Item 1.01. Entry into a Material Definitive Agreement.
On September 26, 2012, Wizzard Software Corporation, a Colorado corporation (the “Company”), entered into Employment Agreements with its Chief Executive Officer, Christopher J. Spencer, and its Chief Financial Officer, John Busshaus. Under the terms of the Employment Agreements, the Company agreed to employ Messrs. Spencer and Busshaus for a period of three years, beginning on October 1, 2012, and terminating on September 30, 2015, at annual salaries of $400,000 and $350,000, respectively. Each Employment Agreement will automatically be extended for an additional one year period unless the Company gives the employee at least 90 days’ written notice that it does not wish to extend such Employment Agreement. At the end of the initial three year term of each employee’s respective Employment Agreement, he will receive a bonus equal to his highest annual salary.
Each Employment Agreement contains standard non-disclosure covenants, as well as standard non-competition and non-solicitation restrictions for a period of six months after termination of employment. See Item 9.01 of this Current Report. In addition to their compensation to be paid under their Employment Agreements, effective as of September 26, 2012, the Company’s Board of Directors resolved to grant to Messrs. Spencer and Busshaus cash bonuses of $100,000 in recognition of their efforts and diligence in closing the Securities Exchange Agreement. See Item 2.01 of this Current Report.
The Employment Agreements of Messrs. Spencer and Busshaus are attached hereto as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by reference. See the Exhibit Index, Item 9.01 of this Current Report. The foregoing descriptions of the Employment Agreements do not purport to be complete and are qualified in their entirety by reference to such exhibits.