Zedge sets Reich's $390,000 salary as president under three-year agreement

Zedge, Inc. set Jonathan Reich's annual base salary at $390,000 in a three-year employment agreement as president and chief operating officer, a role he took on October 1, 2026 after stepping down as chief executive. The agreement, dated October 14, 2026, was filed as an exhibit to a Form 8-K the New York-based app maker filed on October 19, 2026. It also provides a minimum annual bonus of $124,313 and an equity award of 100,000 Class B shares.

Salary holds at $390,000 until the July 2028 step-up

The contract runs from October 1, 2026 through September 30, 2029. It fixes base salary at $390,000, described in the filing as "an annual base salary of $390,000, effective as of August 1, 2026" — a rate that reaches back before the October 14 signature date and requires a one-time catch-up payment for the period from August 1. The earlier salary rate is not disclosed, so the amount of that payment cannot be computed from the filing.

The agreement holds that rate through July 31, 2027 and adds $15,000 on each subsequent July 31, so the first step-up lands on July 31, 2028, when the annual rate reaches $405,000. The 8-K's own summary is looser, describing "an increase in annual base salary of $15,000 on each July 31 during the term"; the exhibit is the contract text, and it dates the first increase a year later than that summary implies. The bonus floor is $124,313 for each fiscal year beginning with fiscal 2026, payable no later than January 31 of the year after the fiscal year in which it is earned. That minimum equals 31.88% of the starting salary. It is a floor rather than a target: the agreement does not set the performance measures that would produce a larger payment, and it leaves that judgment to the company.

Equity of 100,000 shares vests in quarterly pieces

Zedge must grant restricted stock and deferred stock units covering 100,000 Class B common shares "Within one hundred fifty (150) days following the Effective Date" under its 2026 Stock Incentive Plan. One-twelfth vests at grant; the remaining eleven installments fall on April 1, July 1 or October 1, so the award is fully vested on October 1, 2029. The agreement fixes no grant-date share price, which means the filing does not establish what the award will be worth when it is made. Reich bears the tax liability on the shares.

Severance reaches two years of salary, or 18 months in lesser cases

A dismissal without cause, or a resignation for good reason, pays two years of base salary — $780,000 at the starting rate — plus a prorated slice of the $124,313 minimum bonus, spread over 52 installments, and accelerates the whole equity award. Resignation without good reason, non-renewal, or a board determination that performance materially missed expectations pays 18 months of salary in 39 installments. Death or disability pays two years of salary. Health coverage reimbursement runs up to twenty-four months after termination. Every separation payment depends on a release signed within 21 days, and disputes go to arbitration in New Jersey, where the agreement waives a jury trial. A termination for Cause is the exception: the agreement limits the employee to salary and benefits through the termination date and provides no separation pay, no health-coverage reimbursement and no vesting acceleration.

This filing does not name the chief executive Reich reports to

The filing records the demotion but not the succession. It states that Reich "ceased to serve as Chief Executive Officer of the Company effective as of September 30, 2026", and it points to an earlier Form 8-K filed August 31, 2026 for the change. The agreement says the president reports directly to the company's chief executive, a post this filing leaves unnamed. Nor does the 8-K carry any operating data: Item 9.01 lists the employment agreement as its only substantive exhibit.

The grant window and the next proxy statement

Two dated checkpoints will test these terms. The equity grant must be made within 150 days of October 1, 2026, and the grant documents will fix the award's actual value. Zedge's next proxy statement will report fiscal 2026 compensation for its named executive officers, showing how the $124,313 floor compares with the bonus actually paid. Until those documents arrive, the contract's minimums are the only figures shareholders can rely on.