Questions for the EGM, page-31

I know @qf8 you have a serious hatred for all things JCT/Xped - but I think you're a bit confused as to the nature of this transaction. Xped did not pay Eddie Jackson $1m salary for the past year.

Let me try and explain this in simple terms because I'm getting tired of seeing this comment posted. Here's what happened:

-Xped purchased JCT for $1.25m.
-As a requirement of the purchase, Xped required Eddie Jackson to stay on in order to assist with the transition. It is very normal for acquisition deals to require KMPs to stay on for a period of time to transition.
-In order to force EJ to stay on through the transition period - Xped effectively said "we're going to buy you now, however we're not going to pay you anything for the company until after the transition period is over in a year from now."
-However, the sellers of JCT wanted some $ upfront so the contract isn't completely one sided - so Xped said "fine, we will give you $250k now, and the remaining $1m in a year from now - but still only if EJ stays on to help transition".
-The $1m solely represents a delayed payment of the purchase price of JCT and goes to the previous owners of JCT for the sale of the company. It does not go to EJ as a paycheck. It is not wages. We don't pay Super on it. Nothing like that of the sort. (Although I do think that EJ was majority shareholder of JCT prior to the acq. but that's a moot point.)
-Had he not stayed on, we would have effectively purchased JCT for basically nothing (ie $250k.)

In summary- the $1m is for the purchase of the company, not for EJ's time - however we wouldn't have bought JCT unless EJ stayed to transition. And we ensure that he stays to transition, by delaying the payment of the purchase price for a year.

As a side note - we also agreed to pay the previous owners up to an additional$2.5m for the company if certain revenue targets were met as well - which is commonly referred to as earn-out clauses.

My questions on JCT would be:

-Now that EJ's transition period is nearly up, who will be taking over leading JCT? And more importantly:
-What is the likelihood that milestone's 1,2, and 3 will be met?

(#1 - JCT to earn $3m in revenue and recoverable WIP within 12 months with GP margin of 50%
#2 - JCT to earn $6m in revenue and recoverable WIP within 18 months with GP margin of 50%
#3 - JCT earn $12m in revenue and recoverable WIP within 24months with GP margin of 50%)