LONG ISLAND ICED TEA CORP. (NASDAQ:LTEA) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02.
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Directors; Compensatory Arrangements of Certain Officers. |
On March 10, 2017, Long Island Iced Tea Corp. (the
Company) entered into an amended and restated employment
agreement (the Employment Agreement) with Philip Thomas,
the Companys Chief Executive Officer. The term of the Employment
Agreement runs until December 31, 2019, unless earlier terminated
as provided therein. Under the Employment Agreement, Mr. Thomas
will receive a base salary of $250,000, to be applied
retroactively from January 1, 2017. Additionally, (i) at the
signing of the Employment Agreement, Mr. Thomas received a lump
sum cash bonus of $83,000, and (ii) Mr. Thomas is eligible to be
paid incentive bonuses from time to time based on the achievement
of performance goals for Mr. Thomas and the Company as
established by the Compensation Committee of the Companys Board
of Directors (the Committee), in its sole discretion. The
incentive bonuses may be paid in cash, stock and/or stock
options.
In addition, to the Employment Agreement, on March 10, 2017, the
Company granted Mr. Thomas an option to purchase 75,000 shares of
the Companys common stock, at an exercise price of $4.50 per
share. The option immediately vested as to 25,000 shares, and the
remaining 50,000 shares will vest in two equal portions on March
10, 2018 and March 10, 2019. The option will expire five years
from the date of grant.
If Mr. Thomas employment is terminated by the Company without
cause or by him with good reason (as such terms are defined in
the Employment Agreement), Mr. Thomas is entitled to be paid his
base salary for a period of nine months (or until the end of the
term, if earlier), valid expense reimbursements, accrued but
unused vacation pay and earned and previously approved but unpaid
incentive bonuses. If Mr. Thomas employment is terminated due to
his death or disability, he will be entitled to the same amounts,
except he will only be entitled to his base salary through the
date of termination. If Mr. Thomas employment is terminated by
the Company with cause or by him without good reason, Mr. Thomas
will be entitled only to his base salary through the date of
termination, valid expense reimbursements and certain accrued but
unused vacation pay.
The Employment Agreement contains provisions to protect the
Companys intellectual property and confidential information and
provisions to restrict Mr. Thomas ability to compete with the
Company (the latter provisions generally imposing restrictions
during employment and for a period of one thereafter on (i)
ownership or management of, or employment or consultation with,
competing companies, (ii) soliciting employees to terminate their
employment (iii) soliciting business from the Companys customers,
and (iv) soliciting prospective acquisition and investment
candidates for purposes of acquiring or investing in such
entity).
About LONG ISLAND ICED TEA CORP. (NASDAQ:LTEA)
Long Island Iced Tea Corp. is a holding company operating through its subsidiary, Long Island Brand Beverages, LLC (LIBB). The Company is engaged in the production and distribution of Non-Alcoholic Ready-to-Drink (NARTD) iced tea in the beverage industry. It is organized around its brand, Long Island Iced Tea. Long Island Iced Tea is sold primarily on the East Coast of the United States through a network of national and regional retail chains and distributors. The Company produces brewed tea, using black tea leaves, purified water and natural cane sugar or sucralose. The Company’s Long Island Iced Tea’s flavors include lemon, peach, raspberry, guava, mango, diet lemon, diet peach, sweet tea, green tea and honey, and half tea and half lemonade. It also offers lower calorie iced tea in over 12 ounce bottles. The lower calorie flavor options include mango, raspberry and peach. The Company’s products include All-Natural Tea, Diet Tea, Fruit-Flavored Tea, Organic Tea and Herbal Tea. LONG ISLAND ICED TEA CORP. (NASDAQ:LTEA) Recent Trading Information
LONG ISLAND ICED TEA CORP. (NASDAQ:LTEA) closed its last trading session down -0.04 at 3.99 with shares trading hands.