UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 31, 2010
SED International Holdings, Inc..
(Exact name of Registrant as specified in its charter)
Georgia |
| 0-16345 |
| 22-2715444 |
(State or other jurisdiction of incorporation) |
| (Commission File Number) |
| (IRS Employer Identification No.) |
4916 North Royal Atlanta Drive, Tucker, Georgia |
| 30084 |
(Address Of Principal Executive Office) |
| (Zip Code) |
Registrant's telephone number, including area code:(770) 491-8962
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
. Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
. Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
. Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
. Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
SECTION 5-CORPORATE GOVERNANCE AND MANAGEMENT
Item 5.02: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) On August 31, 2010, SED International Holdings, Inc. (the “Company”) entered into an Employment Agreement, effective as of July 1, 2010 (the “Effective Date”), with Jonathan Elster, its President and Chief Executive Officer, for his continued employment with the Company in such positions for a three-year term beginning on the Effective Date. The term of the agreement will automatically extend for additional one-year periods upon expiration of the term, beginning on the third anniversary of the Effective Date, and on each anniversary thereafter unless at least 90-days prior to any such anniversary, written notice of nonrenewal is given by either party.
Under the agreement Mr. Elster will (i) earn a base annual salary of $340,000, retroactive to December 1, 2009 when he assumed the title of Chief Executive Officer upon the retirement of Jean Diamond from that position; (ii) receives a bonus for the first year of the term ranging from 10% to 50% of his base pay depending on return on invested capital; (iii) be entitled to participate on the same terms as other executives in any present or future benefit plans or programs of the Company; (iv) receive as liquidated damages an amount equal to the greater of his salary for 18 months or the balance of the employment term upon a termination in connection with a Change of Control, as defined in the agreement and (v) receive a severance payment equal to the lesser of his salary for 18 months or the balance of his employment term upon termination of his employment with the Company without cause. Mr. Elster has agreed that upon the termination of his employme nt and for a period of one-year thereafter, he will not directly or indirectly: (A) recruit or solicit any employees of the Company or hire any person who was employed by the Company within 6 months prior to his termination of employment; or (B) solicit any Restricted Customer (as defined in the agreement) for the purpose of, or with a view toward, providing services or products to a Restricted Customer which compete with services or products offered or provided by the Company.
The foregoing description of the agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the agreement filed as Exhibit 10.1 to this Current Report on Form 8-K.
SECTION 9-FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01: Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No. | Description |
10.1 | Employment Agreement between SED International Holding, Inc. and Jonathan Elster dated as of July 1, 2010. * |
_______________________
* Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SED International Holdings, Inc.
Dated: August 31, 2010
By: /s/ Lyle Dickler
Lyle Dickler,
Chief Financial Officer and Vice President of Finance
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