PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) 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.
On December22, 2017, Patterson-UTI Energy, Inc., a Delaware corporation (the “Company”), entered into an employment agreement (the “Employment Agreement”) with John E. Vollmer III, the Company’s former Chief Financial Officer and Treasurer. to the Employment Agreement, effective as of December31, 2017, Mr.Vollmer has agreed to provide services to the Company as a part-time employee with regard to such matters as the Company may from time to time request, including the transition of the new Chief Financial Officer, assisting with the integration of the Seventy Seven Energy Inc. and Multi-Shot, LLC acquisitions and other matters reasonably requested by the Company’s Chief Executive Officer. Mr.Vollmer will be entitled to receive a base salary of $250,000 per year and will receive a 2017 cash bonus of $350,000 at the earlier of (i)the time bonuses are paid to other executives of the Company or (ii)March15, 2018. The Company will also pay to Mr.Vollmer a lump sum retirement payment of $450,000 (the “Retirement Payment”) and an additional payment of $125,000 in settlement of any other owed compensation, including any accrued vacation or paid time off accruals through the date of the Employment Agreement.
The Employment Agreement has a four-year term. Mr.Vollmer may terminate his employment under his Employment Agreement by providing written notice of such termination at least 30 days before the effective date of such termination. After December31, 2019, Mr.Vollmer may elect on 60 days advance notice to terminate the Employment Agreement and the corresponding non-compete and non-solicitation restrictions described below as of a date no earlier than December31, 2020. Under specified circumstances, the Company may terminate Mr.Vollmer’s employment under his Employment Agreement for “Cause” (as defined in the Employment Agreement). On the conclusion of the term of the Employment Agreement, Mr.Vollmer agrees to voluntarily terminate his employment. Upon termination of employment, (i)Mr.Vollmer will have the right to receive his unpaid base salary through the date of termination, (ii)his vested benefits to the terms of any employee benefit plans, and (iii)the Retirement Payment to the extent it has not already been paid.
As provided for in the Employment Agreement, Mr.Vollmer has executed a release, and all of the foregoing benefits under the Employment Agreement (other than the accrued obligations and benefit obligations) are conditioned on Mr.Vollmer not revoking such release during any applicable revocation period provided in such release.
The Employment Agreement also contains a non-disparagement covenant and certain confidentiality covenants prohibiting Mr.Vollmer from, among other things, disclosing confidential information. The Employment Agreement also contains non-competition and non-solicitation restrictions, to which Mr.Vollmer will not be permitted to compete with the Company in certain circumstances for the term of the Employment Agreement, subject to early termination as set forth in the Employment Agreement.
The foregoing summary does not purport to be complete and is qualified in its entirety by reference to the Employment Agreement, a copy of which is filed as Exhibit10.1.
Item 5.02 Financial Statements and Exhibits.
(d) Exhibits
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PATTERSON UTI ENERGY INC ExhibitEX-10.1 2 d499742dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 Execution Version EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of December 31,…To view the full exhibit click here
About PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN)
Patterson-UTI Energy, Inc. owns and operates fleets of land-based drilling rigs and a fleet of pressure pumping equipment in the United States. The Company operates in three segments: Contract Drilling, Pressure Pumping, and Oil and Natural Gas. The Company provides contract drilling services to oil and natural gas operators in the continental United States, and western and northern Canada. The Company provides pressure-pumping services to oil and natural gas operators. The Company also invests in oil and natural gas properties. The Company’s Contract Drilling segment markets its contract drilling services to oil and natural gas operators. The Company’s Pressure Pumping segment provides pressure-pumping services to oil and natural gas operators in Texas and the Appalachian region. The Company’s oil and natural gas working interests are located in producing regions of Texas and New Mexico. Pressure pumping services consist of well stimulation, such as hydraulic fracturing.
