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 Letter with President
As previously disclosed effective October 7, 2019, Chad Wagenheim was appointed as President of Sequential Brands Group, Inc. (the “Company” or “Sequential”).
On January 24, 2020, Mr. Wagenheim and the Company entered into an employment letter that amended his previous employment arrangements (such terms as amended, the “Letter”). Mr. Wagenheim’s employment with the Company is at will unless and until terminated as provided in the Letter. Under the terms of the Letter, Mr. Wagenheim will receive an annual base salary of $450,000, effective July 1, 2019, which may be increased from time to time at the discretion of the Compensation Committee of the Board. The Letter also provides that Mr. Wagenheim will be eligible to participate in the Company’s annual bonus program and will have a target annual bonus opportunity equal to 100% of his base salary, based upon the Company achieving certain performance or financial targets to be determined by the Board. In recognition of his promotion and his extraordinary individual performance during 2019, Mr. Wagenheim will receive a discretionary bonus of $325,000 (the “Discretionary Bonus”). In recognition of his valuable services to the Company, Mr. Wagenheim also will receive a long-term cash incentive bonus of $250,000 (the “LTI Bonus”) in lieu of a stock grant, to be paid in two installments as follows: (a) $62,500 upon execution of the Letter; and (b) $187,500 on October 1, 2020. The Letter also provides that if Mr. Wagenheim is terminated without cause, he will receive an amount equal to his annual base salary, plus the LTI Bonus. Payment of the severance is subject to the requirement that Mr. Wagenheim execute a release of claims against the Company and its affiliates. The Letter is attached as Exhibits 10.1, 10.2 and 10.3 hereto, each of which is incorporated herein by reference.
Updated Employment Terms with Interim Chief Financial Officer
As previously disclosed, Daniel Hanbridge, the Company’s Senior Vice President & Interim Chief Financial Officer, will receive a long-term incentive bonus of $50,000 in lieu of a stock grant. The payment installments for such bonus were amended to be paid in two installments as follows: (a) $12,500 immediately; and (b) $37,500 by October 1, 2020.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description | |
| 10.1 | Employment Letter between Sequential Brands Group, Inc. and Chad Wagenheim, dated January 24, 2020. | |
| 10.2 | Employment Letter between Sequential Brands Group, Inc. and Chad Wagenheim, dated June 5, 2017. | |
| 10.3 | Employment Letter between Sequential Brands Group, Inc. and Chad Wagenheim, dated October 13, 2014. | |
Sequential Brands Group, Inc. Exhibit
EX-10.1 2 tm206057d1_ex10-1.htm EXHIBIT 10.1 Exhibit 10.1 January 24,…
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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.