8. Commitments | 3 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||
| Compensation Related Costs, General [Text Block] |
8. Commitments
The
Company has annual compensation arrangements with the
following individuals:
The
contracts are automatically renewed annually and may be
terminated by the Company at any time, effective thirty or
sixty days after delivery of notice, without any further
compensation.
The
terms of Mr. Chan’s contract provides for monthly
consulting fees of $15,000 per month and vehicle allowance
of $800 per month as Chief Executive Officer of the
Company. The contract also provides for a commission of 1%
of net sales during the term of the agreement. The initial
term of the contract is for one year and automatically
renews for continuous one year terms.
The
terms of Mr. Weinstein’s contract provides for
periodic increases in the amount of monthly compensation
following the first year as President and Chief Operating
Officer of the Company. After the initial year, Mr.
Weinstein will earn no less than $13,000 per month as
agreed upon by Mr. Weinstein and the other directors. The
initial term of the contract is for one year and
automatically renews for continuous one year terms.
The
terms of Mr. Tichy’s contract provide for monthly
consulting fees of $5,000 per month in his services as VP
Product Development. The initial term of the contract is
for one year and automatically renews for continuous one
year terms.
In
addition, if more than 50% of the Company’s stock or
assets are sold, Messrs. Chan and Tichy will be compensated
for entering into non-compete agreements based on the
selling price of the Company or its assets as
follows:
2%
of sales price up to $24,999,999 plus
3%
of sales price between $25,000,000 and $49,999,999
plus
4%
of sales price between $50,000,000 and $199,999,999
plus
5%
of sales price in excess of $200,000,000
Any
other amounts distributed to each key employee are to be
determined by the Board of Directors.
|