FORUM ENERGY TECHNOLOGIES, INC. (NYSE:FET) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 9.01.Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
As previously reported by Forum Energy Technologies, Inc. (the “Company”) on a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on December 6, 2018 (the “Initial Form 8-K”), the Company announced the appointment of Mr. C. Christopher Gaut as President and Chief Executive Officer as of November 30, 2018. This Current Report on Form 8-K/A is being filed as an amendment to the Initial Form 8-K to provide information regarding Mr. Gaut’s compensatory arrangement with the Company.
On December 19, 2018, the Company’s Board of Directors approved the following compensatory arrangement with respect to Mr. Gaut: (i) base salary of $750,000; (ii) target bonus of 110% and a maximum bonus of 220% of his base salary based on the Company’s performance; and (iii) a long-term incentive award of 300,000 Restricted Stock Units, vesting equally over a three-year period, and 300,000 Performance Shares, representing a contingent right to receive common stock based upon the Company’s total shareholder return relative to its peer group over a three-year period beginning January 1, 2019. The number of shares of common stock that may be earned upon the attainment of the specified performance goals are consistent with previous awards to other executive officers and shall vest at the time that the number of earned shares has been determined. Mr.Gaut is eligible to participate in the Company’s compensation and benefits plans, and programs for similarly situated executives, including the Company’s equity incentive plans.
The Company also entered into a Severance Agreement with Mr.Gaut, dated December 19, 2018 (the “Gaut Severance Agreement”). The Gaut Severance Agreement provides that if Mr.Gaut’s employment is terminated by him for Good Reason, as defined therein, or by the Company for any reason other than his death, disability or for Cause, as defined therein, he would be entitled to receive the following benefits: (1)a lump sum payment of an amount equal to two (or three if the termination is within two years after a change in control) multiplied by the sum of (A)his annual base salary at the time of the termination plus (B)his annual base salary multiplied by his highest target bonus opportunity in the year of termination or the two preceding years, (2)a lump sum payment of an amount equal to his unpaid bonus for the prior calendar year, if any, payable at the same time such bonus is paid to active executives, (3)a lump sum payment of an amount equal to his bonus for the calendar year in which his termination occurs, if any, based on the applicable performance criteria, prorated through and including the date of termination, payable at the same time as such bonus is paid to active executives and (4)if he elects COBRA continuation coverage for himself and his eligible dependents, monthly reimbursement of the differential between the COBRA premium and the active executive contribution amount for such coverage under the Company’s group health plans for up to eighteen months. All benefits under the Gaut Severance Agreement are subject to timely execution by Mr.Gaut of a release of claims against the Company. The Gaut Severance Agreement also provides for customary protection of confidential information and two-year non-compete and non-solicitation covenants.
The foregoing description of the Gaut Severance Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the agreement, which is filed as Exhibit 10.1 hereto.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit No. |
Exhibit Title or Description |
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Severance Agreement – Gaut |
FORUM ENERGY TECHNOLOGIES, INC. Exhibit
EX-10.1 2 exhibit101severanceagreeme.htm EXHIBIT 10.1 Exhibit EXHIBIT 10.1SEVERANCE AGREEMENTTHIS SEVERANCE AGREEMENT (“Agreement”) is made on this 19th day of December,…
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About FORUM ENERGY TECHNOLOGIES, INC. (NYSE:FET)
Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products and engages in aftermarket services, parts supply and related services. It operates through two segments: Drilling & Subsea, and Production & Infrastructure. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas. Its capital products are targeted at drilling rig equipment for rigs, upgrades and refurbishment projects; subsea construction and development projects; the placement of production equipment on producing wells; pressure pumping equipment, and downstream capital projects. Its engineered systems are components used on drilling rigs for completions or in the course of subsea operations, while its consumable products are used to maintain operations at well sites in the well construction process.
