Forbes Energy Services Ltd. (OTCMKTS:FESL) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 – Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e)
2017 Annual Bonus Plan
On June 30, 2017, the board of directors, or the Board, of Forbes Energy Services Ltd., or the Company, approved the recommendation of the Compensation Committee of the Board to adopt a new cash bonus plan for the Company’s named executive officers for fiscal year 2017, or the 2017 Annual Bonus Plan. Each named executive officer of the Company is assigned a target bonus for 2017, which is equal to a percentage of such named executive officer’s base salary, under the 2017 Annual Bonus Plan. Each named executive officer’s bonus will be the product of multiplying (x) such named executive officer’s target bonus times (y) the actual achievement by the Company of the Performance Components (as defined below) times (z) the weighted percentage assigned to the Performance Components. Accordingly, actual bonuses may range from zero percent to 100 percent of the named executive officer’s target bonus. The performance metrics, or the Performance Components, used to determine each named executive officer’s bonus under the 2017 Annual Bonus Plan are (i) Adjusted EBITDA (as defined below) equal to a certain amount, (ii) Adjusted EBITDA equal to an amount significantly higher that the Adjusted EBITDA in clause (i) above, and (iii) the Company’s safety record as compared to the Total Recordable Incident Rate for the industry. No minimum bonus is required under the 2017 Bonus Plan.
The term “Adjusted EBITDA” means, with respect to the Company and its subsidiaries, income (loss) from continuing operations before interest, taxes, depreciation, amortization, gain or loss on early extinguishment of debt and non-cash stock-based compensation, excluding extraordinary items, other non-recurring items, and material out-of-period adjustments. Adjusted EBITDA may include other items as the Compensation Committee of the Board, in its sole discretion, may deem reasonable or appropriate.
About Forbes Energy Services Ltd. (OTCMKTS:FESL)
Forbes Energy Services Ltd. (FES Ltd.) is a holding company. The Company is an independent oilfield services contractor that provides a range of well site services to oil and natural gas drilling and producing companies to develop the production of oil and natural gas. The Company’s segments are Well Servicing and Fluid Logistics. Its services include fluid disposal and well maintenance. The Company’s Well Servicing segment provides an offering of well services to oil and natural gas companies, including completions of drilled oil and natural gas wells, wellbore maintenance, workovers and recompletions, tubing testing, and plugging and abandonment services. Its Fluid Logistics segment provides a range of oilfield fluid sales, transportation, storage and disposal services that are required on workover, drilling and completion projects, and are used in daily operation of producing wells by oil and natural gas producers. It operates approximately six coiled tubing spreads.