Jamba Inc. (NASDAQ:JMBA) has agreed to appoint Glenn W. Welling of Engaged Capital to the company’s board of directors. According to a new filing with the U.S. Securities and Exchange Commission, Jamba Inc. (NASDAQ:JMBA) entered into a settlement agreement to appoint Mr. Welling and James C. Pappas, managing member of JCP Investment Management, to the company’s board, effectively immediately. Engaged Capital holds 1.43 million shares of Jamba Inc. (NASDAQ:JMBA), representing 8.2% of the company’s common stock, the filing showed.
Under a settlement agreement with Engaged Capital and certain of its affiliates, Jamba Inc. (NASDAQ:JMBA) agreed to appoint Mr. Welling and Mr. Pappas to its board, with terms expiring at the company’s 2015 annual meeting of stockholders. At the same time, Jamba Inc. (NASDAQ:JMBA) agreed to appoint Mr. Welling as a member of the compensation and executive development committee of the board, and Mr. Pappas as a member of both the nominating and corporate governance committee and the audit committee of the board.
Further, Jamba Inc. (NASDAQ:JMBA) agreed to take all necessary actions to nominate each of Mr. Pappas and Mr. Welling for election as an incumbent director at the 2015 annual meeting.
On the other hand, Engaged Capital and JCP Investment Management have agreed to vote their shares in favor of the election of the company’s slate of directors at the 2015 annual meeting. Additionally, JCP Investment Management will, among other things, withdraw its nomination of candidates to stand for election at the company’s 2015 annual meeting. JCP Investment Management and certain of its affiliates own about 2.3% of Jamba Inc. (NASDAQ:JMBA)’s outstanding shares, according to a news release.