Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Effective as of November 14, 2022 (the "Effective Date"), Robert Madore will no
longer serve as Chief Financial Officer of Cronos Group Inc. (the "Company") and
ceased to be employed by the Company and Cronos USA Client Services LLC ("Cronos
USA"). In accordance with the terms and conditions of his employment agreement
and outstanding equity award agreements, Mr. Madore will be entitled to a
severance payment in an amount equal to one year of his annual base salary,
employee benefit continuation for up to one year following the Effective Date,
and a pro-rated annual bonus for the 2022 fiscal year. Additionally, 37,500
outstanding restricted stock units ("RSUs") and 450,000 unvested stock options
held by Mr. Madore will vest as of the Effective Date, in each case subject to
Mr. Madore entering into a customary release of claims in favor of the Company
and its affiliates and related entities.
Also, effective as of the Effective Date, the Company has appointed James Holm
as Chief Financial Officer of the Company.
Mr. Holm joined the Company from Vertiv, where he most recently served as Global
Vice President of Finance Transformation. Previously, he served as Americas
Controller from September 2018 to February 2022. Prior to his roles at Vertiv,
Mr. Holm served as Worldpay's Finance Leader, Finance Solutions & Process
Transformation Organization from May 2016 to September 2018. Before that, he
served at Procter & Gamble in a variety of finance roles from September 2008 to
March 2016. Mr. Holm is a Certified Public Accountant and Chartered Global
Management Accountant who previously worked as an external auditor for
PricewaterhouseCoopers where he worked on various public client engagements,
some of which included Fortune 500 companies. He holds a Master of Business
Administration with a Finance concentration and Bachelor of Science in Business
in Accounting and Finance, both from Wright State University.
Holm Employment Agreement
In connection with Mr. Holm's appointment, Cronos USA, the Company and Mr. Holm
entered into an executive employment agreement (the "Holm Employment Agreement")
on the Effective Date, setting forth the terms and conditions of Mr. Holm's
employment. Pursuant to the Holm Employment Agreement, Mr. Holm will receive an
annual base salary of $385,000 and will be eligible for an annual target bonus
opportunity of 115% of annual base salary. Starting in the 2023 fiscal year, he
will be eligible to receive annual grants of equity-based awards with an initial
target incentive opportunity of $577,500. Additionally, Mr. Holm will receive an
initial one-time grant of $250,000 in stock options and $50,000 in RSUs, as well
as a cash signing bonus of $250,000. Mr. Holm will also be eligible to
participate in employee benefit programs of Cronos USA on the same terms as
other similarly situated employees.
In the event Mr. Holm's employment is terminated by Cronos USA without Just
Cause or he resigns for Good Reason (each, as defined in Mr. Holm's employment
agreement), he would be entitled to a severance payment in the amount of his
annual base salary, employee benefit continuation for up to one year following
termination, and a pro-rated annual bonus for the year of termination, subject
to Mr. Holm entering into a release of claims in favor of the Company and its
affiliates and related entities. Upon termination of his employment for any
reason, Mr. Holm is subject to ongoing confidentiality and mutual
non-disparagement provisions, non-competition and customer non-solicitation
covenants for the one-year period following termination and an employee
non-solicitation covenant for the two-year period following termination.
The foregoing description of the Holm Employment Agreement does not purport to
be complete and is qualified in its entirety by reference to the full text of
the Holm Employment Agreement, which is attached hereto as Exhibit 10.1 and
incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No. Description
10.1 Holm Employment Agreement, dated November 14, 2022, among Cronos
USA, the Company and Mr. Holm.
104 Cover Page Interactive Data File
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