On February 4, 2020, Crimson Wine Group, Ltd. (the "Company") notified Michael Cekay that his employment as Senior Vice President of Global Sales of the Company would be terminated effective February 5, 2020. The Company announced that it is immediately commencing a search to fill the Senior Vice President of Global Sales position.

On February 6, 2020, the Company entered into a severance agreement with Mr. Cekay (the “Severance Agreement”) specifying the terms of Mr. Cekay’s termination of service with the Company. to the terms of the Severance Agreement, which includes a general release of claims by Mr. Cekay in favor of the Company, the Company will pay Mr. Cekay an amount equal to 26 weeks of Mr. Cekay’s regular base salary in effect on his departure date (which is a gross amount of $145,000), which will be paid bi-weekly to the Company’s regular pay schedule. In addition, the Company will pay Mr. Cekay a lump sum payment equal to $5,468.22, less certain required deductions, which is intended to represent approximately three months of what is charged to COBRA qualified beneficiaries for the same medical coverage options elected by Mr. Cekay immediately prior to his departure date.

The Severance Agreement also provides that Mr. Cekay will comply with certain confidentiality and non-solicitation covenants. The Severance Agreement also includes a mutual non-disparagement covenant between Mr. Cekay and the Company.

The foregoing description is qualified in its entirety by reference to the text of the Severance Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description

10.1 Severance Agreement dated February 6, 2020, by and between Crimson Wine Group, Ltd. and Michael Cekay

Crimson Wine Group, Ltd Exhibit
EX-10.1 2 exhibit101.htm EX-10.1 DocumentSEVERANCE AGREEMENT AND RELEASEThis Severance Agreement and Release (this “Agreement”),…
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About CRIMSON WINE GROUP, LTD. (OTCMKTS:CWGL)

Crimson Wine Group, Ltd. (Crimson) is engaged in producing and selling ultra-premium and luxury wines. The Company operates through two segments: Wholesale Sales and Direct to Consumer Sales. The Wholesale Sales segment includes all sales through a third party where prices are given at a wholesale rate whereas Direct to Consumer Sales segment includes retail sales in the tasting room, remote sites and at on-site events, Wine Club sales, and other sales made directly to the consumer without the use of an intermediary. The Company, through its subsidiaries, owns over four wineries, including Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards and Seghesio Family Vineyards. In addition, Crimson owns Double Canyon Vineyards, which owns land in the Horse Heaven Hills of Washington’s Columbia Valley. Pine Ridge Vineyards owns acreage in approximately five Napa Valley appellations, including Stags Leap District, Rutherford, Oakville, Carneros and Howell Mountain.