Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) Compensatory Arrangements
OnDecember 30, 2022 , pursuant to the 2016 Employee Preferred Stock Plan (the "2016 Preferred Stock Plan") ofAltisource Asset Management Corporation (the "Company") and the approval of the Compensation Committee (the "Compensation Committee") of the Board of Directors of the Company (the "Board"), the Company issued 1,000 shares of Series N Preferred Stock (the "Series N Preferred Stock") toJason Kopcak , Chief Executive Officer of the Company, and 1,000 shares of Series O Preferred Stock (the "Series O Preferred Stock") toStephen R. Krallman , Chief Financial Officer of the Company. Both issuances were valued at$10.00 per share. Holders of the Company's preferred stock have the right to a preferred stock dividend when and if declared by the Board. The Board intends thatMr. Kopcak's preferred stock dividend will include one share of common stock for every three shares of common stock the Company repurchases during the prior quarter. Each ofMr. Kopcak andMr. Krallman are eligible participants under the 2016 Preferred Stock Plan, which was approved by the Company's stockholders at the 2016 Annual Meeting of Stockholders. Shares of additional similar series of preferred stock were offered to the Company's otherU.S. Virgin Islands resident employees as well. The Company adopted the 2016 Preferred Stock Plan to induce employees to become employed and remain employees of the Company in theU.S. Virgin Islands . Each of the preferred stock agreements (each, a "Preferred Stock Agreement") under whichMr. Kopcak received his grant of Series N Preferred Stock and under whichMr. Krallman received his grant of Series O Preferred Stock provide that the shares are subject to, and shall be held by him in accordance with, the 2016 Preferred Stock Plan and that he must not sell or otherwise dispose of such shares of preferred stock other than sales back to the Company upon termination of his employment for any reason, as required under the 2016 Preferred Stock Plan. The foregoing descriptions of the Preferred Stock Agreements with each ofMr. Kopcak andMr. Krallman are qualified in their entirety by reference to the full text of the form of the Preferred Stock Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference. The terms of Series N Preferred Stock held byMr. Kopcak and the Series O Preferred Stock held byMr. Krallman are described in the Amended and Restated Articles of Incorporation ofAltisource Asset Management Corporation (which is incorporated by reference from Exhibit 3.1 of the Registrant's Current Report on Form 8-K filed with theSEC onJanuary 5, 2017 ).
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description 10.1 Form of Preferred Stock Agreement 101 Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language) 104 Cover Page Interactive Data File (embedded within
the Inline XBRL document).
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