|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange on Which
Registered
|
||
|
|
The
|
||
|
|
The
|
Large accelerated filer ☐
|
|
Non-accelerated filer ☐
|
Smaller reporting company
|
Emerging growth company
|
PAGE
|
||
PART III
|
||
Item 10.
|
1
|
|
Item 11.
|
9
|
|
Item 12.
|
20
|
|
Item 13.
|
22
|
|
Item 14.
|
23
|
|
PART IV
|
||
Item 15.
|
24
|
Item 10. |
Directors, Executive Officers and Corporate Governance.
|
Name
|
Age
|
Position
|
Irwin D. Simon
|
65
|
Executive Chairman of the Board of Directors
|
Anuraag Agarwal
|
49
|
Director
|
Steven M. Cohen
|
60
|
Director
|
Denise M. Faltischek
|
51
|
Director
|
Michael E. Franklin
|
28
|
Director
|
Michael F. Goss
|
64
|
Director
|
Ira J. Lamel
|
76
|
Director
|
Rajnish Ohri
|
62
|
Co-Chief Executive Officer
|
Jeffrey Robinson
|
60
|
Co-Chief Executive Officer
|
Bernardo Fiaux
|
34
|
Chief Financial Officer
|
Brian Litman
|
56
|
Chief Accounting Officer
|
Name
|
Audit Committee
|
Compensation
Committee
|
Nominating and
Corporate Governance
Committee
|
|||
Irwin D. Simon
|
||||||
Anuraag Agarwal
|
*
|
*
|
||||
Steven M. Cohen
|
*
|
*
|
||||
Denise M. Faltischek
|
+
|
|||||
Michael Franklin
|
||||||
Michael F. Goss
|
+
|
*
|
||||
Ira J. Lamel
|
+
|
*
|
* |
Committee Member
|
+ |
Committee Chair
|
• |
appointing an independent registered public accounting firm to act as our independent auditor;
|
• |
discussing with our independent registered public accounting firm their independence from management;
|
• |
evaluating the independent auditor’s qualifications, independence and performance;
|
• |
reviewing the independent’s auditor’s quality control procedures and evaluating the lead partner of the independent auditor;
|
• |
determining the engagement of the independent auditor;
|
• |
reviewing and approving the scope and timing of the annual audit and the audit fee for all audit service and non-audit services;
|
• |
reviewing and discussing with management and the independent auditor the results of the annual audit and the review of our quarterly financial statements;
|
• |
approving the retention of the independent auditor to perform any proposed permissible non-audit services;
|
• |
monitoring the rotation of partners of the independent auditor on our engagement team in accordance with requirements established by the SEC;
|
• |
reviewing our financial statements and our management’s discussion and analysis of financial condition and results of operations to be included in our periodic reports to be
filed with the SEC;
|
• |
meeting with the independent auditor prior to the audit to discuss the overall audit strategy, planning and staffing of the audit;
|
• |
reviewing our critical accounting policies and practices; and
|
• |
reviewing and evaluating, at least annually, the performance of the Audit Committee and its members, including compliance by the Audit Committee with its charter.
|
• |
periodically reviewing and advising our Board on the company’s overall compensation philosophy, policies, and plans;
|
• |
reviewing and recommending to our Board the compensation of our Co-Chief Executive Officers, including the corporate goals and objectives applicable to, and an evaluation of
the performance of, our Co-Chief Executive Officers;
|
• |
reviewing and approving the compensation of all other executive officers;
|
• |
recommending to our Board the establishment and terms of our incentive compensation and equity-based plans;
|
• |
approving grants of options and other equity awards to all executive officers under our equity compensation plans;
|
• |
reviewing and recommending to our Board regarding director compensation; and
|
• |
reviewing and evaluating, at least annually, the performance of the Compensation Committee and its members, including compliance by the Compensation Committee with its charter.
