Note 16 - Employment Agreements

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Employment Agreements [Text Block]

16. Employment Agreements

The Company signed five-year employment agreements with two of its executive officers, which automatically renew annually on the agreements’ anniversary date.  The agreements provide that, if the officers terminate employment without cause, as defined in the agreements, the officers are entitled to receive certain severance payments.  If termination occurs due to retirement, the officers may enter into a four-year consulting arrangement with the Company at a specified percentage of the officers’ then current salaries. Upon death or disability, the Company will also make certain payments to the executive or the executive’s estate or beneficiary, as applicable. During the third quarter of 2015, our former CEO retired, which resulted in a severance amount of $601,000.  The severance amount is paid out to the former CEO over a 12-month period, and the related accrual as of December 31, 2015 was $452,000.  The former CEO did not enter into a consulting arrangement subsequent to his retirement.