AROTECH CORPORATION (NASDAQ:ARTX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
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Entry into a Material Definitive Agreement.
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Steven Esses agreed that Mr. Esses would step down from his
position as President and CEO of the Company, and Mr. Esses
resigned as a director of the Company and as an officer and
director of all of the Companys subsidiaries, effective December
31, 2016. In connection with the departure of Mr. Esses, the
Company and the Companys subsidiary Epsilor-Electric Fuel Ltd.
(Epsilor) and Mr. Esses executed a Separation and General Release
Agreement (the Separation Agreement) dated December 29, 2016,
providing, inter alia, for payment by the Company of $2,050,000
in place of the sums owed to Mr. Esses to the terms of his
employment agreement, as amended, in return for a complete waiver
and release of claims by Mr. Esses.
qualified in its entirety by the terms of the Separation
Agreement, which is filed herewith as Exhibit 10.1 and
incorporated herein by reference
| Item 1.02 |
Termination of a Material Definitive Agreement.
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Mr. Esses would step down from his position as President and CEO
of the Company, and Mr. Esses resigned as a director of the
Company and as an officer and director of all of the Companys
subsidiaries, effective December 31, 2016. The Separation
Agreement described under Item 1.01 above supersedes the Fifth
Amended and Restated Employment Agreement between Mr. Esses and
the Company dated February 16, 2016, as amended, and all other
agreements, plans, programs, policies and arrangements relating
to the terms of Mr. Essess employment with the Company. The
material terms of the Separation Agreement are described under
Item 1.01 above and incorporated by reference into this Item
1.02.
| Item 5.02 |
Departure of Directors or Principal Officers; Election of
Directors; Appoint-ment of Principal Officers. |
Mr. Esses would step down from his position as President and CEO,
and Mr. Esses resigned as a director of the Company and as an
officer and director of all of the Companys subsidiaries,
effective December 31, 2016. Mr. Essess departure is unrelated in
any manner to any past, present or contemplated accounting or
finance issue or to any disagreement over accounting treatment or
policy.
2016 between the Company and Mr. Esses are described under Item
1.01 above and incorporated by reference into this Item 5.02(b).
Esses has stepped down from his position as President and CEO and
director is attached as Exhibit 99.1.
Division in January 2005, after having spent the prior thirteen
years as a member of the FAAC management team, and was promoted
to Arotechs Senior Vice President, Operations North America in
January 2015. He began his career at FAAC in 1987 as an
electrical engineer in FAACs part task trainer division and
served as FAACs Director of Operations prior to becoming its
President. He also has significant experience managing programs
in the training and simulation industry. Mr. Krutty holds a B.S.
in electrical engineering from the Michigan State University.
appointed to the position of Acting CEO of the Company, nor are
there any transactions or proposed transactions between the
Company and Mr. Krutty requiring disclosure under Item 404(a) of
Regulation S-K under the Securities Exchange Act of 1934, as
amended.
Krutty has been named Acting CEO of the Company is attached as
Exhibit 99.1.
| Item 8.01 |
Other Events.
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disseminated the press release attached as Exhibit 99.1 hereto.
Report on Form 8-K:
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Exhibit Number
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Description
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10.1
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Separation and General Release Agreement between the
Company and Epsilor, and Steven Esses, dated December 29, 2016 |
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99.1
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Press release dated January 3, 2017
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About AROTECH CORPORATION (NASDAQ:ARTX)
Arotech Corporation is a defense and security products and services company, engaged in providing interactive simulation for military, law enforcement and commercial markets, and batteries and charging systems for the military, commercial and medical markets. The Company operates through two segments: Training and Simulation Division, and Power Systems Division. The Company’s Training and Simulation Division develops, manufactures and markets multimedia and interactive digital solutions for engineering, use-of-force training and operator training of military, law enforcement, security, emergency services and other personnel. The Company’s Power Systems Division provides battery solutions, energy management and power distribution technologies and product design and manufacturing services for the aerospace, defense, law enforcement, homeland security markets, and it manufactures and sells rechargeable batteries for defense and security products and medical and industrial applications. AROTECH CORPORATION (NASDAQ:ARTX) Recent Trading Information
AROTECH CORPORATION (NASDAQ:ARTX) closed its last trading session 00.00 at 3.50 with 173,721 shares trading hands.