|
•
|
recommending director nominees for election to our Board;
|
•
|
recommending board size and composition to our Board;
|
•
|
recommending to our Board the qualifications, appointment, and removal of committee members;
|
•
|
reviewing, at least annually, our compliance with the Nasdaq corporate governance listing requirements;
|
•
|
overseeing our corporate governance policies and succession planning;
|
•
|
reporting and making recommendations to our Board concerning governance matters;
|
•
|
overseeing the Company’s environmental, social and governance initiatives; and
|
• |
reviewing and evaluating, at least annually, the performance of the Nominating and Corporate Governance Committee and its members, including compliance by the Nominating and
Corporate Governance Committee with its charter.
|
• |
knowledge of consumer-packaged goods/food products industries, particularly in branded food, nutrition and snacking, but principally in industries oriented to consumer products;
|
• |
accounting or related financial management expertise;
|
• |
experience executing growth and merger and acquisition strategies, to support the strategic plan of the Company;
|
• |
international exposure and diversity of cultural background and experience with global markets;
|
• |
leadership experience at an executive level with understanding of the development and implementation of strategies; and
|
• |
high-level marketing and social media experience.
|
Named Executive Officer
|
Title
|
|
Rajnish Ohri
|
Co-Chief Executive Officer since July 16, 2023
|
|
Jeffrey Robinson
|
Co-Chief Executive Officer since July 16, 2023
|
|
Michael Franklin*
|
Former Chief Executive Officer from January 1,
2023 to July 16, 2023
|
|
Bernardo Fiaux
|
Chief Financial Officer since April 25, 2023
|
|
Brian Litman
|
Chief Accounting Officer
|
• |
Align the interests of our executives with the interests of our stockholders;
|
• |
Prioritize implementation of pay for performance;
|
• |
Promote the creation of long-term stockholder value;
|
• |
Attract, motivate and retain key employees with outstanding talent and competency;
|
• |
Structure executive compensation in a manner that promotes our strategic, financial and operating performance objectives; and
|
• |
Reward performance, with a meaningful portion of compensation tied to the Company’s financial, operational and strategic goals.
|
Nature’s Sunshine Products, Inc.
|
The Simply Good Foods Company
|
Beyond Meat, Inc.
|
Sunopta Inc.
|
J&J Snack Foods
|
E.L.F. Beauty, Inc.
|
Bellring Brands, Inc.
|
John B. Sanfilippo & Son
|
MGP Ingredients, Inc.
|
Hostess Brands, Inc.
|
Farmer Bros. Co.
|
Freshpet, Inc.
|
Utz Brands, Inc.
|
Element
|
Fixed or Variable
|
Purpose & Design Features
|
||
Base Salary
|
Fixed
|
To attract and retain executives by offering fixed compensation that is competitive with market opportunities and that recognizes each executive’s position,
role, responsibility and experience.
|
||
Annual Performance-Based
Incentive
|
Variable
|
To motivate and reward the achievement of our annual performance goals, based on the attainment of pre-defined financial performance objectives.
|
||
Equity Awards
|
Variable
|
To align executives’ interests with the interests of stockholders through equity-based compensation with performance-based and time-based vesting periods and
to promote the long-term retention of our executives and other key management personnel.
|
||
Benefits
|
Fixed
|
To provide attractive benefits that promote employee (and potentially family) health and wellness. Benefits are provided at a level that is the same or
similar to all employees, unless otherwise noted below.
|
Executive & Title
|
2023 Base Salary*
|
|||
Rajnish Ohri, Co-Chief Executive Officer(1)
|
$
|
500,000
|
||
Jeffrey Robinson, Co-Chief Executive Officer
|
$
|
600,000
|
||
Michael Franklin, Former Chief Executive Officer(2)
|
$
|
50,000
|
||
Bernardo Fiaux, Chief Financial Officer
|
$
|
325,000
|
||
Brian Litman, Chief Accounting Officer
|
$
|
351,900
|
* |
These amounts represent the executive’s annual base salary as of December 31, 2023, except in the case of Mr. Franklin, whose
amount represents his annual base salary as of October 6, 2023 (the date he resigned from his employment with the Company).
