Simulations Plus, Inc. (NASDAQ:SLP) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Effective September 3, 2020, Simulations Plus, Inc., a California corporation (the “Company”) entered into an employment agreement with its Chief Executive Officer (CEO) Shawn O’Connor (the “Employment Agreement”). The Employment Agreement extends Mr. O’Connor’s term as CEO to August 31, 2023 and supersedes and replaces his prior employment agreement. to the Employment Agreement, Mr. O’Connor’s annual base salary increased to $450,000 and he received a one-time sign-on bonus of $100,000. In addition, Mr. O’Connor’s eligibility to receive annual equity grants increased from 25,000 to 30,000 options to purchase the Company’s common stock under the 2017 Simulations Plus, Inc. Equity Incentive Plan, as determined by the Company’s Board of Directors, his eligibility to receive an annual performance bonus increased to an amount not to exceed $225,000 to be determined by the Compensation Committee of the Company’s Board of Directors, and he became eligible to receive an additional annual discretionary bonus of up to $75,000 and an additional grant of 7,500 stock options. Mr. O’Connor’s early termination compensation also increased from six to twelve months of annual base salary and COBRA coverage.
The foregoing summary of the Employment Agreement, does not purport to be complete and is subject to, and qualified in its entirety by, a copy of the Employment Agreement attached as Exhibit 10.1 to this Current Report on Form 8-K, which is incorporated herein by reference.