EMPLOYMENT AGREEMENTS
Derek Dubner, Daniel MacLachlan, and James Reilly
On March 26, 2018, the Company entered into employment agreements with each of Messrs. Dubner, MacLachlan, and Reilly in connection with their service as the Company’s Chief Executive Officer, Chief Financial Officer, and President, respectively, which was amended on November 9, 2020, May 8, 2023, and January 9, 2026 (as amended, the “Employment Agreements”). The Employment Agreements of each of Messrs. Dubner, MacLachlan, and Reilly have a term ending on March 31, 2030. Thereafter, each agreement will automatically renew for successive one-year terms unless either party provides the other party written notice of termination at least one hundred and twenty (120) days before the expiration of the applicable one-year term or unless terminated earlier pursuant to the terms of the Employment Agreements.
In connection with their respective Employment Agreements, Mr. Dubner receives an annual salary of $529,600; Mr. MacLachlan receives an annual salary of $494,900; and Mr. Reilly receives an annual salary of $494,900, which reflects a 5.0% increase from the prior year. Messrs. Dubner, MacLachlan, and Reilly are eligible to receive grants of equity under the Amended and Restated 2018 Stock Incentive Plan (the “2018 Plan”), subject to the Compensation Committee’s sole discretion. Messrs. Dubner, MacLachlan, and Reilly are eligible for cash bonuses commensurate with their positions, as the Board may determine. During 2025, Messrs. Dubner, MacLachlan, and Reilly each earned a cash bonus of $576,500. Additionally, Messrs. Dubner, MacLachlan, and Reilly are eligible to participate in the Company’s existing and future benefit plans, policies or arrangements maintained by the Company and made available to employees generally and for the benefit of executives.
The Company may terminate the Employment Agreements and each of Mr. Dubner’s, Mr. MacLachlan’s, and Mr. Reilly’s employment at any time during the term for “Cause,” as such term is defined in each employment agreement. Also, the Company may terminate the Employment Agreements and each of Mr. Dubner’s, Mr. MacLachlan’s and Mr. Reilly’s employment without cause.
Each of Mr. Dubner, Mr. MacLachlan, and Mr. Reilly may terminate his employment and the respective employment agreement for “Good Reason,” as such term is defined in each employment agreement.
Each of Mr. Dubner, Mr. MacLachlan, and Mr. Reilly may also terminate his employment and the respective employment agreement for any reason or for no reason at all; provided, however, that such employee provides the Company with at least sixty (60) days’ prior written notice.
Each of Mr. Dubner’s, Mr. MacLachlan’s, and Mr. Reilly’s employment and the respective employment agreement will automatically terminate upon Mr. Dubner’s, Mr. MacLachlan’s, or Mr. Reilly’s death, as applicable. The Company may terminate the Employment Agreements and each of Mr. Dubner’s, Mr. MacLachlan’s, and Mr. Reilly’s employment with the Company immediately upon a determination of “Disability,” as such term is defined in each employment agreement, as applicable.
Upon termination of the applicable Employment Agreement due to Mr. Dubner’s, Mr. MacLachlan’s, or Mr. Reilly’s death or disability, the Company shall pay, in the case of death, to the applicable employee’s estate, such employee’s base salary accrued through the date of the employee’s death and in the case of disability, to the applicable employee, such employee’s base salary accrued through the date of determination of the employee’s disability, as applicable.
In the event Mr. Dubner’s, Mr. MacLachlan’s, or Mr. Reilly’s employment is terminated by the Company for cause, the Company shall pay to the applicable employee such employee’s base salary and benefits accrued through the date of such employee’s termination.
In the event the Company terminates the Employment Agreements of Mr. Dubner, Mr. MacLachlan, or Mr. Reilly without cause or any successor of the Company refuses to accept assignment of the Employment Agreements, or if Mr. Dubner, Mr. MacLachlan, or Mr. Reilly terminates his respective employment agreement and employment with the Company for Good Reason, the Company shall pay to such employee the greater of (x) his base salary for the remainder of the term and (y) two (2) years of his base salary, in each case in accordance with the Company’s payroll practices in effect from time to time, provided, however, the applicable employee is not in violation of the Confidentiality, Nondisclosure, Noncompetition, Nonsolicitation and Nondisparagement Agreement entered into in connection with the applicable employment agreement.