|
Name and
Principal
Position
|
Year
|
Salary
|
Bonus
|
Stock
Awards(1)
|
Non-Equity
Incentive Plan
Compensation(2)
|
All Other
Compensation(3)
|
Total
|
|||||||||||||||||||
Rajnish Ohri
Co-CEO
|
2023(4)
|
$
|
394,405
|
$
|
0
|
$
|
1,226,907
|
$
|
588,500
|
$
|
63,248
|
$
|
2,273,060
|
|||||||||||||
Jeffrey Robinson
Co-CEO
|
2023
|
$
|
548,475
|
$
|
0
|
$
|
393,900
|
$
|
812,988
|
$
|
66,085
|
$
|
1,821,448
|
|||||||||||||
2022
|
$
|
392,925
|
$
|
0
|
$
|
783,443
|
$
|
0
|
$
|
87,619
|
$
|
1,263,987
|
||||||||||||||
Michael Franklin
Former CEO(5)
|
2023
|
$
|
40,572
|
$
|
0
|
$
|
3,474,764
|
|
$
|
0
|
$
|
43,333
|
$
|
3,558,669
|
||||||||||||
Bernardo Fiaux
Chief Financial Officer
|
2023
|
$
|
218,750
|
$
|
0
|
$
|
682,715
|
$
|
264,100
|
$
|
13,148
|
$
|
1,178,713
|
|||||||||||||
Brian Litman
Chief Accounting Officer
|
2023
|
$
|
348,925
|
$
|
0
|
$
|
449,544
|
$
|
244,346
|
$
|
16,869
|
$
|
1,059,684
|
(1) |
The grant date fair market value of each equity award was computed in accordance with FASB ASC Topic 718. These equity numbers include the
annual LTIP award grants, the retention grants made in May 2023, the sign-on grant for Mr. Fiaux and the sign-on grant for Mr. Franklin (which was forfeited without vesting when Mr. Franklin resigned from his employment with the Company
in October 2023).
|
(2) |
The 2023 amounts in this column reflect the payment of the 2023 annual performance bonus which was paid in cash in March 2024.
|
(3) |
Amounts in this column include:
|
Name and
Principal Position
|
Year
|
401(k) Match
|
Health & Welfare
Insurance(6)
|
Car Allowance
|
Board Fees
|
Total All Other
Compensation
|
||||||||||||||||
Rajnish Ohri
|
2023
|
$
|
0
|
$
|
0
|
$
|
63,248
|
$
|
0
|
$
|
63,248
|
|||||||||||
Jeffrey Robinson
|
2023
|
$
|
26,400
|
$
|
34,685
|
$
|
5,000
|
$
|
0
|
$
|
66,085
|
|||||||||||
|
2022 |
$
|
24,400
|
$
|
56,559
|
$
|
6,660
|
$
|
0
|
$
|
87,619
|
|||||||||||
Michael Franklin
|
2023
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
43,333
|
$
|
43,333
|
|||||||||||
Bernardo Fiaux
|
2023
|
$
|
5,500
|
$
|
7,648
|
$
|
0
|
$
|
0
|
$
|
13,148
|
|||||||||||
Brian Litman
|
2023
|
$
|
13,957
|
$
|
2,912
|
$
|
0
|
$
|
0
|
$
|
16,869
|
(4) |
Mr. Ohri is paid in United Arab Emirates dirhams. Mr. Ohri’s 2023 compensation has been converted to U.S. dollars based on the Financial Times December 29, 2023 exchange rate of 1 AED = $0.2723.
|
(5) |
Mr. Franklin received cash compensation in May 2023 for his service as a director in 2022. Mr.
