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Item 5.02
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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On April 24, 2020 (the “Agreement Date”), Kennedy Scott Gray and Luby's, Inc. (the “Company”) entered into a Final Separation Agreement and Release (the “Agreement”) pursuant to which Mr. Gray is entitled to receive the following payments and benefits under the Agreement:
•severance pay in an amount equal to $105,230.72 payable in equal bi-weekly installments over a period of 26 weeks following April 4, 2020 (the “Severance Period”);
•continued participation in the group medical insurance maintained by the Company upon the same terms and conditions in effect for active employees of the Company until the expiration of the Severance Period at a cost to the Company not to exceed $13,234.14;
•the immediate vesting of 31,028 Restricted Stock Units previously granted on December 8, 2017;
•the immediate vesting of 37,720 shares of Incentive Stock Options having a strike price of $2.82 per share previously granted on December 8, 2017 and the extension of the expiration of such options until April 4, 2022; and
•the extension of the expiration of 45,946 shares of Non-Qualified Stock Options having a strike price of $2.82 per share previously granted on December 8, 2017 until April 4, 2022.
Pursuant to the Agreement, Mr. Gray has agreed to release all claims against the Company and its affiliates.
Under the terms of the Agreement, Mr. Gray could have revoked the Agreement for a period of seven days after April 14, 2020, the date Mr. Gray executed the Agreement. The Agreement became effective on April 24, 2020 when the Company counter-signed the Agreement.