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): January 1, 2007
TAG-IT PACIFIC, INC.
(Exact Name of Registrant as Specified in Charter)
DELAWARE 1-13669 95-4654481
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
21900 BURBANK BLVD., SUITE 270
WOODLAND HILLS, CALIFORNIA 91367
(Address of Principal Executive Offices) (Zip Code)
(818) 444-4100
(Registrant's Telephone Number, Including Area Code)
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))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
ITEM 1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT.
Effective January 1, 2007, Tag-It Pacific, Inc. entered into a
consulting agreement with Jonathan Burstein, a member of our Board of Directors
and previously our Executive Vice President of Operations. Under the terms of
the consulting agreement, Mr. Burstein will provide specified consulting
services to us for a term of up to 24 months. As consideration for the services,
we will pay Mr. Burstein an amount of $225,000 per annum plus an additional
$3,333.33 per month for the first 18 months of the term of the agreement. We
also agreed to provide Mr. Burstein with medical benefits for a period of 18
months.
In addition, the consulting agreement provides that the employment
offer letter previously entered into with Mr. Burstein on March 16, 2006, is
terminated as of January 1, 2007. The termination of the employment offer letter
was mutually agreed upon by both parties and Mr. Burstein will not be entitled
to receive any severance or other benefits in connection with the termination.
All outstanding stock options held by Mr. Burstein will continue to vest in
according with their terms as long as Mr. Burstein continues to provide services
to us or serve on our Board of Directors.
The forgoing is not intended to be a complete summary of the consulting
agreement with Mr. Burstein, a copy of which is filed as Exhibit 10.1 to this
report.
ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; COMPENSATORY
ARRANGEMENTS OF CERTAIN OFFICERS.
Jonathan Burstein, previously our Executive Vice President of
Operations, resigned as an officer and employee of Tag-It Pacific, Inc.,
effective as of January 1, 2007. Mr. Burstein remains a member of our Board of
Directors. In addition, Mr. Burstein will continue to provide consulting
services to us pursuant to the terms of the consulting agreement described under
Item 1.01 of this Report.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
a) Financial statements of business acquired - None
b) Pro forma financial information - None
c) Shell company transactions- None
d) Exhibits
10.1 Consulting Agreement dated January 1, 2007 by and
between Tag-It Pacific, Inc. and Jonathan Burstein.
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SIGNATURE
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.
TAG-IT PACIFIC, INC.
Date: January 3, 2007 By: /s/ Lonnie D. Schnell
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Lonnie D. Schnell
Chief Financial Officer
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EXHIBIT INDEX
EXHIBIT
NUMBER EXHIBIT DESCRIPTION
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10.1 Consulting Agreement dated January 1, 2007 by and between Tag-It
Pacific, Inc. and Jonathan Burstein.
4