Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On August 25, 2021, the Company entered into new employment agreements with Brian Ross, the Company’s current Chairman of the Board, President and Chief Executive Officer, to continue in such roles, Mario Marsillo Jr., the Company’s current Director of Corporate Development, appointing him as Chief Investment Officer, Vince Kandis, appointing him as President of CNP Operating, Spiro Kandis, appointing him as Chief Product Officer of CNP Operating, and John Rand, appointing him as Executive Vice President of Finance (the “Employment Agreements”), each effective until December 31, 2026. Under the Employment Agreements, Brian Ross, Vince Kandis and Spiro Kandis will each be paid an annual base salary of $300,000, Mario Marsillo will be paid an annual base salary of $265,000, and John Rand will be paid an annual base salary of $160,000, and each is entitled to an annual raise of three percent and additional annual raises and bonuses at the discretion of the Company’s Board of Directors, such bonuses not to exceed 100%, or in the case of Mr. Rand, 30%, of each officer’s annual base salary. Each officer is also entitled to other benefits including reimbursement for reasonable business expenses and payment towards health insurance premiums. Each Employment Agreement contains customary confidentiality and assignment of work product provisions and may be terminated by the Company without cause upon 30-days prior written notice. If the Company elects to terminate an Employment Agreement without cause during the term, such officer shall be entitled to a severance payment of the greater of the remaining payments under the Employment Agreement or an annual base salary of one year. If terminated by the officer or for cause, the officer is entitled to amounts accrued through the date of termination.
Vince Kandis, 62, was President of CNP Operating prior to the acquisition by the Company. Before its merging with CNP Operating in 2019, Mr. Kandis was the President of Sidnak Solutions, a fully integrated CBD company, from January 2017. Until November 2019, Mr. Kandis was a veteran senior executive of Spectrum Distribution & Marketing, having over 30 years of experience in direct response marketing. Mr. Kandis and Spectrum are best known for the inspiration behind Hydroderm, Vyotech Sports Nutrition, the Hollywood Diet, Celebrity diet and many more. Mr. Kandis studied business marketing at Brigham Young University.
Spiro Kandis, 55, was Chief Product Officer of CNP Operating prior to the acquisition by the Company. Before its merging with CNP Operating in 2019, Mr. Kandis was the CEO of Sidnak Solutions, a fully integrated CBD company, from January 2017. Until November 2019, Mr. Kandis was the primary spokesperson for Experimental Applied Sciences (EAS), the largest sports nutrition company in the world at the time. Mr. Kandis has been involved in sports nutrition and direct response marketing for over 30 years and is best known for his involvement and creation of Hydroderm, Vyotech Sports Nutrition Vitalatrim and many more. Mr. Kandis studied sports medicine at Colorado State University.
John C. “Clay” Rand, 50, was Chief Financial Officer of CNP Operating prior to the acquisition by the Company. Mr. Rand joined CNP Operating in January 2020 after six years as Chief Financial Officer for Maggie’s Farm, a Colorado based cannabis company. Prior to Maggie’s Farm, Mr. Rand had over 20 years of experience in public accounting, specializing in tax consulting, finance and business operations. Mr. Rand's array of skills includes cash flow forecasting, accounting, inventory control, multi-unit operations supervision, executive management and human resources. Mr. Rand holds a bachelor’s degree in Business Administration and Masters of Professional Accountancy from the University of Southern Mississippi.