Material Agreement, Management Change/Compensation (Form 8-K)

Item 1.01. Entry into a Material Definitive Agreement

The information set forth in Item 5.02 below is hereby incorporated by reference into this Item 1.01.

Item 5.02. Departure of Directors or Certain Officers, Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Effective as of January 27, 2026, the Company entered into new employment agreements with Timothy C. Fiori, the Company's Chief Financial Officer, and Bobbi Jo Brockmann, the Company's Senior Vice President of Sales and Marketing.

Pursuant to the new employment agreements, Mr. Fiori will be compensated at an annual base salary of $315,000 and Ms. Brockmann will be compensated at an annual base salary of $300,000. Starting with the fiscal year ending December 31, 2026, each of Mr. Fiori and Ms. Brockmann will be eligible to earn a formulaic annual cash bonus if various preset financial and strategic targets are achieved. The target cash bonus amount is 50% of base salary (potentially 60% if all targets are exceeded by at least 20%). The financial and strategic targets for 2026 were approved by the Compensation and Stock Option Committee of the Company's Board of Directors (the "Committee"). Per the employment agreements, the annual financial and strategic targets thereafter will be set each year by the Company's CEO in consultation with the Committee; for targets that are qualitative in nature, the extent to which the qualitative target was achieved is to be determined each year by the Committee. As with other incentive-based compensation, payouts of annual cash bonuses are subject to possible retroactive clawback if and to the extent mandated by Company policy or applicable laws or listing requirements.

In connection with the employment agreements described above, the Committee also approved grants under the 2025 Stock Option and Incentive Plan (as recently approved by the Board of Directors, the "2025 Plan") of a stock option to Mr. Fiori to purchase up to 120,000 shares of the Company's common stock and a stock option to Ms. Brockmann to purchase up to 100,000 shares of the Company's common stock. Both options vest in three equal annual installments starting in January of 2027, are exercisable at a price of $6.26 per share, and expire 10 years from the date of grant. Consistent with the new employment agreements for these officers, vesting of each stock option is subject to potential acceleration upon a change of control or certain terminations of employment.

The foregoing descriptions of the employment agreements are qualified in all respects by reference to the full text of the agreements, attached to this Current Report on Form 8-K as Exhibits 10.1 and 10.2 and incorporated into this Item 5.02 by reference.

Effective as of January 27, 2026, the Committee issued a Compensation Letter to Olivier te Boekhorst, the Company's CEO, which included a grant to Mr. te Boekhorst under the 2025 Plan of a performance-based stock option to purchase up to 110,000 shares of the Company's stock. The option vests only if and when the Company's net operating income for four consecutive calendar quarters equals or exceeds 300% of the Company's audited net operating income for its 2025 fiscal year, is exercisable at a price of $6.26 per share, and expires 10 years from the date of grant. Consistent with Mr. te Boekhorst's employment agreement with the Company, vesting of this performance stock option is subject to potential acceleration upon a change of control or certain terminations of employment.