Franklin ceased to serve as the Company’s Chief Executive Officer effective as of July 16, 2023, and therefore ceased to be an NEO
as of that date.
|
(6) |
This amount also includes Health Savings Account (HSA) contributions made by the Company.
|
Name
|
Grant
Date
|
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
|
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
|
Option
Exercise
Price ($)
|
Option
Expiration
Date
|
Number
of
Shares or
Units of
Stock
That Have
Not Vested (#)
|
Market Value of
Shares or
Units of Stock
That Have Not
Vested
($)
|
Equity
Incentive
Plan Awards:
Number of
Unearned
Shares,
Units
or Other
Rights That
Have Not
Vested
(#)(1)
|
Equity Incentive
Plan Awards:
Market or Payout
Value of Unearned
Shares, Units or
Other Rights That
Have Not Vested
($)(2)
|
||||||
Rajnish Ohri
|
3/18/2021
|
18,012
|
$
|
61,421
|
|||||||||||
|
3/24/2022
|
35,638
|
$
|
121,526
|
|||||||||||
|
5/1/23
|
69,576
|
$
|
237,254
|
|||||||||||
|
5/9/23
|
126,093
|
$
|
429,977
|
|||||||||||
|
8/1/23
|
187,032
|
$
|
637,779
|
|||||||||||
Jeffrey Robinson
|
3/18/2021
|
23,639
|
$
|
80,609
|
|||||||||||
|
3/24/2022
|
44,889
|
$
|
153,071
|
|||||||||||
|
5/9/23
|
158,831
|
$
|
541,6.14
|
|||||||||||
Michael Franklin(3)
|
0
|
$
|
0
|
||||||||||||
Bernardo Fiaux
|
5/1/23
|
289,286
|
$
|
986,465
|
|||||||||||
Brian Litman
|
3/18/21
|
9,433
|
$
|
32,167
|
|||||||||||
|
9/28/21
|
1,022
|
$
|
3,485
|
|||||||||||
|
3/24/22
|
29,351
|
$
|
100,087
|
|||||||||||
|
5/1/23
|
46,417
|
$
|
158,282
|
|||||||||||
|
5/9/23
|
137,097
|
$
|
467,500
|
(1) |
Each NEO has been granted time-based restricted stock units (“RSUs”) and
performance-based restricted stock units (“PSUs”) under the 2020 LTIP. Generally, the RSUs will become vested in three equal annual installments
over the three years following the grant date (except for the May 1, 2023 grants to Mr. Ohri and Mr. Litman, which will vest two years following the grant date). Generally, the PSUs will become vested on the third anniversary of the grant
date, which vesting is also subject to the achievement by the Company of certain financial performance criteria, with a vesting range of 0% to 200%. Both the RSUs and the PSUs will settle in shares of Company Common Stock on a one-for-one
basis, subject to the grantee’s continued employment with the Company, on the applicable vesting dates (upon an involuntary termination of employment without “cause,” RSUs will vest in full and PSUs will vest on a pro rata basis, with the
ultimate pay out being made at the end of the performance period based on the Company’s actual performance, except that the PSUs will be forfeited if the termination without “cause” occurs prior to 12 months after the grant date). In the
event of a voluntary termination by the grantee prior to the vesting date, all RSUs and PSUs subject to an award will be forfeited.
|
(2) |
Market value of stock computed by multiplying the closing market price of FREE stock on December 29, 2023 ($3.41) by the number of RSUs or PSUs granted.
|
(3) |
In connection with his resignation, Mr. Franklin’s outstanding unvested equity awards were forfeited.
|
• |
an annual cash retainer of $65,000;
|
• |
an annual restricted stock award with a value of $65,000;
|
• |
an annual cash retainer of $500,000 for the Executive Chairman of the Board; and
|
• |
an annual restricted stock award with a value of $250,000 for the Executive Chairman of the Board.
|
Name
|
Stock
Awards ($)(1)
|
Fees Earned or Paid in Cash ($)
|
Total ($)
|
|||||||||
Irwin D. Simon
|
$
|
250,000
|
$
|
500,000
|
$
|
750,000
|
||||||
Anuraag Agarwal
|
$
|
65,002
|
$
|
65,000
|
$
|
130,002
|
||||||
Steven M. Cohen
|
$
|
65,002
|
$
|
65,000
|
$
|
130,002
|
||||||
Denise M. Faltischek
|
$
|
65,002
|
$
|
65,000
|
$
|
130,002
|
||||||
Michael E. Franklin(2)
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Michael F. Goss(3)
|
$
|
65,002
|
$
|
32,500
|
$
|
97,502
|
||||||
Ira J. Lamel
|
$
|
65,002
|
$
|
65,000
|
$
|
130,002
|
(1) |
The amounts in this column represent the aggregate grant date fair market value of restricted
stock awards granted to each non-employee director, computed in accordance with FASB ASC Topic 718. The value represents the number of shares issued (61,425 for Mr. Simon and 15,971 for the other directors) multiplied by the closing price
on July 15, 2023, the date of grant ($4.07).
