Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b) On April 10, 2020, Miki Racine Berardelli, Brenda Freeman, and Christy
Haubegger, members of RTW Retailwinds, Inc.'s (the "Company") board of directors
(the "board"), notified the Company that they resigned from the board for
personal reasons, effectively immediately. Their decisions to resign were not
due to any disagreement with the Company on any of the Company's operations,
policies or practices. The Company thanks Ms. Berardelli, Ms. Freeman, and Ms.
Haubegger for the many contributions that they have made to the Company.
On April 15, 2020, John D. Howard, member of the Company's board, notified the
Company that he resigned from the board for personal reasons, effectively
immediately. His decision to resign was not due to any disagreement with the
Company on any of the Company's operations, policies or practices. The Company
thanks Mr. Howard for the many contributions that he has made to the Company.
Pursuant to the Company's Amended and Restated Certificate of Incorporation and
the Company's Second Amended and Restated Bylaws, the number of directors
constituting the Company's board shall be fixed at four directors effective
April 17, 2020.
In addition, the Company announced that Traci Inglis resigned from her position
as President, Chief Marketing and Customer Officer of RTW Retailwinds, Inc.
effective April 10, 2020. Ms. Inglis has agreed to serve as an independent
consultant to the Company providing marketing and digital expertise for a
transitional period through August 31, 2020.
(c) Effective April 17, 2020, Sheamus Toal was appointed to the role of Chief
Executive Officer and will continue to serve as Chief Financial Officer. In
connection with Mr. Toal's appointment to Chief Executive Officer, the Company
entered into a Retention Agreement (the "Agreement") with Mr. Toal. Pursuant to
the Agreement, in order to provide additional incentive for Mr. Toal to remain
in the employ of the Company through December 31, 2020, the Company has agreed
to pay Mr. Toal a retention bonus of $600,000 upon execution of the Agreement.
If Mr. Toal voluntarily resigns or is terminated for cause (as defined in the
Retention Agreement) prior to December 31, 2020, Mr. Toal will be required to
repay to the Company the $600,000 retention bonus. In consideration of the
Company's obligations under the Agreement and other compensation payable to Mr.
Toal during the term of Mr. Toal's employment with the Company, Mr. Toal has
agreed that he will continue to diligently perform his duties for the Company
through December 31, 2020 or later.
The foregoing summary of the Agreement is qualified in its entirety by the text
of the Agreement, a copy of which is attached hereto as Exhibit 10.1 and
incorporated herein by reference.
Item 8.01 Other Events
Given the global impact of COVID-19 and the current retail environment, the
Company is taking the necessary actions to protect its customers and employees,
and preserve its financial liquidity and flexibility. The Company has engaged
outside consultancy to assist with these measures and is in the process of
evaluating strategic business alternatives.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibit
Exhibit No. Description
10.1 Retention Agreement, dated as of April 10, 2020, by and between RTW
Retailwinds, Inc. and Sheamus Toal
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