8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): April 15, 2021

MONRO, INC.

(Exact name of registrant as specified in its charter)

New York	0-19357	16-0838627
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

200 Holleder Parkway, Rochester, New York	14615
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (585) 647-6400

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share	MNRO	The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

As of April 15, 2021, Monro, Inc. (the “Company”) and Maureen Mulholland, the Company’s Executive Vice President - Chief Legal Officer and Secretary, entered into a letter agreement (the “Agreement”) pursuant to which Ms. Mulholland is entitled to certain payments upon termination or a change in control of the Company.

Under the Agreement, if Ms. Mulholland is terminated without Cause or resigns for Good Reason (both as defined in the Agreement) and signs a general release in favor of the Company, she is entitled to (1) base salary earned through the date of termination; (2) one year’s annual base salary; (3) pro rata bonus based on the number of days she was employed during the applicable fiscal year; (4) the immediate vesting of time-vesting equity awards, exercisable for 90 days after the separation date; and (5) pro rata portion of performance-vesting equity awards based on the performance period and achievement of applicable goals. Ms. Mulholland will be entitled to the same compensation if she is terminated or resigns for Good Reason within two years of a Change in Control (as defined in the Agreement), except that she will be entitled to two years’ of base salary payable after the separation date instead of one year.

A copy of the Agreement is attached to this Current Report as Exhibit 10.67 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are furnished as part of this Report:

Exhibit Number	Description
10.67	Letter Agreement by and between Monro, Inc. and Maureen Mulholland, dated April 15, 2021
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		MONRO, INC.
		(Registrant)
April 21, 2021	By:	/s/ Brian D’Ambrosia
		Brian D’Ambrosia
		Executive Vice President – Chief Financial Officer and Treasurer

EX-10.67

Exhibit 10.67

	200 Holleder Parkway, Rochester, NY 14615 | www.monro.com

April 15, 2021

Maureen E. Mulholland

44 Hyacinth Lane

Fairport, NY 14450

Dear Maureen:

This letter will document certain terms with respect to your employment as Chief Legal Officer (“CLO”) that Monro, Inc. (the “Company”) would like to provide to you:

1. Termination without Cause or with Good Reason – If your employment is terminated (a) by the Company without Cause (as defined herein), or (b) by you with Good Reason (as defined herein), the Company shall pay (in the normal course) to you the following amounts or benefits:

a. to the extent not yet paid, your base salary through the date of termination at the rate in effect on the date of termination;

b. one year’s annual base salary (as in effect as of the date of termination, the “Base Salary”), payable as follows, (x) a lump sum payment six months following such termination equal to six months of Base Salary and (y) following such six month period, continued payment of Base Salary (payable in accordance with the Company’s payroll practice) for the remaining six months;

c. payment of a pro rata bonus to which you are entitled, calculated as the bonus you would have received under the Company’s bonus plan, based on the Company’s actual performance during such fiscal year, had you been employed by the Company for the entire fiscal year, multiplied by a fraction, the numerator of which shall be the number of days during such fiscal year you were so employed and the denominator of which shall be the number of days in such fiscal year (the “Pro Rata Bonus”); and

d. any and all time-vesting equity awards that have been granted to the Executive (that have neither expired nor been previously exercised by the Executive) through the termination date shall be deemed fully vested on such termination date and, to the extent applicable, exercisable for a period of 90 days following such date (but, in no case, beyond each such award’s specified expiration date), and any performance-vesting equity awards shall be eligible to vest on a pro rata basis based on the period of time the Executive was employed during the performance period and achievement of the applicable performance goals, all in accordance with the other terms of any such plan or grant.

All payments to be provided to you hereunder shall be subject to your execution of a general release and waiver of claims against the Company, its officers, directors, employees and agents from any and all liability arising from your employment relationship with the Company (which release will include an agreement between both parties not to disparage the other) that is not revoked (a “General Release”).

2. Change in Control – If, within two years after a Change in Control (as defined herein) of the Company, (A) your employment is terminated without Cause or (B) you resign following:

(i) a material diminution in your duties as CLO; or

(ii) in the case of the sale of the Company, you either: (a) are not offered a comparable position by the buyer; or (b) are required by the buyer to be based anywhere beyond 50 miles from the Company’s current offices in Rochester, New York (except for required travel on Company business to an extent substantially consistent with that preceding the Change in Control), (either (i) or (ii), a “Resignation for Good Cause”), then you shall be entitled to the benefits described below.

