Superior Uniform Group, Inc. (NASDAQ:SGC) Files An 8-K Entry into a Material Definitive Agreement
Item1.01. Entry Into a Material Definitive Agreement.
As previously reported in a Current Report on Form 8-K filed on
February 27, 2017, Alan Schwartz, President and a member of the
Board of Directors of Superior Uniform Group, Inc. (the Company),
intends to retire from his position as President of the Company,
effective as of the close of business on March 31, 2017. Mr.
Schwartz will remain a director through and after such date.
In connection with Mr. Schwartzs retirement, the Company entered
into a Retirement and Consulting Agreement with Mr. Schwartz,
effective as of March, 8, 2017 (the Consulting Agreement). to the
Consulting Agreement, Mr. Schwartz will dedicate specified
amounts of time to providing the Company with consulting services
after he retires from his position as President of the Company
including, but not limited to: (1) advising on business strategy;
(2) mentoring Company executives; and (3) assisting with the
transition of customer accounts to others within the Company.
Mr. Schwartz will provide these services to the Company for a
period of three (3) years from his retirement date, unless the
Consulting Agreement is earlier terminated in accordance with its
terms. Mr. Schwartz may terminate the Consulting Agreement upon
thirty (30) days prior written notice to the Company, and the
Company may terminate the Consulting Agreement upon five (5) days
prior written notice to Mr. Schwartz. In addition the Consulting
Agreement automatically terminates if Mr. Schwartz dies or
becomes disabled, and the Company may terminate the Consulting
Agreement upon two (2) business days notice to Mr. Schwartz if:
(1) Mr. Schwartz is convicted of or pleads nolo contendere to, a
crime constituting a felony; (2) Mr. Schwartz failed
substantially to perform his duties under the Consulting
Agreement; or (3) Mr. Schwartz engages in illegal conduct or
gross misconduct which causes economic harm to the Company.
The Company will pay Mr. Schwartz a monthly fee in arrears for
his services to the terms of the Consulting Agreement. The fee
schedule is as follows:
| Year | Fee ($/month) |
|
|
$43,027.63 |
|
|
$30,983.47 |
|
|
$20,745.94 |
to the terms of the Consulting Agreement, Mr. Schwartz is subject
to certain covenants, including, but not limited to, covenants
regarding noncompetition, nonsolicitation, insider trading, and
confidential information.
The foregoing summary does not purport to be complete and is
qualified in its entirety by reference to the Consulting
Agreement, a copy of which is attached hereto as Exhibit 10.1 and
incorporated by reference herein.
Item9.01. Financial Statements and
Exhibits.
|
|
(d) |
Exhibits: |
| 10.1 |
Retirement and Consulting Agreement, dated March 8, 2017, between Superior Uniform Group, Inc. and Alan D. Schwartz. |
About Superior Uniform Group, Inc. (NASDAQ:SGC)
Superior Uniform Group, Inc. (Superior) manufactures and sells a range of uniforms, corporate identity apparel, career apparel and accessories for the medical and health fields, as well as for the industrial, commercial, leisure and public safety markets. Superior operates through two segments: Uniforms and Related Products, and Remote Staffing Solutions. The Uniforms and Related Products segment consists of the sale of uniforms and related items. Its principal products are uniforms and service apparel, and related products for personnel of hospitals and health facilities; hotels, commercial buildings, residential buildings and food service facilities; retail stores; general and special purpose industrial uses; commercial enterprises, such as career apparel for banks and airlines; public and private safety and security organizations, and for miscellaneous service uses. The Remote Staffing Solutions segment consists of sales of staffing solutions. Superior Uniform Group, Inc. (NASDAQ:SGC) Recent Trading Information
Superior Uniform Group, Inc. (NASDAQ:SGC) closed its last trading session up +0.03 at 17.02 with 22,527 shares trading hands.