Business Context and Reporting Period
This Form 8-K Current Report was filed by Energy Services of America Corporation on February 15, 2012. The filing discloses the execution of new employment agreements with the company's President and Chief Executive Officer, Edsel R. Burns, and its Chief Financial Officer, Larry A. Blount.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. The document focuses exclusively on executive compensation terms.
- Edsel R. Burns (CEO): Annual base salary of $151,000.
- Larry A. Blount (CFO): Annual base salary of $125,000.
- Contract Term: 24 months, renewable daily to maintain a 24-month remaining term unless non-renewal is notified.
Material Changes
The material change reported is the formalization of employment terms for the two top executives. The agreements introduce specific severance provisions not previously detailed in this filing, including:
- Severance: 1.5 times the annual base salary paid in a lump sum within 30 days for involuntary termination or voluntary termination for "Good Reason."
- Change in Control: Continued medical and dental coverage for executives and spouses until Medicare eligibility age.
- Disability/Death: Continued medical coverage for the remaining term (disability) or base salary payment through the end of the month of death.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding business operations. The primary risk disclosed relates to the financial obligations triggered by executive termination events, specifically the lump-sum severance payments and extended healthcare liabilities in the event of a change in control.
Investor Verification Checklist
- Verify the full text of the employment agreements attached as Exhibits 10.1 and 10.2 for specific definitions of "Good Reason" and "Change in Control."
- Confirm if these agreements replace or modify any prior compensation arrangements for Mr. Burns and Mr. Blount.
- Review the company's most recent 10-K or 10-Q for actual financial performance, as this 8-K contains no operational data.