Business Context and Reporting Period
This Form 8-K was filed by SilverSun Technologies, Inc. on February 5, 2016, reporting events occurring on February 4, 2016. The filing discloses the entry into a material definitive agreement regarding executive compensation.
Key Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The document focuses exclusively on executive employment terms.
Material Changes
The primary material change is the execution of an Amended and Restated Employment Agreement with Mark Meller, President and Chief Executive Officer. Key terms include:
- Term Extension: The agreement extends Mr. Meller's employment for an additional 7 years.
- Compensation: An annual salary of $565,000, with a 10% increase effective September 1 and annually thereafter.
- Severance: In the event of termination following a change in control, Mr. Meller is entitled to a severance payment equal to 300% of his gross income for services rendered in each of the five prior calendar years, less $100,000.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on business outlook, or discussion of general risks and contingencies beyond the specific terms of the employment agreement.
Investor Verification Checklist
- Verify the total potential severance liability by calculating 300% of Mr. Meller's gross income over the prior five years based on historical financial statements.
- Review the full text of Exhibit 10.1 (Amended and Restated Employment Agreement) for specific definitions of "Change in Control" and termination conditions.
- Assess the impact of the 7-year term and escalating salary on future operating expenses.