Note 12 - Subsequent Events

On February 16, 2018, our board of directors approved the Amended and Restated 2015 Executive Employment Agreement with the CEO (the “Employment Agreement”), which became effective February 23, 2018. However, the Employment Agreement required approval by the requisite vote of stockholders at a special meeting of the stockholders that was held on April 12, 2018 (the “Special Meeting”). At the Special Meeting, shareholders voted to approve the Employment Agreement.

On February 16, 2018, the board of directors approved the 2018 Stock Incentive Plan, which required stockholder approval by the requisite vote of stockholders received at the Special Meeting on April 12, 2018. The 2018 Stock Incentive Plan provides for the grant of incentive stock options to eligible employees of the Company, and for the grant of nonstatutory stock options to eligible employees, directors and consultants. At the Special Meeting, shareholders voted to approve the 2018 Stock Plan.

On April 12, 2018, our board of directors approved the amended and restatement of our 2010 Plan, which, if approved by our stockholders at our annual meeting on May 23, 2018, will (i) increase the number of shares reserved for issuance under the 2010 Plan by 700,000 shares from 3.2 million shares to 3.9 million shares, and (ii) allow our board of directors to grant restricted stock awards and restricted stock units.

On April 12, 2018, our board of directors approved the amendment and restatement of our 2010 Directors’ Plan, which, if approved by our stockholders at the Company’s annual meeting on May 23, 2018, will (i) increase the number of shares reserved for issuance under the 2010 Directors’ Plan by 250,000 shares from 425,000 shares to 675,000 shares, and (ii) allow our board of directors to grant restricted stock awards and restricted stock units.

On May 7, 2018, our board of directors declared a special cash dividend of $1.00 per share. On the same date, the Compensation Committee of the board of directors approved an adjustment to the stock option granted to Mr. Karkus on February 23, 2018, as permitted under the Company’s 2018 Stock Plan, as a consequence of the special cash dividend. The board of directors has adjusted the terms of the Executive Stock Option, such that the exercise price of the Executive Stock Option will be reduced from $3.00 per share to $2.00 per share, effective as of June 5, 2018, the date the special cash dividend is to be paid and subject to such dividend payment being made.