Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective October 17, 2022, Michael Kraft resigned as President of The Coretec Group Inc. (the “Company”). Following Mr. Kraft’s resignation, which was not as a result of any disagreements with the Company’s management, he will serve as Advisor to the Board commencing on October 14, 2022.
On October 14, 2022, Matthew Hoffman, Chief Financial Officer of the Company, was appointed as Chief Operating Officer of the Company. As CFO, Mr. Hoffman manages organizational growth, financial reporting, modeling, and system development. Mr. Hoffman has worked with early-stage, high growth businesses for the past 15 years in financial and operational capacities. His start-up experiences produced 30-40% annual growth through acquisition, first as the Controller at Adaptive Materials (AMI), a portable power development and manufacturing company, acquired by Ultra Electronics. He also served as CFO of MI Bioresearch (MI Bio), a CRO for pre-clinical drug discovery, who was acquired by Covance (LabCorp). Prior to working for startups, Mr. Hoffman began his professional career in public accounting at Weidmayer, Schneider, Raham & Bennett. He holds a Bachelor of Business Administration degree from Western Michigan University, a license as a Certified Public Accountant in the State of Michigan, and a Secret level (inactive) DoD clearance.
In connection with Mr. Hoffman’s appointment as COO, the Company entered into an employment agreement (“Employment Agreement”) with Mr. Hoffman. Pursuant to the Employment Agreement, Mr. Hoffman will receive an annual base salary of $200,000. Mr. Hoffman will also be eligible for an annual incentive bonus, with a target payout of twenty percent (20%) of his then-current base salary, beginning with the Company’s 2023 fiscal year, upon meeting objectives set by the board of directors. The Employment Agreement further provides that upon execution of the Employment Agreement, the Company will grant to Mr. Hoffman options to purchase 5,000,000 fully vested shares of the Company’s common stock.
The foregoing description of the Employment Agreement is qualified by reference to the full text of the Employment Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.
Incentive Compensation Grants
In addition to the option granted to Mr. Hoffman, on October 14, 2022, the Company granted five-year Options to members of the Company’s management, employees and consultants, as incentive compensation. The Company granted the following Options: (i) 7,000,000 Options to Matthew Kappers, (ii) 3,000,000 Options to Victor F. Keen, (iii) 3,000,000 Options to Simon Calton, and (iv) an aggregate of 6,000,000 Options to employees and consultants of the Company.