Giovinazzo will act as the President and Chief Executive Officer of the Corporationrationration. The Giovinazzo Agreement provides for the payment of a monthly fee of $12, 000, plus applicable taxes paid in arrears twice monthly. The Giovinazzo Agreement further provides for a discretionary bonus paid in such amounts and at the discretion of the board of directors of the Corporationrationration. In addition, in the event that the Corporationrationration closes on a cumulative $5, 000, 000 or more of new capital, Mr. Giovinazzo?s base salary will be reviewed by the Board and he shall be granted options to acquire 3, 733, 163 common shares of the Corporationrationration. The options, which will have a term of five years, will be priced at the then fair market value provided that such value is not less than $0. 10 per common share. The options shall vest 1/3 after six months, 1/3 after 1 2 months and 1/3 after 1 8 months from the date of grant.
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