 2021, Kevin Paprzycki and Tisha Pedrazzini were appointed as Interim Co-Presidents.

Our severance payment obligations under the Separation Agreement may result in the need to amend our ongoing covenant requirements under our Credit Agreement with UMB in the future.

On May 14, 2021, we entered into an Employee at Will, Non-Disclosure, and Development Assignment Agreement with Tisha Pedrazzini, pursuant to which we engaged Ms. Pedrazzini for 12 months, with compensation set at $20 per month.