PEN INC. (OTCMKTS:PENC) 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 Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
At a meeting on April 3, 2019, the directors determined the terms of an employment agreement with our President, Tom J. Berman, and elected him to the additional office of CEO of our subsidiary PEN Brands LLC. Mr. Berman’s contract runs through December 31, 2020 at a salary of $12,500 per month for the rest of 2019, increasing to $15,000 per month for 2020. In addition, Mr. Berman is eligible for a bonus of 10% of the amount by which quarterly revenue at PEN Brands exceeds $450,000. Unless he is terminated for cause, Mr. Berman will continue to be eligible for the bonus for a period of two years after his employment ends, but it will reduce to 5% of the quarterly revenue booked after his departure that is above the $450,000 threshold. The bonus is capped at $200,000 in cash for each year, and if the cash cap is reached in either 2019 or 2020, he will vest in options to purchase up to 100,000 shares of our Class A common stock with an option price of $0.55 for that year. Mr. Berman was also awarded options to purchase up to 350,000 shares of our Class A common stock at a price of $0.55 per share. Options to purchase 50,000 shares vested on the date of grant, options to purchase up to 75,000 shares will vest on December 31, 2019, options to purchase 100,000 shares will vest on June 30, 2020, and options to purchase up to 125,000 shares will vest on December 31, 2020. All options have a term of 5 years from date of vesting.
About PEN INC. (OTCMKTS:PENC)
PEN Inc. is engaged in the marketing and sale of products enabled by nanotechnology. The Company develops and sells products based on its portfolio of intellectual property and its products include a portfolio of nano-layer coatings, nano-based cleaners, printable inks and pastes and thermal management materials. Its segments include Product Segment, which is engaged in the development of specialty products utilizing nanotechnology to deliver performance attributes at the surfaces of a range of substrates, and Research and Development Segment, which performs research services. The Company’s products encompass liquid and towelette formulations; anti-fogging liquid and towelette formulations; mar resistant and stain resistant coatings; protective coatings used on display panels and touch screens; protective and water repelling coatings on interior glass, decorated glass panels and shower doors, and coatings for ceramic insulators used in transit and underground subways systems.