Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On September 1, 2022, William Larkin, the Company’s former Chief Financial Officer, entered into a Confidential Separation Agreement and General Release (“Separation Agreement”) with the Company and Alliance Healthcare Services, Inc., which will become effective on September 8, 2022 (the “Effective Date”) unless Mr. Larkin revokes the Separation Agreement. Pursuant to the terms of the Separation Agreement, the Company agreed to pay Mr. Larkin severance pay equal to $600,000.00, which is 18 months of his then-current annual base salary of $400,000.00, and an enhanced bonus of $450,000.00, which is one-and-one-half times of Mr. Larkin’s target bonus for his service to the Company in 2021, payable in bi-weekly instalments over an 18 month period. Under the Separation Agreement, the Company agreed to pay Mr. Larkin $38,000.00, which is the cash equivalent for the cancellation of Mr. Larkin’s 50,000 restricted share units, within five business days of the Effective Date. Mr. Larkin is also entitled to up to $35,000.00 in outplacement services provided by an outplacement services company of the Company’s choosing and a bi-weekly payment in an amount equal to Company’s group health (medical, dental and vision, where applicable) coverage expense for Mr. Larkin and his dependents (where previously enrolled).
Item 8.01. Other Events.
On August 31, 2022, the Company received a formal notification via letter from The Nasdaq Stock Market LLC (“Nasdaq”) confirming that the Company had regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2), which requires that the Company’s common stock maintain a minimum bid price of at least $1.00 per share, and that the matter is now closed.
