Ocean Power Technologies, Inc. (NASDAQ:OPTT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Effective June 18, 2021, in connection with his appointment as Chief Executive Officer and President of Ocean Power Technologies, Inc. (the “Company”) as described under Item 5.02 below, J. Philipp Stratmann entered into an Employment Agreement (the “Employment Agreement”) with the Company. Mr. Stratmann previously served as Vice President – Global Business Development since 2019. to the Employment Agreement, Mr. Stratmann will receive an annual base salary of $360,000, is eligible for an annual, discretionary, performance-based bonus targeted at 75% of base salary on such terms and conditions as may be determined by the Board of Directors (the “Board”) or its Compensation Committee, and is eligible to receive long-term incentive equity based awards, to the Company’s 2015 Omnibus Incentive Plan, as amended, subject to such terms and conditions as may be determined by the Board or its Compensation Committee. At the time of signing the Employment Agreement, Mr. Stratmann received a one-time grant of 100,000 restricted stock units that vest, if at all, equally over two years with 1/3 of each vesting based on time and 2/3 of each vesting based on positive total shareholder return.
Mr. Stratmann will also receive temporary housing assistance for up to six months and up to $50,000 to cover such costs and relocation expenses related to moving to New Jersey of up to $50,000. If he is terminated other than for cause within the first 12 months, he will receive six months of salary as severance, and if terminated other than for cause thereafter, he will receive 12 months of salary as severance. Mr. Stratmann is also subject to covenants regarding non-competition, non-solicitation and confidentiality.
The foregoing description of the Employment Agreement is qualified in its entirety by reference to the full text of the Employment Agreement which is filed with this Current Report on Form 8-K as Exhibit 10.1.
As described below under Item 5.02, the employment agreement of George H. Kirby III with the Company dated as of December 29, 2014, as amended, ceased in connection with his departure from the Company.
On June 21, 2021, the Company announced that George H. Kirby III, former President and Chief Executive Officer of the Company, departed the Company on June 18, 2021. As described under Item 1.02 above, Mr. Kirby’s employment agreement with the Company dated as of December 29, 2014, as amended, ceased in connection with his departure effective as of such date.
Effective June 18, 2021, as noted in Item 1.01 above, J. Philipp Stratmann was appointed Chief Executive Officer and President of the Company. Mr. Stratmann, age 42, has served as Vice President – Global Business Development of the Company since 2019. Prior to that, he was Vice President, Biofuels for Velocys, which he joined in 2015 as Business Development Director. He previously served as General Manager Global Development and West Africa for InterMoor and has held leadership positions with Acteon Group and Ernst & Young, in addition to experience with VT Group and Shell. He is a graduate of the United Kingdom’s University of Southampton, where he received his Engineering Doctorate and his Master of Engineering degree in Ship Science.
In addition, Matthew T. Shafer, the Company’s Chief Financial Officer, was promoted to Senior Vice President, Chief Financial Officer and Treasurer.
The description of the Employment Agreement is incorporated by reference into this Item 5.02.
On June 21, 2021, the Company issued a press release announcing the various management changes contemplated by Item 5.02 above. A copy of the press release is filed herewith as Exhibit 99.1.
| Exhibits | |
| *10.1 | Employment Agreement between the Company and Philipp Stratmann dated effective June 18, 2021. |
| *99.1 | Press release dated June 21, 2021. |
| * Filed herewith. | |
Ocean Power Technologies, Inc. Exhibit
EX-10.1 2 ex10-1.htm Exhibit 10.1 OCEAN POWER TECHNOLOGIES,…
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About Ocean Power Technologies, Inc. (NASDAQ:OPTT)
Ocean Power Technologies, Inc. is developing and seeking to commercialize its systems that generate electricity by connecting the renewable energy of ocean waves. The Company’s PowerBuoy systems use technologies that convert the mechanical energy created by the rising and falling of ocean waves into electricity. The Company focuses on developing its PowerBuoy product line, which is based on modular, ocean-going buoys. Its autonomous PowerBuoy generates power for use in remote locations, independent of an existing power grid. The Company focuses on developing and commercializing its PowerBuoy products and services for use in autonomous power applications. The Company markets its PowerBuoys in the United States and internationally. The autonomous PowerBuoy integrates a power take-off (PTO) and onboard system for energy storage and management. Its PowerBuoy product is the PB3. PB3 can act as an uninterruptable power supply (UPS), which recharges itself by harvesting energy from the waves.