Subsequent Event

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

Transition of John McDermott as Chief Executive Officer

The Company previously reported that John McDermott would step down from his role as Chief Executive Officer of the Company no later than June 30, 2018, pursuant to a Severance Agreement and General Release, dated February 21, 2018. In connection with the Company’s appointment of a new Chief Executive Officer (as discussed below), Mr. McDermott has stepped down as Chief Executive Officer, effective as of May 2, 2018. Mr. McDermott will continue to serve as a non-executive employee through June 30, 2018 and will provide consulting services to the Company following his transition.

Appointment of John Onopchenko as Chief Executive Officer

On May 2, 2018, the Company announced that John Onopchenko has been appointed by the board of directors of the Company to serve as the Company’s Chief Executive Officer, effective as of the same date.

In connection with Mr. Onopchenko’s appointment as Chief Executive Officer, upon the recommendation of the Company’s Compensation Committee, the board of directors approved, and the Company and Mr. Onopchenko entered into, an Employment Agreement, pursuant to which Mr. Onopchenko will receive, among other things: (i) an annual base salary of $600,000, (ii) a one-time cash sign-on bonus of $666,667, (iii) an annual cash bonus pursuant to any cash bonus plan approved by the Company’s Compensation Committee or board of directors for senior executive officers, with a target bonus opportunity in an amount equal to 100% of his base salary (iv) time-based incentive stock options with a grant date fair market value of $450,000, (v) time-based restricted stock units with a grant date fair market value of $450,000, (vi) reimbursement for reasonable relocation expenses (vii) a housing allowance in the amount $4,000 per month until the earlier of (a) 36 months from November 1, 2017, and (b) his purchase of a permanent residence in the Orange County, California area, and (viii) all customary and usual benefits available to senior executive officers under the Company’s benefit plans.