Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective as of October 23, 2020, Hyliion Holdings Corp. (the "Company") entered
into an employment agreement with Greg Van de Vere, its Chief Financial Officer,
which provides for an initial one-year term, and automatically renews for
successive 12-month terms thereafter unless at least ninety 90 days prior to the
expiration of any 12-month term either party notifies the other of non-renewal.
Pursuant to the agreement, Mr. Van de Vere will receive an annual base salary of
$400,000 and is eligible for discretionary cash bonuses, at the discretion of
the Company's board of directors (the "Board").
In addition, pursuant to the terms of his employment agreement, and subject to
the approval of the compensation committee of the Board (the "Compensation
Committee"), Mr. Van de Vere will be granted (on a one-time basis) (i) a
time-based restricted stock unit ("RSU") award covering 100,000 shares of the
Company's common stock, which will vest over a four-year period, with 25%
vesting on October 1, 2021, and the remainder vesting in 12 equal quarterly
installments thereafter, subject to Mr. Van de Vere's continuous service through
each applicable vesting date, and (ii) a performance-based RSU award covering
500,000 shares of the Company's common stock, which will vest over the period
from October 23, 2020 through December 31, 2025 based upon the achievement of
pre-defined performance criteria determined by the Compensation Committee,
subject to Mr. Van de Vere's continuous service to through each applicable
vesting date.
Under Mr. Van de Vere's employment agreement, if Mr. Van de Vere's employment is
terminated (i) due to non-renewal of the term of his employment agreement, (ii)
by the Company without "cause", or (iii) by Mr. Van de Vere for "good reason"
(such terms are defined therein), then, subject to execution of claims release
and compliance with the confidentiality, non-competition, non-solicitation, and
intellectual property provisions set forth in his employment agreement, he will
receive the following severance benefits: (a) 12 months current annual base
salary; (b) accelerated vesting and, if applicable, exercisability of the
then-unvested portion of each of his outstanding equity awards (other than any
equity awards subject to performance-based or other similar vesting criteria)
that would have vested had he remained employed for an additional 12 months
following termination; (c) each of his then-outstanding and unexercised stock
options (to the extent vested) will remain exercisable for up to 36 months
following the termination date; and (d) up to 12 months of reimbursement for
COBRA coverage.
In addition, Mr. Van de Vere's employment agreement provides that if Mr. Van de
Vere's employment with us is terminated due to his death or "disability" (as
defined therein), all of his then-outstanding and unvested equity awards (other
than any equity awards subject to performance-based or other similar vesting
criteria) will immediately vest in full and, if applicable, become fully
exercisable.
Mr. Van de Vere's employment agreement also provides that in the event of a
change in control (as defined in the Company's 2020 Equity Incentive Plan), and
provided Mr. Van de Vere remains in continuous service through immediately prior
to such change in control, the performance-based RSU award provided therein will
vest immediately prior to such change in control based upon the actual
achievement of the applicable performance vesting criteria to which such award
is subject, whereas if the time-based RSU provided therein is not assumed,
substituted for, or continued by the successor corporation (or a parent or
subsidiary thereof), such award will fully vest and settle immediately prior to
consummation of such change in control, subject to Mr. Van de Vere's continued
service through immediately prior to such change in control.
For clarity, on October 16, 2020, all of Mr. Van de Vere's unvested Company
options that were granted to him prior to October 1, 2020 fully accelerated
vesting and exercisability in accordance with the terms of his prior employment
agreement with Hyliion Inc.
The foregoing description of Mr. Van de Vere' employment agreement is qualified
in its entirety by the full text thereof the employment agreement , a copy of
which is filed as Exhibit 10.1 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number Description
10.1 Employment Agreement, dated October 23, 2020, by and between the
Company and Greg Van de Vere (incorporated by reference to Exhibit 10.7
to the Registration Statement on Form S-1 filed on October 23, 2020).
1
© Edgar Online, source Glimpses