|
(2) |
Mr. Franklin joined the Board in August 2022 (prior to his appointment as Interim Chief Executive Officer on January 1, 2023) and did not receive any director compensation in
2022 for his Board service in 2022. Mr. Franklin received $43,333 in cash compensation in May 2023 for his service as a director in 2022. In accordance with SEC rules, this amount is included as “All Other Compensation” for Mr. Franklin in
the Summary Compensation Table above.
|
(3) |
Mr. Goss was elected to the Board on June 8, 2023. He received an annual restricted stock award (along with all other directors) on July 15,
2023 and a pro rata annual cash retainer for 2023.
|
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|
• |
each person known by the Company to be the beneficial owner of more than five percent of the outstanding Company Common Stock;
|
• |
each of the Company’s executive officers;
|
• |
each of the Company’s directors; and
|
• |
all of the Company’s executive officers and directors as a group.
|
Name of Beneficial Owner
|
Number of Shares
Beneficially Owned
|
Percentage of Shares
Beneficially Owned
|
||||||
Holders of More than 5%:
|
||||||||
Entities affiliated with Sababa Holdings FREE, LLC(1)
|
8,905,223
|
20.58
|
%
|
|||||
Hilary L. Shane Revocable Trust(2)
|
3,242,353
|
7.49
|
%
|
|||||
Beryl Capital Management LLC(3)
|
3,118,138
|
7.21
|
%
|
|||||
Named Executive Officers and Directors:
|
||||||||
Irwin D. Simon(4)
|
1,262,970
|
2.91
|
%
|
|||||
Anuraag Agarwal(5)
|
53,627
|
*
|
||||||
Steven M. Cohen(6)
|
38,627
|
*
|
||||||
Denise M. Faltischek(7)
|
43,627
|
*
|
||||||
Michael Franklin(8)
|
—
|
*
|
||||||
Michael F. Goss(9)
|
15,971
|
*
|
||||||
Ira J. Lamel(10)
|
190,405
|
*
|
||||||
Rajnish Ohri(11)
|
133,232
|
*
|
||||||
Jeffrey Robinson(12)
|
153,522
|
*
|
||||||
Bernardo Fiaux(13)
|
189,286
|
*
|
||||||
Brian Litman(14)
|
88,052
|
*
|
||||||
All current executive officers and directors as a group (11 persons)
|
2,169,319
|
4.97
|
%
|
(1) |
Based solely on information reported on a Schedule 13D/A filed on February 12, 2024 by Sir Martin E. Franklin (“Sir Martin”), Martin E. Franklin Revocable Trust (the “Franklin Trust”) and Sababa. Sababa, of which Sir Martin is the
manager, is the direct holder of 8,905,223 shares of Company Common Stock. Sir Martin and the Franklin Trust beneficially own and have shared voting and dispositive power over all such shares held by Sababa. The principal business address
of Sababa is 500 South Pointe Drive, Suite 240, Miami Beach, Florida 33139.
|
(2) |
Based solely on information reported on a Schedule 13G filed on February 13, 2024 by Hilary L. Shane Revocable Trust and Hilary L. Shane. Hilary L. Shane Revocable Trust is the
direct holder of 3,242,353 shares of Company Common Stock. Hilary L. Shane has shared voting and dispositive power over all such shares held by Hilary L. Shane Revocable Trust. The principal business address of Hilary L. Shane Revocable
Trust is 78 Lighthouse Drive, Jupiter, Florida 33469.
