MyDx Inc. (fka MYDX)

[Bed Bath & Beyonce]

Details of MYDX's Golden Parachute for Daniel Yazbeck.

Source for first three quotes: MYDX 10-K, April 17, 2018

Summary Compensation Table

The following table lists the summary compensation of the Company’s named executive officers for the prior two fiscal years:

Name and principal position Year Salary Bonus Stock
Awards Option
Awards All other
comp. Total
Daniel R. Yazbeck (1)(2)(3)(4) 2017 $ 180,000 $ 180,000 $ - $ - $ - $ 360,000
Chief Executive Officer and 2016 $ 180,000 $ 180,000 $ - $ - $ 5,691,993 $ 6,051,993
Chief Financial Officer (3)

So, Yazbeck paid himself $180k base in 2017, and awarded himself another $180k in stock (on top of getting $6M in 2016).

Spelled out in plain text.....

On October 15, 2014, CDx, Inc. entered into a five-year employment agreement with Daniel R. Yazbeck. The employment agreement provides that Mr. Yazbeck shall serve as the CDx Chief Executive Officer or such other title or position as may be designated from time to time by the CDx board of directors. The employment agreement can be terminated pursuant to written notification by either CDx or Mr. Yazbeck, which notification may occur at any time for any reason. Mr. Yazbeck’s initial base salary is $180,000 per year, subject to periodic review by the CDx board of directors and may be increased in the discretion of CDx.

Under the terms of the employment agreement, Mr. Yazbeck is also eligible to participate in all group term life insurance plans, group health plans, accidental death and dismemberment plans and short-term disability programs and other perquisites which are made available to the CDx executives and for which Mr. Yazbeck qualifies. Additionally, Mr. Yazbeck is entitled to be reimbursed for supplemental insurance products including life insurance at a cost of up to an additional $15,000 per year. CDx also provides a leased vehicle with operating expenses, not to exceed $800 per month, which CDx commenced paying in March 2015.

Further.....

The employment agreement provides that for each fiscal year during the employment agreement, Mr. Yazbeck shall be eligible for an incentive bonus. For each full fiscal year of employment, Mr. Yazbeck shall be eligible for an incentive bonus of up to one hundred percent (100%) of his annual base salary and his performance objectives shall be set such that one hundred percent (100%) completion of his objectives shall entitle him to at least seventy-five percent (75%) of the bonus (the “Target Bonus”).

Assuming his salary and bonus will be the same in 2018 as it was in 2017.....
$180,000 salary
$180,000 bonus
$15,000 annual life insurance allowance
$9,600 annual car allowance
----------------------------------------
$384,600 total

Remember that toxic debt Yazbeck signed up for a month ago? It totals $393,500.

Was that $393,500 toxic debt accrued last month solely for Yazbeck's 2018 compensation?


BUT WAIT...THERE'S MORE!
Yazbeck isn't off the MYDX books. Also in that same 10-K document.....

Under the terms of the employment agreement, should CDx terminate Mr. Yazbeck’s employment other than for cause during the first 5 years of the employment agreement, or should Mr. Yazbeck resign for good reason, CDx shall have no further obligation under the employment agreement, except that CDx will continue to pay Mr. Yazbeck’s base salary for a two year period, (less, if applicable, any long-term disability payments) and the Target Bonus (as defined below) for a one year period following termination of Mr. Yazbeck’s employment on the normal payroll dates, and in addition one hundred percent (100%) of Mr. Yazbeck’s then-outstanding unvested stock options shall immediately vest.

Yazbeck gets an additional $180,000 for the next two years, and is eligible for the 100% bonus for one year.

Spelled out in the 8-K from yesterday......

WHEREAS , as of September 30, 2018, the Company accrued certain base salary and bonus obligations due and owing to Yazbeck as wages, with said wages remaining unpaid and/or deferred in an amount not less than $410,689.99, as represented on Schedule 1 attached hereto;

BUT WAIT, THERE'S EVEN MORE!
Remember that Form 4 filed in May, the one converting nearly two billion MYDX restricted shares to unrestricted? We all wondered why then and what was going to happen?

Rule 144 says there's a six-month waiting period. That 8-K of Yazbeck's resignation was signed nine days after appearing to have satisfied that wait period.

If that is indeed the case this resignation and restructuring has been in the works for well over six months and MYDX shareholders appears to have been screwed royally.