SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG) 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.
|
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangement of Certain Officers. |
Employment Agreement with New Chief Executive Officer
As previously disclosed, the Board of Directors (the Board) of
Sequential Brands Group, Inc. (the Company) has appointed Ms.
Karen Murray to the position of Chief Executive Officer. On March
22, 2017, Ms. Murray and the Company entered into an employment
agreement (the Employment Agreement). The term of the Employment
Agreement runs through March 31, 2020. Under the terms of the
Employment Agreement, Ms. Murray will receive an annual base
salary of $600,000, which may be increased from time to time in
the discretion of the Board. The Employment Agreement also
provides that Ms. Murray will be eligible to participate in the
Companys annual bonus program for executives and will have a
target annual bonus opportunity equal to 100% of her base salary,
based upon the Company achieving certain adjusted EBITDA
performance targets determined by the Board.
In connection with the commencement of her employment, the
Company granted to Ms. Murray 100,000 restricted stock units
vesting in three equal annual installments and 175,000
performance stock units to be eligible for vesting over calendar
years 2017, 2018 and 2019 subject to achievement of performance
goals to be determined by the Board.
The Employment Agreement also provides that Ms. Murray will be
entitled to certain severance benefits if her employment ceases
under specified circumstances. If Ms. Murray is terminated
without cause or resigns for good reason, she will receive (i) an
amount equal to the base salary she would have received if she
had remained employed through the term of the Employment
Agreement, (ii) a pro-rata portion of her annual bonus for the
year of termination, based on actual results for such year, (iii)
subsidized COBRA coverage for up to 18 months and (iv) fully
vesting of any unvested portion of the 100,000 time-based
restricted stock units granted upon her commencement of
employment. Payment of these severance benefits is subject to the
requirement that Ms. Murray execute a release of claims against
the Company and its affiliates. If the Company does not offer Ms.
Murray a new employment agreement that is substantially
comparable to or more favorable than the Employment Agreement and
Ms. Murray resigns at the end of the term of the Employment
Agreement, she will receive continued payment of her base salary
for six months. Finally, the Employment Agreement also contains
customary confidentiality, non-competition, non-solicitation,
intellectual property and indemnification provisions.
The Employment Agreement is attached as Exhibit 10.1 hereto and
is incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit No. | Description |
| 10.1 |
Employment Agreement between Sequential Brands Group, Inc. and Karen Murray, dated March 22, 2017. |
About SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG)
Sequential Brands Group, Inc. owns a portfolio of consumer brands in the fashion, home, athletic and lifestyle categories. The Company’s portfolio of consumer brands includes Martha Stewart, Emeril Lagasse, Jessica Simpson, Joe’s Jeans, William Rast, Ellen Tracy, Revo, AND1 and Avia. The Company’s brands are licensed for a range of product categories, including apparel, footwear, eyewear, fashion accessories and home goods. The Company licenses brands to both wholesale and direct-to-retail licensees. The Company licenses the Martha Stewart brand to various licensees, including retailers, such as Macy’s, The Home Depot, PetSmart and Staples. The Jessica Simpson Collection is a signature lifestyle concept designed in collaboration with Jessica Simpson, which offers various product categories, including footwear, apparel, fragrance, fashion accessories, maternity apparel, girls clothing and a home line. The Avia brand offers running and activewear products. SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG) Recent Trading Information
SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG) closed its last trading session up +0.07 at 3.57 with shares trading hands.