IonQ, Inc. has announced amendments to their Executive Severance Plan and to each of their outstanding Performance Based Award Agreements. The changes to the Severance Plan exclude terminations following a Change in Control Period as Covered Terminations, and adjust benefits for eligible executives in the event of Covered Terminations prior to a Change in Control. Specifically, eligible executives may receive their target annual bonus, a pro-rated target annual bonus for the year of the termination, and acceleration of unvested time-based equity awards. The plan was also updated to specify that a mere change in corporate structure, reporting relationships, or title after a Change in Control does not constitute Good Reason for termination, except for the CEO; plus, the requirement for executives to move their primary work location now allows for the option to work from home.
For Performance Based Award Agreements, amendments include provisions on how performance stock units will vest in cases of involuntary termination around the time of a Change in Control, with a focus on target numbers or projected performance. Moreover, the definition of Good Reason in these agreements now aligns with that of the Severance Plan.
The amendments took effect on December 3, 2024.
Proper names mentioned: - IonQ, Inc. - Executive Severance Plan - Performance Based Award Agreements