Upon a termination without Cause in a Change in Control or a Resignation for Good Cause described above, you will receive in one lump sum amount, unless otherwise noted:

a. to the extent not yet paid, your Base Salary through the date of termination at the rate in effect on the date of termination;

b. two year’s Base Salary, payable as follows, (x) a lump sum payment six months following such termination or resignation equal to six months of Base Salary and (y) following such six-month period, continued payment of Base Salary (payable in accordance with the Company’s payroll practice) for the remaining 18 months;

c. payment of the Pro Rata Bonus to which you are entitled, payable not less than six months following such termination of employment, but otherwise in the normal course; and

d. any and all time-vesting equity awards that have been granted to the Executive (that have neither expired nor been previously exercised by the Executive) through the termination date shall be deemed fully vested on such termination date and, to the extent applicable, exercisable for a period of 90 days following such date (but, in no case, beyond each such award’s specified expiration date), and any performance-vesting equity awards shall be eligible to vest on a pro rata basis based on the period of time the Executive was employed during the performance period and achievement of the applicable performance goals, all in accordance with the other terms of any such plan or grant.

All payments to be provided to you under this provision shall be subject to your execution of a General Release.    

For purposes of this Letter Agreement, a “Change in Control” shall mean any of the following: (a) any person who is not an “affiliate” (as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended) of the Company as of the date of this Letter Agreement becomes the beneficial owner, directly or indirectly, of 50% or more of the combined voting power of the then outstanding securities of the Company except pursuant to a public offering of securities of the Company; (b) the sale of the Company substantially as an entity (whether by sale of stock, sale of assets, merger, consolidation, or otherwise) to a person who is not an affiliate of the Company as of the date of this Agreement; or (c) there occurs a merger, consolidation or other reorganization of the Company with a person who is not an affiliate of the Company as of the date of this Agreement, and in which shareholders of the Company

immediately preceding the merger hold less than 50% (the voting and consent rights of Class C Preferred Stock shall be disregarded in this calculation) of the combined voting power for the election of directors of the Company immediately following the merger. For purposes of this provision, the term “person” shall include a legal entity, as well as an individual. A Change in Control shall not be deemed to occur because of the sale or conversion of any or all of Class C Preferred Stock of the Company unless there is a simultaneous change described in clauses (a), (b) or (c) of the preceding sentence.

For purposes of this Letter Agreement, “Cause” shall mean a determination by the Company in its discretion of one or more of the following: (i) dishonesty, including, without limitation, embezzlement, fraud or theft; (ii) gross negligence or willful disregard of duties or material failure to perform reasonably assigned duties; (iii) gross insubordination, willful disobedience or material breach of any of the Company rules, policies, practices, instructions, expectations, lawful directions; (iv) criminal activity, moral turpitude, conviction of a felony, plea of guilty or nolo contendere to a felony charge, or any criminal act involving moral turpitude; and/or (v) other egregious conduct contrary to the interests of the Company.

For purposes of this Letter Agreement, “Good Reason” means if you are able to document, to the reasonable satisfaction of the Company’s outside counsel, that the reason for such resignation is as a direct result of the Board of Directors or the CEO requiring you to act, or omit to act, in a way that you reasonably believes is illegal; provided, however, that a termination by you hereunder shall be effective only if, within 30 days following the delivery of written notice of a termination for Good Reason by you to the Company, the Company has failed to cure the circumstances giving rise to the Good Reason. The written notice of termination for Good Reason must specify in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated, if applicable.

Very truly yours,

/s/ Robert E. Mellor

Robert E. Mellor, Chairman

Please acknowledge your agreement with the foregoing.

/s/ Maureen E. Mulholland

Maureen E. Mulholland

XML

Document and Entity Information	Apr. 15, 2021
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0000876427
Document Type	8-K
Document Period End Date	Apr. 15, 2021
Entity Registrant Name	MONRO, INC.
Entity Incorporation State Country Code	NY
Entity File Number	0-19357
Entity Tax Identification Number	16-0838627
Entity Address, Address Line One	200 Holleder Parkway
Entity Address, City or Town	Rochester
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14615
City Area Code	(585)
Local Phone Number	647-6400
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $.01 per share
Trading Symbol	MNRO
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false