Business Context and Reporting Period
Company: Optical Cable Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: December 10, 2004
Reporting Period: Specific events occurring on December 10, 2004, and December 17, 2004.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on executive compensation agreements and equity awards.
Material Changes
- Executive Appointment: On December 10, 2004, the company entered into a material definitive employment agreement with Tracy G. Smith, appointing her as Vice President and Chief Financial Officer.
- Compensation Structure: Ms. Smith's agreement includes an initial annual base salary of $134,000, a 25% annual target bonus opportunity contingent on corporate and divisional goals, and eligibility for long-term equity compensation.
- Contract Term: The initial term ends October 31, 2007, with automatic one-year renewals unless terminated by written notice 30 days prior to the renewal date.
- Equity Awards: On December 17, 2004, the company entered into restricted stock award agreements with its executive officers.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, management commentary on market conditions, or specific risk factors. The primary contingency noted is the performance-based nature of the bonus compensation, which is contingent on the achievement of quantified corporate and divisional goals.
Investor Verification Checklist
- Verify the terms of the employment agreement filed as Exhibit 10.1.
- Review the forms of restricted stock agreements filed as Exhibits 10.2 and 10.3.
- Confirm the specific quantified corporate and divisional goals required to trigger the 25% target bonus for the 2005 fiscal year.
- Check subsequent filings for any changes to the executive team or compensation plans.