Business Context and Reporting Period
This Form 8-K Current Report is filed by Orient Paper, Inc. (not IT Tech Packaging, Inc.) for the reporting period of May 1, 2009. The filing addresses Item 5.02 regarding the departure of a principal officer and the appointment of a new Chief Financial Officer (CFO).
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on executive compensation and personnel changes.
- New CFO Annual Salary: $36,000 (for up to 80 hours/month).
- Additional Compensation: Up to $2,000 per month for road show services.
- Equity Grant: 20,000 shares of common stock vesting quarterly (5,000 shares every three months).
- Lock-up Period: 18 months from the date of issuance.
Material Changes
Effective May 1, 2009, the following personnel changes occurred:
- Resignation: Jing Hao resigned as Chief Financial Officer. The filing states there was no disagreement or dispute leading to the resignation.
- Appointment: Winston C. Yen was appointed as the new Chief Financial Officer.
- Employment Structure: Mr. Yen was engaged via a "Loanout Agreement" with his firm, ACCellence, LLP, rather than a direct employment contract.
Outlook, Risks, and Contingencies
Management Commentary: The company confirmed no disputes regarding the departure of the former CFO. The new CFO, Winston C. Yen, brings experience as a partner at ACCellence, LLP, and previously held roles at Harry C. Lin, CPA, APC, Moss Adams, LLP, and CBIZ.
Termination and Severance:
- Termination by Company (Without Cause): Mr. Yen is entitled to remaining salary and a pro-rata allocation of shares based on days of service.
- Termination by Mr. Yen: He is entitled to a severance payment equivalent to the remaining salary under the agreement.
- At-Will Employment: Employment may be terminated at any time, with or without cause.
Investor Verification Checklist
- Verify the identity of the registrant (Orient Paper, Inc.) versus the metadata provided (IT Tech Packaging, Inc.).
- Confirm the vesting schedule and lock-up terms for the 20,000 shares granted to the new CFO.
- Review the "Loanout Agreement" (Exhibit 10.1) to understand the legal relationship between the company and the accounting firm providing the CFO.
- Assess the financial impact of the severance provisions if the new CFO departs early.