Quarterly report pursuant to Section 13 or 15(d)

Employment Agreements

Employment Agreements
6 Months Ended
Jun. 30, 2017
Stockholders' Equity Note [Abstract]  
Employment Agreements
8. Employment Agreements

On June 19, 2017, the Company entered into an employment agreement (the “Song Employment Agreement”) effective as of January 12, 2017 (the “Effective Date”) with Jingbo (James) Song, the Company’s Executive Co-Chairman. The Song Employment Agreement continues until the three (3) year anniversary of the Effective Date. Under the Song Employment Agreement, Mr. Song will receive an annual base salary of $325,000 (“Base Salary”). Mr. Song’s Base Salary shall be increased on each anniversary of the Effective Date by the greater of (i) three percent (3%) multiplied by his then-current Base Salary, or (ii) the annual percentage increase in Consumer Price Index over the one-year period prior to the applicable anniversary of the Effective Date, as measured by the Bureau of Labor Statistics, multiplied by his then-current Base Salary. Mr. Song will be eligible for an annual bonus according to the terms and conditions of a bonus plan that is based upon the financial results achieved by the Company for the fiscal year or such other performance goals established by the Board (or the Compensation Committee), in its sole discretion. In addition, Mr. Song is entitled to severance pay if he is terminated without “cause” or resigns for “good reason,” each as defined in the Song Employment Agreement. Upon such termination, provided that he executes a release and waiver agreement, Mr. Song will be entitled to receive an amount equal to six months of his base salary, any earned but unpaid bonus for the year prior to the year of termination, and the pro rata portion of any bonus earned for the year in which termination occurs, as well as continuation of applicable benefits for a period of 12 months following his termination.