Business Context and Reporting Period
Company: Flotek Industries, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 17, 2009
Date of Earliest Event: September 11, 2009
Context: The filing reports the execution of a new Employment Agreement with Scott Stanton, the Company's Chief Accounting Officer, effective September 1, 2009.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation arrangements.
Material Changes
The primary material change is the formalization of the employment terms for the Chief Accounting Officer, Scott Stanton, including specific compensation and severance provisions.
Management Commentary and Compensation Details
- Position: Chief Accounting Officer (Scott Stanton).
- Base Salary: $225,000 annualized.
- Target Bonus: $67,500 for fiscal years 2009 and 2010, subject to the Company's management incentive plan.
- Severance Provisions: Upon termination without Cause or resignation with Good Reason, the officer is entitled to:
- 12 months of base salary.
- Health insurance coverage for the lesser of the severance period or the maximum COBRA period.
- Payment of remaining deferred compensation within 10 days of executing a release agreement.
- Restrictions: Non-solicitation and non-compete restrictions apply for a period equal to the severance period.
Investor Verification Checklist
- Verify the exact terms of the "Good Reason" and "Cause" definitions within the attached Employment Agreement (Exhibit 10.1).
- Confirm the status of the Company's management incentive plan to assess the likelihood of the target bonus payout.
- Review the Company's deferred compensation policy to understand the potential liability associated with the severance clause.