8-K/A: Skillz Inc. Finalizes Consulting Agreement with Former Executive Casey Chafkin

Skillz Inc. has finalized a consulting agreement with former executive Casey Chafkin, outlining terms for his services and compensation.

Summary

• Skillz Inc. has entered into a consulting agreement with Casey Chafkin, a former executive, effective as of August 26, 2024.
• The agreement was finalized on September 19, 2024, and outlines the terms of Mr. Chafkin's consulting services.
• Mr. Chafkin will provide general support to the Senior Leadership Team, including litigation support, Amnytor related support, hiring committee consultation, partnership negotiations, and serve on the Aarki board of directors.
• He will receive a monthly salary of $5,000 for an expected 20 hours of service per month.
• Additional compensation at a rate of $250 per hour will be provided for services exceeding the 20-hour monthly threshold, subject to company approval.
• The agreement can be terminated by either party with five calendar days' written notice.
• Mr. Chafkin will operate as an independent contractor and is responsible for his own taxes and benefits.

Sentiment

Score: 7

Explanation: The document outlines a standard consulting agreement, which is a neutral event. The terms are reasonable and the agreement provides a clear framework for the engagement. There are no indications of significant positive or negative impacts.

Positives

• The agreement provides Skillz with continued access to Mr. Chafkin's expertise and experience.
• The terms of the agreement are clearly defined, including compensation and termination clauses.
• The agreement ensures that Skillz retains ownership of all intellectual property created during the consulting engagement.
• The agreement includes confidentiality clauses to protect Skillz's sensitive information.

Negatives

• The agreement involves ongoing costs for Skillz, including a monthly salary and potential hourly fees.
• The agreement could be terminated with only five days' notice, creating potential instability.
• The agreement does not guarantee a specific level of service or outcomes from Mr. Chafkin.

Risks

• The consulting arrangement could be terminated quickly, potentially disrupting ongoing projects.
• The hourly rate for additional services could lead to unexpected costs if not carefully managed.
• There is a risk that the consulting services may not meet the company's expectations.

Future Outlook

The agreement outlines the terms for ongoing consulting services from Mr. Chafkin, with the potential for additional hours and compensation as needed. The agreement is subject to termination by either party with five days' notice.

Management Comments

• The company has not provided any direct quotes in this document.

Industry Context

The use of consulting agreements with former executives is a common practice in the tech industry to leverage their expertise and maintain continuity. This agreement allows Skillz to access Mr. Chafkin's knowledge without the commitment of a full-time employment contract.

Comparison to Industry Standards

• Consulting agreements with former executives are common in the tech industry, often involving a mix of fixed fees and hourly rates.
• The hourly rate of $250 is within the typical range for experienced consultants in the tech sector.
• The five-day termination clause is relatively short, which is not uncommon for consulting agreements, but may be shorter than some long term contracts.
• The intellectual property and confidentiality clauses are standard in such agreements to protect the company's interests.

Stakeholder Impact

• Shareholders may view this agreement as a positive step to leverage past expertise.
• Employees may be impacted by the consulting services provided by Mr. Chafkin.
• The agreement has no direct impact on customers or suppliers.

Next Steps

• Mr. Chafkin will begin providing consulting services as outlined in the agreement.
• Skillz will manage the consulting engagement and approve any additional hours beyond the initial 20 per month.
• Both parties will adhere to the terms of the agreement, including confidentiality and intellectual property clauses.

Key Dates

Keywords

consulting agreement, Casey Chafkin, independent contractor, Skillz Inc., executive, compensation, intellectual property, confidentiality, termination, litigation support