|
(3) |
Based solely on information reported on a Schedule 13G filed on March 28, 2024 by Beryl Capital Management LLC (“Beryl”), Beryl Capital Management LP (“Beryl GP”), Beryl Capital Partners II LP (the “Beryl Partnership”) and David A. Witkin. Beryl is the investment adviser to certain funds and other accounts. Beryl is the general partner of Beryl GP, which is the
general partner of one or more of the funds. Mr. Witkin is the control person of Beryl. The principal business address of Beryl, Beryl GP, the Beryl Partnership and Mr. Witkin is 225 Avenue I, Suite 205, Redondo Beach, CA 90277.
|
(4) |
Consists of (i) 1,165,625 shares of Company Common Stock held by Mr. Simon and (ii) 97,345 shares of Company Common Stock underlying restricted stock awards held by Mr. Simon
that are subject to vesting.
|
(5) |
Consists of (i) 28,317 shares of Company Common Stock held by Mr. Agarwal and (ii) 25,310 shares of Company Common Stock underlying restricted stock awards held by Mr. Agarwal
that are subject to vesting.
|
(6) |
Consists of (i) 13,317 shares of Company Common Stock held by Mr. Cohen and (ii) 25,310 shares of Company Common Stock underlying restricted stock awards held by Mr. Cohen that
are subject to vesting.
|
(7) |
Consists of (i) 18,317 shares of Company Common Stock held by Ms. Faltischek and (ii) 25,310 shares of Company Common Stock underlying restricted stock awards held by Ms.
Faltischek that are subject to vesting.
|
(8) |
Michael E. Franklin is the son of Sir Martin. Sir Martin does not control or influence Michael E. Franklin and Sir Martin is
not controlled or influenced by Michael E. Franklin. Michael E. Franklin holds a non-voting profits interest in Sababa.
|
(9) |
Consists of 15,971 shares of Company Common Stock underlying restricted stock awards held by Mr. Goss that are subject to vesting.
|
(10) |
Consists of (i) 165,095 shares of Company Common Stock held by Mr. Lamel and (ii) 25,310 shares of Company Common Stock underlying restricted stock awards held by Mr. Lamel
that are subject to vesting.
|
(11) |
Consists of (i) 112,219 shares of Company Common Stock held by Mr. Ohri and (ii) 21,013 shares of Company Common Stock underlying restricted stock unit awards held by Mr. Ohri
that will vest within 60 days of April 22, 2024.
|
(12) |
Consists of (i) 127,054 shares of Company Common Stock held by Mr. Robinson and (ii) 26,468 shares of Company Common Stock underlying restricted stock unit awards held by Mr.
Robinson that will vest within 60 days of April 22, 2024.
|
(13) |
Consists of (i) 100,000 shares of Company Common Stock held by Mr. Fiaux and (ii) 62,500 shares of Company Common Stock underlying restricted stock unit awards held by Mr.
Fiaux and (iii) 26,786 shares of Company Common Stock underlying performance-based restricted stock unit awards held by Mr. Fiaux that will vest within 60 days of April 22, 2024.
|
(14) |
Consists of (i) 65,205 shares of Company Common Stock held by Mr. Litman and (ii) 22,847 shares of Company Common Stock underlying restricted stock unit awards held by Mr.
Litman that will vest within 60 days of April 22, 2024.
|
Number of securities to be
issued upon exercise of
outstanding options, warrants
and rights(1)
|
Weighted average exercise
price per share of outstanding
options, warrants and rights(2)
|
Number of securities
remaining available for future
issuance under equity
compensation plans (excluding
securities reflected in column
(a))(3)
|
||||||||||
Plan Category
|
(a)
|
(b)
|
(c)
|
|||||||||
Equity compensation plans approved by security holders
|
3,861,587
|
$
|
—
|
9,063,205
|
||||||||
Equity compensation plans not approved by security holders
|
—
|
$
|
—
|
—
|
||||||||
Total
|
3,861,587
|
9,063,205
|
(1) |
Includes 214,556 RSAs, 2,116,671 RSUs and 1,530,360 PSUs outstanding under the 2020 LTIP.
