Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Change in Control Plan
On January 25, 2023, Sharecare, Inc. (the "Company") adopted the Sharecare, Inc.
Change in Control Plan (the "Plan") and its named executive officers ("NEOs"),
Jeffrey T. Arnold, Justin Ferrero and Dawn Whaley, and certain other
participants (the "Participants") became subject to the Plan. The Plan, which
replaces and supersedes the change in control provisions in each Participant's
employment agreement, if any, was approved by the compensation and human capital
committee of the Company's board of directors (the "Compensation Committee") in
order to, among other things, attract and retain key talent and ensure
continuity of the business in the event of a change in control of the Company.
The Plan provides, among other things, that if a Participant either is
terminated by the Company without "cause" other than due to disability or death
or terminates his or her employment with the Company for "good reason" within
two years following a "change in control" (commonly referred to as
"double-trigger"), the Participant is entitled to severance in an amount equal
to the sum of (a) the Participant's annual base salary and (b) the Participant's
target bonus, multiplied by one and one half, two or three, depending on the
Participant. Mr. Arnold's multiplier is three and the multiplier for Mr. Ferrero
and Ms. Whaley is two. In addition, in connection with a qualifying termination,
the Participants are entitled to (i) a pro-rated bonus payment for the year of
termination, (ii) a payment in an amount equal to twenty-four (24) times the
monthly COBRA charge and the ability to be covered by the Company's group health
plan for such period, and (iii) the vesting of equity and long-term awards. For
time-based awards and their replacement awards, if any, all unvested awards will
immediately vest upon a qualifying termination. For performance-based awards,
awards will generally vest and settle at the greater of target and actual
performance upon a qualifying termination. The foregoing benefits will be paid
or provided only if the Participant signs a general release of claims.
The foregoing description of the Plan is qualified in its entirety by reference
to the Plan, a copy of which will be filed as an exhibit to the Company's Annual
Report on Form 10-K for the year ended December 31, 2022.
Equity Awards
In addition, the Compensation Committee, after consultation with its outside
advisors and the full board of directors, approved a long-term incentive program
for the NEOs to align incentives with the Company's near-term and long-term
goals and strengthen the alignment between NEOs and stockholders. On January 25,
2023, pursuant to the Company's 2021 Omnibus Incentive Plan, the Compensation
Committee approved grants of equity awards to certain individuals, including the
NEOs. The equity awards are comprised of seventy-five percent (75%) time-based
restricted stock units ("RSUs"), which will vest in three equal annual
installments on the first, second and third anniversaries of the grant date
subject to the grantees continued employment with the Company, and twenty-five
percent (25%) performance-based restricted stock units ("PSUs"). The PSUs
provide for cliff vesting at the end of the three-year performance period, with
the number of shares to be issued based on annual achievement of specified
revenue and EBITDA margin targets. The equity awards for the NEOs are as
follows:
NEO RSUs PSUs
Jeff Arnold, Chief Executive Officer 3,765,691 1,255,231
Dawn Whaley, President and Chief Marketing Officer 2,039,749 679,917
Justin Ferrero, President and Chief Financial Officer 2,039,749 679,917
The RSUs and PSUs will be subject to the terms and conditions set forth in the
applicable award agreements. The foregoing description of the RSUs and PSUs is
qualified in its entirety by reference to the forms of the applicable award
agreements, copies of which will be filed as exhibits to the Company's Annual
Report on Form 10-K for the year ended December 31, 2022.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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