VAPOR CORP. (OTCMKTS:VPCO) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
The information set forth below under Item 5.02 is hereby
incorporated by reference into this Item 1.01.
Item 5.02 Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
Effective as of December 12, 2016, Gina Hicks resigned from her
position as the Chief Financial Officer of Vapor Corp. (the
Company). Effective as of December 12,
2016, the Company has appointed John A. Ollet, 54, to serve as
the Companys new Chief Financial Officer.
Mr. Ollet previously served as Executive Vice President-Finance
for Systemax, Inc. (NYSE:SYX) from 2006 to 2016. His prior chief
financial officer experience also includes serving as Vice
President and Chief Financial Officer of Arrow Cargo Holdings,
Inc., an airline logistics company, and VP Finance /CFO – The
Americas – Cargo Division, KLM Royal Dutch Airlines, an airline
company. He also previously served as Vice President
Finance/Administration at Sterling-Starr Maritime Group, Inc. and
served on the audit staff of Arthur Andersen Co. Mr. Ollet
received a bachelors degree in Finance/Economics and a masters
degree in business administration from Florida International
University. Mr. Ollet is a Certified Public Accountant.
In connection with Mr. Ollets appointment as Chief Financial
Officer of the Company, the Company and Mr. Ollet entered into an
Employment Agreement, dated December 12, 2016 (the
Employment Agreement). The Employment
Agreement has a term of three years. Mr. Ollets initial base
salary shall be $180,000 per year. Mr. Ollet shall be eligible to
receive (i) a one-time sign-on bonus of $5,500 and (ii) options
to acquire 1,000,000,000 shares of the Companys common stock,
which options will vest in four equal installments on each of May
15, 2017, November 15, 2017, May 15, 2018 and November 15, 2018,
provided that Mr. Ollet is employed by the Company on each such
date. Mr. Ollet shall also be entitled to bonuses and other
incentives at the discretion of the Company, based in part on Mr.
Ollets performance.
During the employment period, Mr. Ollets employment with the
Company may be terminated by the Company for Cause (as defined in
the Employment Agreement) or by Mr. Ollet at any time and for any
reason. In the event the Company terminates Mr. Ollets employment
for any reason other than for Cause, then the Company shall pay
to Mr. Ollet (i) his accrued but unpaid salary and accrued but
unused vacation time, (ii) any declared bonuses and (iii)
severance payments for the applicable Severance Period (as
defined in the Employment Agreement).
The Employment Agreement also contains customary non-solicitation
and confidentiality provisions.
Mr. Ollet does not have a family relationship with any of the
current officers or directors of the Company. Other than the
Employment Agreement, there are no arrangements or understandings
between Mr. Ollet and any other person to which Mr. Ollet was
appointed to serve as the Chief Financial Officer. There is no
currently proposed transaction, and there has not been any
transaction, involving the Company and Mr. Ollet which was a
related person transaction within the meaning of Item 404(a) of
Regulation S-K.
The above description of the terms of the Employment Agreement
are not complete and are qualified by reference to the complete
document, which is attached hereto as Exhibit 10.1 and
incorporated herein by reference.
Item 7.01. Regulation FD Disclosure
On December 15, 2016, 2016, the Company issued a press release
(the Press Release) announcing the
appointment of Mr. Ollet as Chief Financial Officer of the
Company. A copy of the Press Release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
to the rules and regulations of the Securities and Exchange
Commission, the information in this Item 7.01 disclosure,
including Exhibit 99.1 and the information set forth therein, is
deemed to have been furnished and shall not be deemed to be filed
under the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit | ||
| Number | Description | |
| 10.1 |
Employment Agreement, dated December 12, 2016, by and between the Company and John A. Ollet |
|
| 99.1 | Press Release, dated December 15, 2016 |
About VAPOR CORP. (OTCMKTS:VPCO)
Vapor Corp. (Vapor) is a distributor and retailer of vaporizers, e-liquids and electronic cigarettes. The Company operates approximately 20 retail stores in the Southeast of the United States. It also designs, markets and distributes vaporizers, e-liquids, electronic cigarettes and accessories under the Vapor X, Hookah Stix, Vaporin, Krave and Honey Stick brands. Vapor also designs and develops private label brands for distribution customers. Third-party manufacturers produce Vapor’s products to meet their design specifications. Vapor offers e-liquids, vaporizers, e-cigarettes and related products through its vape stores, online, retail channels through its direct sales force, and through third-party wholesalers, retailers and value-added resellers. Retailers of its products include small-box discount retailers, gas stations, drug stores, convenience stores, and tobacco shops throughout the United States. It offers its products in multiple nicotine strengths, flavors and puff counts. VAPOR CORP. (OTCMKTS:VPCO) Recent Trading Information
VAPOR CORP. (OTCMKTS:VPCO) closed its last trading session 00.00000 at 0.00007 with 73,713,659 shares trading hands.