Finlay Enterprises 8-K 2009
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported) March 11, 2009
Finlay Enterprises, Inc.
(Exact name of registrant as specified in its charter)
Registrants telephone number, including area code (212) 808-2800
(Former name or former address, if changed since last report)
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 ( see General Instruction A.2. below):
¨ 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))
The information contained in Item 5.02 regarding the Retention Bonus Agreement (as hereinafter defined) is incorporated by reference into this Item 1.01.
Retention Bonus Agreement with Arthur E. Reiner
On March 11, 2009, Arthur Reiner, the current Chief Executive Officer of Finlay Fine Jewelry Corporation (the Corporation) and Finlay Enterprises, Inc., the parent of the Corporation (Finlay Enterprises and, collectively with the Corporation, the Companies), entered into the letter agreement, effective as of March 6, 2009 (the Retention Bonus Agreement). The purpose of the Retention Bonus Agreement, which had previously been approved by the Boards of Directors of the Companies, was to set forth the terms of Mr. Reiners eligibility to receive two retention bonus payments, each in the amount of $500,000.00. The first $500,000.00 payment is to be made in consideration of Mr. Reiners continued employment with the Companies within five days following the effective date of the Retention Bonus Agreement, and the second $500,000.00 payment is to be made upon the earlier of (i) April 1, 2009 and (ii) the consummation of the sale of certain inventory, fixtures and related assets of the Corporation, provided that Mr. Reiner has been continuously employed by the Companies from the effective date of the Retention Bonus Agreement through the payment date. The Retention Bonus Agreement also provides for the waiver of approximately $2,000,000 in certain severance benefits to which Mr. Reiner would otherwise have been entitled under the terms of his employment agreement, dated as of January 30, 2005 (the Employment Agreement) among the Companies and Mr. Reiner.
The foregoing description of the Retention Bonus Agreement is only a summary and is qualified in its entirety by reference to the Retention Bonus Agreement, a copy of which is attached as Exhibit 10.1 hereto and incorporated by reference into this Item 5.02.
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.