Cyanotech Corporation (NASDAQ:CYAN) Files An 8-K Entry into a Material Definitive Agreement

Cyanotech Corporation (NASDAQ:CYAN) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01.Entry into a Material Definitive Agreement.

On April 6, 2017, the Company and Brent D. Bailey, the Companys
former Chief Executive Officer, entered into a Settlement
Agreement (the Settlement Agreement) resolving all disputes
between the Company and Mr. Bailey with respect to that certain
Separation Agreement and Release of Claims, dated March 31, 2016
(the Separation Agreement). A copy of the Settlement Agreement is
attached hereto as Exhibit 10.1.

Under the Settlement Agreement, the Company and Mr. Bailey have
mutually agreed to release each other from all claims and
counterclaims with respect to any prior breaches of the
Separation Agreement. Each party has also agreed to a
non-disparagement covenant with respect to the other. Mr. Bailey
agreed to a continuation of his confidentiality obligations under
the Separation Agreement with respect to any confidential
information or trade secrets of the Company for a period of three
years from the date of the Settlement Agreement. In accordance
with the terms of the Settlement Agreement, the Company has
agreed to pay $100,000 to Mr. Bailey on or before April 21, 2017.
The Company has also agreed to make twelve monthly payments to
Mr. Bailey in the amount of $18,750 each, with the first payment
scheduled for May 15, 2017. The Settlement Agreement now
constitutes the entire agreement between the Company and Mr.
Bailey and, other than the payments of up to $325,000 to be made
to Mr. Bailey under the Settlement Agreement, the Company has no
further obligations to provide him with any severance payments,
healthcare benefits or share grants. This summary is qualified in
its entirety by reference to the Settlement Agreement.

Item 8.01.Other Events.

The disclosure in Item 1.01 is incorporated herein by reference.

Item.01.Financial
StatementsandExhibits.

(d) Exhibits

Exhibit

Number

Name and/or Identification of Exhibit

10.1

Settlement Agreement, dated April 6, 2017, by and between
Cyanotech Corporation and Brent D. Bailey.


About Cyanotech Corporation (NASDAQ:CYAN)

Cyanotech Corporation is engaged in the production of natural products derived from microalgae for the nutritional supplements market. The Company’s products include Hawaiian Spirulina Pacifica and Hawaiian BioAstin. Hawaiian Spirulina Pacifica is a dietary supplement used for extra energy, a strengthened immune system, cardiovascular benefits and as a source of antioxidant carotenoids. Hawaiian BioAstin is a dietary antioxidant shown to support and maintain the body’s natural inflammatory response, to enhance skin, and to support eye and joint health. The Company cultivates over two microalgal species from which its product lines, natural astaxanthin products and spirulina products, are derived. The Company produces its algae in Hawaii and manufactures the finished products in Hawaii and California.

Cyanotech Corporation (NASDAQ:CYAN) Recent Trading Information

Cyanotech Corporation (NASDAQ:CYAN) closed its last trading session 00.00 at 3.90 with 1,417 shares trading hands.

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