LSG CFO Resigns; Entitled to $320K Salary Plus $100K Bonus
Effective as of July 8, 2014, Thomas Shields resigned as Chief Financial Officer of Lighting Science Group Corporation, a Delaware corporation (the “Company”), and will remain employed by the Company as a financial expert through August 8, 2014 (the “Separation Date”). The terms of Mr. Shields’s separation from the Company are governed by a severance and termination agreement (the “Severance Agreement”), dated July 8, 2014, by and between the Company and Mr. Shields.
Pursuant to the Severance Agreement, Mr. Shields is entitled to receive (i) continued payment of his base salary of $320,000 per year until July 31, 2015, (ii) a bonus payment in the amount of $100,000, payable by August 31, 2014, and (iii) payment for the value of unused vacation accrued through the Separation Date. If Mr. Shields or any of his eligible dependents elect continued coverage under the Company’s medical, dental or vision plans pursuant to COBRA or any comparable law, he will receive for each month during such coverage (but in no event for more than 12 months following the Separation Date), an amount calculated so that the net amount after tax withholding is equal to the difference between the full COBRA premium for such coverage and the premium paid by active Company employees, as of the Separation Date, for the same coverage.
Additionally, 878,300 unvested options to purchase shares of common stock previously granted to Mr. Shields will vest in full on the Separation Date. The remaining 1,756,600 unvested options to purchase shares of common stock held by Mr. Shields will be terminated and cancelled as of the Separation Date. The Severance Agreement also contains customary mutual release, confidentiality, non-competition and non-disparagement provisions.
Appointment of Dennis McGill as Interim Chief Financial Officer
Following Mr. Shields’s resignation, the Board of Directors of the Company appointed Dennis McGill to serve as Interim Chief Financial Officer of the Company, effective July 9, 2014. As previously announced, Mr. McGill also serves as the Company’s Interim Chief Operating Officer. The biographical information for Mr. McGill set forth in Item 5.02 of the Current Report on Form 8-K filed by the Company on June 18, 2014 is incorporated herein by reference.