Effective February 1, 2020, the Board of Directors of Lakeland Industries, Inc. (the “Company”) promoted Charles D. Roberson, the Company’s Chief Operating Officer, to the positions of Chief Executive Officer, President and Secretary of the Company. Mr. Roberson will succeed Christopher J. Ryan who will retire as Chief Executive Officer, President and Secretary of the Company, effective February 1, 2020. Mr. Ryan will continue to serve the Company as a Director and as Executive Chairman of the Board, an employee position. In his role as Executive Chairman of the Board, Mr. Ryan will receive as base compensation $185,000, $165,000 and $125,000 in respect of the fiscal years ending January 31, 2021, 2022 and 2023, respectively.
Mr. Roberson, age 57, has served as our Chief Operating Officer since July 2018 and will continue in that role until January 31, 2020, and Senior Vice President, International Sales from March 2009 to July 2018. Mr. Roberson joined the Company in 2004 as Technical Marketing Manager and later served as International Sales Manager. Prior to joining the Company, Mr. Roberson was employed by Precision Fabrics Group, Inc. as a Market Manager from 1995 to 2001 and as a Nonwovens Manufacturing Manager from 1991 to 1995. He began his career as a manufacturing manager for Burlington Industries, Inc. in its Menswear Division from 1985 to 1991.
On January 27, 2020, the Company entered into an Employment Agreement (the “Employment Agreement”) with Mr. Roberson. The Employment Agreement is for a term of two (2) years commencing on February 1, 2020 through and including January 31, 2022 (the “Term”), subject to early termination as provided therein. The Employment Agreement provides for a base salary of $325,000 per year. Mr. Roberson is also eligible to be awarded an annual bonus of up to 20% of his base salary.
The Employment Agreement contains certain provisions providing for severance payments to Mr. Roberson in the event that he is terminated by the Company without cause or by Mr. Roberson for Good Reason (generally, for failure by the Company to pay Mr. Roberson’s salary, material diminution in Mr. Roberson’s authority or material breach by the Company of the Employment Agreement). The payment to Mr. Roberson is greater in the event that such termination without cause or for Good Reason is within 24 months after a change of control of the Company. Under the Employment Agreement, Mr. Roberson is also subject to non-competition and non-solicitation restrictions during the Term and for a period of one year thereafter.
The foregoing description of the Employment Agreement does not purport to be complete and is qualified in its entirety by reference to the text of the Employment Agreement with Mr. Roberson, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.
In addition, effective February 1, 2020, (a) A. John Kreft’s position as Chairman of the Board will convert to that of Lead Independent Director, (b) the number of directors constituting the Board of Directors of the Company will be increased from five to six and (c) Mr. Roberson is designated to fill the vacancy created thereby, as a Class II director (term expiring in 2021).
On January 29, 2020, the Company issued a press release announcing the above-detailed changes. The press release issued by the Company in connection with the announcement is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Effective February 1, 2020, the Company will close its principal executive offices located at 3555 Veterans Memorial Highway, Suite C, Ronkonkoma, New York 11779-7410, and the Company’s offices located at 202 Pride Lane SW, Decatur, Alabama, 35603 will become its principal executive offices.
Item 9.01.
Financial Statements and Exhibits.
10.1
Employment Agreement, dated January 27, 2020, between Lakeland Industries, Inc. and Charles D. Roberson.
99.1
Press Release dated January 29, 2020.
LAKELAND INDUSTRIES INC ExhibitEX-10.1 2 lake_ex101.htm EMPLOYMENT AGREEMENT Blueprint Exhibit 10.1 January 27,…
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About Lakeland Industries, Inc. (NASDAQ:LAKE)
Lakeland Industries, Inc. (Lakeland) manufactures and sells a line of safety garments and accessories for the industrial and public protective clothing market. The Company’s product categories include limited use/disposable protective clothing; high-end chemical protective suits; firefighting, flame resistant personal protective equipment (FR PPE) and heat protective apparel; reusable woven garments; high visibility clothing, and glove and sleeves. The Company’s products are sold by its in-house customer service group, its regional sales managers and independent sales representatives to a network of over 1,200 North American safety and mill supply distributors. These distributors in turn supply end user industrial customers, such as integrated oil, chemical/petrochemical, utilities, automobile, steel, glass, construction, smelting, munition plants, janitorial, pharmaceutical, mortuaries and high technology electronics manufacturers, as well as scientific and medical laboratories.
