Yup, he gets at least a $300,000 bonus in addition to any gain in share prices on his 400,000 shares. Still, he must be disappointed in the share price along with us. A deal that started negotiations with the share price around $5 would have been much better that one starting in the $3 range.
Mr. Rudis is also entitled to receive a minimum payment of $300,000 (in addition to any other payments our compensation committee may award in its sole discretion) upon:
• an individual, entity or group becoming the beneficial owner of more than 50% of the total voting power of our total outstanding voting securities on a fully-diluted basis;
• an individual or entity acquiring substantially all of our assets and business; or
• a merger, consolidation, reorganization, business combination or acquisition of assets or stock of another entity, other than in a transaction that results in our voting securities outstanding immediately before the transaction continuing to represent at least 50% of the combined voting power of the successor entity’s outstanding voting securities immediately after the transaction.