On November 11, 2020, the Compensation Committee of the Board of Directors (the “Committee”) of Covenant Logistics Group, Inc., a Nevada corporation (the “Company”) approved performance-based options to purchase the Company’s Class A common stock (“Options”) to certain of the Company’s management team, including M. Paul Bunn, the Company’s Executive Vice President, Chief Financial Officer, and Secretary, and Samuel F. Hough, the Company’s Executive Vice President - Expedited Operations.
Mr. Bunn received 180,288 Options and Mr. Hough received 60,096 Options. The Options were granted under the Company’s Third Amended and Restated Omnibus Incentive Plan, as amended.
The Options vest (i) 25% if the closing price of the Company’s Class A Common Stock exceeds a certain price for at least 20 consecutive trading days before December 31, 2023, but in no event sooner than November 11, 2021, (ii) 25% if the Company achieves a certain level of freight revenue for the year ended December 31, 2023, (iii) 25% if the Company achieves certain adjusted earnings per share (“EPS”) goals for the three-year period ended December 31, 2023, along with a minimum adjusted EPS goal for the year ended December 31, 2023, and (iv) 25% if the Company achieves certain other adjusted EPS goals for the three-year period ended December 31, 2023. Absent extraordinary circumstances, the Committee does not expect to make additional awards of equity to the recipients for 2020 or 2021. The vesting of the Options is subject to certain continued employment, acceleration, and forfeiture provisions.
