years 2018, 2019 and 2020, respectively, provided he is employed on the last day of such year. Mr. Miller is entitled to a severance payment equal to one years salary if his employment
is terminated without cause, as defined in the employment agreement. We pay Mr. Miller an automobile allowance of $650 per month, and we reimburse Mr. Miller for health, dental, vision and supplemental disability premiums for himself and
his family. Mr. Miller is entitled to participate on the same basis in all offered benefits or programs as any other employee.
On
September 11, 2006, we entered into an employment agreement with Charles E. Barrantes, under which he agreed to serve as our Executive Vice President and Chief Financial Officer. Under the employment agreement and base salary increases approved
by the Compensation Committee, Mr. Barrantes received a base annual salary of $280,000 during fiscal year 2018 and is eligible to receive an annual bonus each fiscal year determined by the Compensation Committee, provided he is employed on the
last day of such year. Effective July 1, 2018 Mr. Barrantes base salary was increased to $300,000 per year, and effective July 1, 2019 Mr. Barrantes base salary was increased to $309,000 per year. We reimburse
Mr. Barrantes for health, dental, vision and supplemental disability premiums for himself and his family. Mr. Barrantes is entitled to participate on the same basis in all offered benefits or programs as any other employee. On
June 30, 2009, we entered into an amended and restated employment agreement with Mr. Barrantes that provides that Mr. Barrantes is entitled to a severance payment equal to one years salary if his employment is terminated without
cause, as defined in the employment agreement.
In October 2010, Pac-Van, Inc. entered into an
employment agreement with Mr. Mourouzis under he agreed to serve as the President of Pac-Van, Inc. and which provided for a base salary of $175,000 per year and is eligible to receive an annual bonus
based on criteria developed by the Compensation Committee. Mr. Mourouzis is entitled to eight months severance if his employment is terminated without cause, as defined in the employment agreement.
Royal Wolf entered into an employment agreement with Neil Littlewood dated February 7, 2016. Under his employment agreement
Mr. Littlewood agreed to serve as the chief executive officer of Royal Wolf Holdings commencing on July 1, 2016 until the agreement is terminated. The employment agreement provides that Mr. Littlewood would be paid an annual base
salary of A$475,000 (including superannuation contributions), an annual discretionary bonus targeted at 40% of the annual base salary and long-term incentives in each fiscal year targeted at 40% of the annual base salary. Mr. Littlewoods
employment agreement requires either six months notice prior to termination or the payment of six months salary in lieu of such notice.
The employment agreements of Mr. Valenta, Mr. Barrantes, Mr. Miller and Mr. Mourouzis will terminate upon the date of
their death or in the event of a physical or mental disability that renders either of them unable to perform his duties for 60 consecutive days or 120 days in any twelve-month period. Mr. Valenta, Mr. Barrantes, Mr. Miller and
Mr. Mourouzis may terminate their respective employment agreements at any time upon 30 days notice to us, and we may terminate these agreements at any time upon notice to Mr. Valenta, Mr. Barrantes, Mr. Miller and
Mr. Mourouzis.
In approving the compensation of Mr. Valenta, Mr. Barrantes, Mr. Miller, Mr. Mourouzis and
Mr. Littlewood, the Board of Directors (and in 2016, at the time of approving the employment agreement of Mr. Littlewood, the Royal Wolf Remuneration Committee) reviewed information provided by management regarding the compensation of
comparable level officers of public companies, including companies in the equipment leasing business. The Board and the Royal Wolf Remuneration Committee also considered the size of the Company, the experience and prior compensation of
Mr. Valenta, Mr. Barrantes, Mr. Miller, Mr. Mourouzis and Mr. Littlewood, and the scope of the services that each would be required to render (particularly given the lack of support staff and the need to implement policies
and procedures).
Potential Payments Upon Termination of Employment or Change in Control
The employment agreements of Mr. Valenta, Mr. Miller and Mr. Barrantes provide that each is entitled to a lump sum severance
payment of twelve months base salary if we terminate their employment without cause or
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