Item 5.02. Departure of Directors or Certain Officers? Election of Directors?
Appointment of Certain Officers? Compensatory Arrangements of Certain
Officers.
In its Current Report on Form 8-K, filed with the Securities and Exchange
Commission on March 5, 2020 (the "Initial Report"), Medifast, Inc. (the
"Company") reported the departure of Timothy G. Robinson, the Company's Chief
Financial Officer, and the appointment of Joseph P. Kelleman, the Company's Vice
President of Finance, as interim Chief Financial Officer effective April 1,
2020. This Current Report on Form 8-K/A amends the Initial Report to provide
information about the compensatory arrangements related to the departure of Mr.
Robinson and the appointment of Mr. Kelleman as interim Chief Financial Officer.
This Current Report on Form 8-K/A should be read in conjunction with the Initial
Report.
Timothy G. Robinson
On March 31, 2020, in connection with his departure from the Company, Mr.
Robinson and the Company entered into a separation agreement (the "Separation
Agreement") pursuant to which Mr. Robinson will receive certain severance and
other benefits. The Separation Agreement provides that Mr. Robinson will receive
(i) a lump sum cash severance payment in the amount of $801,469.00, which
represents one year's annual salary, target bonus and an additional pro-rata
bonus for fiscal year 2020; (ii) a lump sum payment equal to $24,044.26 to cover
health care coverage continuation, to be paid within 30 days after Mr.
Robinson's election to continue benefits under COBRA; (iii) payment for up to 12
months of outplacement assistance; (iv) acceleration of vesting of Mr.
Robinson's stock options, which will continue to be exercisable until June 29,
2020, (v) continued vesting of his outstanding time-based restricted shares and
deferred shares on a pro-rata basis based on the number of months during the
vesting period Mr. Robinson was employed and (vi) continued vesting of his
performance-based restricted shares on a pro-rata basis based on the number of
months during the performance period Mr. Robinson was employed. The Severance
Agreement includes standard non-competition, non-disclosure and confidentiality
provisions and mutual non-disparagement provisions and releases. As previously
disclosed, Mr. Robinson's departure was not the result of any disagreement with
the Company nor any issue related to the Company's financial statements or
accounting practices.
The foregoing description of the Separation Agreement is not complete and is
qualified in its entirety by reference to the full text of the Separation
Agreement, which is filed herewith as Exhibit 10.1 and incorporated herein by
reference.
Joseph P. Kelleman
In connection with Mr. Kelleman's appointment as interim Chief Financial
Officer, he will receive a lump sum bonus of $60,000 which is payable within
thirty (30) days after June 30, 2020 and (ii) a pro-rata bonus for fiscal year
2020.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
10.1 Separation Agreement dated March 31, 2020
104.1 Cover Page Interactive Data File (embedded within the Inline XBRL Document)
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