Item 2.03 Creation of a Direct Financial Obligation
See Item 5.02 below.
Item 3.01 Disclosure of Nasdaq Notification
See Item 8.01 below, which is incorporated herein by reference.
ITEM 5.02 Compensation Arrangements of Management and Board of Directors
Effective December 31, 2020, The Board of Directors of Marathon Patent Group,
Inc. (the "Company") ratified the following arrangements approved by its
Compensation Committee:
Merrick Okamoto, CEO was awarded a cash bonus of $2,000,000 which was paid
before year end 2020. He was also awarded a special bonus of 1,000,000 RSUs with
immediate vesting. He was given a new three-year employment agreement effective
January 1, 2021 with the same salary and bonus as the prior agreement. He was
also granted the following: award of 1,000,000 RSUs when the company's market
capitalization reaches and sustains a market capitalization for 30 consecutive
days above $500,000,000; award of 1,000,000 RSUs priced when the company's
market capitalization reaches and sustains a market capitalization for 30
consecutive days above $750,000,000; award of 2,000,000 RSUs priced at lowest
closing stock price in past 30 trading days when the company's market
capitalization reaches and sustains a market capitalization for 30 consecutive
days above $1,000,000,000; and award of 2,000,000 RSUs when the company's market
capitalization reaches and sustains a market capitalization for 30 consecutive
days above $2,000,000,000.
Sim Salzman, CFO, was granted a bonus payment of $40,000 in cash; and a bonus of
91,324 RSUs with immediate vesting. James Crawford, COO, was granted a bonus
payment of $127,308 in cash and a stock bonus of 57,990 RSUs with immediate
vesting. Furthermore, per his employment agreement, his base salary for the 2021
will be increased by 3%.
Compensation for directors of the board for 2021 as follows: (i) cash
compensation of $60,000 per year for each director, plus an additional $15,000
per year for each committee chair, paid 25% at the end of each calendar quarter;
(ii) for existing directors, the equivalent of 54,795 RSUs; and (iii) for newly
elected directors, a one-time grant of 91,324 RSUs, vesting 25% each calendar
quarter during 2021. For clarification, new directors will also receive the same
annual compensation as existing directors in addition to their one time grant.
Item 8.01 Other Events
On January 4, 2021, the Company received a letter from Nasdaq that because the
Company had delayed its annual meeting until January 15, 2021 (in order to to
enable further shareholders to vote their shares in order to meet the 50.1%
quorum requirement), that it was not in compliance with Nasdaq Rules 5620(a)
which requires that an annual meeting be held within one year of each fiscal
year. As the Company has indicated to Nasdaq in late December, it has received
reports from its proxy solicitor that the quorum requirements have been met, and
all matters have received requisite approvals to pass at the Annual Meeting on
January 15, 2021. Once the Annual Meeting is held and the results publicly
reported, Nasdaq has indicated that the Company will be deemed back in
compliance with this requirement.
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