(b) As previously disclosed, Jeffrey H. Lynford, the Chairman of Reis, Inc. (the “Company”), was employed under an employment agreement that expired on May 30, 2010. Jeffrey Lynford has decided not to renew his employment with the Company, in order to pursue other business opportunities. He has informed the Company that he expects to step down as executive Chairman of the board of directors effective as of the conclusion of the Company’s 2010 annual meeting of stockholders, the date of which has not been announced at this tim e. The board of directors will elect a new non-executive Chairman at that time. Jeffrey Lynford will continue as a director of the Company.
(e) The Company currently has contracts with its five most senior executive officers, all of which were entered into in 2007 and expire on May 30, 2010.
As disclosed above, Jeffrey Lynford’s employment with the Company terminated on May 30, 2010. In connection with the termination of his employment, Jeffrey Lynford and the Company have entered into a separation agreement (the “Agreement”). In recognition of Jeffrey Lynford’s eighteen years of continuous service to the Company and its predecessor companies, the Company will make a payment to Jeffrey Lynford in the amount of $300,000. The Company will also reimburse Jeffrey Lynford, on an after-tax basis, for certain life insurance, medical and dental premiums, as provided i n his existing employment agreement. The Agreement contains customary mutual releases.
The Company has proposed new employment agreements for its other four most senior executive officers: Lloyd Lynford, Chief Executive Officer and President; Jonathan Garfield, Executive Vice President; Mark P. Cantaluppi, Vice President, Chief Financial Officer; and William Sander, Chief Operating Officer of Reis Services, LLC. The officers and the Company are reviewing, and continuing to discuss, the proposed new employment agreements. Although there can be no assurance, the Company believes that a new employment agreement will be entered into with each such officer; however, such new agreements were not fi nalized prior to the scheduled expiration of the officers’ 2007 employment agreements. Therefore, the Company has entered into a one month employment agreement extension (each, an “Extension”) with each such officer, providing that the officer’s current employment agreement shall be extended through June 30, 2010.
The Agreement and the Extensions have been filed as exhibits to this current report on Form 8-K.