|
(2) |
There are no amounts provided under this column because only RSAs, RSUs and PSUs have been granted and these types of awards do
not require the payment of any consideration by the award recipients.
|
(3) |
Awards issuable under the 2020 LTIP include stock options, stock appreciation rights, stock awards, stock units, performance units and other stock-based awards. Amount in column (c) also includes
2,100,000 shares available for issuance under the Company’s 2023 Employee Stock Purchase Plan, or ESPP. To date, no offering period or purchase period under the ESPP has begun.
|
Item 13. |
Certain Relationships and Related Transactions, and Director Independence.
|
• |
Parent is controlled by Sir Martin, the father of Mr. Franklin. Additionally, Mr. Franklin holds a non-voting profits interest in Sababa, which
is an affiliate of Parent and Merger Sub. Mr. Franklin also has the title of Partner in Mariposa, which is the manager of Parent and Merger Sub. The Company has been advised by Parent that, following the consummation of the Merger, Mr.
Franklin may have a senior management position with the Surviving Company.
|
• |
On February 12, 2024, Mr. Simon entered into a consulting agreement with Parent and the Company, pursuant to which Mr. Simon will provide certain transitional services to the Company following the
consummation of the Merger for a term of six months, unless extended or renewed, and will be entitled to a consulting fee of $1.4 million to be paid on the closing date of the Merger.
|
• |
Certain executive officers including Mr. Ohri, Mr. Robinson, Mr. Fiaux, and Mr. Litman have entered into Transaction Bonus Agreements with the
Company under which they are eligible to receive a cash bonus contingent upon the closing of a “Change in Control” of the Company (as defined in the Transaction Bonus Agreements), so long as such Change in Control occurs on or before
December 31, 2024. For more information regarding the Transaction Bonus Agreements, see Potential Payments Upon Termination or Change in Control
above.
|
• |
Each member of the Board, with the exception of Mr. Franklin, received a special one-time fee for their services in connection with the Merger (for Mr. Simon, this fee was in the amount of $100,000; for Mr. Cohen, this fee was in the amount of $130,000; for Ms. Faltischek, this fee was in the amount of $120,000; for Mr. Lamel, this fee was in the amount of $35,000;
and for Mr. Agarwal and Mr. Goss, this fee was in the amount of $25,000).
|
• |
The vesting of certain unvested equity awards held by certain of our directors and executive officers will accelerate upon the effectiveness of the Merger.
|
• |
Each of our directors and officers are entitled to continued indemnification and insurance coverage under the Merger Agreement and indemnification agreements between us and such individuals.
|
Item 14. |
Principal Accounting Fees and Services.
|
Type of Fees
|
2022
|
2023
|
||||||
Audit Fees(1)
|
$
|
2,226,854
|
$
|
2,797,329
|
||||
Audit-Related Fees (2)
|
-
|
-
|
||||||
Tax Fees(3)
|
39,455
|
21,907
|
||||||
All Other Fees(4)
|
3,600
|
3,600
|
||||||
Total
|
$
|
2,269,909
|
$
|
2,822,836
|
(1) |
Audit Fees are fees for professional services rendered in connection with the audit of our consolidated financial statements included in Item 8 of our Annual Reports filed on
Form 10-K, reviews of our condensed consolidated financial statements included in our Quarterly Reports filed on Form 10-Q, statutory filings and registration statements.
|
(2) |
Audit-Related Fees are fees for services related to employee benefit plan audits, accounting consultation and compliance with regulatory requirements.
|
(3) |
Tax Fees are for services related to tax compliance, tax planning and tax advice. These services included international corporate tax return compliance, annual domestic tax
return compliance for employee benefit plans, foreign country tax planning with respect to global stock option and employee stock purchase programs and stock programs, assistance filing advanced pricing agreements with tax authorities,
assistance related to foreign tax authority transfer pricing inquiries and domestic tax technical advice.
