PROPHASE LABS, INC. (NASDAQ:PRPH) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of Monica Brady as Chief Accounting Officer
On September 26, 2017, the board of directors (the “Board”) of ProPhase Labs, Inc. (the “Company”) appointed Monica Brady as the Company’s Chief Accounting Officer, effective October 2, 2017. In this capacity, Ms. Brady will serve as the Company’s principal financial officer and principal accounting officer.
Ms. Brady, age 40, has served as the Company’s Director of Finance since 2009.
In connection with Ms. Brady’s appointment as Chief Accounting Officer, Ms. Brady’s annual base salary was increased to $132,000. In addition, on September 26, 2017, Ms. Brady was granted a stock option to purchase 25,000 shares of the Company’s common stock (the “Option Award”). The Option Award has a per share exercise price of $2.15 per share, which was the closing sale price of the Company’s common stock on the grant date, with 25% of the shares vested and exercisable as of the date of grant and the remaining 75% of the shares vesting in three annual installments beginning on September 26, 2018. The Option Award expires on September 26, 2024.
Employment Agreement Termination and Release Agreement with Robert V. Cuddihy, Jr.
On September 27, 2017, the Company entered into an Employment Agreement Termination and Release Agreement with Robert V. Cuddihy, Jr., the Company’s Chief Financial Officer (the “Termination Agreement”). Mr. Cuddihy announced his resignation on August 22, 2017, as described in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 24, 2017.
The Termination Agreement provides that Mr. Cuddihy’s employment agreement will terminate effective as of 5:00 p.m. on September 30, 2017, and that on the expiration of the seven day revocation period from the date Mr. Cuddihy signs the Termination Agreement, and subject to his not having revoked the Termination Agreement prior to that time, the Company will pay Mr. Cuddihy a one-time lump sum payment of $55,000 by October 15, 2017. The Termination Agreement contains a general release of claims in favor of the Company and other customary provisions.
The foregoing summary of the Termination Agreement does not purport to be complete and is qualified in its entirety by reference to the Termination Agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
ProPhase Labs, Inc. ExhibitEX-10.1 2 ex10-1.htm Exhibit 10.1 ProPhase Labs,…To view the full exhibit click
About PROPHASE LABS, INC. (NASDAQ:PRPH)
ProPhase Labs, Inc. is a manufacturer, marketer and distributor of a range of homeopathic and health products. The Company is also engaged in the research and development of over-the-counter (OTC) drugs, natural base health products along with supplements, personal care and cosmeceutical products. It is engaged in manufacturing, distributing, marketing and sale of OTC cold remedy products to consumers through national chain, regional, specialty and local retail stores. It also manufactures, markets and distributes an organic cough drop and a Vitamin C supplement, Organix, and performs contract manufacturing services of cough drop, dietary supplements, and other OTC cold remedy products for third parties. Its product pipeline includes Cold-EEZE Cold Remedy QuickMelts and Cold-EEZE Cold Remedy Oral Spray. It also produces Legendz XL for sexual health, Triple Edge XL, which is a daily energy booster plus testosterone support, and Super ProstaFlow Plus for prostate and urinary health.