Southwest Airlines Co. (NYSE:LUV) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.
Effective June30, 2017, Arthur Jefferson Lamb III resigned from his employment with Southwest Airlines Co. (the “Company”). Effective June30, 2017, Mr.Lamb entered into a consulting agreement with the Company (the “Consulting Agreement”). The Consulting Agreement provides that Mr.Lamb will be available to the Company on an as needed basis, but not to exceed ten hours per month, for a period beginning on June30, 2017 and ending on June30, 2018, unless terminated sooner. The term of the Consulting Agreement may be extended beyond June30, 2018 by mutual agreement of Mr.Lamb and the Company.
The Consulting Agreement provides that Mr.Lamb will receive an hourly rate of $200.00 for consulting services actually rendered. Mr.Lamb is also entitled to reimbursement of all reasonable expenses incurred during the period of the Consulting Agreement for services rendered on behalf of the Company. to the Consulting Agreement, Mr.Lamb has agreed to confidentiality obligations, which survive the termination of the Consulting Agreement. Additionally, Mr.Lamb has agreed to certain non-competition and non-solicitation obligations, which are terminated at the time the Consulting Agreement is terminated.
In connection with the termination of his employment and the Consulting Agreement, Mr.Lamb has also entered into a Separation Agreement and Release of Claims (the “Separation Agreement”) with the Company. to the Separation Agreement and in consideration for the release of claims, Mr.Lamb will receive (i)a lump sum payment of $1,034,000.00, less applicable withholdings and deductions, (ii)retiree flight and/or retiree health care benefits to the applicable Company retiree policies, (iii)payment for accrued but unused paid time off days, and (iv)the payments due to the Consulting Agreement, as described above.
The foregoing description does not purport to be complete and is qualified by reference to the full text of the Consulting Agreement and Separation Agreement, a copy of which is filed as Exhibit 10.1 hereto.
Item 5.02 Financial Statements and Exhibits.
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ExhibitNo. |
Description |
| 10.1 | Consulting Agreement, dated as of June30, 2017, by and between Arthur Jefferson Lamb III and Southwest Airlines Co. |
SOUTHWEST AIRLINES CO ExhibitEX-10.1 2 d408249dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 Gary C. Kelly Chairman of the Board & Chief Executive Officer P.O. Box 36611,…To view the full exhibit click here
About Southwest Airlines Co. (NYSE:LUV)
Southwest Airlines Co. (Southwest) operates Southwest Airlines. Southwest is a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company serves approximately 100 destinations in over 40 states, such as the District of Columbia, the Commonwealth of Puerto Rico, and approximately seven near-international countries, including Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, and Belize. The Company added its first three destinations in Central America (San Jose, Costa Rica, Belize City, Belize, and Liberia, Costa Rica) and also commenced Southwest service to a fourth destination in Mexico (Puerto Vallarta). Southwest operates a total of approximately 704 Boeing 737 aircraft. The Company also added approximately 20 domestic nonstop destinations from Dallas Love Field. Southwest offers a total of 180 weekday departures to 50 nonstop destinations from Dallas Love Field.