|
(4) |
All Other Fees consists of fees for online technical resources.
|
Item 15. |
Exhibits, Financial Statement Schedules.
|
Exhibit No.
|
Description
|
|
2.1†
|
||
2.2†
|
||
2.3†
|
||
2.4†
|
||
2.5#†
|
||
2.6#†
|
10.8+
|
||
10.9+
|
||
10.10+
|
||
10.11+
|
||
10.12+
|
||
10.13+
|
||
10.14+
|
||
10.15+
|
||
10.16+
|
||
10.17+
|
||
10.18
|
||
10.19
|
||
10.20+
|
||
10.21+
|
||
10.22+
|
||
10.23+
|
||
10.24+
|
10.25
|
||
10.26
|
||
10.27
|
||
21.1
|
||
23.1
|
||
31.1*
|
||
31.2*
|
||
31.3*
|
||
32.1
|
||
32.2
|
||
32.3
|
||
97.1
|
||
101
|
The following financial statements, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets at December 31, 2023
and December 31, 2022, (ii) Consolidated Statements of Operations and Comprehensive Income for each of the three years in the period ended December 31, 2023, (iii) Consolidated Statements of Equity for each of the three years in the
period ended December 31, 2023, (iv) Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2023; and (iv) Notes to Consolidated Financial Statements, tagged as blocks of text (incorporated by
reference to Exhibit 101 of the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2024).
|
|
104
|
The cover page for the Company’s Annual Report on Form 10-K has been formatted in Inline XBRL and contained in Exhibit 101 (incorporated by
reference to Exhibit 104 of the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2024).
|
* |
Filed herewith.
|
+ |
Indicates a management or compensatory plan
|
† |
Schedules to this exhibit have been omitted pursuant to Item 601(b)(2) of Registration S-K. The registrant hereby agrees to furnish a copy of any omitted schedules to the SEC upon request.
|
# |
Certain schedules and exhibits to this agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished supplementally to
the SEC upon request.
|
‡ |
Certain portions of this exhibit (indicated by “[***]”) have been omitted pursuant to Regulation S-K, Item 601(b)(10).
|
WHOLE EARTH BRANDS, INC.
|
||
By:
|
/s/ Rajnish Ohri
|
|
Name:
|
Rajnish Ohri
|
|
Title:
|
Co-Chief Executive Officer
|
|
(Principal Executive Officer)
|
||
By:
|
/s/ Jeffrey Robinson
|
|
Name:
|
Jeffrey Robinson
|
|
Title:
|
Co-Chief Executive Officer
|
|
(Principal Executive Officer)
|
Name
|
Position
|
Date
|
|
/s/ Rajnish Ohri
|
Co-Chief Executive Officer
|
April 26, 2024
|
|
Rajnish Ohri
|
(Principal Executive Officer)
|
||
/s/ Jeffrey Robinson
|
Co-Chief Executive Officer
|
April 26, 2024
|
|
Jeffrey Robinson
|
(Principal Executive Officer)
|
||
/s/ Bernardo Fiaux
|
Chief Financial Officer
|
April 26, 2024
|
|
Bernardo Fiaux
|
(Principal Financial Officer and Principal Accounting Officer)
|
||
/s/ Irwin D. Simon
|
Executive Chairman of the Board of Directors
|
April 26, 2024
|
|
Irwin D. Simon
|
|||
/s/ Anuraag Agarwal
|
Director
|
April 26, 2024
|
|
Anuraag Agarwal
|
|||
/s/ Steven M. Cohen
|
Director
|
April 26, 2024
|
|
Steven M. Cohen
|
|||
/s/ Denise Faltischek
|
Director
|
April 26, 2024
|
|
Denise Faltischek
|
|||
/s/ Ira J. Lamel
|
Director
|
April 26, 2024
|
|
Ira J. Lamel
|
|||
/s/ Michael F. Goss
|
Director
|
April 26, 2024
|
|
Michael F. Goss
|
|||
/s/ Michael Franklin
|
Director
|
April 26, 2024
|
|
Michael Franklin
|