Coxy's SurgePays self-dealing scam paying himself hugely!
Chief Executive Officer
In December 2023, the Company finalized the terms of its employment agreement with its Chief Financial Officer as follows:
1. Term – through December 31, 2028
2. Base salary
a. For the year ended December 31, 2023 - $750,000,
b. For each year thereafter an increase of 3%
3. Annual cash bonus
a. For the year ended December 31, 2023, and all other years throughout the term of the employment agreement - $870,000.
4. Restricted Stock Awards
a. Effective March 1, 2024, future stock awards totaling 2,500,000 shares of common stock.
b. The shares will be issued and vest as follows:
i. 500,000 shares ratably over the period July 2024 – December 2024 (83,333 shares per month over a six-month period). The fair value of this grant was $3,800,000, based upon the quoted closing price of $7.60/share, 500,000 on June 1, of each subsequent year (2025, 2026, 2027 and 2028), at which time these shares will have their fair value determined. These shares have no stated performance or service requirements, other than to be remain as the Chief Executive Officer, and the expense will be recorded on the grant date; and
ii. Shares shall immediately vest if any of the following occur and the Chief Executive Officer is employed by the Company at the time of:
1. Death,
2. Total disability,
3. Termination without cause; and
4. Change in control
5. Annual Revenue Goals (only one (1) award per goal may be earned until next threshold is achieved
a. $250,000,000 – value of restricted stock award will be $6,250,000,
b. $500,000,000 – value of restricted stock award will be $25,000,000,
c. $1,000,000,000 – value of restricted stock award will be $50,000,000,
d. $2,000,000,000 – value of restricted tock award will be $100,000,000; and
e. Each additional $1,000,000,000 – value of restricted tock award will be $50,000,000,
6. Annual EBITDA Goals (only one (1) award per goal may be earned until next threshold is achieved
a. $50,000,000 - value of restricted stock award will be $2,500,000,
b. $100,000,000 - value of restricted stock award will be $5,000,000; and
c. Each additional $50,000,000 - value of restricted stock award will be $2,500,000
7. Market Capitalization Goals (only one (1) award per goal may be earned until next threshold is achieved
a. $250,000,000 - value of restricted stock award will be $25,000,000,
b. $500,000,000 - value of restricted stock award will be $50,000,000,
c. $1,000,000,000 - value of restricted stock award will be $100,000,000,
d. $2,000,000,000 - value of restricted stock award will be $200,000,000; and
e. Each additional $1,000,000,000 - value of restricted stock award will be $100,000,000
8. Other
a. Vacation,
b. Car allowance of $500 per month; and
c. Home office expense reimbursement of $667 per month,
d. 401(K) plan participation,
e. Life insurance; and
f. Liability insurance
See Note 9 regarding the vesting provisions of these shares.
AI
