CARBON NATURAL GAS COMPANY (OTCMKTS:CRBO) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.
| Entry into a Material Definitive Agreement. |
| (a) | 2017 Annual Incentive Plan. |
On March 20, 2017, the Board of Directors (the Board) of Carbon
Natural Gas Company (Carbon or the Company) finalized Carbons
2017 Annual Incentive Plan (the 2017 AIP) for Carbons executive
officers and all other participants. Under the 2017 AIP, any
incentive awards will be tied to four performance criteria:
(i)Debt to Adjusted EBITDA Ratio, (ii)Net Annual Production
(MMcfe), (iii)Lease Operating Expenses ($/unit) and (iv)General
and Administrative Expenses per Unit of Net Production. Each of
the performance criteria included in the 2017 AIP is tied to a
percentage of the participants target bonus, which is expressed
as a percentage of a participants average base salary during 2017
or earned salary during 2017 if the participant was a new hire
during the year, took a leave of absence or was absent due to a
workers compensation matter. In addition to the target level, the
2017 AIP includes completion percentages for a range of
performance levels, from a threshold level up to an outstanding
level. Sixty percent of the incentive award is tied directly to
the level of performance with respect to the four performance
criteria and forty percent of the award is at the discretion of
the Board.
The 2017 AIP is administered by the Compensation, Nominating and
Governance Committee of the Board and the Chief Executive Officer
(for all participant awards other than awards to officers).
Participation of officers in the 2017 AIP is determined by the
Board and the participation of other employees of Carbon and its
subsidiaries in the 2017 AIP is determined by the Chief Executive
Officer. The Chief Financial Officer is responsible for verifying
the performance calculation for the financial and operating
performance measures. The Compensation, Nominating and Governance
Committee of the Board must certify the levels of performance
achieved. No awards will be made under the 2017 AIP unless a
minimum 30% completion threshold is achieved for the total plan.
Any modifications to the 2017 AIP must be approved by the Board.
| Item 5.02. |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
| (e) | Compensatory Plans and Arrangements. |
The information set forth under Item 1.01 of this Current Report
on Form 8-K is hereby incorporated in Item 5.02 by reference.
About CARBON NATURAL GAS COMPANY (OTCMKTS:CRBO)
Carbon Natural Gas Company (Carbon) is a holding company. The Company owns and operates oil and natural gas and oil interests in the Appalachian and Illinois Basins of the United States. The Company produces and sells oil, natural gas, natural gas condensate and natural gas liquids. Carbon conducts its oil and natural gas operations through Nytis LLC. Carbon’s oil and gas properties are located in Illinois, Indiana, Kentucky, Ohio, Tennessee and West Virginia. Nytis LLC owns working interests in approximately 850 gross wells (over 570 net) and royalty interests located in Kentucky, Ohio, Tennessee and West Virginia, and has leasehold positions in approximately 17,000 net developed acres and over 184,800 net undeveloped acres. Nytis LLC owns working interests in approximately 60 gross (over 30 net) coalbed methane wells in the Illinois Basin, and has a leasehold position in approximately 1,700 net developed acres and over 66,700 net undeveloped acres. CARBON NATURAL GAS COMPANY (OTCMKTS:CRBO) Recent Trading Information
CARBON NATURAL GAS COMPANY (OTCMKTS:CRBO) closed its last trading session 00.00 at 12.00 with 1,247 shares trading hands.
