Item 5.02. Departure of Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers
On December 8, 2019, Jannie K. Lau, Chief Legal Officer, General Counsel and
Corporate Secretary notified InterDigital, Inc. (the "Company") of her intention
to retire from her position at the Company effective December 31, 2019. In
consideration of her distinguished service to the Company and the Company's
desire to ensure a smooth transition to her successor, the Company entered into
a Retirement & Transition Agreement and Release with Ms. Lau (the "Lau
Retirement Agreement") on December 8, 2019.
Under the Lau Retirement Agreement, Ms. Lau agrees to provide limited transition
services on a part-time basis for a period of 100 calendar days following
December 31, 2019 in exchange for $400,000, payable in two equal installments on
February 15, 2020 and March 31, 2020, in order to facilitate and ensure a smooth
transition to her successor. If the transition services terminate prior to the
end of the transition period, then the transition payment will be paid on a
pro-rata basis. Ms. Lau's Company equity awards will cease to vest as of
December 31, 2019, and there will be no continued vesting during the transition
period.
The summary of the Lau Retirement Agreement set forth above does not purport to
be complete and is qualified in its entirety by reference to the full text of
such document, a copy of which will be filed as an exhibit to the Company's
upcoming Annual Report on Form 10-K for the year ended December 31, 2019.
On December 9, 2019, Richard L. Gulino was appointed to the position of Chief
Legal Officer, General Counsel and Corporate Secretary, effective January 1,
2020.
Mr. Gulino, 57, joined the Company in September 2019 as Vice President, Deputy
General Counsel with responsibility for the Company's corporate, commercial and
licensing legal functions. Prior to joining the Company, Mr. Gulino served as
Senior Vice President, General Counsel and Secretary at Vanda Pharmaceuticals,
Inc., a global biopharmaceutical company headquartered in Washington, D.C., from
September 2015 until May 2018. Prior to joining Vanda, Mr. Gulino was Vice
President and General Counsel of Ameritox, Ltd., a clinical drug testing
laboratory, from June 2012 to August 2014. From 1999 to February 2012,
Mr. Gulino served numerous roles at Cephalon, Inc., a global biopharmaceutical
company, including as Vice President and Deputy General Counsel from November
2006 to February 2012, where he led the corporate commercial legal function.
Mr. Gulino began his career in private practice in Washington, D.C. Mr. Gulino
serves on the Board of Wilmington Montessori School in Wilmington, Delaware.
Mr. Gulino received his Bachelor of Arts degree in history from Colgate
University and his Juris Doctor degree with high honors from Duke University
School of Law.
There is no arrangement or understanding between Mr. Gulino and any other
persons pursuant to which Mr. Gulino was selected as an officer, and Mr. Gulino
is not related to any officer or director of the Company. There have been no
transactions involving Mr. Gulino or his immediate family members that require
disclosure pursuant to Item 404(a) of Regulation S-K under the Securities
Exchange Act of 1934, as amended.
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Mr. Gulino will receive the following components of compensation: (i) an annual
base salary in the amount of $350,000; (ii) effective January 1, 2020, a target
short-term incentive plan payout of 60% of his annual base salary; and (iii) on
January 15, 2020, an award equal to $354,198 under the Company's 2019 long-term
compensation program ("LTCP"), comprised $69,571 of time-based restricted stock
units ("RSUs") and $284,627 of performance-based RSUs ("PSUs").
The time-based RSUs to be granted to Mr. Gulino under the 2019 LTCP will vest on
March 15, 2022, assuming continued service through such date except as set forth
below. The 2019 LTCP PSUs to be granted to Mr. Gulino will vest, assuming
continued service through March 15, 2024 except as set forth below (with a
threshold payout of 50% of target and a maximum payout of 200% of target),
subject to the achievement of revenue and earnings performance goals measured as
of December 31, 2023; however, to the extent that all or a portion of the
performance goals in excess of the threshold have been achieved as measured as
of December 31, 2021, such performance-based awards will vest, to the extent
applicable, on March 15, 2022, and the remaining unvested portion of such
performance-based awards, if any, shall then remain eligible to vest on
March 15, 2024, subject to the achievement of the performance goals measured as
of December 31, 2023.
Effective January 1, 2020, Mr. Gulino will be designated as a Tier 1 Participant
under the Company's Executive Severance and Change in Control Policy, or the
"Policy," previously filed as Exhibit 10.6 to the Company's Quarterly Report on
Form 10-Q for the quarter ended September 30, 2018 (the "2018 Q3 10-Q"). If
Mr. Gulino's employment is terminated by the Company or any parent, subsidiary,
or affiliate of the Company without Cause (as defined in the Policy), or by
reason of his death or disability, in each case, during the last year of the
performance period, the PSUs will vest as to a prorated portion (based on the
number of days he was employed during the applicable performance period) of the
number of PSUs that would have otherwise become vested according to actual
performance during the performance period. Additionally, the time-based RSUs
will vest as to a prorated portion (based on the number of days he was employed
during the applicable vesting period). In the event of a termination without
Cause, the prorated vesting is conditioned upon Mr. Gulino's execution of a
release of claims in favor of the Company within 60 days following termination
of employment.
If Mr. Gulino's employment is terminated within one year following a Change in
Control, either by the Company other than for Cause, death, or disability or by
Mr. Gulino for Good Reason (as such terms are defined in the Policy), 100% of
the then-unvested portion of his time-based and performance-based awards will
vest upon termination, subject to his execution of a release of claims in favor
of the Company within 60 days following termination of employment.
All of the equity grants to Mr. Gulino will be made under the Company's 2017
Equity Incentive Plan. The grant of the time-based RSU awards will be made
pursuant to the form of agreement for such awards filed as Exhibit 10.3 to the
2018 Q3 10-Q. The PSU awards will have the terms set forth on the term sheet for
such awards previously filed as Exhibit 10.1 to the Company Current Report on
Form 8-K dated July 9, 2018, and will otherwise be subject to the standard terms
and conditions for PSU awards that are part of the form of agreement for such
awards, filed as Exhibit 10.4 to the 2018 Q3 10-Q.
Mr. Gulino will become a party to an indemnity agreement in substantially the
form of the Company's form of indemnity agreement filed as Exhibit 10.47 to the
Quarterly Report on Form 10-Q of InterDigital Communications Corporation for the
quarter ended March 31, 2003.
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Item 8.01. Other Events.
On December 9, 2019, the Company issued a press release announcing the
retirement of Ms. Lau and the appointment of Mr. Gulino. A copy of the press
release is attached hereto as Exhibit 99.1, and is incorporated herein by
reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 InterDigital, Inc. Press Release, dated December 9, 2019
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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