Zynex, Inc. (OTCMKTS:ZYXI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
ITEM 5.02
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Appointment of Daniel J. Moorhead as Chief Financial
Officer
Effective June 5, 2017, the Board of Directors appointed Daniel
J. Moorhead as Chief Financial Officer and entered into an
employment agreement with Mr. Moorhead.
Daniel J. Moorhead (44) served as Chief
Financial Officer of Evolving Systems, Inc. (Nasdaq: EVOL) from
January1, 2016 until June 2, 2017, after having served as Vice
President of Finance Administration from December 2011 through
December 2015. He served as Corporate Controller for Evolving
Systems from 2002 to 2005 and re-joined the company in December
2008 in this same role. From August 2005 to November 2008, he was
Chief Financial Officer for High Country Club, a destination
club. Prior to 2002, he was the Assistant Controller at
Convergent Communications and Auditor at Malouff and Co.,P.C.
Mr.Moorhead is a CPA and holds a B.B.A. in Accounting from the
University of Northern Colorado.
to the employment agreement, the Company and Mr. Moorhead agreed
to the following:
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Mr. Moorhead will receive annual base salary of $220,000 and be eligible for annual incentive compensation of up to $100,000 in cash and up to 100,000 stock options, based upon achievement of annual incentive compensation targets established by the Companys Board of Directors. |
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The Company awarded Mr. Moorhead an initial grant of stock options for 200,000 shares of the Companys common stock and 10,000 restricted shares, vesting annually over a four-year period. |
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Mr. Moorhead will also be eligible to receive quarterly grants of stock options for 10,000 shares of the Companys common stock, vesting annually over a four-year period. |
| Mr. Moorhead will be employed at will. |
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If the Company terminates Mr. Moorheads employment for reasons other than cause or disability, or Mr. Moorhead resigns for Good Reason, as defined in the employment agreement, prior to June 5, 2018, the Company will pay Mr. Moorhead severance equal to 9 months of his base salary or if the termination occurs after June 5, 2018, Mr. Moorhead will be entitled to severance equal to 12 months of his base salary. Mr. Moorhead will also be entitled to receive 100% of his incentive compensation. The Company will also pay a proportionate amount of Mr. Moorheads health and dental insurance premiums, based upon the same proportion the Company paid at the time Mr. Moorheads employment was terminated, for the applicable severance period or until Mr. Moorhead obtains substitute insurance. Severance and insurance premium payments will be made in equal installments over the applicable 9-month or 12-month period, based upon the Companys normal payroll practices. |
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Mr. Moorhead agreed that following termination of employment he will not compete with the Company (as defined in the employment agreement), or solicit or entice any employee of the Company to leave the employ of the Company or interfere with the Companys relationship with a customer during the period of time that severance is paid. |
The full text of the employment agreement is attached as Exhibit
10.1 to this Current Report on Form 8 K.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
d)Exhibits. The following exhibits are filed with this
report.
| Exhibit No. | Description |
| 10.1 |
Employment Agreement dated June 5, 2017, entered into between Zynex, Inc. and Daniel J. Moorhead |
About Zynex, Inc. (OTCMKTS:ZYXI)
Zynex, Inc. operates through the Electrotherapy and Pain Management Products segment. The Company conducts its business through its subsidiaries and the operating subsidiary is Zynex Medical, Inc. (ZMI). Its other subsidiaries include Zynex Monitoring Solutions, Inc. (ZMS) and Zynex Europe, ApS (ZEU). ZMI designs, manufactures and markets medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. ZMS is in the process of developing its blood volume monitoring product for non-invasive cardiac monitoring. ZEU intends to focus on sales and marketing its products within the international marketplace, upon receipt of necessary regulatory approvals. It markets and sells Zynex-manufactured products and distributes private labeled products. Its products include NexWave, NeuroMove, InWave, Electrodes and Batteries. ZMI devices are intended for pain management to reduce reliance on drugs and medications.