To memorialize Ms. Jagpal’s employment with the Company, the Company and her have entered into an employment agreement, which is effective as of the Effective Date. In accordance with the provisions of the Employment Agreement, Ms. Jagpal shall hold the positions of Corporate Secretary and Chief Financial Officer as of the Effective Date, respectively, and will hold them until the Employment Agreement’s termination. Ms. Jagpal will be paid CAD$325,000 annually in base salary in exchange for the services she will provide. She will also be eligible for an annual discretionary bonus, which will be determined by the Board and the Company’s compensation committee at their sole discretion. This bonus will be awarded annually in accordance with the Company’s annual performance and compensation review process, which takes the Company’s market capitalization and financial stability into account. As per the conditions mentioned in the Employment Agreement, Ms. Jagpal’s goal annual discretionary bonus will be 40% of her basic income for the previous 12 months. According to the terms of the Employment Agreement, the Company may also, at its sole discretion, grant Ms. Jagpal stock options in the Company’s capital under the terms of the Company’s 2017 Amended and Restated Stock Option Plan, subject to the terms and conditions for such participation that the Company may, at its sole discretion, establish and modify from time to time. Ms. Jagpal will receive 50,000 Options as per the terms of the Employment Agreement, subject to the required corporate approvals and to be given as soon as permitted by the SOP and any applicable blackout requirements of the company.
Up to and immediately before the Effective Date, Mr. Jonathan Tegge will continue to serve in his current capacities as Interim Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer. This includes helping the company file its Form 10-Q for the quarter ending December 31, 2023. As a result of Ms. Jagpal’s appointment as Chief Financial Officer and Corporate Secretary, Mr. Tegge will no longer be able to serve as the company’s Interim Chief Financial Officer (as well as its principal financial officer and principal accounting officer) as per the terms of his resignation, which he submitted to the company on February 8, 2024. This will happen both before the Effective Date and after Ms. Jagpal takes on her new role.
