Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
Resignation of Officer
On May 13, 2022, Mario Ramos, Chief Financial Officer and Chief Risk Officer of
Evolv Technologies Holdings, Inc. (the "Company"), notified the Company of his
decision to resign from his position, effective May 31, 2022, to pursue another
opportunity as Chief Executive Officer at a privately held financial services
company. The Company thanks Mr. Ramos for his leadership and contribution.
Appointment of Officer
On May 19, 2022, the Company announced that Mark Donohue will succeed Mr. Ramos
as the Company's Chief Financial Officer, effective as of June 1, 2022.
Prior to joining the Company, Mr. Donohue, 48, served as Chief Financial Officer
of Vestmark, Inc. ("Vestmark"), a provider of SaaS-based portfolio management
and trading tools for financial advisors and institutions where he oversaw
Vestmark's Financial Planning, Corporate Development, Accounting and Investor
Relation departments, from August 2018 to May 2022. Prior to his time at
Vestmark, Mr. Donohue served at Rapid7, Inc. ("Rapid7"), a provider of security
analytics and automation, in several senior roles including Vice President of
Finance, Corporate Development, and Treasury & Investor Relations, from February
2016 to August 2018. Before his time at Rapid7, Mr. Donohue held multiple
Director level positions at Cisco Systems in which he was involved in strategy,
finance and business operations and Starent Networks, Corp., in which he was
involved in investor relations and treasury roles, and held senior roles at
International Data Corporation, Ferris Baker Watts Inc., Teradyne, Inc. and
Quantum Corporation. He earned a BS in Business Administration & Finance from
the University of New Hampshire, and received both his MBA and MS in Finance
from Boston College's Wallace E. Carroll Graduate School of Management.
There are no arrangements or understandings between Mr. Donohue and any other
person pursuant to which he was appointed as Chief Financial Officer. Mr.
Donohue does not have any family relationship with any director or other
executive officer of the Company or any person nominated or chosen by the
Company to become a director or executive officer, and there are no transactions
in which Mr. Donohue has an interest requiring disclosure under Item 404(a) of
Regulation S-K currently contemplated or since the beginning of the last fiscal
year.
In connection with Mr. Donohue's appointment as the Company's Chief Financial
Officer, the Company and Mr. Donohue entered into an executive employment
agreement (the "Donohue Employment Agreement"), dated as of May 18, 2022,
pursuant to which Mr. Donohue is entitled to an annual base salary of $375,000
and an annual target incentive bonus of 50% of the base salary, based on the
achievement of the Company and individual annual performance goals. Pursuant to
the Donohue Employment Agreement, if Mr. Donohue's employment is terminated by
the Company without "cause" or by Mr. Donohue following his resignation with
"good reason" (each as defined in the Donohue Employment Agreement), he shall be
entitled to: (1) continued payment of his base salary for a period of 12 months,
(2) payment of an amount equal to 100% of his current year target bonus, paid in
a lump sum within 60 days following his termination date, (3) payment of
premiums for continued health benefits to him under COBRA for up to 12 months
following his termination, and (4) any vested options remaining exercisable for
12 months following his termination. If Mr. Donohue's employment is terminated
without cause or if he resigns with good reason within one year following a
"change of control" (as defined in the Donohue Employment Agreement), he shall
be entitled to the aforementioned payments and benefits, except that any
then-unvested outstanding equity awards will become vested in their entirety as
of the last day of his employment. Mr. Donohue's benefits are conditioned, among
other things, on his complying with customary restrictive covenants and
non-solicitation provisions under the Donohue Employment Agreement and timely
signing a general release of claims in our favor. In connection with his
appointment as Chief Financial Officer, the Board of Directors of the Company
(the "Board"), upon the recommendation of the Compensation Committee, also
approved a grant of restricted stock units to Mr. Donohue under the Company's
2021 Incentive Award Plan with an aggregate grant date fair value equal to
$3,600,000, vesting in equal annual installments on the first three
anniversaries of the date of grant, which date shall be the first regularly
scheduled grant date after Mr. Donohue's start date with the Company, subject to
Mr. Donohue's continued employment with the Company. The Board, upon the
recommendation of the Committee, has also approved an additional grant of 2,000
performance-based restricted stock units, which will vest based on the
achievement of the Company's 2022 bookings goal, with 50% of any earned award
vesting on January 1, 2023 and 50% of any earned award vesting on January 1,
2024, subject to Mr. Donohue's continued employment with the Company.
In addition, Mr. Donohue will enter into an officer indemnification agreement
pursuant to which, among other things, the Company agrees to indemnify its
officers and advance certain expenses to the fullest extent permitted by
applicable law.
The foregoing description of the Donohue Employment Agreement is not complete
and is qualified in its entirety by the full text of the Donohue Employment
Agreement, a copy of which is filed herewith as Exhibit 10.1 and incorporated
herein by reference.
Item 7.01 Regulation FD Disclosure.
On May 19, 2022, the Company issued a press release announcing the foregoing
executive transitions. A copy of the press release is attached hereto as Exhibit
99.1 and incorporated herein by reference.
The information contained under Item 7.01 of this Current Report on Form 8-K
(including Exhibit 99.1), shall not be deemed "filed" for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or
otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act except as may be expressly set forth by specific
reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
10.1 Executive Employment Agreement, dated as of May 18, 2022,
between Evolv Technologies Holdings, Inc. and Mark Donohue*
99.1 Press Release, dated May 19, 2022
104 Cover Page Interactive Data File (embedded within the Inline
XBRL document)
* Management contracts and compensatory plans or arrangements
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