| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Extension of Interim Strategic Executive
On October 8, 2018, StoneMor GP LLC (“StoneMor GP”), the general partner of StoneMor Partners L.P. (the “Partnership”), and Leo J. Pound modified the terms of the Agreement dated July 26, 2018 pursuant to which he serves as Interim Strategic Executive of StoneMor GP by extending the term of his service in such capacity through October 31, 2018. StoneMor GP also delegated to Joseph M. Redling, its President and Chief Executive Officer, the authority to extend such term for one additional month. During such additional period of service as Interim Strategic Executive, Mr. Pound will continue to receive a monthly fee of $50,000. Mr. Pound will defer his return to the Audit Committee of the Board of Directors of StoneMor GP until his service as Interim Strategic Executive ceases.
A summary of the oral agreement between Mr. Pound and StoneMor GP with respect to extension of the term of his service as Interim Strategic Executive of StoneMor GP is attached hereto as Exhibit 10.1 to this Current Report on Form8-K and is incorporated by reference herein.
Matters Pertaining to Lawrence Miller
On October 12, 2018, the Partnership and Lawrence Miller entered into a letter agreement (the “Agreement”) that resolved the number of units that vested upon Mr. Miller’s retirement as President and Chief Executive Officer in May 2017 pursuant to awards made under the Partnership’s 2014 Long-Term Incentive Plan (the “Plan”). The parties agreed that a total of 22,644 time-based units and 63,836 performance-based units vested under such awards in accordance with the terms of the Separation Agreement dated March 27, 2017 between Mr. Miller and StoneMor GP. The parties also agreed that a total of $340,751.40 will be paid to Mr. Miller pursuant to distribution equivalent rights with respect to those units.
In connection with entering into the Agreement, Mr. Miller resigned as a director of StoneMor GP. The Partnership will pay Mr. Miller the distribution equivalent rights within five business days, and will issue the vested units within five business days after it has filed all reports it is required to file under the Securities Exchange Act of 1934, as amended. The Agreement also included a customary release by Mr. Miller of any further claims with respect to the Plan, including the referenced awards, and any right to appoint a “Founder Director” under the terms of StoneMor GP’s Second Amended and Restated Limited Liability Company Agreement, as amended.
The foregoing summary of the Agreement is not intended to be complete and is qualified in its entirety by reference thereto, a copy of which is attached as Exhibit 10.2 to this Current Report onForm 8-K and is incorporated by reference herein.
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