Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
(b) Amended Transition Agreement with Shyam K. Reddy, Senior Vice President,
Chief Legal and Sustainability Officer and Corporate Secretary
On December 23, 2022, BlueLinx Holdings Inc. ("BlueLinx" or the "Company") and
Shyam K. Reddy, the Company's Senior Vice President, Chief Legal and
Sustainability Officer and Corporate Secretary, entered into an Amended
Transition Agreement (the "Agreement") with respect to Mr. Reddy's employment
with the Company, which amends the Transition Agreement entered into by the
Company and Mr. Reddy on September 29, 2022 (the "Original Agreement").
The Agreement amends the Original Agreement by, among other things, extending
the date on which Mr. Reddy will end his employment with the Company from
December 31, 2022 (the "Original Separation Date"), to June 30, 2023 (the
"Modified Separation Date", and the period from the Original Separation Date
through the Modified Separation Date, the "Retention Period"), and providing
Mr. Reddy with certain additional compensation to retain him in connection
therewith.
In exchange for Mr. Reddy's transition services and performance of his duties
under the Agreement through the Original Separation Date, and subject to his
execution and non-revocation of a general release of claims on the terms set
forth in the Original Agreement, Mr. Reddy will be entitled to receive the lump
sum and other payments provided for in the Original Agreement as if his
employment had ended on the Original Separation Date, and his outstanding
performance-based and time-based restricted stock units will vest and settle as
contemplated under the Original Agreement.
In exchange for Mr. Reddy's transition services and performance of his duties
under the Agreement during the Retention Period, Mr. Reddy will be entitled to
receive (i) a lump sum payment of two hundred thousand dollars, (ii) a payment
equal to the value of his accrued and unused 2022 paid time off, and (iii) fifty
percent of his target bonus payable under the terms of the Company's Short-Term
Incentive Plan ("STIP") for fiscal year 2023. Mr. Reddy also will continue to
receive regular salary and benefits during the Retention Period, with an annual
base salary of five hundred twenty-five thousand dollars and a target bonus
under the STIP for the 2023 fiscal year of eighty percent of his annual base
salary. These payments and benefits will be accumulated and paid sixty (60) days
after the Modified Separation Date, and Mr. Reddy's receipt of such payments and
benefits is conditioned upon the execution and non-revocation of a general
release of claims.
In addition, under the Agreement, on January 2, 2023, the Company will grant
Mr. Reddy time-based restricted stock units with an aggregate grant value equal
to three hundred twenty-eight thousand one hundred twenty-five dollars under the
Company's 2021 Long-Term Incentive Plan ("LTIP"), of which fifty percent will
vest and be settled on March 31, 2023, and the remaining fifty percent will vest
and be settled on June 30, 2023. These restricted stock units will otherwise be
on terms consistent with the time-based restricted stock unit awards granted to
the Company's similarly situated executive officers under the LTIP in 2022.
The foregoing descriptions of the Agreement, and the amendments made thereby to
the Original Agreement, set forth under this Item 5.02 do not purport to be
complete and are qualified in their entirety by reference to the Agreement,
which is filed as Exhibit 10.1 hereto, and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
The following exhibits are attached with this Current Report on Form 8-K:
Exhibit No. Exhibit Description
10.1 Amended Transition Agreement between BlueLinx Corporation and Shyam K.
Reddy, dated December 23, 2022.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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