I spoke with both the Chairman and another director on this subject.
There was NO employment contract. He worked 11 months and WAS paid with his own money that he invested. He was told when he joined, management was not drawing salaries. He said it was important that the "optics" show the CEO is being paid well so the imvestment community will not worry about him leaving. To make that happen he put up $250,000 that was earmarked ONLY for his salary.
He bought $500,000 worth of stock for $250,000. He directed HIS pay, despite the CFO advising him not to and that is now his investment toward Aim a supplier.
His expenses were $27,000 for expenses on 18 days he spent at the office in his 11 months. No management has ben reimbursed
Bonuses are at the thediscretion of the Board and NO bonuses we authorized to anyone.
No management has been paid to date.
He resigned so no severence.
Cousin refused to sign the S-1 at the end of 2010 until the board would sign his newly prepared "Employment Contract" that was valued at $10,000,000 in cash alone with golden parachutes for any change of control. But here is the kicker... he wanted the ability to trigger it! After Jan 1, 20911 the audit was stale dated and they were not able to file it again.
After Trahan the Chairman refused it and told to stop the silliness no company this size can afford this thus is when the friction started. Shortly after followed making allegations to the board but refusing to cite even one example. Cousin stated "when the time is right I will" What the hell does that mean?
Then the resignation and demands for 3 years of his salary plus bonuses.
Best I recall the options did not vest and the company offer him the option to stay alive for another 6 months.
