Item
5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers.
Resignation
of Chief Financial Officer
On
February 9, 2019, Robert Kalkstein Chief Financial Officer of Conversion Labs, Inc. (the “Company”), tendered his
resignation to the Company’s Board of Directors (the “Board”), effective March 31, 2019. Mr. Kalkstein did not
resign as a result of any disagreement with the Company on any matter relating to the Company’s operations, policies or
practices. Mr. Kalkstein will continue to serve as an advisor to the Chief Executive Officer of the Company.
In connection with Mr. Kalkstein’s resignation,
the Company agreed to amend that certain consulting agreement entered into on September 26, 2017 by and between the Company and
Mr. Kalkstein (the “Kalkstein Consulting Agreement”), to: (i) forego $32,500 of the $42,500 cash currently owed to
Mr. Kalkstein pursuant to the Kalkstein Consulting Agreement; (ii) decrease the exercise price of 500,000 options to purchase
the Company’s common stock previously granted to Mr. Kalkstein (the “Kalkstein Options”) from $0.40 per share
to $0.28 per share; (iii) accelerate the vesting of 150,000 Kalkstein Options with such options to vest on March 31, 2019; and
(iv) cancel 200,000 unvested Kalkstein Options, the vesting of which was not accelerated (the “Kalkstein Amendment”).
Appointment of Chief Financial Officer
On February 11, 2019, in connection with Mr.
Kalkstein’s resignation, the Board appointed Mr. Juan Manuel Piñeiro Dagnery, currently the Controller of the Company,
as Chief Financial Officer, effective March 31, 2019.
Juan Manuel Piñeiro Dagnery, age 31,
carries extensive experience within various industries ranging from finance, wealth management and investment banking to direct-marketing
and analytics for public companies. He combines over 8 years of experience in financial and operations management with prior roles
as an equity analyst at UBS Financial Services of Puerto Rico from 2010 to 2013, director at One Equity Research LLC from 2014
to 2016 and controller at Conversion Labs, Inc. since July 2016. He received a Bachelor of Business Administration in Finance at
Inter American University of Puerto Rico in 2012.
On March 15, 2019 the Company and Mr. Piñeiro
entered into an employment agreement (the “Piñeiro Employment Agreement”) effective as April 1, 2019, whereby
Mr. Piñeiro shall earn a salary of $84,000 per annum (the “Piñeiro Salary”). In addition to the.
Piñeiro Salary, he shall be eligible for an annual discretionary bonus of up to 100% of the Piñeiro Salary and subject
to approval of the Board, the Company shall issue to Mr. Piñeiro options to purchase 500,000 shares of the Company’s
common stock at an exercise price of $0.23 (the “Options”). The Piñeiro Employment Agreement may be terminated
without notice by either party at any time for any reason.
There is no arrangement or understanding between
Mr. Piñeiro and any other persons pursuant to which Mr. Piñeiro was selected as an officer.
There are no family relationships between Mr.
Piñeiro and any director, executive officer or person nominated or chosen by the Company to become a director or executive
officer of the Company within the meaning of Item 401(d) of Regulation S-K under the U.S. Securities Act of 1933 (“Regulation
S-K”).
Since the beginning of the Company’s
last fiscal year, the Company has not engaged in any transaction in which Mr. Piñeiro had a direct or indirect material
interest within the meaning of Item 404(a) of Regulation S-K.
The above descriptions of the Kalkstein Amendment
and Piñeiro Employment Agreement do not purport to be complete and are qualified in their entirety by reference to such
documents filed as Exhibits 10.1 and 10.2, respectively, hereto.
Item 9.01. Exhibits.
(d) Exhibits
* Filed herewith